HomeMy WebLinkAboutRegular Minutes - 3/7/2023 REVIEWED FOR REDACTION
MINUTES
CLAY COUNTY UTILITY AUTHORITY
March 7, 2023
A
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
Vice-Chairman Roark 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, 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 Engineer Paul Steinbrecher, Assistant Chief Engineer Joe
Paterniti, Service Availability Manager Melisa Blaney, Senior Service Availability Engineer Darrell Damrow,
Environmental Compliance Manager Heather Webber, Public & Governmental Affairs Liaison Dennis Ragosta,
Contract & Procurement Specialist Darrin Parker, Administrative Assistant Operations Alicia Baker,
Administrative Assistant Engineering Annecia Asberry, and Grady H. Williams, Jr., legal counsel to the CCUA.
Item No. 4—Board Proclamation
Public & Legislative Relations Liaison Dennis Ragosta informed the Board to encourage the efficient use of
water, the Florida Section of the American Water Works Association has requested its member organizations to
adopt proclamations declaring April 2023 as Water Conservation Month. This designation offers the
opportunity to increase awareness about the importance of water conservation and encourage water users to take
appropriate actions to conserve and protect our state's water resources. After discussion, Mr. Starnieri moved,
seconded by Mr. Hodges, and carried 6-0, to adopt the Proclamation declaring the month of April 2023 - Water
Conservation Month, as presented. Mr. Ragosta introduced Mr. Doug Conkey, of the SJRWMD, who briefly
addressed the Board regarding Water Conservation Month.
Item No. 5 —Approval of Minutes
a. Board of Supervisors Regular Meeting,February 21, 2023
After discussion, Mr. McNees moved, seconded by Mr. Starnieri, and carried 6-0, to approve the
minutes of the Regular Meeting held on February 21, 2023.
Item No. 6—Approval of Consent Agenda
After discussion, Mr. Hodges moved, seconded by Mr. Gardella, and carried 6-0, to approve the Consent
Agenda items, as follows;
a. Approval of Financial and Operational Activities
I) Approval of Payment of Warrants
Warrants totaling$2,920,313.30
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
e. Schedule of claims paid under the Sewage Backup Response Policy-None
f. Detailed Descriptive Warrant Report
2) Request for Asset Disposal Authorization—None
3 Sole Source Designation —None
b. Approval of Capital Budget Activities
1) Requests for Award of Procurement Contracts and/or Ratification of
Procurement/Construction Contracts or Contract Renewals
a. Consideration of a proposed FDOT subordination of Utility interests for FDOT
roadway widening and improvementsat County Road 220 at Henley Road and Joe
Johns Road in Middleburg, Florida
2) Approval of Supplemental Agreements and Change Orders
a. Proposed Supplemental Agreement No. 11 with Jones Edmunds & Associates, Inc. to
the Civil and Environmental Engineering Professional Services Agreement
2018/2019 RFQ No. 3, to provide an evaluation and opinions of probable
construction costs for the Knight Boxx / Old Jennings Forcemain and Lift Station
Number 56 collection system modifications
b. Proposed Supplemental Agreement No.13 with Ardurra Group, Inc to the Civil and
Environmental Engineering Professional Services Agreement 2018/2019 RFQ No. 3,
to provide preliminary design and opinions of the probable construction costs for
implementation of electrical improvements at the Fleming Island Water Reclamation
Faci I ity
c. Approval of Financing Requests -None
d. Approval of Contract Usage—General Services Administration Contract No. 47QTCA2100BD
e. Approval of Developer Agreements, Warranty Deeds &Easements
1) Developer Agreement KU22/23-32 — Wastewater Service to 762 Clay Street (Amy
Harrell and Johnathan Harrell) — 1 ERC wastewater, 1 ERC environmental impact, 1
ERC debt service - $10,805.03 (financed)
2) Developer Agreement KU22/23-33 — Wastewater Service to 235 Whispering Woods
Drive (Robert Cates and Kelly Cates)— 1 ERC wastewater, 1 ERC environmental impact,
1 ERC debt service- $10,318.18 (financed)
3) Developer Agreement KU22/23-34 — Individual Metering of 475 Bentwood Lane (IAR
Property, LLC) - $6,096.74
4) Developer Agreement KU22/23-35 — Water Service to 3049 Moody Avenue (Conner
James Borgmeier) — 1 ERC water, 1 ERC AWS, 1 ERC SJRWMD, 1 ERC debt service -
$4,580.63
5) Developer Agreement MU22/23-8—Anabelle Island Subdivision Additional 25 Lots (KB
Home Jacksonville, LLC)—25 ERC's water, 25 ERC's wastewater, 25 ERC's reclaimed,
25 ERC's AWS, 25 ERC's SJRWMD, 25 ERC's debt service - $125,786.08 (deferred)
6) Developer Agreement RU22/23-3 — Water Service to 2113 Spinnaker Court (Robert
Keith Taylor, Jr., and Amber Taylor) — 1 ERC water, 1 ERC AWS, 1 ERC SJRWMD, 1
ERC debt service - $7,804.79
Item No. 7—Customer Account Adjustments -None
Item No. 8—Business discussed at Committee Meetings—None
Item No. 9—CCUA Rate Structure Evaluation and Alternatives Workshop—CDM Smith,Inc.
Representatives from CDM Smith, Inc. (CDM)provided a presentation entitled Update on Water Rate Structure
which was prepared by their firm. The Board requested additional information regarding the proposed changes
to CCUA's commercial rate structure asking CDM to clarify their charts and graphs to clearly show the
potential effect on customer's monthly bills by using data garnered from actual accounts to illustrate how the
proposed phase-in would impact their businesses. They inquired how this rate change could affect schools,
churches, and other non-profit organizations. Members also questioned if they could possibly be offered an
amended rate or tier schedule. Mr. Williams will review CCUA's Enabling Legislation, confer with our counsel
from Sundstrom & Mindlin, LLP, and offer an opinion on same at a future meeting.
Item No. 10—Executive Director's Business
a. January 2023 Financial Package
Chief Financial Officer Jeff Wesselman presented the Financial Statements for January and reported
operating income is $667,363 over budget due to an unfavorable revenue and favorable expense
variance. Operating revenue is $771,304 under budget and operating expenses are $1,438,673 under
budget. CCUA has gained 301 active water accounts and 298 active sewer accounts during fiscal year
2022/2023. After discussion, Mr. Starnieri moved, seconded by Mr. Hodges, and carried 6-0, to accept
the Financial Statements for January 2023, as presented by Mr. Wesselman.
b. Administrative Services Agreement with International City Management Association Retirement
Corporation doing business as MissionSquare Retirement
Mr. Wesselman presented a proposed Administrative Services Agreement with International City
Management Association Retirement Corporation doing business as MissionSquare Retirement. On
August 16, 2022, the Board ratified an agreement between CCUA and SageView Advisory Group, Inc.
(SageView) to serve as the Fiduciary for the CCUA Employee Retirement Plans which include the 457
(b) and 401 (a). As the Fiduciary, SageView recommended conducting a survey to benchmark the fees
associated to the recordkeeping services for the CCUA Employee Retirement Plan. Ascensus acquired
those services on February 29, 2021, following a merger from BB&T to Truist. The survey provided
results indicating it would be beneficial to initiate a request for proposal (RFP) for recordkeeping
services. On behalf of CCUA, SageView completed the RFP process. SageView prepared a thorough
analysis of the five proposal submittals for the CCUA Retirement Plan Committee's review. The
proposals were ultimately narrowed down to two finalists, including Empower and MissionSquare. The
CCUA Retirement Committee interviewed and evaluated the finalist and unanimously selected
MissionSquare as the recordkeeper for the plan. Staff requested ratification the agreement with
International City Management Association Retirement Corporation doing business as MissionSquare
Retirement. After discussion, Mr. Starnieri moved, seconded by Mr. Gardella and caried 6-0, to ratify
the Agreement as presented by Mr. Wesselman.
c. Proposed award of contract to Wharton-Smith, Inc, with deductive change order based on Voluntary
Reduction for the Peters Creek Water Reclamation Facility Expansion Project and Peters Creek Water
Reclamation Facility Expansion Pipelines Project
Chief Engineer Paul Steinbrecher and David Rasmussen, P.E. of the Ardurra, Group (Ardurra)presented
a proposed award of a contract to Wharton-Smith, Inc, with deductive change order based on Voluntary
Reduction for the Peters Creek Water Reclamation Facility Expansion Project and Peters Creek Water
Reclamation Facility Expansion Pipelines Project. Staff advertised the subject project on CCUA's
Bonfire Procurement Platform and Florida Times Union on October 27, 2022. An Onsite Pre-Bid
Meeting was held on November 8, 2022, and was attended by four contractors. At the December 21,
2022, Bid Opening, CCUA received (1) one bid from Wharton-Smith, Inc. in the amount of
$65,573,000. The bid amount for this project significantly exceeded the Engineer of Record's (EOR's)
Opinion of Probable Construction Cost (OPCC) which was $36,400,000. Staff and the FOR did not
understand the basis for the significant difference between the OPCC and the bid received. Because of
this difference as well as there being a single bidder, staff requested the Board defer action at the
January 3, 2023, meeting. Staff also requested authorization to speak with the single bidder to
understand the basis for the bid and discuss the potential for voluntary reductions. Staff briefed the
Board regarding status of the project discussions at the February 21, 2023, meeting indicating they
would bring forth a recommended scope of work, price, and contract incorporating the voluntary
reductions agreed to with the single bidder. Staff is presenting the results of that effort for consideration,
Wharton-Smith's bid based on voluntary reductions is now stated at $55,088,600. Staff requested
approval of the award of contract to Wharton-Smith, Inc, with deductive change order based on
voluntary reductions for the Peters Creek Water Reclamation Facility Expansion and Pipelines Project
Bid No. 22/23-A05, the Contract Documents and the bid opening minutes, as presented. After
discussion, Mr. McNees moved, seconded by Mr. Gardella, and carried 6-0, to approve the award to
Wharton-Smith, Inc., the deductive Change Order with voluntary reductions for the Peters Creek Water
Reclamation Facility Expansion and Pipelines Project — Bid No. 22/23-A-05, Florida Times Union
Advertisement, Pre-Bid Meeting Attendance, Bid Opening Attendance, Defer Action Memorandum for
CCUA Bid No. 2022/2023-A05, the updated Scope of Work and Standard Form of Agreement Concept
Drawings—Appendix E to the Bid Specifications, the Wharton-Smith, Inc. signed Voluntary Reduction
Letter, and Bid Opening minutes, as presented by Mr. Steinbrecher.
d. Proposed Amendment 3 to RFQ 2020/2021-A14 Ardurra Group, Inc. Professional Services for the
Peters Creek Water Reclamation Facility Expansion and Effluent Management Project
Mr. Steinbrecher presented a proposed Amendment No. 3 to RFQ 2020/2021-A14 - Ardurra Group, Inc.
Professional Services Agreement for the Peters Creek Water Reclamation Facility Expansion and
Effluent Management Project. CCUA engaged Ardurra to provide professional engineering services for
design, bid, and construction administrative services for the Peters Creek WRF project. This work was
originally awarded by CCUA to Ardurra through a competitive RFQ process. Ardurra with the guidance
and support of staff developed three (3) project component packages. The project component packages
are itemized below.
• Peters Creek WRF &Pipelines
• Site Civil work at the Governor's Park site
• Governor's Park Lift Station and Reclaimed Water Storage and Pump Station.
Ardurra prepared an EOPCC during agreed upon phases of the project design. Ardurra used industry
methodologies and market pricing that was current at the time the EOPCC's were completed. The bid to
construct the Peters Creek WRF and pipelines component came in significantly over the final EOPCC.
The work Ardurra and staff completed after the project bid was received demonstrates the impact of
current inflationary market forces across the State of Florida is having on the water and wastewater
utility industry. To be responsive to advance this project, staff and the Ardurra team initiated an
approximately seven (7) week fast track alternatives evaluation. In parallel with the alternative's
evaluation, staff and the Ardurra team initiated discussions with the single bidder, Wharton-Smith, Inc.,
regarding potential voluntary reductions for this critical new service infrastructure. The work of staff
and the Ardurra team culminated in a proposed voluntary reduction of $13.8 million relative to the
initial bid from Wharton-Smith, Inc. Staff updated the Board on the outcome of those evaluations at the
February 21, 2023, meeting. Staff and the Ardurra team worked with the Contractor to finalize contract
documents for the Peters Creek WRF Expansion and Pipeline Project. The final negotiated voluntary
cost reduction for this project totals $12,954,232. The Ardurra team requested an Amendment to their
Professional Services Agreement for this project to recover costs for the alternative evaluation and
negotiation work, as well as additional services for this project not in the original basis of design. Staff
agrees with the Ardurra team the additional services could not have reasonably been anticipated at the
time of the initial Agreement and are in response to changing market conditions resulting in a high bid
from a single bidder. A summary of the change order components is shown in the Cost Summary Table
below:
Project Management 1 $31,875.20
Voluntary Reduction Alternatives and Negotiations 6.1,6.2 $62,888.00
Voluntary Reduction Conformed Drawings and Permit Modifications 6.3,6.4 $162,500.80
Ecological Services Including Gopher Tortoise Mitigation 2 $310,199.00
Other Design and Support Subconsultants 3,4,5,6,7 $122,550.00
Total S690,013.00
rotal Less Gopher Tortoise Tasks $379,814.00
Staff notes approximately 45% of the total cost of this Amendment relates to the Gopher Tortoise
mitigation. Staff and the Ardurra team originally included this work as a $400,000 allowance in the bid
documents. Staff requests this work be moved to the Ardurra team's scope for the purpose of
expediency. The revised Contractor bid for this project will not carry the $400,000 allowance for these
services. The total less gopher tortoise tasks as shown in the Table above is $379,814, and includes
necessary permitting, surveying, and redesign work to achieve the identified voluntary reductions. This
work includes conforming approximately 98 detailed design drawings. The original scope of work for
planning, design, and services during construction was $3,564,608.00. The additional $379,814.00 is
approximately 10.4%of original fee for the Professional Engineering Design, Bidding, and Construction
Administration Services originally scoped in the basis for design. Staff considers the requested
additional fee to be competitive and reasonable for services received. After discussion, Mr. Hodges
moved, seconded by Mr. Starnieri, and carried 6-0,to approve Amendment No. 3, as presented.
e. Proposed award of contract to Sawcross, Inc. for the Governor's Park Wastewater Lift Station Project,
and Governor's Park Reclaimed Water Pump Station Project
Mr. Steinbrecher presented a proposed award of contract to Sawcross, Inc. for ITB 22/23-A06 -
Governor's Park Wastewater Lift Station Project, and Governor's Park Reclaimed Water Pump Station
Project. The subject project consists of one (1) of three (3) project components to provide wastewater
treatment service and reclaimed water service in both the Peters Creek and Governor's Park service
territories. The Governor's Park Lift Station will transmit wastewater to the expanded Peters Creek
Water Reclamation Facility (WRF). The Governor's Park Reclaimed Water Storage and Pump Station
will receive reclaimed water from the Peters Creek WRF to serve the future customers in the Governor's
Park and surrounding developments. The Board approved the site civil portion of the Governor's Park
site at the January 3, 2023, meeting. Staff advertised the GP LS/RWPS Project on CCUA's Bonfire
: > : ,
Procurement Platform on October 20, 2022, and in the Florida Times Union on October 24, 2022. At the
February 17, 2023, Bid Opening, CCUA received (3) three bids from the following Contractors:
Petticoat-Schmitt Civil Contractor, Inc. - $8,551,000; Wharton-Smith - $7,880,000; Sawcross, Inc —
$7,683,000. CCUA's consultant and EOR, David Rasmussen, P.E. of Ardurra Group, Inc. along with
CCUA staff evaluated the bids for conformance with the solicitation requirements. Both the EOR and
staff and determined Sawcross, Inc. submitted the lowest, responsive bid at a total lump sum bid price of
$7,683,000. After discussion, Mr. McNees moved, seconded by Vice-Chairman Roark, and carried 6-0,
to approve award of the contract to Sawcross, Inc. for the Governor's Park Wastewater Lift Station
Project and Governor's Park Reclaimed Water Storage and Pump Station Project, the associated bid
opening documents, and minutes, as presented by Mr. Steinbrecher.
The following is an overview of the three agenda items as approved above;
Capital Improvement Program(CIP) Budgets:
Peters Creek WRF Phase II: $ 43,819,540.00
Peters Creek WRF Land Acquisition: $ 3,000,000.00
Project Transfers from Delayed Projects: $ 41,524,718.08
Total OP Project Budget: MIS sars4411.4
Current and Proposed Contracts
Original Design and Bidding Services with Ardurra: $ 3,564,608.00
Previous Change Orders for Interim Modifications: $ ]b,960.80
Design and Bidding Change Order with Ardurra: $ 690,013.00
Peters Creek Pre-purchase of Equipment: $ 15,492,603.20
Peters Creek WRF Expansion with Wharton Smith: 55,088,600.00
Governor's Park Site Civil with PSCC: $ 1,905,000.00
Governor's Park LS and RWPS with Sawcross,Inc.: _ 7,683,000.00
Governor's Park Pre-Purchase Equipment: $ 609,643.08
Sub-Total Design and Construction Services Contracts: $ 85,110,428.08
Total Construction Contingency: $ 3,233,830.00
Trull Disko ion Services Contracts: $ 83,344,238.0B
f. Other
Mr. Johnston provided information on the upcoming Clay Day in Tallahassee. He also shared staff is
currently working on the Consumptive Use Permit renewal application and compiling the information
garnered at the LAMPA Policy Workshop.
Item No. 11 —Legal Business
a. Other
Mr. Williams shared it is an honor and a blessing to work with CCUA staff and consultants involved in
the business of the utility.
Item No. 12—Old Business/New Business -None
Item No. 13 —Public Comment-None
Item No. 14—Supervisor Comments
Mr. Gardella shared it was a long meeting, but for the right reasons. He thanked staff and CDM for their efforts
on the Rate Study.
Mr. Hodges thanked everyone and also inquired if we can try to learn from the difference we have seen between
the initial bid estimates and the actual bids received by trending the results.
Mr. Starnieri said it was a very good meeting,the members were provided lots of information today, he thanked
staff, and shared his appreciation for the the cost savings on the Governor's Park project.
Mr. McNees thanked David Rasmussen for his input and efforts both on paper and presenting today to achieve
the desired result.
Vice-Chairman Roark echoed the other member's comments and shared he certainly appreciates the value
engineering on the Governor's Park project.
Chairman Davis also echoed the comments and appreciates how the consultants provided both integrity and
professionalism in their presentations today.
Item No. 15 —Adjournment
Chairman Davis adjourned the meeting at 3:55 P.M.
Wendell Davis C •
Londe:' ilk, Recor ing Secretary