Loading...
2021-03-10 Regular Meeting Minutes CAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES MARCH 10, 2021 Wilmington Convention Center Regular Meeting 9:00 AM 10 CONVENTION CENTER DR. WILMINGTON, NC 28401 I. CALL TO ORDER Mr. Corder called the meeting to order at 9:00 AM with all members present. 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 Remote Authority Kevin O'Grady Cape Fear Public Utility Present Authority Charlie Rivenbark Cape Fear Public Utility Remote 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 Julia Vosnock Cape Fear Public Utility Procurement Manager/Budget Present Faircloth Authority 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 BoardMarch 10, 2021 Vandermeyden Authority Beth Eckert Cape Fear Public Utility Director of EMD Present Authority Lori McKoy Cape Fear Public Utility Human Resources Director Present Authority Kristine Irick Cape Fear Public Utility Customer Service Director Present Authority Vaughn Hagerty Cape Fear Public Utility Public Information Officer Present Authority Makeba Robinson Cape Fear Public Utility Present Authority Sara Eskew Cape Fear Public Utility Present Authority Judy Lawton Cape Fear Public Utility Executive Assistant Present Authority Cammie Bellamy Cape Fear Public Utility Assistant PIO Present Authority Dr. Phillip Brown Present Derrick Hansley Present Maria McIntyre Financial Protection Law Present Center Andre Brown NC Legal Services Present Donna S. Pope Cape Fear Public Utility Clerk/Executive Secretary to the Present Authority Board III. ADOPTION OF AGENDA Mr. Norris moved to adopt the day's agenda. Mr. Zapple seconded the motion, and it passed unanimously. IV. APPROVAL OF MINUTES 1. Authority Board - Regular Meeting - Feb 10, 2021 9:00 AM RESULT: ACCEPTED \[UNANIMOUS\] MOVER: Rob Zapple 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 Dr. Brown spoke regarding the importance of water to public health. Mr. Hansley spoke regarding billing issues on a property he owns. Mr. Flechtner reported that staff will work with Mr. Hansley within the guidelines of billing policies. Cape Fear Public Utility Authority Page 2 MinutesAuthority BoardMarch 10, 2021 Ms. McIntire and Mr. Brown thanked the Sustainability Committee for recommending that CFPUA not use flow restrictors. They encouraged the implementation of further assistance programs for customers. VI. CONSENT AGENDA At staff's request, Item 1 was removed from the Consent Agenda for discussion. Mr. Zapple moved to approve Items 2 through 4. Mr. O'Grady seconded the motion, and it passed unanimously. 1. Authorization for the Executive Director to Execute a Third Amended and Re-stated Utility Agreement with NNP-IV Cape Fear River, LLC for Participation with Water Improvements Associated with the RiverLights Development Mr. Vandermeyden presented the item. Language had been revised since the item was reviewed by the Finance Committee and placed on the Consent Agenda. Following clarification questions, Mr. Zapple moved to approve. Mr. Norris seconded the motion, and it passed unanimously. RESULT: APPROVED \[UNANIMOUS\] MOVER: Rob Zapple SECONDER: William Norris, Vice-Chair AYES: Corder, Norris, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, O'Grady, Rivenbark, Zapple 2. $200,600 Contract with Highfill Infrastructure Engineering, P.C. for Water Tank Condition Assessment RESULT: APPROVED \[UNANIMOUS\] MOVER: Rob Zapple SECONDER: Kevin O'Grady AYES: Corder, Norris, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, O'Grady, Rivenbark, Zapple 3. Authorization To Convey 5806 Michelle Drive By Quit Claim Deed RESULT: APPROVED \[UNANIMOUS\] MOVER: Rob Zapple SECONDER: Kevin O'Grady AYES: Corder, Norris, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, O'Grady, Rivenbark, Zapple 4. Audit Services Contract Cape Fear Public Utility Authority Page 3 MinutesAuthority BoardMarch 10, 2021 RESULT: APPROVED \[UNANIMOUS\] MOVER: Rob Zapple SECONDER: Kevin O'Grady AYES: Corder, Norris, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, O'Grady, Rivenbark, Zapple VII. NEW BUSINESS A. Administrative Reports i. Attorney's Report Ms. Miles had no report and did not require a closed session. ii. Executive Director's Report Mr. Flechtner reported that, based upon a recommendation from Board members and discussion at the March Finance Committee meeting, a project engineer or project management position will be added to the Engineering Department to assist with plan review and approval. That position will be advertised prior to the beginning of FY22. Mr. Sneeden suggested that the development community might be willing to pay higher fees for plan reviews. Mr. Sneeden moved to approve the creation of a new position in the Engineering Department. Mr. Zapple seconded the motion, and it passed unanimously. 1. Key Indicators Report RESULT: REVIEWED 2. Environmental Report RESULT: REVIEWED 3. Safety Report RESULT: REVIEWED B. Committee Reports i. Executive Committee 1. Executive Committee - Regular - Mar 3, 2021 10:00 AM Cape Fear Public Utility Authority Page 4 MinutesAuthority BoardMarch 10, 2021 RESULT: NO ACTION REQUIRED ii. Long Range Planning Committee 1. Long Range Planning Committee - Regular - Feb 25, 2021 3:00 PM RESULT: NO ACTION REQUIRED 2. Adapting to the COVID-19 Pandemic Ms. McKoy presented the item. Pandemic planning began in February 2020, and adjustments have been made over the past year. Staff worked in staggered shifts, with limited in-person contact, and adjustments made for deploying workers from their homes. Staff who could work remotely did so, and many continue with some degree of remote work. Ms. McKoy reported that employees had expanded their ability to work independently, with enhanced ownership of decisions and work product. Customer service developed additional self-service options for customers to manage their accounts, and the call center operated on its regular schedule. Staff developed video conference training, and the HR department developed methods to accomplish on-boarding and new employee orientation through video conferencing. Board and staff adapted to video meetings, in addition to the board moving to a larger site for regular meetings. Staff anticipates some measure of continued remote work and video conferencing as CFPUA staff transitions back to a traditional working environment. RESULT: NO ACTION REQUIRED 3. Review of Proposed FY-2022 to FY-2031 Capital Improvements Plan Mr. Sneeden introduced the item. He thanked staff for their hard work in developing the capital projects for FY2022 and the long term ten-year CIP. Mr. Vandermeyden presented an overview of the recommended projects for the fiscal year beginning July 1, 2021, and reviewed the methodology used by staff to determine which projects should be funded. The FY22 CIP is $27.93 million, with 65 percent of projects representing rehabilitation or replacement of aging infrastructure and 28 percent growth and expansion projects. The projected ten-year CIP budget is $370.5 million. Cape Fear Public Utility Authority Page 5 MinutesAuthority BoardMarch 10, 2021 Growth in the southern part of the county will necessitate the overhaul and expansion of the Southside (Maffitt) wastewater treatment plant beginning in FY2031. The upgrade will cost approximately $150 million and will be funded by bonds, with an anticipated completion by 2035. The Long Range Planning Committee will review the FY22 CIP again at its March 25 meeting, for recommendation to the full Board to adopt the CIP at its April meeting. Mr. Barfield asked if there was any discussion of affordable housing initiatives in the context of the ten-year capital plan. He stated that keeping young workers in the area was vital to the community and that affordability could help to achieve that goal. Messrs. Sneeden and Vandermeyden reported that CFPUA has historically entered into partnerships with the County, City, or development to support growth. Mr. Zapple stated that CFPUA has deeded lots to the County that could be used for Habitat housing. Mr. Rivenbark stated that workforce housing and affordable housing are not necessarily the same. After discussion, Dr. Cannon and Mr. Sneeden suggested that the Long Range Planning and Sustainability Committees meet jointly to discuss ways in which CFPUA could support affordable housing initiatives. Dr. Cannon stated that water and sewer rates are part of affordability. Mr. Zapple reminded the Board and staff that overall raw water capacity should be considered in the ten-year CIP. RESULT: NO ACTION REQUIRED Next: 3/25/2021 3:00 PM iii. Finance Committee 1. Finance Committee - Regular Meeting - Mar 3, 2021 9:00 AM RESULT: NO ACTION REQUIRED 2. Monthly Financials Report RESULT: REVIEWED 3. Preliminary FY 22 Operating Budget Ms. Vosnock Faircloth reviewed the recommended budget for the fiscal year beginning July 1, 2021. The budget is $93.1 million, an increase of 3.5 percent Cape Fear Public Utility Authority Page 6 MinutesAuthority BoardMarch 10, 2021 over the FY21 budget. It provides debt-service payments, $18 million pay-go capital funding, and all departmental operating needs. The budget includes four new full-time positions, a mandatory 1.1 percent increase to the employer contribution to the Local Government Employees' Retirement System. The HR Committee recommends a 3 percent merit pool and a 1.5 percent cost of living increase. The employer portion of the State Health Plan coverage decreased for calendar year 2021. Ms. Vosnock Faircloth and Mr. Flechtner reported that the new financial and billing software will accommodate monthly billing. Staff recommended implementing monthly billing prior to implementing usage tiers for billing. Routes will need to be reviewed to optimize readings prior to beginning monthly billing. Dr. Cannon asked if there were employees who earn less than $15/hour. Ms. McKoy reported that there were no employees making under that amount but that some positions make just above that hourly pay. RESULT: REVIEWED iv. Sustainability Committee 1. Sustainability Committee - Regular - Feb 25, 2021 2:00 PM RESULT: NO ACTION REQUIRED 2. Proposed Temporary Measures to Address Residential Account Delinquencies Dr. Cannon thanked staff for their work in developing options to help customers with bill affordability. She reported that the Committee recommended eliminating the proposed flow restrictor pilot program. Ms. Irick presented the recommended temporary revisions to the residential account delinquency policy. Accounts will continue to be considered delinquent if they are over 60 days past due, but the threshold for delinquency will be increased from $100 to $450. That amount more closely aligns with the average residential delinquent amount. Customers with delinquencies will automatically be placed on 12-month repayment plans, and they may call if they need a specialized payment plan. If a residential account has a separate irrigation meter, the irrigation meter will be disconnected until the account is current. Default on a payment plan will begin the disconnection process. Late fees will Cape Fear Public Utility Authority Page 7 MinutesAuthority BoardMarch 10, 2021 not be charged on residential accounts. The temporary policy will be in effect until September 1, 2021, and after that time customers will need to contact CFPUA for payment plans. Staff has developed communications plans and outreach to inform customers of the delinquency policy and procedures. Following questions and discussion, Mr. Barfield moved to approve the item. Dr. Cannon seconded the motion, and it passed unanimously. RESULT: APPROVED \[UNANIMOUS\] MOVER: Jonathan Barfield, Board Member SECONDER: Jessica Cannon, Board Member AYES: Corder, Norris, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, O'Grady, Rivenbark, Zapple v. Communications Committee 1. Communications Committee - Regular - Feb 10, 2021 10:30 AM RESULT: NO ACTION REQUIRED vi. Human Resources 1. Human Resources Committee - Regular - Feb 11, 2021 9:30 AM RESULT: NO ACTION REQUIRED 2. Annual Compensation Review RESULT: NO ACTION REQUIRED VIII. OLD BUSINESS There was no old business. IX. AUTHORITY Q & A/CLOSING COMMENTS There was no additional discussion from the Board. X. CLOSED SESSION There was no closed session. XI. ADJOURNMENT Mr. Briggs moved to adjourn. Mr. Hackney seconded the motion, and it passed unanimously. The Board adjourned at 10:43 AM. The next regular CFPUA meeting will be Wednesday, April 14, 2021. The Board will meet in the Wilmington Convention Center, beginning at 9:00 AM. Cape Fear Public Utility Authority Page 8 MinutesAuthority BoardMarch 10, 2021 Respectfully submitted, Donna S. Pope Clerk to the Board Cape Fear Public Utility Authority Page 9