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Home My WebLink Aboutminutes MINUTES CLAY COUNTY UTILITY AUTHORITY March 21, 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 Mr. Starnieri 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, Mr. Gardella, Mr. Hodges, Ms. Lebesch, Mr. McNees, and Mr. Starnieri in attendance. ca a Also present at the meeting were Executive Director Jeremy Johnston, Chief Operations Officer Darryl Muse, ca Chief Financial Officer Jeff Wesselman, Chief Engineer Paul Steinbrecher, Assistant Chief Engineer Joe .2 Paterniti, Senior Service Availability Engineer Darrell Damrow, Public & Governmental Affairs Liaison Dennis 3 Ragosta, Construction and Inspection Services Manager Warrick Sams, Compliance Manager Heather Webber, SCADA Manager John McCleary, Contract and Procurement Specialist Darrin Parker, Service Availability ce Analyst Jennifer Cron, Administrative Assistant Operations Alicia Baker, Administrative Assistant Engineering Anneica Asberry, and Grady H. Williams, Jr., legal counsel to the CCUA. Jennifer Dennis Item No. 4—Employee Recognition a. David A. Deese -25 years b. Jeffrey S. Wesselman- 5 years Mr. Johnston introduced and presented a plaque to Chief Sewer Line Inspection Technician David Deese and a certificate to Chief Financial Officer Jeff Wesselman acknowledging their years of service. Item No. 5 —Approval of Minutes a. Board of Supervisors Regular Meeting, March 7, 2023 After discussion, Mr. Gardella moved, seconded by Mr. Hodges, and carried 6-0, to approve the minutes of the Regular Meeting held on March 7, 2023. Item No. 6—Approval of Consent Agenda After discussion, Mr. Hodges moved, seconded by Ms. Lebesch, and carried 6-0, to approve the Consent Agenda as follows; March 21, 2023 1 a. Approval of Financial and Operational Activities 1) Approval of Payment of Warrants Warrants totaling $3,713,373.96 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 -None c. Approval of Financing Requests 1) Financing request for Mr. and Mrs. Horan's Wastewater Connection at 1947 Lakeshore Drive North d. Approval of Contract Usage—None e. Approval of Developer Agreements, Warranty Deeds &Easements 1) Developer Agreement CU22/23-6 —Jennings Court Townhomes —28 Units — 3214-3296 Isabella Court (Wiggins Construction Company of North Florida, Inc.)—28 ERC's water, 28 ERC's wastewater, 28 ERC's AWS, 28 ERC's SJRWMD, 28 ERC's environmental impact- $130,682.33 (deferred) 2) Developer Agreement CU22/23-7 — Ascend Branan Field Village Apartments — 300 Units — 1637 Ascend Village Lane (DHIC — Branan Field, LLC) — 131.5 ERC's water, 130.5 ERC's wastewater, 20 ERC's reclaimed, 131.5 ERC's AWS, 131.5 ERC's SJRWMD, 130.5 ERC's debt service - $658,605.23 3) Developer Agreement GC22/23-2 — Jeremys Hollow Subdivision — 14 Single Family Lots (D. Anderson Development Inc.) — 14 ERC's water, 14 ERC's wastewater, 14 ERC's reclaimed, 14 ERC's AWS, 14 ERC's SJRWMD, 14 ERC's debt service - $74,193.53 (deferred) 4) Developer Agreement KH22/23-7—Water Service to 4522 SE 6th Lane (William Griffith Jr., Marta Griffith, and William Griffith III) — 1 ERC water, 1 ERC AWS, 1 ERC SJRWMD, 1 ERC debt service - $7,671.39 5) Developer Agreement KU22/23-37 — Individual Metering of 459 Lombard Street (Consolacion Obero) - $6,296.46 6) Developer Agreement MU22/23-9 — Cross Creek Subdivision 2D-2 — 101 Lots (D.R. Horton, Inc. — Jacksonville) — 101 ERC's water, 101 ERC's wastewater, 101 ERC's reclaimed, 101 ERC's AWS, 101 ERC's SJRWMD, 101 ERC's debt service - $457,621.33 (deferred) 7) Grant of Easement — 442 and 444 SW Naha Street — Grantor — Matthew Clark Construction, LLC 8) Grant of Easement—461 Creighton Road—Grantor—Rae of Hope, LLC 9) Grant of Easement—6364 Swarthmore Dr—Grantor—Franklin and Hungria Ceballos 10) Grant of Easement—730 Floyd Street—Grantor- Home Legacy, LLC March 21, 2023 11) Grant of Easement— 517 & 521 Fells Court— Grantor—Lawrence Whiting Jr. and Kelly Whiting 12) Grant of Easement— 1044 & 1052 Fleming Street—Grantor—N. Florida Properties, LLC Item No. 7—Customer Account Adjustments—None Item No. 8 — CCUA Rate Structure Evaluation and Alternatives Workshop - Continuation from the March 7, 2023, Board of Supervisors meeting Mr. Johnston provided a presentation regarding the CCUA Rate Structure Evaluation and Alternatives Workshop - Continuation from the March 7, 2023, meeting. He provided additional information and clarification on the questions which were raised by members at the last meeting. The final technical document regarding the Rate Study will be available in May of 2023. It was the consensus of the Board to have staff continue working toward an equitable rate structure for residential and commercial customers. Due to the implementation of the upcoming ERP, the five (5) year phase in would not begin until the 2024/2024 Fiscal Year. Item No. 9—Executive Director's Business a. Plan Document approvals for the Clay County Utility Authority 401(a)Money Purchase Plan and 457(b) Deferred Compensation Plan Chief Financial Officer Jeff Wesselman presented a request for plan document approvals for the Clay County Utility Authority 401(a) Money Purchase Plan and 457(b) Deferred Compensation Plan. MissionSquare Retirement, the new recordkeeper for the CCUA sponsored retirement plans, completed plan restatement documents including 401(a) and 457(b). Internal Revenue Service requires certain documents be restated about every six years, or when the plans' recordkeeper is changed. All preapproved documents must be restated adopting the new recordkeeper's approved Internal Revenue Service prototype documents. No provisions of the Money Purchase 401(a) Plan are changing at this time. CCUA's contribution to the Money Purchase 401(a) Plan was not modified in the restatement, which is the Employer contributing 10% of employee earnings into the Plan. However, staff is evaluating other employer contribution options to present for consideration in the near future. In addition, the vesting schedule, which is stated as a five (5) year vesting period, has not been modified at this time and is also being discussed to consider best practices among peers and in the industry. The restated Money Purchase 401(a) Plan was provided by MissionSquare. One suggested modification was identified during the Deferred Compensation 457(b) plan restatement review process, which is an allowed provision following the passing of the (first) SECURE Act in December 2019. The provision staff proposed adding to the 457(b) Deferred Compensation Plan is to allow for "In-Service Distribution" at age 59.5, which is aligned with best practices and provisions on most employer sponsored retirement plans. After discussion, Ms. Lebesch moved, seconded by Mr. Hodges, and carried 6-0, to approve execution of the plan documents, as presented by Mr. Wesselman. b. Acceptance of the Amended 2022/2023 Capital Projects Expenditures Budget Chief Engineer Paul Steinbrecher and Mr. Wesselman presented the Amended 2022/2023 Capital Projects Expenditures Budget. CCUA completes an annual five-year Capital Projects Expenditures Budget during its budget cycle. The largest budget item for 2022/2023 Capital Budget is the Peters Creek Water Reclamation Facility Expansion and Pipelines Project. The bids closed on December 21, 2022, significantly over the budgeted amount. Staff, Ardurra, the Engineer of Record and Wharton- Smith, Inc., the contractor for the project, met and agreed to a deductive change order based on Voluntary Reductions for the project and an increase to the Engineer of Record's contract. The Board approved$88,344.258.08 as the new project budget at the March 7, 2023, meeting. This resulted in a March 21, 2023 3 budget increase of$41,524,718.08 to complete the project. The supporting documentation was provided in the agenda package. The total Capital Expenditures budget remains the same as the original Capital Expenditures budget at $328,564,331.90. After discussion, Mr. McNees moved, seconded by Mr. Gardella, and carried 6-0, to approve the Amended 2022/2023 Capital Projects Expenditures Budget, as presented and included in the agenda package. c. Update to the Board of Supervisors regarding recent and historical Construction Bids vs Opinions of Probable Construction Cost Mr. Steinbrecher presented an update regarding recent and historical Construction Bids vs Opinions of Probable Construction Cost which was requested at a previous meeting. This report was for the Board's information only, no action was requested or required on this item. d. Construction& Inspection Quarterly Progress Report Construction & Inspection Services Manager Warrick Sams presented the Construction and Inspection Quarterly Progress Report to the Board. This report was for the Board's information; no action was requested or required on this item. e. Recommended Selection of the Governor's Park Water Treatment Plant Construction Bid RFQ No. 2022/2023-A17 Senior Service Availability Engineer Darrell Damrow presented a recommended Selection of the contractor for the Governor's Park Water Treatment Plant Construction Bid RFQ No. 2022/2023-A17. CCUA will construct a new WTP to serve the Governor's Park service area. CCUA solicited bids for construction of the plant from the four(4) continuing services general contractors engaged under Master Contract 2021/2022-A03. At the January 3, 2023, meeting, staff recommended and received authorization to reject all bids received as they exceeded the maximum contract value of $4 million. Subsequently, staff interviewed the contractors to ascertain the reasons that the bids exceeded the Engineer's Opinion of Probable Construction Cost and the maximum contract value. Based on these interviews, staff deemed it necessary to modify the drawings, develop specifications, and re-advertise the project to any qualified bidder in the open market. A Request for Qualifications (RFQ) was advertised on CCUA's Bonfire Procurement Platform on February 10, 2023, and in the Florida Times Union on February 15, 2023. A single submission was received from Dewberry Engineers, Inc., by the closing date, March 3, 2023. The single RFQ submission was evaluated and scored by the project Evaluation Committee. Dewberry Engineers, Inc., ranked 94.0 for the proposal received. Reviewers noted that this Firm and the Subcontractors identified in the submittal are well qualified to support CCUA in the subject professional services area. Staff requested authorization to negotiate and execute a contract with Dewberry Engineers, Inc., for the engineering services identified above. After discussion, Mr. Hodges moved, seconded by Mr. McNees, and carried 6-0, to authorize staff to negotiate a contract with Dewberry Engineers, Inc. and approve the RFQ Opening Documents, as presented. f. Proposed Change Order No. 1 to Supplemental Agreement No. 1 to Master Contract RFP No. 2021/2022-A05 for TankRehab.com, LLC to provide Ground Storage Tanks Inspection, Cleaning and Repair ITB No. 2021/2022-A28 Chief Operations Officer Darryl Muse presented proposed Change Order No. 1 to Supplemental Agreement No. 1 to Master Contract RFP No. 2021/2022-A05 for TankRehab.com, LLC to provide Ground Storage Tanks Inspection, Cleaning and Repair ITB No. 2021/2022-A28. The Board approved the engagement of two (2) contractors for the purposes of inspecting and repairing the CCUA water storage tanks. CCUA must inspect the potable water storage tanks once every five (5) years for Florida Department of Environmental Protection regulations. Staff's use of the contractors aims to engage the properly licensed professionals to complete tank inspections and repairs while minimizing impacts to utility operations. Staff presented Supplemental Agreement (SA) No. 1 with TankRehab at the September 6, 2022, meeting. The SA with TankRehab to complete the inspections of the tanks listed in the scope of work. The Fleming Oaks Water Treatment Plant (WTP) is listed in the tanks to be inspected. The scope of work with TankRehab includes a $50,000 contingency for repairs. TankRehab's March 21, 2023 4 inspection included the paint liner within the Fleming Oaks WTP. The existing paint liner has failed and is well outside of the warranty period. Given the repair work at the other WTP's, Tank Rehab proposed a Change Order to complete the necessary preparation and painting of the potable water tank. Staff reviewed the Change Order proposal and found the scope and fee consistent with the contract with Tank Rehab. After discussion, Ms. Lebesch moved, seconded by Mr. Gardella, and carried 6-0, to approve Change Order No. 1 in the amount of$105,000, as presented by Mr. Muse. g. Proposed Engagement with Dalton Agency, LLC to support professional communications and media support services related to the Clay County Utility Authority's Consumptive Use Permit Renewal Application Mr. Johnston presented a proposed Engagement with Dalton Agency, LLC to support professional communications and media support services related to CCUA's Consumptive Use Permit Renewal Application. The State of Florida empowered the five (5) water management districts to regulate entities that use more than 100,000 Gallons of water Per Day (GPD). The water management districts, including the St. Johns River Water Management District (SJRWMD), use the CUP process to regulate water users. An entity's CUP regulates that amount of water they are allocated to use on a daily and annual basis. The SJRWMD regulates CCUA's CUP thereby CCUA's water allocation to serve the communities in Clay County. There are many elements to CCUA's CUP renewal that may require clear, concise, and effective messaging to customers, key stakeholders, and regulators. We anticipate the need for communication support that is professional, agile, and versed in multiple avenues of communication. Staff is currently working with Dalton for the Potable Reclaimed Water Pilot Project. We consider Dalton an excellent firm to work with on public messaging related to CCUA's CUP renewal. Dalton maintains a proven track record with clear professional experience in communicating with media and the public on behalf of utilities. Staff and the Dalton team prepared a scope for professional services with compensation on a time and materials basis. Staff did not anticipate the need for professional communications and media support services therefore the $50,000 fee will be deducted from the operational budget contingency for these professional services. After discussion, Mr. Hodges moved, seconded by Mr. Starnieri, and carried 6-0, to approve execution of the Scope of Work provided by Dalton Agency, LLC, as presented. h. Other Mr. Johnston shared a presentation on the upcoming Consumptive Use Permit will be presented at the next meeting, he informed them he will be out of the office attending the American Water Works Association Utility Management Conference in Sacramento, California from March 29th through March 31 St. He also reminded them of the upcoming Clay Day in Tallahassee. Item No. 10—Legal Business a. Approval of Private Attorney Services Agreement - de la Parte, Gilbert, McNamara& Caldevilla, P.A. Mr. Williams presented a request for approval of the Attorney Engagement Package with de la Parte, Gilbert, McNamara & Caldevilla, P.A. pending approval from the Office of the Attorney General to enter into these agreements. After discussion, Mr. Hodges moved, seconded by Mr. Gardella, and carried 6-0, to approve the Attorney Engagement Package, as presented by Mr. Williams. b. Other-None Item No. 11 —Old Business/New Business -None Item No. 12—Public Comment-None March 21, 2023 5 Item No. 13— Supervisor Comments Mr. McNees shared it is a privilege to serve on the Board and thanked staff for their efforts. Ms. Lebesch also expressed her appreciation to staff for their dedication and professionalism. Mr. Gardella echoed the comments of the other members and congratulated Mr. Deese and Mr. Wesselman on their employment milestones. Mr. Hodges shared his appreciation for staff for providing the details necessary to make the decisions which come before them. Mr. Starnieri congratulated Mr. Deese and Mr. Wesselman on their tenure with the company. Chairman Davis echoed everyone's comments and inquired if CCUA is still working with Clay County on strategic planning for growth within the county. Mr. Johnston replied to his inquiry sharing we do work closely with all affected stakeholders. Item No. 14—Adjournment Chairman Davis adjourned the meeting at 3:25 P.M. Wendell Davis, Chairman Janice Loudermilk, Recording Secretary March 21, 2023 6