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2021-04-14 Regular Meeting Minutes CAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES APRIL 14, 2021 Wilmington Convention Center Regular Meeting 9:00 AM 10 CONVENTION CENTER DR. WILMINGTON, NC 28401 I. CALL TO ORDER Mr. Norris called the meeting to order at 9:00 AM with a quorum present. Mr. Zapple moved to excuse Mr. Corder. Mr. Sneeden seconded the motion, and it passed unanimously. II. DETERMINATION OF A QUORUM Attendee Name Organization Title Status Arrived Wesley Corder Cape Fear Public Utility Chair Excused 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 Remote 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 Cape Fear Public Utility Authority Page 1 MinutesAuthority BoardApril 14, 2021 Vandermeyden Authority John McLean Cape Fear Public Utility Chief Financial Officer Present Authority Kristine Irick Cape Fear Public Utility Customer Service Director Present Authority Beth Eckert Cape Fear Public Utility Director of EMD Present Authority Lori McKoy Cape Fear Public Utility Human Resources Director Present Authority Vaughn Hagerty Cape Fear Public Utility Public Information Officer Present Authority Cammie Bellamy Cape Fear Public Utility Assistant PIO Present Authority Sara Eskew Cape Fear Public Utility Present Authority Judy Lawton Cape Fear Public Utility Executive Assistant Present Authority 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. Sneeden seconded the motion, and it passed unanimously. IV. APPROVAL OF MINUTES 1. Authority Board - Regular Meeting - Mar 10, 2021 9:00 AM RESULT: ACCEPTED \[UNANIMOUS\] MOVER: Hollis Briggs, Board Member SECONDER: Jennifer Adams, Treasurer AYES: Norris, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, O'Grady, Rivenbark, Zapple EXCUSED: Corder V. PUBLIC COMMENTS - 4 MINUTE LIMIT PER SPEAKER There were no public speakers. VI. SPEAKER UPDATE FROM THE MARCH 10, 2021 BOARD MEETING Mr. Flechtner reported that staff was working with a customer who spoke regarding his rental property accounts. The other public speakers in March were informational and did not require follow up from staff. VII. PRESENTATION Cape Fear Public Utility Authority Page 2 MinutesAuthority BoardApril 14, 2021 1.Public Hearing and Adoptionof FY22 System Development Charges Mr. McLean presented the proposed system development charges for the fiscal year beginning July 1, 2021. The water SDC is $2,120, and the sewer SDC is $2,180. The recommended charges reflect an increase to water of $200 per ERU (equivalent residential unit) and an increase to sewer of $110 per ERU. As required by North Carolina law, the calculation was published on CFPUA's website. One comment was received, and it was included with the agenda for Board members to read. Mr. O'Grady moved to open the public hearing. Mr. Barfield seconded the motion, and it passed unanimously. There were no speakers for the hearing. Mr. O'Grady commented that the comment received via the website was not related to system development charges but referenced PFAS in water. He requested that communications staff address the questions regarding PFAS and CFPUA's work to provide additional treatment and its lawsuit to recover the costs of treatment and plant enhancements. Mr. Flechtner reported that staff had spoken with the customer who commented through the website. Mr. Briggs moved to close the public hearing. Mr. O'Grady seconded the motion, and it passed unanimously. Mr. O'Grady moved to adopt the FY2022 system development charges. Mr. Sneeden seconded the motion, and it passed unanimously. RESULT: ADOPTED \[UNANIMOUS\] MOVER: Kevin O'Grady SECONDER: Larry Sneeden AYES: Norris, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, O'Grady, Rivenbark, Zapple EXCUSED: Corder VIII. CONSENT AGENDA 1. Crown Box Corporation Lease Amendment # 2 for 2310 North 23rd Street Cape Fear Public Utility Authority Page 3 MinutesAuthority BoardApril 14, 2021 RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Treasurer SECONDER: Jonathan Barfield, Board Member AYES: Norris, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, O'Grady, Rivenbark, Zapple EXCUSED: Corder 2. $400,000 Contract Amendment #1 with Black and Veatch International for the Southern Regional Pump Station Project RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Treasurer SECONDER: Jonathan Barfield, Board Member AYES: Norris, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, O'Grady, Rivenbark, Zapple EXCUSED: Corder 3. Ordinance Appropriating Transfers from Operating Fund for the Southern Regional Pump Station RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Treasurer SECONDER: Jonathan Barfield, Board Member AYES: Norris, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, O'Grady, Rivenbark, Zapple EXCUSED: Corder 4. $300,000 Carolina Civilworks, Inc., Change Order # 1 for Emergency Construction Services RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Treasurer SECONDER: Jonathan Barfield, Board Member AYES: Norris, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, O'Grady, Rivenbark, Zapple EXCUSED: Corder 5. Authorization for the Executive Director to Execute a $200,000 Contract with Carollo Engineers for the Wastewater Master Planning Project Cape Fear Public Utility Authority Page 4 MinutesAuthority BoardApril 14, 2021 RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Treasurer SECONDER: Jonathan Barfield, Board Member AYES: Norris, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, O'Grady, Rivenbark, Zapple EXCUSED: Corder 6. Resolution Authorizing a Low Interest State Revolving Fund Loan Application for Replacement of Water Mains, Valves and Services on South 5th Avenue RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Treasurer SECONDER: Jonathan Barfield, Board Member AYES: Norris, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, O'Grady, Rivenbark, Zapple EXCUSED: Corder 7. Authorization for the Executive Director to Execute a Contract with Hazen and Sawyer for On-Call Hydraulic Modeling and Water Quality Professional Services not to exceed $150,000 in Future Tasks RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Treasurer SECONDER: Jonathan Barfield, Board Member AYES: Norris, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, O'Grady, Rivenbark, Zapple EXCUSED: Corder 8. Authorization for the Executive Director to Execute a $25,000 Service Agreement Contract Amendment with Johnson Controls Inc. for additional HVAC maintenance services. RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Treasurer SECONDER: Jonathan Barfield, Board Member AYES: Norris, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, O'Grady, Rivenbark, Zapple EXCUSED: Corder 9. Sole Source Historian licensing purchase. Cape Fear Public Utility Authority Page 5 MinutesAuthority BoardApril 14, 2021 RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Treasurer SECONDER: Jonathan Barfield, Board Member AYES: Norris, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, O'Grady, Rivenbark, Zapple EXCUSED: Corder IX. NEW BUSINESS A. Administrative Reports i. Attorney's Report Ms. Miles updated the Board on the discovery timeline for CFPUA's case against Chemours and the status of the State action in the Court of Appeals. ii. Executive Director's Report 1. Key Indicators RESULT: REVIEWED 2. Environmental Report Mr. Flechtner answered questions regarding a sanitary sewer overflow associated with an air release valve. RESULT: REVIEWED 3. Safety Report RESULT: REVIEWED 4. Quarterly CIP Report RESULT: REVIEWED B. Committee Reports i. Executive Committee 1. Executive Committee - Regular - Apr 7, 2021 10:00 AM Cape Fear Public Utility Authority Page 6 MinutesAuthority BoardApril 14, 2021 RESULT: NO ACTION REQUIRED ii. Long Range Planning Committee 1. Long Range Planning Committee - Regular - Mar 25, 2021 3:00 PM RESULT: NO ACTION REQUIRED 2. Find-It Fix-It Gravity Sanitary Sewer Rehabilitation Presentation Mr. Vandermeyden reported that CFPUA's wastewater system contains 915 miles of sewer lines. Approximately 111 miles of pipe were installed between 1900-and 1945, with a average lifespan of 100 years. Since 2008, CFPUA has rehabilitated 25 miles of aging sewer lines. CFPUA completed the work required by its Environmental Protection Center consent order, realizing a 52 percent reduction in sanitary sewer overflows (SSOs) and a 76 percent reduction in SSO volume. The Board watched a video illustrating the "cured-in-place" lining method used to rehabilitate and protect aging infrastructure. The lining material is resin- treated polyester that can extend the life of a line a minimum of 50 years. Closed circuit television is used to inspect lines, and rust tuberculation and debris are removed before the lining is inserted, inflated, and cured using UV light. The project illustrated in the video was the rehabilitation of a sewer line near Burnt Mill Creek that travels to the Northside treatment plant. The project will extend the sewer line's useful life by at least 50 years. Mr. Vandermeyden answered questions from Board members regarding the cured-in-place lining procedure. Mr. Sneeden reminded the Board that approximately 50 percent of CFPUA's capital projects focus on infrastructure rehabilitation, and this type of project reflects the Board and staff's pro-active stance on aging infrastructure. Messrs. Barfield and Zapple praised staff for using methodology that greatly reduces disruption in neighborhoods and on streets. The Board thanked project management and Communications staff for an informative video, particularly Ms. Bellamy for her production and narration. RESULT: NO ACTION REQUIRED 3. FY-2022 and 10-year Capital Improvements Plan for Recommendation and Board Approval Cape Fear Public Utility Authority Page 7 MinutesAuthority BoardApril 14, 2021 Mr. Sneeden moved the capital projects budget for the fiscal year beginning July 1, 2021. Mr. Rivenbark seconded the motion. Messrs. Flechtner and Rivenbark answered questions regarding capital projects. Mr. Zapple encouraged staff to consider an expansion of CFPUA's King's Bluff intake and raw water line to fully utilize its allocation from the Cape Fear River. Mr. Norris called the question, and the FY22 capital projects and budget were approved. RESULT: ADOPTED \[UNANIMOUS\] MOVER: Larry Sneeden SECONDER: Charlie Rivenbark, CFPUA Board Member AYES: Norris, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, O'Grady, Rivenbark, Zapple EXCUSED: Corder iii. Finance Committee 1. Finance Committee - Regular Meeting - Apr 7, 2021 9:00 AM 2. Monthly Financials Mr. McLean presented the monthly financial data. With 75 percent of the fiscal year complete, revenues are at 76.9 percent of budget and expenditures 76.7 percent. The unrestricted fund balance is $63.9 million. 3. Authorize the Executive Director to Execute a Water Utility Infrastructure Reimbursement Agreement with Sidbury 758, LLC to Construct a Water Main with Cost Recovery from Future Benefiting Development Mr. Vandermeyden presented the item and answered questions from Authority members. Mr. Barfield commended the agreement as an example of forward thinking in developing infrastructure for future growth. Ms. Adams moved the item, and Mr. Sneeden seconded it. Mr. O'Grady asked what CFPUA's role is in ensuring that privately-built infrastructure meets its standards. Mr. Vandermeyden reported that all plans and construction complies with CFPUA's standards and specifications and is inspected by staff. Dr. Cannon stated that she respected the County's decision to participate in the project but questioned the use of federal American Recovery Plan funding. Messrs. Zapple and Barfield explained the Commissioners' support of County participation to support housing initiatives. Cape Fear Public Utility Authority Page 8 MinutesAuthority BoardApril 14, 2021 Following discussion, Mr. Norris called the question. Ms. Adams and Messrs. Norris, Hackney, Briggs, Sneeden, Barfield, O'Grady, Rivenbark, and Zapple voted yes. Dr. Cannon was opposed. Motion carried, nine to one. RESULT: APPROVED \[9 TO 1\] MOVER: Jennifer Adams, Treasurer SECONDER: Larry Sneeden AYES: Norris, Hackney, Adams, Briggs, Sneeden, Barfield, O'Grady, Rivenbark, Zapple NAYS: Cannon EXCUSED: Corder 4. Authorize the Executive Director to Execute a Sewer Utility Infrastructure Reimbursement Agreement with Sidbury 758, LLC to Construct a Sewer Force Main with Cost Recovery from Future Benefiting Development Mr. Vandermeyden presented the item, the sewer component of the project discussed in the previous item. Ms. Adams moved to approve, and Mr. Barfield seconded the motion. Ms. Adams and Messrs. Norris, Hackney, Barfield, Zapple, Rivenbark, O'Grady, Sneeden, and Briggs voted yes. Dr. Cannon was opposed. Motion caried, nine to one. RESULT: APPROVED \[9 TO 1\] MOVER: Jennifer Adams, Treasurer SECONDER: Jonathan Barfield, Board Member AYES: Norris, Hackney, Adams, Briggs, Sneeden, Barfield, O'Grady, Rivenbark, Zapple NAYS: Cannon EXCUSED: Corder 5. FY 22 Preliminary Operating Budget Update Ms. Adams reported that the recommended FY22 budget had been reduced by $68,000. The recommended budget contains no user rate increases. RESULT: NO ACTION REQUIRED iv. Sustainability Committee 1. Sustainability Committee - Regular - Mar 25, 2021 2:00 PM RESULT: NO ACTION REQUIRED v. Communications Committee Cape Fear Public Utility Authority Page 9 MinutesAuthority BoardApril 14, 2021 1.Communications Committee -Regular -Mar 10, 2021 10:30 AM RESULT: NO ACTION REQUIRED X. OLD BUSINESS Mr. Rivenbark asked for clarification on landlord-tenant accounts and how payment deferral could affect landlords financially. Ms. Irick reported that, for accounts that are in tenant names, the landlord is not responsible for tenants' past-due balances. Mr. Flechtner reported that the Sustainability Committee has had preliminary discussions regarding landlord-tenant billing. Mr. Zapple reported that the County will set aside some funding from the American Recovery Plan for mortgage, rental, and utility assistance. XI. AUTHORITY Q & A/ CLOSING COMMENTS There was no further discussion. XII. CLOSED SESSION Mr. Zapple moved to enter into closed session to discuss CFPUA v. Chemours and the NC DEQ case before the Court of Appeals. Ms. Adams seconded the motion, and it passed unanimously. The Board entered closed session at 10:00 AM and received a report from legal counsel. Mr. Rivenbark moved to return to open session. Mr. O'Grady seconded the motion, and it passed unanimously. The Board returned to open session at 10:21 AM. XIII. ADJOURNMENT There was no further business to come before the Board, and Mr. Rivenbark moved to adjourn. Mr. O'Grady seconded the motion, and it passed unanimously. The meeting adjourned at 10:21 AM. The next regular CFPUA meeting will be Wednesday, May 12, 2021. The meeting will be held in the Wilmington Convention Center, 10 Convention Center Drive, Wilmington, North Carolina, and will begin at 9:00 AM. Respectfully submitted, Donna S. Pope Clerk to the Board Cape Fear Public Utility Authority Page 10