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HomeMy WebLinkAboutRegular Minutes - 1/17/2023 Reviewed for Redaction MINUTES CLAY COUNTY UTILITY AUTHORITY January 17, 2023 The Board of Supervisors of the Clay County Utility Authority (CCUA) met in Regular Session in the Board meeting room at the Administrative Office of the Clay County Utility Authority, 3176 Old Jennings Road, Middleburg, Florida, on the above-stated date. Item No. 1 —Call to Order Chairman Davis called the meeting to order at 2:00 P.M. Item No. 2—Invocation/Pledge of Allegiance Chairman Davis offered the Invocation and led those in attendance in the Pledge of Allegiance. Item No. 3—Roll Call Roll Call was taken with Chairman Davis, Vice-Chairman Roark, Mr. Gardella, Mr. Hodges, Ms. Lebesch, Mr. McNees, and Mr. Starnieri in attendance. Also present at the meeting were Executive Director Jeremy Johnston, Chief Operations Officer Darryl Muse, Chief Financial Officer Jeff Wesselman, Chief Human Resource Officer Kim Richardson, Chief Engineer Paul Steinbrecher, Assistant Chief Financial Officer Karen Osbourne, Distribution & Collection Department Superintendent David Rawlins, Facility Manager Jim Moore, Customer Service & Billing Manager Diana Strickland, Procurement Manager Angelia Wilson, Service Availability Manager Melisa Blaney, Compliance Manager Heather Webber, SCADA Manager John McCleary, Public & Governmental Affairs Liaison Dennis Ragosta, Contract and Procurement Specialist Darrin Parker, Administrative Assistant Operations Alicia Baker, Administrative Assistant Engineering Anneica Asberry, and Grady H. Williams, Jr., legal counsel to the CCUA. Item No. 4—Employee Recognition a. Billy Walker-25 Years of Service b. Mike Chapman— 10 Years of Service c. Lauren Shupe—5 Years of Service d. Dennis Ragosta—Acceptance into the Leadership Clay Program Mr. Johnston introduced and presented a plaque to Locate Coordinator Billy Walker and a certificate to Chief Wastewater Treatment Plant Operator Mike Chapman and Billing Clerk Lauren Shupe acknowledging their years of service. He also acknowledged Public & Governmental Affairs Liaison Dennis Ragosta who has been accepted into the Leadership Clay Program for 2023. Item No. 5 —Approval of Minutes a. Board of Supervisors Regular Meeting, January 3, 2023 After discussion, Mr. McNees moved, seconded by Mr. Hodges, and carried 7-0, to approve the minutes of the Regular Meeting held on January 3, 2023. Item No. 6—Approval of Consent Agenda Mr. McNees pulled Item 6(e)2 and 3 and Chairman Davis pulled Item 6(b)2(a) for further discussion. Mr. McNees then moved, seconded by Ms. Lebesch, and carried 7-0, to approve the remaining Consent Agenda items. After additional explanation from staff, Ms. Lebesch moved, seconded by Mr. Gardella, and carried 7-0, to approve Item 6(b)2(a). Mr. McNees requested staff verify the dates on Items 6(e)2 and 3. After discussion, Vice-Chairman Roark moved, seconded by Mr. McNees, and carried 7-0, to approve Items 6(e)2 and 3. a. Approval of Financial and Operational Activities (1) Approval of Payment of Warrants Warrants totaling $3,493,235.33 a. Schedule of payments to Sole Sources b. Schedule of Emergency Repairs/Purchases -None c. Schedule of items initiated under Emergency Contract-None d. Schedule of payments from the Emergency Account-None e. Schedule of claims paid under the Sewage Backup Response Policy-None f. Detailed Descriptive Warrant Report g. Statement from Grady H. Williams, Jr. LL.M. (2) Request for Asset Disposal Authorization -None b. Approval of Capital Budget Activities (1) Requests for Award of Procurement Contracts and/or Ratification of Procurement/Construction Contracts -None (2) Approval of Supplemental Agreements and Change Orders a. Proposed Supplemental Agreement No. 1 with Soliant Consulting, Inc. to provide Data Migration Services c. Approval of Financing Requests (1) Financing request for Mr. & Mrs. Cates Wastewater Connection at 235 Whispering Woods Drive d. Approval of Contract Usage (1) Sourcewell Contract No. 091520-MCF Forklifts e. Approval of Developer Agreements, Warranty Deeds& Easements (1) Developer Agreement CU22/23-4 — Water & Wastewater Service — 2723 Greenwood Lane (Rosa I. Gomez Valle) — 1 ERC water, 1 ERC wastewater, 1 ERC AWS, 1 ERC SJRWMD, 1 ERC environmental impact, 1 ERC debt service - $7,680.70(financed) (2) Developer Agreement KH22/23-4 — Popeye's Restaurant — 100 Green Way (DD&L Associates II, LLC) — 2.5 ERC's water, 1.5 ERC's wastewater, 2.5 ERC's AWS, 2.5 ERC's SJRWMD, 1.5 ERC's environmental impact, 1.5 ERC's debt service - $11,217.62 (3) Developer Agreement KU22/23-23 — Wastewater Service to 1711 Landward Lane (Julie Ann & Benjamin Walker and Donna & Levi Bleam) — 1 ERC wastewater, 1 ERC environmental impact, 1 ERC debt service -$16,193.55 (4) Developer Agreement SS22/23-3 — Wilford Preserve Phase 4 — 148 Single Family Lots (DFC Wilford 4, LLC) — 148 ERC's water, 148 ERC's wastewater, 148 ERC's reclaimed, 148 ERC's AWS, 148 ERC's SJRWMD, 148 ERC's debt service - $672,812.04 ($643,131.04 deferred) (5) Grant of Easement— 145 Suzanne Ave—Grantor—John Fagan (6) Grant of Easement — 6021 West Shores Road — Grantor — S. David Allen as Trustee of the S. David Allen Revocable Trust (7) Grant of Easement— Russell Road Offsite Infrastructure—Grantor—Good Tidings Trust, Inc. (8) Grant of Easement—Russell Road Offsite Infrastructure — Grantor - Luke R. & Susanna L. Stephens Item No. 7—Customer Account Adjustments—None Item No. 8—Business discussed at Committee Meetings—Audit/Finance Committee Meeting January 17, 2023 Committee Chairman Hodges shared the Audit/Finance Committee met prior to today's meeting to review and discuss the 2021/2022 Fiscal Year Audit. He reported the Committee accepted the Audit for presentation for the Board's consideration and acceptance. The Board WITHOUT OBJECTION accepted the audit as presented. Item No. 9—Executive Director's Business a. Proposed Clay County Utility Resolution No. 2022/2023-04 Mr. Wesselman presented proposed Resolution No. 2022/2023-04 for consideration. In accordance with approved budgetary guidelines the Board has authorized capital expenditures in the amount of $153,678,494.66 to be funded from available funds on hand and either bond or bank financing. Currently all capital expenditures have been purchased with cash on hand. The reimbursement Resolution will allow staff to proceed with current year expenditures while reserving the right to reimburse itself from future debt issuances. The approval of the reimbursement Resolution does not authorize the authority to issue debt. Before any debt is issued, staff will bring forward all necessary documentation for approval. After discussion, Vice-Chairman Roark moved, seconded by Mr. Hodges, and carried 7-0, to approve, adopt, and enact Resolution No. 2022/2023-04, as presented by Mr. Wesselman. b. Proposed Enterprise Resource Platform Planning, Integration, and Implementation Professional Service Agreement with Collaborative Solutions, Inc. Assistant Chief Financial Officer Karen Osbourne reviewed the upcoming changes to CCUA's operations, the new systems which will be implemented, and the proposed Enterprise Resource Platform Planning, Integration, and Implementation Professional Service Agreement with Collaborative Solutions, Inc. Staff has briefed the Board of Supervisors regarding the need to transition CCUA's custom built information systems to an industry standard ERP. This transition is necessary to improve customer service as well as operational decision making and effectiveness. CCUA's ERP system transition is a project that will span sixty-one weeks and will impact every employee in the organization as well as the stakeholders and customers we serve. CCUA recognizes the need for professional assistance from a consulting firm that can provide ERP implementation expertise and supplement internal staff to help successfully navigate our organization through this transformative change. Staff requests to engage Collaborative, one of Workday's longest tenured partners, with an 18- year track record of deploying comprehensive Finance and Human Resource solutions using cloud technology. Collaborative will provide assistance and guidance with data conversion, system implementation, staff training, system testing and organizational change management throughout our ERP transition. Staff and Collaborative reviewed and negotiated a Professional Service Agreement and Scope of Work for their consulting services. Staff determined the proposed fee for professional services is fair, competitive, and reasonable. Collaborative will be paid a fixed fee of $2,455,094. Staff budgeted $1,400,000 for this project in this year's Capital Budget. The amount of $1,964,075 will be paid from this year's Capital Budget with the additional $564,075 transferred from Capital Improvement Program Contingency. The remaining $491,019 will be budgeted in the next fiscal year. After discussion, Mr. Hodges moved, seconded by Ms. Lebesch, and carried 7-0, to approve the Professional Service Agreement, as presented by Ms. Osbourne. c. Proposed Master Subscription Agreement with SpryPoint Services, Inc. Ms. Osbourne presented a proposed Master Subscription Agreement with SpryPoint Services, Inc. CCUA's current billing and customer service system is an internally custom created legacy system, FileMaker, that no longer fits the needs of our customers or our growing utility. This legacy system and most of our current billing processes are based on labor intensive manual processes that require duplication of efforts across departments. SpryPoint provides a cloud-based software system for utility billing,customer engagement,mobile field service, backflow, and outage response. SpryPoint will allow CCUA to improve operational efficiency through the use of effective business process automation and will greatly improve our customer service experience by allowing our customers up to date online access to their billing and consumption data. Staff requests to engage SpryPoint, a preferred Utility Billing partner of Workday. Staff performed significant due diligence of software platforms that would meet our customer expectations and operational demands. Sprypoint stood out in the marketplace as a leader in the utility customer information and billing system space. Staff recommends the use of this software as service system. Staff determined the fee for professional services is fair, competitive, and reasonable. SpryPoint will be paid a total fee of$2,803,035 over a five-year period. In the current fiscal year certain implementation costs and the first subscription fee totaling $730,500 will be paid out of the Capital Budget and will need to be transferred from Capital Improvement Program Contingency. There was $1,400,000 budgeted for the ERP project in the Capital Budget this year which has been committed. The remaining $2,072,535 will be budgeted in future fiscal years. After discussion, Ms. Lebesch moved, seconded by Mr. Gardella, and carried 7-0,to approve the Master Subscription Agreement, as presented. d. Proposed Enterprise Resource Platform Main Subscription Agreement with Workday, Inc. Ms. Osbourne presented a proposed Enterprise Resource Platform (ERP) Main Subscription Agreement with Workday, Inc. ERP systems are business management software that allow an organization to leverage a suite of integrated applications to manage core business processes. ERP systems streamline and automate these business processes to create a leaner, more efficient organization through superior resource tracking, centralized database management, customizable reporting, and overall improved information systems capabilities. Workday provides a cloud-based ERP software system for financial management, human capital management, planning, project management, analytics, and business intelligence. Workdays ERP system will allow CCUA to streamline processes to align them with industry standards, automate manual processes, increase transparency, improve performance management and operational decision making, and improve the overall customer experience. Staff has determined that Workday provides an ERP system that best meet the needs of CCUA. Staff and Workday reviewed and negotiated the proposed Main Subscription Agreement and Scope of Work for the ERP services. This Agreement leverages the National Cooperative Purchasing Alliance ("NCPA") Contract No. 01-103. Workday will be paid a total of $1,923,090 over a five-year period. Staff budgeted $1,614,105 for this project in this year's Operating Budget and $1,400,000 in the Capital Budget. The subscription fee of$149,207 will be paid out of the Capital Budget. The capital portion of this project will need to be transferred from the Capital Improvement Program Contingency. There was $1,400,000 budgeted for the ERP project in the capital budget this year which has been committed. The training and delivery assurance fees of$155,505 will be paid out of the Operating Budget this fiscal year. The remaining $1,618,378 will be budgeted in future fiscal years. After discussion, Vice-Chairman Roark moved, seconded by Mr. Hodges, and carried 7-0, to approve the Main Subscription Agreement, as presented. e. Proposed Professional Service Agreement with Advanced Environmental Laboratories, Inc for Laboratory and Analytical Services Procurement Manager Angelia Wilson presented a proposed Professional Service Agreement with Advanced Environmental Laboratories, Inc (AEL) for Laboratory and Analytical Services. CCUA staff seeks to diversify the water quality laboratory testing services. The need to diversify the testing services centers on the types of samples taken, laboratory availability, quality controls, and responsiveness. CCUA contracted with AEL in 2002 through a competitive bidding process. At the November 11, 2022, Board meeting, the contract for ITB Bid No. 01/02-A6 was approved for termination. To adhere to regulatory requirements, CCUA will need to enter into a Professional Service Agreement for Laboratory and Analytical Services with AEL. AEL services are also needed to complete the Unregulated Contaminant Monitoring Rule testing because they are the only authorized lab in the area for these tests. After discussion, Mr. Gardella moved, seconded by Mr. McNees, and carried 7-0, to approve the Professional Services Agreement as presented by Mrs. Wilson. f. Proposed Supplemental Agreement No. 9 with CDM Smith, Inc for the Civil and Environmental Engineering Professional Service Agreement 2018/2019 RFQ No. 3 to provide Radio Network High- Level Architecture Review Chief Operations Officer Darryl Muse presented proposed Supplemental Agreement No. 9 with CDM Smith, Inc for the Civil and Environmental Engineering Professional Service Agreement 2018/2019 RFQ No. 3 to provide Radio Network High-Level Architecture Review. The SCADA Master Plan with CDM was approved at the September 6, 2022, meeting. The plan will serve as a roadmap for projects that will facilitate the successful expansion, upgrade, and implementation of a SCADA system. CDM recommends communication from remote sites to the Central Control Room at the CCUA Administrative Building. The scope of services will include the evaluation of potential communications methods, for efficiency, capability, and cost for the consideration of the SCADA Master Planning Team. Due to the geographic expanse of CCUA facilities, it is neither feasible nor cost effective to use landlines or fiber optic lines to bring information back to the central operations control room. This project will evaluate radio and cellular options and recommend the most feasible and cost-effective options for these remote sites. The budget for this project was approved in the FY 2022/2023 Capital Improvement Program. Staff considers the fee of$48,500 reasonable and competitive for the scope of services provided. After discussion, Mr. McNees moved, seconded by Mr. Hodges, and carried 7-0, to approve the Supplemental Agreement, as presented by Mr. Muse. g. Request for approval of the two-year Precinct Lease Agreement to allow the Supervisor of Elections office to use the Clay County Utility Authority's Board Room as a polling place for public elections Mr. Johnston presented a request for approval of a proposed two-year Precinct Lease Agreement to allow the Supervisor of Elections office to use the Clay County Utility Authority's Board Room as a polling place for public elections. After discussion, Mr. McNees moved, seconded by Mr. Gardella, and carried 7-0,to approve execution of the Agreement,as presented. h. Request for approval of the Purchase Agreement and Authorization to proceed with the purchase and closing of the Property at 338 Lido Place to accommodate future improvements at the Meadowbrook Water Treatment Plant and Lift Station #9 Service Availability Manager Melisa Blaney presented a request for approval of the Purchase Agreement and Authorization to proceed with the purchase and closing of the property at 338 Lido Place to accommodate future improvements at the Meadowbrook Water Treatment Plant and Lift Station #9. CCUA staff received an unsolicited offer to purchase the property at 338 Lido Place, from Mr. Timothy Puhlick and Ms. Theresa Moody. The Property recently became available due to a death in the family. The Property abuts and is located east of CCUA's Meadowbrook Water Treatment Plant and Lift Station #9. Acquisition of the property is helpful for CCUA to accommodate future improvements to both the water plant and lift station: both are very constrained on their existing sites. Future improvements include but are not limited to the relocation of the existing lift station, and the use of the space for water plant operations functions. The Purchase Agreement,executed on December 22,2022, reflects the Seller's agreement to sell CCUA the Property in exchange for a negotiated purchase price of$170,800. CCUA commissioned an appraisal of the property by Pearce Appraisals, which was received on November 16, 2022. The adjusted comparable values ranged from $149,900 to $170,800. The proposed purchase amount represents the high end of the range. Staff believes this marginal difference above the average $159,233 is justifiable to avoid additional time and negotiation via the customer commissioning an additional appraisal, and the potential for not completing this opportunity purchase. The price is consistent with and comparable to other acceptable predominant value ranges of properties covered in the appraisal prepared by Pearce Appraisals, Inc. The total budget of$172,800 ($170,800 purchase price plus $2,000 for ordinary and reasonable closing costs and expenses will be transferred from the Capital Budget Contingency to the Meadowbrook WTP Evaluation to Improve Infrastructure and Provide Treatment Solutions to cover this expense. Staff requested approval of the Purchase Agreement and authorization to proceed with the purchase and closing of the Property, in accordance with the terms and conditions detailed in the Purchase Agreement. If approved, Jeremy D. Johnston, Executive Director, will act on CCUA's behalf to execute the Purchase Agreement and closing documents in their final form. Attorney Roger D. Cruce will be the Closing Agent for this transaction. After discussion, Mr. Hodges moved, seconded by Vice-Chairman Roark, and carried 7-0, to authorize staff to proceed with the purchase of 338 Lido Place,as presented by Ms. Blaney. Other Mr. Johnston reminded the members of the upcoming Tour on Monday, January 23, 2022, beginning at 8:00 A.M. and shared he will be holding a Hurricane Disaster Planning and Response Workshop with staff on Friday, January 20, 2023. He informed the members he will propose dates and times at a future meeting for the upcoming Workshop regarding the Rate Study which is currently being completed by CDM Smith. There will also be a Public Stakeholder Workshop on February 16, 2023, at 11:00 A.M. regarding CCUA's proposed Lake Asbury Master Planning Area (LAMPA) Trunk Main Capital Cost Recovery Policy. Item No. 10—Legal Business a. Other-None Item No. 11 —Old Business/New Business-None Item No. 12—Public Comment Ms. Linda Moore of 2801 Stagecoach Drive, Orange Park, addressed the Board regarding communication she has received from staff regarding the installation of a backflow prevention device and the well she has located on her property. Mr. Dale Sansom of 210 Foxridge Road, Orange Park, addressed the Board regarding the backflow prevention device he had installed at his home after receiving a letter from staff. The device was installed at a cost of$825 and due to installation requirements, it is installed where he feels it may be impacted by traffic. Chairman Davis informed Ms. Moore and Mr. Sansom the Executive Director will investigate their concerns and report back to the Board at the next meeting. Item No. 13—Supervisor Comments Vice-Chairman Roark thanked staff for all of their efforts investigating and contracting with the proper partners for implementation new system. Mr. McNees congratulated the employees recognized today for their employment milestones and congratulated Mr. Wesselman and Ms. Osbourne on a successful audit. Ms. Lebesch echoed the comments above and shared with the new system there may be many new opportunities for growth and procedural changes. Mr. Gardella congratulated staff on an outstanding audit, shared he enjoyed the staff recognitions, and thanked the members of the public for attending and participating in the meeting today. Mr. Hodges echoed the comments of the other members. Mr. Starnieri offered his congratulations to staff, shared he enjoyed reading the emails from customers, and thanked staff for the Pipeline Newsletter. Chairman Davis echoed the comments and wished everyone good luck with the upcoming transition. Item No. 14—Adjournment Chairman Davis adjourned the meeting at 3:19 P.M. / Wendell Davis, Chairman It _ Alb I a i* L udermq , Recording Secretary G . l,t