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Home My WebLink Aboutminutes MINUTES CLAY COUNTY UTILITY AUTHORITY September 6, 2022 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 1:59 P.M. Item No. 2—Invocation/Pledge of Allegiance Mr. Hodges 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 Financial Officer Jeff Wesselman, co Chief Human Resources Officer Kim Richardson, Assistant Chief Financial Officer Karen Osbourne, Assistant a Chief Engineer Joe Paterniti, Senior Design Engineer Kevin Ledbetter, Service Availability Manager Melisa Ca Blaney, Procurement Manager Angelia Wilson, Risk & Safety Manager Lynn Valentin, Customer Service & .2 Billing Manager Diana Strickland, Public & Governmental Affairs Liaison Dennis Ragosta, SCADA Manager L John McCleary, Contract & Procurement Specialist Darrin Parker, Administrative Assistant Operations Alicia c II Baker, Administrative Assistant Engineering Lori DeLoach, and Grady H. Williams, Jr., legal counsel to the ce CCUA. Item No. 4—Approval of Minutes a. Board of Supervisors Regular Meeting, August 16, 2022 After discussion, Ms. Lebesch moved, seconded by Mr. Hodges, and carried 7-0, to approve the minutes of the Regular Meeting held on August 16, 2022. Item No. 5 —Approval of Consent Agenda Items 5(b) a, b, and d were pulled for further discussion. After discussion, Mr. Hodges moved, seconded by Mr. McNees, and carried 7-0, to approve the remaining Consent Agenda items. After further explanation and information was provided by staff, Mr. McNees moved, seconded by Mr. Gardella, and carried 7-0, to approve Items 5(b) a,b, and d. a. Approval of Financial and Operational Activities 1) Approval of Payment of Warrants Warrants totaling $3,104,460.91 a. Schedule of payments to Sole Sources b. Schedule of Emergency Repairs/Purchases—None September 6, 2022 1 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 2) Request for Asset Disposal Authorization 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. RFQ 17/18 No. 5 Geotechnical Engineering and Testing Professional Service Contract Renewal b. RFQ 17/18 No. 6 Surveying and Mapping Professional Services Contract Renewal c. ITB 19/20-A6 Horizontal Directional Drilling Services with T B Landmark Construction, Inc. Contract Renewal d. Bid No. 21/22-A24 for Electronic Molded Case Circuit Breaker for Fleming Island WWTP with MP Predictive Technologies, Inc. 2) Approval of Supplemental Agreements and Change Orders a. Supplemental Agreement No. 1 to Master Contract RFP 2021/2022-A05 for TankRehab.com, LLC to provide Ground Storage Tanks Inspection, Cleaning and Repair, ITB No. 2021/2022-A28 b. Supplemental Agreement No. 2 Continuing Services Contract RFQu 2020/2021- Al7 for Brooks Building Solutions, Inc for the Postmaster Village WTP Electrical Upgrades c. Supplemental Agreement No. 3 to Master Contract 2021/2022-A03 with R2T, Inc. to provide Construction Services for the Spencer's Wastewater Treatment Plant Clarifier#1 Foundation Stabilization project d. Supplemental Agreement No. 7 with CDM Smith, Inc. for the Supervisory Control and Data Acquisition(SCADA)Master Plan c. Approval of Financing Requests—None d. Approval of Contract Usage 1) Florida Department of Management Services, State of Florida Contract No. 3 1 1 6000-20- NASPO-ACS Facilities Maintenance, Repair, and Operations (MRO) and Industrial Services & Sourcewell Contract No. 013020-MRL e. Approval of Developer Agreements, Warranty Deeds & Easements 1) Developer Agreement CU21/22-17 — Tractor Supply located at 1701 Blanding Blvd (Hanlex Orange Park, LLC) — 1.5 ERC's water, 1.5 ERC's AWS, 1.5 ERC's SJRWMD, 1.5 ERC's debt service - $17,192.66 2) Developer Agreement KH21/22-14 - Water Service to 7890 Twin Lakes Road (Chad & Priscilla Screen) — 1 ERC water, 1 ERC AWS, 1 ERC SJRWMD, 1 ERC debt service - $4,480.66 3) Developer Agreement KU21/22-95 - Wastewater Service to 3461 Inlet Lane — Doctors Lake Septic to Sewer Project (Neil Avery III & Tammy Tillman Avery) — 1 ERC wastewater, 1 ERC environmental impact, 1 ERC debt service - $3,777.00 September 6, 2022 2 4) Developer Agreement KU21/22-96 - Parcel "E" — O'Connor Development— 1824 Town Center Blvd., Unit 101, Settlement Agreement#4—Corks and Barrels—2.5 ERC's water, 2.5 ERC's wastewater, 2.5 ERC's AWS, 2.5 ERC's SJRWMD, 2.5 ERC's debt service - $10,711.98 5) Developer Agreement KU21/22-97—Parcel "E"—O'Connor Development— 1824 Town Center Blvd., Unit 104, Settlement Agreement#1 —Mai Nails—3 ERC's water, 3 ERC's wastewater, 3 ERC's AWS, 3 ERC's SJRWMD, 3 ERC's debt service - $12,808.47 6) Developer Agreement KU21/22-98—Parcel "E"—O'Connor Development— 1824 Town Center Blvd.,Unit 103, Settlement Agreement#2—Academy Mortgage Corporation- .5 ERC water, .5 ERC wastewater, .5 ERC AWS, .5 ERC SJRWMD, .5 ERC debt service - $2,326.00 7) Developer Agreement KU21/22-99—Parcel "E"—O'Connor Development— 1824 Town Center Blvd.,Unit 102, Settlement Agreement#3 — Southern Social Marketing & Consulting, LLC - .5 ERC water, .5 ERC wastewater, .5 ERC AWS, .5 ERC SJRWMD, .5 ERC debt service - $2,326.00 8) Developer Agreement KU21/22-100—Wastewater Service to 4735 Pinegate Road(Jason & Stacy Doss) - 1 ERC wastewater, 1 ERC environmental impact, 1 ERC debt service - $9,914.05 9) Developer Agreement KU21/22-102—Wastewater Service to 2512 Windwood Lane— Doctors Lake Septic to Sewer Project(Patrick& Pamela Weister)— 1 ERC wastewater, 1 ERC environmental impact, 1 ERC debt service - $3,777.00 10) Developer Agreement MU21/22-23 —APF Road, Phase I—Infrastructure Only (Creekview GP, LLC) - $1,966.37 11) Grant of Easement—633 Simmons Trail—Barry L. Beasley and Hae S. Chauncey Item No. 6—Customer Account Adjustments -None 0 Item No. 7—Business discussed at Committee Meetings—Personnel Committee Meeting September 6, 2022 Committee Chairman Starnieri reported the Committee met prior to today's meeting to review the Executive Director's Annual Report and Evaluation and reminded everyone to be sure to submit their responses to Mr. Williams no later than September 9, 2022. Item No. 8—Executive Director's Business a. Request to master meter the Black Creek Multi-Family Project requested by ETM and Denton Floyd Real Estate Group Mr. Johnston reported at the last meeting, CCUA staff presented a request from ETM and Denton Floyd Real Estate Group to master meter their Black Creek Multi-Family Project. The representative from Denton Floyd Real Estate Group presented their plan to master meter their project at the property line and then submeter each apartment unit. Staff initially denied the request to master meter their project because the existing Service Availability Policy only allows master metering for workforce housing. Based upon further review and evaluation, staff is recommending approval of the master metering of the Black Creek Multi-Family Project with a term of service within the Developer Agreement allowing CCUA to reclassify their project from Commercial to either Commercial Multi-Family or Residential Multi-Family at some point in the future. CCUA's restriction on the use of master meters begins in Section 32 (page 49, last paragraph) of the current Service Availability Policy. The last paragraph of this section references CCUA Water Conservation Plan that was on file with the St. Johns River Water Management District (SJRWMD). At the time, CCUA's Consumptive Use Permit (CUP) with the SJRWMD had a condition restricting the use of master meters. This paragraph in Section 32 no longer September 6, 2022 3 applies for a couple of different reasons. First, the SJRWMD removed the condition restricting the use of master meters in a modification to the CUP dated October 15, 2021. Second, we updated CCUA's Water Conservation Plan in coordination with the SJRWMD in preparation for an early CUP renewal in accordance with the Black Creek Water Resource Development Project Financial Participation Agreement. The updated Water Conservation Plan does not have the master meter restriction. Staff recommends approving the Black Creek Multi-Family project with a master meter and submeters as proposed by Denton Floyd Real Estate Group and ETM. Staff requests this approval include terms in the Developer Agreement that reserves the rights as listed in the Executive Summary. After discussion, Vice-Chairman Roark moved, seconded by Mr. McNees, and carried 7-0, to approve the request as presented by Mr. Johnston and outlined in the Executive Summary for this item. b. July 2022 Financial Package Chief Financial Officer Jeff Wesselman presented the Financial Statements for July and reported operating income is $3,812,186 over budget due to an unfavorable revenue and favorable expense variance. Operating revenue is $297,946 over budget and operating expenses are $3,514,241 under budget. CCUA has gained 1,093 active water accounts and 1,097 active sewer accounts during fiscal year 2021/2022. After discussion, Vice-Chairman Roark moved, seconded by Ms. Lebesch, and carried 7-0, to accept the Financial Statements for July 2022, as presented by Mr. Wesselman. c. Services provided by ISI Water Company, dba as Water Company of America (WCA) for potential revenue enhancement Mr. Wesselman introduced Mr. David Richardson Revenue Recovery Consultant for ISI Water Company, dba as Water Company of America who presented information regarding his firm's expertise and services. The American Water Works Association estimates that 0.5% - 5% of revenue for utilities is lost each year. For CCUA, that equates to $280K to $2.8M per year of potentially lost revenue. WCA has over 30 years of experience working with public utilities and specializes in revenue recovery through the evaluation of a utility's billing system and distribution and collection systems. CCUA will pay WCA 45% of the additional revenue collected on the found accounts. CCUA would keep the remaining 55%. After the initial five-year period, all found revenue would belong to CCUA. This method can only result in a positive impact on CCUA's budget. After discussion, Mr. Starnieri moved, seconded by Mr. McNees, and carried 7-0, to approve execution of the Professional Services Agreement with WCA, as presented. d. Request to reject all Bids for ITB# 2021/2022-A20 for the Ridaught Water Treatment Plan Ground Storage Tank Rehabilitation Procurement Manager Angelia Wilson presented a request to reject all Bids for ITB#2021/2022-A20 for the Ridaught Water Treatment Plan Ground Storage Tank Rehabilitation. On August 12, 2022, Staff received two (2) bid responses for ITB# 2021/2022-A20 entitled Ridaught Water Treatment Plant Ground Storage Tank Rehabilitation Project. The responses were from Wharton-Smith Inc. and Petticoat-Schmitt Civil Contractors, Inc. Both contractors are engaged under CCUA's Water/Wastewater Infrastructure General Construction Services Continuing Contract 2021/2022-A03. After completing a price analysis of the bid responses, the engineer of record found the pricing submitted were significantly more than the opinion of probable construction cost and recommended rejection of bid. Based on the bid pricing, staff recommends rejection the two (2)bid responses. Because this project is not time critical, staff will have time to evaluate options for rebidding the project. After discussion, Mr. Hodges moved, seconded by Ms. Lebesch, and carried, 7-0, to reject the bids for ITB# 2021/2022-A20, as presented by Mrs. Wilson. September 6, 2022 4 e. Request to pursue CCUA Administrative Complex Driveway Option 1 Assistant Chief Engineer Joe Paterniti presented a request to pursue CCUA Administrative Complex Driveway Option 1, as recommended by the project engineer Jones Edmunds. Option 1 offered the lowest cost, lowest impact to wetlands, and the lowest impact to the adjacent neighborhood. Prior to entering the design phase, CCUA will need to obtain easements and facilitate a stormwater management agreement with the affected HOA and property owner. After discussion, Mr. Hodges moved, seconded by Mr. Gardella, and carried 7-0, to approve Option 1 and authorize the discussion of easements, stormwater management, and wetland mitigation with the affected parties, as presented by Mr. Paterniti. f. Request by the City of Green Cove Springs to amend the service area in the Interlocal Agreement with CCUA Mr. Johnston presented a request from the City of Green Cove Springs to amend their service area in the Interlocal Agreement to serve private property located within the Bayard Conservation Area. Staff estimated it would cost approximately forty (40) million dollars for CCUA to provide service to these parcels. Due to the estimated two hundred fifty-eight(258) year payback, staff recommended the City of Green Cove Springs provide utility service to these parcels when required. After discussion, Mr. Starnieri moved, seconded by Mr. McNees, and carried 7-0, to approve execution of the Interlocal Agreement Amendment, as presented by Mr. Johnston. g. Expiration of the COVID-19 Protection Pay Policy Chief Human Resources Officer Kimberly Richardson informed the Board CCUA's COVID-19 Protection Pay Policy will expire on September 30, 2022. Currently staff is not recommending any additional requests relating to this policy. After discussion Mr. Starnieri moved, seconded by Vice- Chairman Roark, and carried 7-0, for the policy to expire as previously approved on September 3, 2021. h. Request Board of Supervisors attendance at a Warehouse ribbon cutting event on December 20, 2022, and request consideration of a proclamation to name the administrative complex Mr. Johnston shared CCUA began construction of the new warehouse and storage building in January 2022. E. Vaugh Rivers, Inc. anticipates construction to be complete in late December. The implementation of the new warehouse and storage building is part of the next phase of CCUA's growth. He extended an invitation to the Board for a ribbon cutting ceremony on December 20, 2022, at 1:00 p.m. This event will be held in the hour immediately preceding the regularly scheduled Board meeting. CCUA staff also requests the Board consider naming the administration complex the Ray O. Avery Administrative Complex. Mr. Avery served CCUA and the Clay County community faithfully for decades. His forward thinking and steadfast commitment laid the foundation of the utility we see today and believe it is only appropriate to name the complex in his honor and respectfully request the Board consider a proclamation naming this complex the Ray O. Avery Administrative Complex. After discussion, Mr. Starnieri moved, seconded by Ms. Lebesch, and carried 7-0, approve naming the complex as requested by Mr. Johnston. i. Other Mr. Johnston reported staff is currently working with Clay County on a proposed landscape ordinance and has also been coordinating with the Glenhaven HOA on a settlement agreement regarding the roadway to the Mid-Clay WWTF. He also reminded everyone of the upcoming Public Rate Hearing which will be held on Tuesday, September 13, 2022, at 7:00 P.M. September 6, 2022 5 Item No. 9—Legal Business a. Other-None Item No. 10—Old Business/New Business -None Item No. 11 —Public Comment Mr. Scott Hughes of 833 Creighton Road, Fleming Island addressed the Board regarding his dissatisfaction with the water and sewer connection fees he was provided for a home which he purchased for a family member. Item No. 12—Supervisor Comments Mr. Hodges thanked staff for their efforts on the sewer repair and commended them for the FDOT project coordination in Keystone Heights. Mr. Starnieri shared he appreciates staff's efforts and reminded everyone of the deadline to turn in the Executive Director's Evaluations to Mr. Williams. Mr. Gardella echoed the comments above and thanked staff for their hard work and dedication. Vice-Chairman Roark also echoed the comments and thanked everyone for all their efforts. Mr. McNees shared he enjoys reviewing the financial reports and thanked Mr. Wesselman for same. Ms. Lebesch shared she appreciates the efforts of staff and said she always she enjoys receiving unsolicited comments from customers and others in the area about the great work CCUA staff performs on a daily basis. Chairman Davis thanked staff and the members of the Board for their input during today's meeting. Item No. 13 —Adjournment Chairman Davis adjourned the meeting at 3:08 P.M. Wendell Davis, Chairman Janice Loudermilk, Recording Secretary September 6, 2022 6