HomeMy WebLinkAbout6-a minutes 090523 MINUTES
CLAY COUNTY UTILITY AUTHORITY
September 5, 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. Gardella 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 Hodges, Mr. Gardella, 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 Engineer Paul Steinbrecher, Chief Human Resources Officer
co Kim Richardson, Service Availability Manager Melisa Blaney, Senior Service Availability Engineer Darrell
.2 Damrow, Public & Governmental Affairs Liaison Dennis Ragosta, Procurement Manager Angelia Wilson,
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Compliance Manager Heather Webber, Risk & Safety Manager Stan Jurewicz, SCADA Manager John
McCleary, Construction & Inspection Services Coordinator Linda Ortiz Figueroa, Contract and Procurement
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Specialist Darrin Parker, Administrative Assistant Operations Alicia Baker and Grady H. Williams, Jr., legal
counsel to the CCUA.
Item No. 4—Approval of Minutes
a. Board of Supervisors Regular Meeting,August 15, 2023
After discussion, Ms. Lebesch moved, seconded by Mr., Gardella, and carried 6-0, to approve the
minutes of the Regular Meeting held on August 15, 2023.
Item No. 5—Approval of Consent Agenda
After discussion, Vice-Chairman Hodges moved, seconded by Mr. McNees, and carried 6-0, to approve
the Consent Agenda as follows;
a. Approval of Payment of Warrants
1) Warrants totaling $2,734,267.96
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
e. Schedule of claims paid under the Sewage Backup Response Policy-None
f. Detailed Descriptive Warrant Report
2) Request for Asset Disposal Authorization—InFocus Mondopad
3 Sole Source Designation—None
September 5, 2023
b. Approval of Capital Budget Activities
1) Requests for Award of Procurement Contracts and/or Ratification of
Procurement/Construction Contracts or Contract Renewals—None
2) Approval of Supplemental Agreements and Change Orders -None
c. Approval of Financing Requests—None
d. Approval of Contract Usage
1) Request for advance approval to utilize other government contracts —OMNIA Partners
Contract No. 222886 Rental of Uniforms, Floor Mats, Mops, Towels, and Related Services
(Cintas), General Services Administration (GSA) Contract No. 47QTCA19DOOG5
Information Technology Professional Services (Morgan Birge & Associates, Inc) and
General Services Administration (GSA) Contract No. GS-35F-0511T General Purpose
Commercial Information Technology Equipment, Software, and Services (EC America, Inc.)
e. Approval of Developer Agreements, Warranty Deeds &Easements
1) Developer Agreement CU22/23-13 —Wastewater Service to 227 Knight Boxx Rd(Halston&
Shelby Carnes) — 1 ERC wastewater, 1 ERC environmental impact, 1 ERC debt service -
$10,781.83
2) Developer Agreement CU22/23-15 — Carmel Court Townhomes at Bay Hill Village — 35
Units (TG Capital Fund 2, LLC)—29 ERC's water, 27.5 ERC's wastewater, 29 ERC's AWS,
29 ERC's SJRWMD, 27.5 ERC's environmental impact, 27.5 ERC's debt service -
$143,666.55
3) Developer Agreement CU22/23-16 — FCE Storage — 1661 Blanding Blvd (Middleburg SS,
LLC) — 3 ERC's water, 3.5 ERC's wastewater, 3 ERC's AWS, 3 ERC's SJRWMD, 3.5
ERC's environmental impact, 3 ERC's debt service - $30,187.01
4) Developer Agreement KU22/23-58 — Water Service to 975 Floyd Street (Michael D.
Thompson)— 1 ERC water, 1 ERC AWS, 1 ERC SJRWMD, 1 ERC debt service - $ 3,754.90
5) Developer Agreement KU22/23-59 — Wastewater Service to 235 Riverwood Drive
(Charles D. Bishop and Eun Hui Bishop) — 1 ERC wastewater, 1 ERC environmental
impact, 1 ERC debt service - $12,537.44
6) Developer Agreement MU22/23-26—Holstein Crossing Subdivision— 193 Single Family
Lots (Lennar Homes, LLC) — 193 ERC's water, 193 ERC's wastewater 193 ERC's
reclaimed 193 ERC's AWS, 193 ERC's SJRWMD, 193 ERC's debt service -
$988,788.42 (deferred$838,677.64)
7) Developer Agreement MU22/23-27 — Water Service to 286 Lake Asbury Drive (Darrell M.
and Dorothy C. Crawford) — 1 ERC water, 1 ERC AWS, 1 ERC SJRWMD, 1 ERC debt
service - $3,577.30
8 Grant of Easement—432 SE 55th Street- Grantor—Kenneth Hall and Justin Hall
9) Quit Claim Deed—Brannan Mill Plantation, LLC—CCUA North Campus Driveway
Item No. 6—Customer Account Adjustments—None
Item No. 7—Executive Director's Business
a. Clay Economic Development Corporation Funding Presentation
Mr. Johnston introduced Mr. Crawford Powell from the Clay Economic Development Corporation who
provided information regarding their organization and their success in bringing commercial growth to
Clay County. This report was for the Board's information only; no action was requested or required on
this item at this time.
September 5, 2023 2
b. Retirement update
Executive Director Jeremy Johnston and Chief Human Resource Officer Kim Richardson provided a
presentation regarding CCUA's retirement plan. This report was for the Board's information only; no
action was requested or required on this item at this time.
c. Brown&Brown- Insurance Renewal
Mr. Johnston introduced Mr. Paul Dawson of Brown & Brown Public Risk Insurance Agency, (PRIA)
who addressed the Board regarding the CCUA's property and casualty package which includes property,
inland marine, crime, general liability, automobile, public official liability, workers compensation,
material floater and pollution liability policies. Mr. Dawson reviewed his recommendations for the
proposed coverage for the upcoming fiscal year and the proposed renewal premium of$2,009,512. Staff
budgeted $1,912,282 for insurance coverage within the Fiscal Year 2023/2024 operating budget. Staff
will transfer the $97,230 from contingency to cover the increased premium. Staff will also use
contingency funds to cover flood insurance premiums that renew in January/February 2024. After
discussion, Mr. McNees moved, seconded by Ms. Lebesch, and carried 6-0, to accept the renewal
package, as presented by Mr. Dawson.
d. June 2023 Financial Package
Chief Financial Officer Jeff Wesselman presented the Financial Statements for June and reported
operating income is $3,272,142 over budget due to an unfavorable revenue and favorable expense
variance. Operating revenue is $115,664 over budget and operating expenses are $3,156,478 under
budget. CCUA has gained 1135 active water accounts and 1142 active sewer accounts during fiscal year
2022/2023. After discussion, Mr. McNees moved, seconded by Vice-Chairman Hodges, and carried 6-0,
to accept the Financial Statements for June 2023, as presented by Mr. Wesselman.
e. Proposed Amendment No. 1 to Supplemental Agreement No. 4 with CHA Consulting for Consumptive
Use Permitting Renewal—Additional Support Services
Mr. Johnston presented a proposed Amendment No. 1 to Supplemental Agreement No. 4 with CHA
Consulting for Consumptive Use Permitting Renewal — Additional Support Services. CCUA staff
requests to continue the engagement of CHA for CUP renewal services. CHA maintains a team of
experts in water supply planning and permitting. CHA's team of professionals prepared and provided
the CUP support services to date. CCUA owns and operates twenty-three (23) water treatment plants to
supply drinking water to its 55,000 customer accounts in Clay County. Groundwater withdrawals for
these existing facilities along with proposed future facilities are governed by several St. Johns River
Water Management District (SJRWMD or District) consumptive use permits (CUPs). CCUA's permits
contain numerous conditions, including a special condition dealing with Minimum Flows and Levels
(MFLs) requiring CCUA to meet provisions of any SJRWMD approved recovery or prevention plan.
Staff continues to progress with a permit consolidation and renewal process for these permits. On
August 3, 2021, the Board of Supervisors approved staff's recommendation to engage CHA Consulting
to provide CUP Permitting support services for that consolidated renewal application. Staff will submit
detailed responses to a SJRWMD issued Request for Additional Information (RAI). The RAI response
will complete the original scope of work. We anticipate additional hydrogeological modeling and
technical support for the legal team may be needed to complete the permit renewal as post application
activities. After discussion, Vice-Chairman Hodges moved, seconded by Mr. Gardella, and carried 6-0,
to approve the proposed amendment in the amount of$100,000, as presented.
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£ Request for approval of the Memorandum of Understanding with Clay County, Clay County Utility
Authority, and Governor's Park Property Holdings, LLC regarding the basis of design along property
centerline for pipeline and future roadway construction in the corridor known as the Green Cove Springs
Bypass
Service Availability Manager Melisa Blaney presented a request for approval of the Memorandum of
Understanding (MOU) with Clay County, Clay County Utility Authority, and Governor's Park Property
Holdings, LLC regarding the basis of design along property centerline for pipeline and future roadway
construction in the corridor known as the Green Cove Springs Bypass. Staff requests approval of an
MOU with the County and GPPH regarding the establishment of the centerline of a future road corridor
as the basis for easements related to pipeline construction. CCUA's contractor continues to make good
progress in preparing to install water and reclaimed mains and sewage force mains in a future roadway
corridor known as the GCSB. Staff coordinated with the County and GPPH, the landowner, on the
location of the mains to locate the pipes in the right of way of that future parkway. The County Manager
requested an agreement between all parties memorializing this coordination and the location of the
future roadway centerline. By way of this MOU, all parties agree that the centerline of the northern
portion of the GCSB from State Road 16 to County Road 15A is depicted in Exhibit A of the MOU.
CCUA's Consultant designed critical infrastructure transmission mains located offset from this
centerline, positioned to be located in the future right of way of the GCSB. CCUA's contractor is nearly
ready to begin construction of those pipelines. CCUA's Consultant reviewed and coordinated with staff
and GPPH's Engineer of Record to ensure conformance with GPPH's land interests. GPPH, the
landowner, agrees to locate the roadway as shown in the Exhibit. The parties intend to minimize
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conflicts in the subsequent design of the GCSB and for the mutually beneficial planning and orderly
design and construction of future roadways, utilities, and other infrastructure improvements that may be
needed for future development in this area. CCUA agrees to relocate infrastructure, as reasonably
needed, to accommodate future roadway drainage structures and crossroads. After discussion Ms.
Lebesch moved, seconded by Vice-Chairman Hodges, and carried 6-0, to approve execution of the
MOA as presented by Ms. Blaney.
g. Proposed Authorization for the Peters Creek Water Reclamation Facility Expansion and Pipeline Project
Deductive Change Order and Owner-Direct Purchase Orders for Wharton-Smith, Inc. (WSI)
Procurement Manager Angelia Wilson presented a a proposed authorization for the Peters Creek Water
Reclamation Facility Expansion and Pipeline Project Deductive Change Order and Owner-Direct
Purchase Orders for Wharton-Smith, Inc. The Board approved the award of the contract to WSI for the
Peters Creek Water Reclamation Facility Expansion and Pipeline Project Bid No. 2022/2023-A05 at the
March 7, 2023, meeting. Staff requested approval for the Peters Creek Water Reclamation Facility
Expansion and Pipeline Project Bid No. 2022/2023-A05 for the Wharton-Smith, Inc. deductive change
order and owner-direct purchase orders for the express purpose of saving sales taxes on major materials
and equipment, as authorized by the Executive Director, or his designee, and as recommended by the
Chief Engineer. After discussion, Mr. McNees moved, seconded by Vice-Chairman Hodges, and carried
6-0, to approve the Change Order in the deductive amount of $1,516,328.03, as presented by Mrs.
Wilson.
h. Proposed Approval of Contract Award to Sawcross, Inc. for Governor's Park Water Treatment Plant
Contract ITB#22/23-A24
Mrs. Wilson and Senior Service Availability Engineer Darrell Damrow presented a proposed approval
of a Contract Award to Sawcross, Inc. for Governor's Park Water Treatment Plant Contract ITB#22/23-
A24. CCUA requires a new water plant to serve the Governor's Park service area. The original design
utilized existing package plant equipment for the purpose of construction speed, which is a strategy that
was used successfully in the past. In the current market environment of limited contractor capacity, it
September 5, 2023 4
resulted in high bid prices relative to the value. CCUA solicited bids for construction of the plant from
the four (4) continuing services general contractors engaged under CCUA Master Contract No.
2021/2022-A03. At the January 3, 2023 Board of Supervisors meeting, Staff recommended and received
authorization to reject all bids received as they exceeded the maximum contract value of $4 million.
CCUA received feedback from contractors, and subsequently contracted with Dewberry Engineering to
review and update the plant design to ensure the resulting project provides CCUA with the best long-
term value. The resulting design provides CCUA with capacity to serve the area through approximately
2038. On July 12, 2023, and July 14, 2023, Staff publicly advertised the above-referenced project on the
CCUA Bonfire Procurement Portal and in the Florida Times-Union respectively. At the August 23,
2023, Bid Opening, CCUA received one (1) bid from Sawcross, Inc. in the amount of $5,049,429.
Engineer of Record, Mike Pekkala, PE, Senior Project Manager of Dewberry Engineers, Inc. and staff
evaluated the submittal for conformance with the solicitation requirements and deemed the Sawcross,
Inc. submittal was both responsive and responsible. Staff requested approval and authorization of the
execution of a contract with Sawcross, Inc. and requested approval of deductive change orders and
owner-direct purchase orders for the express purpose of saving sales taxes on major materials and
equipment, as authorized by the Executive Director, or his designee, and as recommended by the Chief
Engineer and the associated Bid Documents. After discussion, Mr. Starnieri moved, seconded by Mr.
Gardella, and carried 6-0, to approve staff's requests associated with Governor's Park Water Treatment
Plant Contract ITB#22/23, as presented.
i. Request for consideration and approval of Subordination of Utility Interests to accommodate the Florida
Department of Transportation's right-of-way acquisition for road widening, and improvements to CR
220 in Middleburg
Ms. Blaney presented a request for consideration and approval of Subordination of Utility Interests to
accommodate the Florida Department of Transportation's right-of-way acquisition for road widening,
and improvements to CR 220 in Middleburg. In conjunction with the Florida Department of
Transportation's ("FDOT")right-of-way acquisition for road widening and improvements along CR 220
from Knight Boxx Road to Henley Road. FDOT has requested that CCUA subordinate several portions
of its utility rights over five (5) parcels, as shown on FDOT's plan sheets. The subordination will affect
CCUA's easement rights acquired in existing recorded easements and agreements; however, CCUA's
interests will remain protected under this Subordination Agreement to construct, operate, maintain,
improve, add to, upgrade, remove, and relocate facilities. CCUA staff has been working with Clay
County's engineer of record to adjust the roadway design to avoid existing utility conflicts wherever
feasible. In the event an FDOT project directly impacts the Utility and necessitates new construction or
relocation of facilities, as agreed by the parties, the County has agreed to pay the cost of acquiring
appropriate easements to bring such facilities to compliance with pertinent codes and standards.
Additionally, if future roadway projects require the Utility to alter, adjust, or relocate its facilities in said
lands, the County is responsible for paying the cost of such alteration, adjustment, or relocation,
including but not limited to the cost of acquiring appropriate easements. This Subordination of Utility
Interests is consistent with other Subordinations between FDOT, Clay County, and CCUA. Should
FDOT's road widening, and improvements further interfere with or harm CCUA facilities, CCUA's
interests will remain protected under this Subordination agreement. After discussion Mr. McNees
moved, seconded by Vice-Chairman Hodges, and carried 6-0, to approve execution of the agreement, as
presented.
j. State of Florida Department of Environmental Protection Standard Grant Agreement LPA0488 for the
Peters Creek Water Reclamation Facility
Public & Governmental Affairs Liaison Dennis Ragosta presented a request for execution of a State of
Florida Department of Environmental Protection Standard Grant Agreement LPA0488 for the Peters
Creek Water Reclamation Facility. Staff submitted an appropriations application to the Clay County
Legislative delegation for consideration during the 2023 Florida Legislative Session. Senator Jennifer
September 5, 2023 5
Bradley, Representative Sam Garrison, and Representative Bobby Payne supported the application. On
June 15, 2023, Governor DeSantis signed the budget for Fiscal Year 2023/2024 including CCUA's
appropriation request. The 5-year Capital Improvement Plan (CIP) Budget includes the construction of
Peters Creek facility into an Advanced Wastewater Treatment (AWT) facility. Peters Creek facility
upgrades will treat wastewater up to public access reclaimed water standards for distribution in the
growing service area. This grant agreement provides CCUA funding for the construction expenses of the
expansion project. The Standard Grant Agreement provides $500,000 of funding for the project. The
total budget for this project stands at $74,912,785. The construction budget for this project totals
$70,581,203.20. There would be no additional costs against the project budget. After discussion, Mr.
McNees moved, seconded by Ms. Lebesch, and carried 6-0, to approve execution of the agreement, as
presented by Mr. Ragosta.
k. State of Florida Department of Environmental Protection Standard Grant Agreement LPA0489 for the
Swimming Pen Creek Water Main Interconnect
Mr. Ragosta presented a request for execution of a State of Florida Department of Environmental
Protection Standard Grant Agreement LPA0489 for the Swimming Pen Creek Water Main Interconnect.
The 5-year Capital Improvement Plan (CIP) Budget includes the Swimming Penn Creek Water Main
Interconnect project that includes the installation of 3200 linear feet of a 10-inch water main along
County Road 220, between Habersham Harbor Road to just east of Silver Point Road. The purpose of a
new water main is to interconnect CCUA's Fleming Island water system grid to the Orange Park Grid.
This grant agreement will assist CCUA with the construction expenses of the expansion project. The
Standard Grant Agreement provides $500,000 of funding for the project. The total budget for this
project stands at $3,704,215.15. The Professional Engineer's Opinion of Probable of Construction Cost
estimates $2,886,000 for construction. There would be no additional costs against the project budget.
After discussion, Ms. Lebesch moved, seconded by Mr. Gardella, and carried 6-0, to approve execution
of the agreement, as presented by Mr. Ragosta.
1. Ratification of Executive Director actions for the Tropical Storm/Hurricane Idalia Emergency
Operations Declaration
Mr. Johnston requested ratification of his actions associated with the Tropical Storm/Hurricane Idalia
Emergency Operations Declaration. After discussion, Mr. Starnieri moved, seconded by Mr. McNees,
and carried 6-0, to ratify the actions taken by the Executive Director in response to Tropical
Storm/Hurricane Idalia.
m. Other
Mr. Johnston reminded the members the LAMPA Hearing and Public Rate Hearing will be held on
Tuesday, September 12, 2023, at 7:00 P.M. and the Personnel Committee will meet on Tuesday,
September 19, 2023, at 1:00 P.M. He also shared the 2022/2023 Executive Director's Annual Report
and Public Rate Hearing books are at their stations.
He reported staff is currently investigating the issues being experienced by the members of the Board
accessing the agenda package in DropBox and he will report on their findings at a later meeting.
Item No. 8—Legal Business
a. Other
Mr. Williams provided a brief update on pending and recently settled litigation and shared legal
expenses were higher than normal this year due to these cases.
September 5, 2023 6
Item No. 9—Old Business/New Business -None
Item No. 10—Public Comment-None
Item No. 11— Supervisor Comments
Vice-Chairman Hodges said he appreciated all the information on the insurance renewal and inquired if staff
could possibly review our claims history to see if self-insurance on some items might be in CCUA's best
interest.
Mr. Starnieri commented on sending staff to Jennings, Florida after the hurricane and shared he will not be able
to attend the LAMPA and Public Rate Hearing on September 12, 2023.
Mr. Gardella felt there was a lot of very good information shared with the Board today and thanked staff for
their efforts.
Ms. Lebesch echoed the comments of the other members and commented on the promotions and new hires
mentioned in The Pipeline.
Mr. McNees also shared it was a very good meeting today.
Chairman Davis thanked the members of the Board and staff for their efforts in today's meeting.
Item No. 12—Adjournment
Chairman Davis adjourned the meeting at 3:41 P.M.
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Wendell Davis, Chairman
Janice Loudermilk, Recording Secretary
September 5, 2023