HomeMy WebLinkAbout04.b 022024 Regular Session MINUTES
CLAY COUNTY UTILITY AUTHORITY
February 20,2024
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 Starnieri called the meeting to order at 2:00 P.M.
Item No. 2—Invocation/Pledge of Allegiance
Mr. Petty offered the Invocation and led those in attendance in the Pledge of Allegiance.
Item No. 3—Roll Call
Roll Call was taken with Chairman Starnieri, Vice-Chairman Lebesch, Mr. Gardella, Mr. Hingst, Mr. McNees, Mr.
Petty, and Mrs. Taylor 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 Kim
Richardson, Assistant Chief Engineer Joe Paterniti, Service Availability Manager Melisa Blaney, Senior Service
Availability Engineer Darrell Damrow, Construction & Inspection Services Manager Warrick Sams, Compliance
Manager Heather Webber, SCADA Manager John McCleary, Training & Development Coordinator Ashley
Taliaferro, Administrative Assistant Operations Alicia Baker, Administrative Assistant Engineering Annecia
Asberry, and Grady H. Williams, Jr., legal counsel to the CCUA.
Item No. 4—Approval of Minutes
a. Board of Supervisors Regular Meeting,February 6,2024
After discussion, Vice-Chairman Lebesch moved, seconded by Mr. Gardella, and carried 7-0, to approve the
minutes of the Regular Meeting held on February 6,2024.
Item No. 5—Approval of Consent Agenda
Item 5(e)6 was moved to the Executive Director's portion of the agenda. After discussion, Mr. McNees
moved, seconded by Vice-Chairman Lebesch, and carried 7-0, to approve the remaining Consent Agenda as
follows;
a. Approval of Financial and Operational Activities
1) Approval of Payment of Warrants
Warrants totaling$8,986,751.40
a. Schedule of payments to Sole Sources
b. Schedule of Emergency Repairs/Purchases
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
g. Statement from Grady H. Williams,Jr. LL.M.
2) Request for Asset Disposal Authorization—None
3) Sole Source Designation—None
February 20, 2024 1
b. Approval of Capital Budget Activities
1) Requests for Award of Procurement Contracts and/or Ratification of
Procurement/Construction Contracts or Contract Renewals
a. Request Approval of the Continuing Contracts Extension for the Civil and Environmental
Engineering Professional Services RFQ# 18/19-A03
2) Approval of Supplemental Agreements and Change Orders—None
c. Approval of Financing Requests—None
d. Approval of Contract Usage—None
e. Approval of Developer Agreements,Warranty Deeds &Easements
1) Developer Agreement CU23/24-3 — Clay Plaza Shopping Center — 1339 Blanding Blvd,
Suite 6, Settlement Agreement#3 for Tomi 168, LLC (Clay Plaza Investors, LLC)—0.34368
ERC's water, 1.041301 ERC's wastewater, 0.34368 ERC's AWS, 1.041301 ERC's
environmental impact, 0.34368 ERC's debt service, 0.34368 ERC's SJRWMD- $5,320.06
2) Developer Agreement KU23/24-19—Fire Protection Service to 369 Blanding Blvd Buildings
900 & 1000 - $16,997.20
3) Grant of Easement—837 Floyd Street—Grantor—Christopher and Alicia Kaczmarczyk
4) Grant of Easement— 1229, 1233 & 1235 Floyd Street—Grantor—Mark McGuigan
5) Grant of Easement—5902 Head Road—Grantor—Josh and Jill Fletcher
6) Partial Release of Property from Master Agreement - Creekview GP, LLC - Moved to Item
8 Executive Director's Business
Item No. 6—Customer Account Adjustments—None
Item No. 7—Business discussed at Committee Meetings
Audit/Finance Committee Chairman Gardella informed those in attendance the committee met prior to today's
Regular Session to discuss the 2023/2024 Fiscal Year Audit. After discussion, Mrs. Taylor moved, seconded by Mr.
Petty, and carried 7-0,to accept the audited Financial Statements as presented.
Item No. 8—Executive Director's Business
5 (e)6 Partial Release of Property from Master Agreement- Creekview GP,LLC
Service Availability Manager Melisa Blaney discussed the Partial Release of Property from the Master
Agreement- Creekview GP, LLC. The Developer has a current agreement with CCUA for the property being
released. After discussion, Mr. Gardella moved, seconded by Mrs. Taylor, and carried 7-0, to approve the
document as presented.
a. Strategic Plan 2023 by CDM Smith, Inc.
Executive Director Jeremy Johnston presented for approval the revised CCUA Strategic Plan 2023. The
changes requested by the members of the Board were incorporated and reviewed by Mr. Johnston. After
discussion, Mr. McNees moved, seconded by Vice-Chairman Lebesch, and carried 7-0, to approve the
Strategic Plan 2023, as presented.
b. October 2023 Financial Package
Chief Financial Officer Jeff Wesselman presented the October Financial Package for consideration. He
reported Operating income is $61,779 (4%) under budget due to an unfavorable revenue and favorable
expense variance. Operating revenue is $215,108 (4%) under budget and Operating expenses are $153,329
(4%)under budget. CCUA has gained 102 active water accounts and 102 active sewer accounts for the fiscal
year 2023/2024 as compared to an increase of 48 active water accounts and an increase of 49 active sewer
accounts for the same time in fiscal year 2022/2023.After discussion,Mr. McNees moved, seconded by Mrs.
Taylor, and carried 7-0,to approve the October 2023 Financial Package, as presented.
February 20, 2024 2
c. PFM Financial Advisors LLC recommendation for financing relating to LAMPA borrowings
Mr. Wesselman introduced Jeremy Niedfeldt, Managing Director of PFM Financial Advisors LLC (PFM)
who addressed the Board regarding their recommendation for financing relating to LAMPA borrowings.
PFM Financial Advisors LLC ("PFM")was engaged by CCUA to serve as financial advisor for the proposed
issuance of a privately placed Utility System Revenue Bond, Series 2024 (the "2024 Bond"). The purpose of
the Series 2024 Bond is to provide funds to facilitate the interlocal agreement with Shadowlawn Community
Development District and pay costs of issuance. The 2024 Bond is payable solely from and secured solely by
a pledge of the net revenues of CCUA's Utility System and will be issued on parity with CCUA's Series
2012, 2015, 2019 and 2023 Notes under and pursuant to CCUA's Bond Resolution. The requested size of the
2024 Bond was a not-to-exceed par amount of either$9.2 million or$30 million. Based on recent aggressive
bids received from financial institutions for similar financings,PFM recommended CCUA pursue a privately
placed direct bank loan (or line of credit), which in today's market was expected to be an efficient and cost-
effective method of financing. All CCUA debt currently outstanding is privately placed with a bank or issued
as a State Revolving Fund loan. At CCUA's direction, following the Board's direction to proceed, PFM
distributed a request for proposals ("RFP") on December 5, 2023. The RFP was sent to a list of local,
regional, and national financial institutions to identify the institution that could provide CCUA with a fixed
rate, non-bank qualified term loan at the lowest overall borrowing cost, pursuant to certain conditions as
determined by CCUA. Prior to the submittal deadline (2:00 pm on January 18, 2024) CCUA received six (6)
proposals from the following firms: Bank of America, JPMorgan Chase, PNC, Truist, Valley National &
Webster Bank. Webster Bank proposed a traditional loan for either the $9.2M or $30M options, fully drawn
at close, at a fixed interest rate of 4.15%. This also includes prepayment flexibility beginning on May 2,
2028, through May 1, 2029, at a prepayment price of 101%, and thereafter at par with no penalty.
Comparatively, Bank of America proposed a variable interest rate of 3.97%, however, this would subject
CCUA to interest rate risk. Truist proposed a fixed interest rate of 3.94%,however,this option included a put
after one year. Based on PFM's review and discussions with CCUA's staff and Bond Counsel, it was
determined that Webster Bank's $30M option provided the most cost-effective financing alternatives along
with favorable conditions. The proposed interest rate, 4.15%, is locked through the anticipated closing date
of February 27, 2024, which eliminates the risk of rising interest rates between the proposal submittal date
and closing date. After discussion, Mr. McNees moved, seconded by Mr. Gardella, and carried 7-0, to
approve the proposal from Webster Bank, as presented.
d. Action on proposed Resolution No. 2023/2024-04—Series 2024 Bonds
Emily Magee of Butler Snow presented the proposed Resolution No. 2023/2024-04— Series 2024 Bonds for
consideration and approval. After discussion, Vice-Chairman Lebesch moved, seconded by Mrs. Taylor, and
carried 7-0,to approve the Bond Resolution as presented.
e. Request for approval of the Memorandum of Understanding with Clay County, Clay County Utility
Authority, and Reinhold Corporation regarding the basis of design along the property centerline for pipeline
and future roadway construction in a corridor along the Peters Creek Water Reclamation Facility and
Pipeline project
f. Request for consideration and approval of the proposed Easement Agreement with Reinhold Corp. for the to
the utility transmission mains associated with the Peters Creek and Governor's Park Plant Projects along the
east-west access driveway to CCUA existing Peters Creek Wastewater Treatment Facility
g. Peters Creek WRF Entrance Road Pipeline Pkwy Coordination-Amendment 4 Ardurra
Items 8 (e), (f), and(g)were removed from consideration at the request of the Executive Director.
h. Governor's Park WTP Services During Construction with Dewberry
Senior Service Availability Engineer Darrell Damrow presented a Proposed Amendment 1 to RFQ
2022/2023-A17 with Dewberry Engineers, Inc. to provide additional Professional Services for Design and
Services during construction for the Governor's Park Water Treatment Plant. Dewberry Engineers, Inc. is
currently under contract with CCUA via competitive RFQ to provide design, bid, and SDC services for the
Governor's Park Water Treatment Plant, a new water plant that will independently serve a new CCUA
service area, Governor's Park. CCUA bid the construction of the plant as two separate projects—drilling two
(2) new supply wells and construction of the treatment, storage, and distribution elements. As bid, the
designed plant treatment process to reduce sulfides in the raw water includes natural tray aeration. This is
standard at every other CCUA water plant because sulfide levels are low and tray aeration is the most cost-
effective method to reduce sulfides. Following completion of the wells, and after awarding the plant
February 20, 2024 3
construction contract, water quality testing indicated that source water sulfide levels are elevated (>1.5
mg/L). When sulfide levels are at this level, the Florida Department of Environmental Protection requires
additional or alternate treatment to reduce sulfides in the finished water. CCUA staff and our engineer of
record, Dewberry, determined that the most reliable, effective, and cost-efficient treatment is to use a forced
draft aerator with upstream CO2 injection. The CO2 injection lowers the pH of the water and allows the
sulfides to be removed more effectively. The design modifications include changes to the storage tank, yard
piping, and addition of CO2 storage and controls and a forced draft aerator and controls. The proposed
amendment will authorize Dewberry to perform additional design services and SDC for these sulfur removal
system changes on the GP WTP project as detailed in the Scope and Fee Proposal. The cost for these services
is $57,826.61 which includes necessary work by their subconsultants. The additional services could not have
reasonably been anticipated at the time of the original agreement. After discussion, Mr. McNees moved,
seconded by Vice-Chairman Lebesch, and carried 7-0, to approve the Amendment in the amount of
$$57,826.61, as presented.
i. Proposed Change Order No. 1 to the Construction Contract with Sawcross, Inc., for Additional Materials and
Labor for the Governor's Park Water Treatment Plant Project
Mr. Damrow presented a proposed Change Order No. 1 to the Construction Contract with Sawcross, Inc., for
additional materials and labor for the Governor's Park Water Treatment Plant Project. Dewberry sized and
then requested pricing for the new system from two reputable providers and recommended the lower cost
alternative. CCUA staff accepted the recommendation and requested pricing from the contactor, Sawcross,to
incorporate these systems. The proposed change order will authorize Sawcross to purchase and implement
the aeration and CO2 injection systems into the GP WTP project. The negotiated pricing proposal for
$1,051,050.66 is fair and reasonable and represents negotiation of reduced markups than those allowed in the
contract. These additional expenses could not have reasonably been anticipated at the time of the original
agreement. It is customary in the water business to await well test results before moving to a more expensive
sulfide removal system. CCUA intends to utilize the contract clause allowing the Utility to purchase
materials directly from the manufacturer or distributor to save the sales taxes associated with the purchase.
Staff will return in a subsequent Board meeting to present Change Order No. 2 for a reduction in the
construction contract price to reflect this purchase. After discussion, Mr. Gardella moved, seconded by Mrs.
Taylor, and carried 7-0,to approve Change Order No. 1, as presented.
j. Keystone Water Reclamation Facility Evaluation Expansion Project 2024
Chief Engineer Paul Steinbrecher presented a Proposed Supplemental Agreement (SA) No. 15 with Ardurra
Group, Inc (Consultant) to provide engineering and technical services for Keystone Heights Water
Reclamation (KH WRF)Facility Evaluation Expansion Project. CCUA operates and maintains the KH WRF
that serves predominately commercial portions of the Keystone Heights service area. The KH WWTF has a
permitted annual average daily flow (AADF) treatment capacity of 0.074 million gallons per day (mgd) and
discharges secondarily treated water to rapid infiltration basins (RIBs) that have a permitted AADF capacity
of 0.20 mgd. The Keystone Heights area is a prominent recharge area, so this water is considered beneficially
reused through recharge. The plant consists primarily of horizontal steel package plant equipment and needs
rehabilitation to the headworks, clarifier, and electrical components. In addition, CCUA's 2023 KHWRF
Capacity Analysis Report identified the need for expansion of this facility within the next 36 months to serve
requested service expansions in the area. Staff identified these needs in the five (5) year Capital
Improvement Plan and budgeted for an initial planning study and preliminary design report this fiscal year.
Staff coordinated with the Consultant to develop a proposal to provide planning services for the
rehabilitation and expansion of the plant. This planning project includes evaluating the range of growth
potential in the area on both 10- and 20-year terms, conducting a regulatory analysis, evaluating condition
and rehabilitation needs of existing unit processes and equipment at the KH WRF, developing and evaluating
improvement and expansion alternatives, and presenting the selected alternative in a preliminary design
report sufficient to move directly to design. Also included is time sufficient to evaluate and apply for
American Rescue Plan Act funding should it become available in state funds this year. After discussion,Vice
Chairman Lebesch moved, seconded by Mr. McNees, and carried 7-0, to approve Supplemental Agreement
February 20, 2024 4
No. 15 in the amount of $311,057.76 engaging Ardurra Group, Inc., for the Keystone Heights Water
Reclamation Facility Expansion Project Peter's Creek WWTP Phase II Expansion Planning.
k. Proposed Supplemental Agreement No. 7 to Professional Engineering Services Agreement 18/19 No 3 with
Carollo Engineers, Inc. to Provide Pilot Operation and Testing Support Services for the Potable Reuse
Demonstration Project
Item 8(k)was removed from consideration at the request of the Executive Director.
1. Approval to authorize an allocation for additional payment to the County in accordance with the Interlocal
Agreement No. 2022/2023-80 for the implementation of utility infrastructure relocations and improvements
associated with the Clay County's Bonded Transportation Program - Sandridge Roadway Improvements
Project 4A
Assistant Chief Engineer Joe Paterniti requested approval to authorize an allocation for additional payment to
the County in accordance with the Interlocal Agreement No. 2022/2023-80 for the implementation of utility
infrastructure relocations and improvements associated with the Clay County's Bonded Transportation
Program- Sandridge Roadway Improvements Project 4A. CCUA entered into an Agreement with the County
for the implementation of utility relocations and improvements within the County's - Sandridge Road
Roadway Improvements project. The Agreement outlines a framework to coordinate design and construction
of the utility relocations using the County's design engineer and general contractor, and it delegates
responsibilities for each respective party. The Agreement also allows CCUA to use the County's
construction engineering inspector (CEI) firm to provide utility inspections during construction. CCUA and
County staff along with the County's design consultant and contractor have developed the project
implementation costs. CCUA agrees with the CCUA's portion of the cost for the project. The Agreement
requires that CCUA pay the full amount for the design, construction, and CEI services associated with the
relocation and improvements to CCUA facilities. The Agreement was approved by the Board at the
December 20, 2023, meeting and fully authorized by the County on January 18, 2023. The Board approved
the initial authorization for payment of $1,501,558.30 to the County on March 28, 2023. The County's
contractor recently has uncovered additional conflicts that need to be corrected to allow the construction to
proceed as planned. This authorization will provide the needed funds to address the conflicts the contractor
has uncovered. After discussion, Mr. McNees moved, seconded by Mr. Gardella, and carried 7-0, to approve
additional payment to Clay County in the amount up to $100,000 in accordance with the Interlocal
Agreement No. 2022/2023-80 for the Clay County BTP Sandridge Roadway Improvements, as presented.
m. Revision to the Clay County Utility Authority's Professional Development Training&Development Policy
Training & Development Coordinator Ashley Taliaferro presented the revised CCUA Professional
Development Training & Development Policy which adds additional positions, modified wage brackets and
clarified policy language for administration purposes. After discussion, Vice-Chairman Lebesch moved,
seconded by Mr. Petty, and carried 7-0,to approve the revised policy as presented.
n. Proposed Task Order No. 40 with Insituform Technologies, LLC for the Bellair, Jefferson Square, and
CR220 Rehab Project Cured in Place Pipelining Bid No. 18/19-A7(c)
Chief Operations Officer Darryl Muse presented for consideration proposed Task Order No. 40 with
Insituform Technologies, LLC for the Bellair, Jefferson Square, and CR220 Rehab Project Cured in Place
Pipelining Bid No. 18/19-A7(c). CCUA continuously invests in rehabilitating aging infrastructure, that
includes reducing inflow and infiltration into old gravity sewer systems. Staff identified the gravity lining
rehab for the Bellair, Grove Park, and Greenwood rehabilitation project in CCUA's 5-year Capital
Improvement Plan. With this project, Insituform will clean, inspect, and install over 22,096 feet of CIPP
inside of existing gravity mains. CIPP is a trenchless rehabilitation method used to repair existing pipelines
and minimize disruption to customers. After discussion, Vice-Chairman Lebesch moved, seconded by Mrs.
Taylor, and carried 7-0, to approve Task Order No. 40 in the amount of$990,273.59, as presented.
February 20, 2024 5
o. Other
Mr. Johnston informed the Board a notice will be mailed to approximately 11,000 customers in the Fleming
Island area notifying them of a regulatory issue associated with the 4-Log Virus Inactivation in the Pace
Fleming Grid which occurred on September 26, 2023. There was no threat to public health and safety, the
notice is an FDEP requirement of the voluntary standards.
He also shared the proposed go-live date for the new ERP has been delayed, we will not enact the project on
March 25, 2024, as planned.
Item No. 8—Business discussed at Committee Meetings-None
Item No. 9—Legal Business
a. Action on proposed Resolution No. 2023/2024-05 amending Resolution No. 2023/2024-01
Item 9(a)was removed from consideration at the request of the Executive Director.
b. Other-None
Item No. 10—Old Business/New Business -None
Item No. 11 —Public Comment-None
Item No. 12—Supervisor Comments
Mr. Petty said he attended the Audit/Finance Committee and was very pleased to hear the audit was clean.
Mr. McNees shared he will be absent from the March 5,2024 meeting.
Vice-Chairman Lebesch thanked CDM Smith and CCUA staff for the Strategic Plan and she hopes the notice being
mailed to the customers in Fleming Island will be carefully crafted.
Mr. Gardella said he was happy to hear the annual audit was clean and thanked staff and the auditors for their efforts.
Mrs. Taylor and Mr. Hingst echoed the comments from the other members.
Chairman Starnieri shared it was a good meeting and he was very proud of the great audit.
Item No. 13 —Adjournment
Chairman Starnieri adjourned the meeting at 2:53 P.M.
James Starnieri, Chairman
Janice Loudermilk, Recording Secretary
February 20, 2024 6