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2021-06-09 Regular Meeting Minutes CAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES JUNE 9, 2021 Wilmington Convention Center Regular Meeting 9:00 AM 10 CONVENTION CENTER DR. WILMINGTON, NC 28401 I. CALL TO ORDER II. DETERMINATION OF A QUORUM Attendee Name Organization Title Status Arrived Wesley Corder Cape Fear Public Utility Chair Present Authority William Norris Cape Fear Public Utility Vice-Chair Present Authority Deans Hackney Cape Fear Public Utility Secretary Present Authority Jennifer Adams Cape Fear Public Utility Treasurer Present Authority Jessica Cannon Cape Fear Public Utility Present Authority Hollis Briggs Cape Fear Public Utility Present Authority Larry Sneeden Cape Fear Public Utility Present Authority Jonathan Barfield Cape Fear Public Utility Present Authority Kevin O'Grady Cape Fear Public Utility Present Authority Charlie Rivenbark Cape Fear Public Utility Present Authority Rob Zapple Cape Fear Public Utility Present Authority Jim Flechtner Cape Fear Public Utility Executive Director Present Authority Linda Miles Miles Firm, PLLC CFPUA Consulting Attorney Present Frank Styers Cape Fear Public Utility Deputy Executive Director Present Authority Carel Cape Fear Public Utility Deputy Executive Director Present Vandermeyden Authority Beth Eckert Cape Fear Public Utility Director of EMD Present Cape Fear Public Utility Authority Page 1 MinutesAuthority BoardJune 9, 2021 Authority Kristine Irick Cape Fear Public Utility Customer Service Director Present Authority John McLean Cape Fear Public Utility Chief Financial Officer Present Authority Vaughn Hagerty Cape Fear Public Utility Public Information Officer Present Authority Cord Ellison Cape Fear Public Utility Chief Information Officer Present Authority Lori McKoy Cape Fear Public Utility Human Resources Director Present Authority Cammie Bellamy Cape Fear Public Utility Assistant PIO Present Authority Karen Durso Cape Fear Public Utility Real Estate Manager Present Authority Sara Eskew Cape Fear Public Utility Present Authority Annette Flechtner Present Mike Brown Former Board Chair Present Donna S. Pope Cape Fear Public Utility Clerk/Executive Secretary to the Present Authority Board III. ADOPTION OF AGENDA Mr. Zapple moved to adopt the day's agenda. Mr. Rivenbark seconded the motion, and it passed unanimously. IV. APPROVAL OF MINUTES 1. Authority Board - Regular Meeting - May 12, 2021 9:00 AM RESULT: ACCEPTED \[UNANIMOUS\] MOVER: Deans Hackney, Secretary SECONDER: Kevin O'Grady AYES: Corder, Norris, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, O'Grady, Rivenbark, Zapple V. PUBLIC COMMENTS - 4 MINUTE LIMIT PER SPEAKER There were no public comments. A. Recognition and Resolution Honoring James R. Flechtner, Executive Director Mr. Corder read a Resolution into the record, thanking Mr. Flechtner for his service to CFPUA since 2008 and his guidance and dedication as Executive Director. Mr. Norris moved to adopt the Resolution. Mr. Zapple seconded the motion, and it passed unanimously. Cape Fear Public Utility Authority Page 2 MinutesAuthority BoardJune 9, 2021 Mr. Flechtner thanked the Board and noted that CFPUA has had 36 Board members since its inception in 2007. He thanked Mrs. Flechtner for her love and unflagging support, and he recognized his fellow staff members for their hard work and public service. The group gave Mr. Flechtner a standing ovation. VI. PRESENTATION OF FY2022 BUDGET AND PUBLIC HEARING 1. Public Hearing and Adoption of FY22 Budget Mr. McLean presented the budget for the fiscal year beginning July 1, 2021. The total operating budget is $91,968,325, and the capital budget is $27,530,000. The budget contains no increases to user rates for water and sewer services. The Finance Committee recommended adoption of the budget, and the Board has received updates over the past three months. Ms. Adams moved to open the public hearing on the budget. Mr. Briggs seconded the motion, and it passed unanimously. There were no speakers for the budget hearing. Mr. Briggs moved to close the public hearing. Ms. Adams seconded the motion, and it passed unanimously. Mr. Norris moved to adopt the FY22 budget, its supporting ordinance, and the rate and fee schedule. Mr. Zapple seconded the motion, and it passed unanimously. RESULT: ADOPTED \[UNANIMOUS\] MOVER: Rob Zapple SECONDER: Charlie Rivenbark, CFPUA Board Member AYES: Corder, Norris, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, O'Grady, Rivenbark, Zapple VII. CONSENT AGENDA 1. Authorization for the Executive Director to Enter into a six-month $86,000 Sole Source Contract with Water Guard Inc. for Corrosion Inhibitor Treatment Chemicals RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Treasurer SECONDER: Charlie Rivenbark, CFPUA Board Member AYES: Corder, Norris, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, O'Grady, Rivenbark, Zapple 2. Authorize the Executive Director to Add the Cost Recovery Fee for the Forest Creek Outfall to the Rate and Fee Schedule. Cape Fear Public Utility Authority Page 3 MinutesAuthority BoardJune 9, 2021 RESULT: ADOPTED \[UNANIMOUS\] MOVER: Jennifer Adams, Treasurer SECONDER: Charlie Rivenbark, CFPUA Board Member AYES: Corder, Norris, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, O'Grady, Rivenbark, Zapple 3. Laboratory Testing Services Ms. Adams moved to approve the laboratory testing contracts. Mr. Rivenbark seconded the motion, and it passed unanimously. RESULT: REVIEWED 4. SCADA Services On-Call Contract RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Treasurer SECONDER: Charlie Rivenbark, CFPUA Board Member AYES: Corder, Norris, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, O'Grady, Rivenbark, Zapple 5. Interim Executive Director RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Treasurer SECONDER: Charlie Rivenbark, CFPUA Board Member AYES: Corder, Norris, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, O'Grady, Rivenbark, Zapple VIII. NEW BUSINESS A. Administrative Reports i. Attorney's Report Ms. Miles did not have a report for open session. She requested a closed session to discuss CFPUA's Motion to Intervene in the case of NC DEQ v. Chemours. ii. Executive Director's Report 1. Key Indicators Report Mr. Vandermeyden answered questions regarding water use in the Monterey Heights system. Staff has applied for and anticipates approval of an increase in production from that well system from 1 MGD to 1.5 MGD. Cape Fear Public Utility Authority Page 4 MinutesAuthority BoardJune 9, 2021 RESULT: REVIEWED 2. Environmental Report RESULT: REVIEWED 3. Safety Report RESULT: REVIEWED 4. Customer Service Update - June RESULT: REVIEWED B. Committee Reports i. Executive Committee 1. Executive Committee - Regular - Jun 2, 2021 10:00 AM Mr. Corder reported that Congressman David Rouzer joined the Executive Committee at its June 2 meeting. The Committee discussed PFAS and regulatory agencies. RESULT: NO ACTION REQUIRED 2. Kenneth Waldroup contract Mr. Corder presented Mr. Waldroup's contract for the position of Executive Director. Mr. Sneeden moved to approve the contract. Dr. Cannon seconded the motion, and it passed unanimously. ii. Finance Committee 1. Finance Committee - Regular Meeting - Jun 2, 2021 9:00 AM RESULT: NO ACTION REQUIRED 2. Monthly Financials May 2021 Mr. McLean reported that CFPUA has $1 million in revenues over expenditures. He anticipated $18 million in transfers to capital funding. Mr. Zapple commended Mr. McLean and all staff on tight budgeting and predictions on water revenues. Cape Fear Public Utility Authority Page 5 MinutesAuthority BoardJune 9, 2021 Ms. Irick answered questions regarding payment plans for delinquent accounts. RESULT: REVIEWED iii. Sustainability Committee 1. Sustainability Committee - Regular - May 27, 2021 2:00 PM RESULT: NO ACTION REQUIRED 2. Resolution on Customer Assistance Funding Dr. Cannon reported that the Committee has developed short and long term goals for customer assistance. Mr. Flechtner reported that the recommended Resolution would provide support for CFPUA to pursue legislative changes to provide more funding for customer assistance. Ms. Hallock presented the item. Using census and GIS data combined with customer service records, staff determined that there are 1,700 accounts for customers who regularly struggle to pay their water-sewer bills, with more than one service shutdown in a year. That struggle is largely due to income limitations. The corresponding dollar amount of those delinquencies is $400,000. WaterWay Inc., the non-profit that raises funds administered by NHC DHHS, has raised $15,000 this year and receives approximately $10,000 annually from the City and County. New Hanover County has agreed to provide $500,000 from its American Rescue Plan monies to fund assistance to customers who were unable to pay their bills due to the pandemic. WaterWay will pursue grant opportunities that may be available in the future from the community foundation set up to handle monies from the NHRMC sale. The proposed resolution would provide staff with Board direction to pursue options for CFPUA to develop an internal customer assistance fund. There may be other water-sewer utilities in the state that would support legislative revisions to Chapter 162A, the Water and Sewer Authorities Act, to help provide those options. Ms. Hallock reported that a legislator from the Chapel Hill area introduced a bill some months ago that would allow water and sewer authorities to fund customer assistance. Other utilities in the state already have assistance programs similar to WaterWay that are not funded through revenues. Cape Fear Public Utility Authority Page 6 MinutesAuthority BoardJune 9, 2021 Dr. Cannon, Ms. Hallock, and Messrs. McLean and Flechtner answered questions from Board members. Mr. McLean reported that CFPUA's rates are at the midpoint for large North Carolina utilities and below some other peer utilities. The rate dashboard for NC utilities can be provided to Board members. Mr. Rivenbark observed that the City and County had been very deliberate in the way CFPUA was structured, including billing, and that the City had previously funded customer assistance. Mr. Zapple thanked Ms. Hallock for defining the number of customer accounts that could use assistance on a regular basis, stating that it had been an elusive number until staff developed their research and analysis methodology. Dr. Cannon thanked Messrs. Barfield and Zapple for helping to get WaterWay funding from the County through the ARP monies. Dr. Cannon moved to approve the Resolution. M.r O'Grady seconded the motion. Mr. Sneeden proposed additional language to the Resolution that would direct staff to pursue any available Federal funding, in addition to County, City, and endowment support. After discussion, Mr. Sneeden moved to amend the resolution to allow pursuit of Federal funding. Mr. Norris seconded the amended motion, and the amended language passed unanimously. Dr. Cannon moved to adopt the amended Resolution. Mr. Zapple seconded the motion, and it passed unanimously. RESULT: ADOPTED AS AMENDED \[UNANIMOUS\] MOVER: Jessica Cannon, Board Member SECONDER: Rob Zapple AYES: Corder, Norris, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, O'Grady, Rivenbark, Zapple IX. OLD BUSINESS There was no old business. X. AUTHORITY Q & A/CLOSING COMMENTS Mr. Corder commended staff on the addition of a position in development services. He added that he had reason to meet with staff more over the last few months and believed they exhibit amazing commitment and dedication. He stated that was a legacy from Mr. Flechtner. He thanked Ms. McKoy for her work on the process of advertising and hiring a new Executive Director. XI. CLOSED SESSION Cape Fear Public Utility Authority Page 7 MinutesAuthority BoardJune 9, 2021 Mr. Norris moved to enter closed session to discuss CFPUA's Motion to Intervene in NC DEQ v. Chemours. Mr. Rivenbark seconded the motion, and it passed unanimously. The Board entered closed session at 9:48 AM, with Ms. Miles, Ms. Pope, and Messrs. Flechtner, Vandermeyden, and Hagerty present. Following a report from Ms. Miles and direction to legal counsel, Mr. Rivenbark moved to return to open session. Mr. Norris seconded the motion, and it passed unanimously. The Board returned to open session at 10:45 AM. XII. ADJOURNMENT Mr. Rivenbark thanked Mr. Flechtner for his years of service to the City and to CFPUA. He remembered their first meeting in the early 1990s, when he was a newly-elected City Councilman and Flechtner was in the City traffic engineering division. He stated that he would leave huge shoes to fill at CFPUA and in service to the community, and Board members agreed. Mr. Norris moved to adjourn. Mr. Zapple seconded the motion, and it passed unanimously. The Board adjourned at 10:48 AM. The next regular CFPUA meeting will be Wednesday, July 14, 2021. The Board will meet in the Lucie Harrell Conference Room, New Hanover County Administration Building, 230 Government Center Drive, Wilmington, North Carolina. Respectfully submitted, Donna S. Pope Clerk to the Board Cape Fear Public Utility Authority Page 8