HomeMy WebLinkAbout06.a Minutes 091724 MINUTES
CLAY COUNTY UTILITY AUTHORITY
September 17, 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. Hingst 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, and Mrs.
Taylor in attendance.
Also present at the meeting were Executive Director Jeremy Johnston, Chief Operations Officer Darryl Muse,
Chief Financial Officer Karen Osbourne, Chief Engineer Paul Steinbrecher, Assistant COO/D&C
Superintendent David Rawlins, Chief Human Resources Officer Kim Richardson, Assistant Chief Engineer Joe
Paterniti, Utility Engineer Heather Cavanagh, Senior Procurement Manager Angelia Wilson, Service
Availability Manager Melisa Blaney, Construction and Inspection Services Coordinator Matt King,
Administrative Assistant Operations Alicia Baker, Administrative Assistant Annecia Asberry, and Grady H.
Williams, Jr., legal counsel to the CCUA.
Item No. 4—Employee Recognition
a. Jennifer Cron—20 years
b. Kyle Holzschuher— 10 years
Executive Director Jeremy Johnston presented a certificate to Service Availability Analyst Jennifer Cron
acknowledging her twenty years of service and presented a certificate to Chief Operator Wastewater
Kyle Holzschuher recognizing his ten years of service.
Item No. 5—Board of Supervisors Appreciation
Mr. Johnston presented a plaque to Mr. Gardella and Chairman Starnieri in appreciation of their service
on the CCUA Board of Supervisors.
Item No. 6—Approval of Minutes
a. Board of Supervisors Personnel Committee Meeting, September 3, 2024
b. Board of Supervisors Regular Meeting, September 3, 2024
c. Public Rate Hearing, September 10, 2024
After discussion, Mr. Hingst moved, seconded by Mr. Gardella, and carried 5-0, to approve the minutes
of the Personnel Committee held on September 3, 2024, the Regular Meeting held on September 3,
2024, and the Public Rate Hearing held on September 10, 2024.
September 17, 2024 1
Item No. 7—Approval of Consent Agenda
After discussion, Mrs. Taylor moved, seconded by Vice-Chairman Lebesch and carried 5-0, to approve
the Consent Agenda follows;
a. Approval of Financial and Operational Activities
1) Approval of Payment of Warrants
Warrants totaling $7,197,287.05
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
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. Proposed Approval of Contract Renewal for the Geotechnical Engineering and
Testing Professional Services Contract RFQ No. 2022/2023-A21
b. Proposed Approval of the Contract Renewal for the Horizontal Directional Drilling
Services Contract ITB No. 19/20-A6
c. Proposed Approval of Contract Renewal for the Professional Lobbying Services
Contract RFQ No. 2019/2020-A14
2) Approval of Supplemental Agreements and Change Orders
a. Proposed Amendment No.1 to Supplemental Agreement No. 8 with Jones Edmunds
& Associates, Inc. to the Civil and Environmental Engineering Professional Services
Agreement 2018/2019 RFQ No. 3, to provide Professional Engineering Services for
the Ridaught Landing Water Reclamation Facility Improvements Project
c. Approval of Financing Requests
(1) Wastewater Service to 50 Harmony Hall Road—Corey and Renee Kurlander
d. Approval of Contract Usage
(1) Florida Department of Management Services (DMS) of Florida Contract No. 56120000-
24-NY-ACS (Furniture Contract)
e. Approval of Developer Agreements, Warranty Deeds & Easements (continued)
1) Developer Agreement CU23/24-21 — Water Service to 3862 Cypress Bend Lane
(Christopher and Felisha Foote) — 1 ERC water, 1 ERC AWS, 1 ERC SJRWMD, 1 ERC
debt service - $4,012.37
2) Developer Agreement CU23/24-22 — The District Multi-Use Entrance Road
Infrastructure Only(Meritage Homes of Florida, Inc.) - $3,141.68
3) Developer Agreement KU23/24-53 — Wastewater Service to 3153 Creighton Landing
Road (Bruce Cooper, Jr. and Ana Cooper) — 1 ERC wastewater, 1 ERC environmental
impact, 1 ERC debt service - $12,799.20 (financed $12,497.20)
4) Developer Agreement SS23/24-8 — Royal Pines aka Oakleaf Free-Standing Emergency
Room — 1091 Oakleaf Plantation Parkway (Orange Park Medical Center, Inc.) -
$3,820.19
5) Grant of Easement—6253 & 6257 Magnolia Street—Grantor—KIR Homes, Inc.
6) Grant of Easement—7618 River Avenue—Grantor—Samuel and Linda Vinson
September 17, 2024 2
Item No. 8—Customer Account Adjustments—None
Item No. 9—Business discussed at Committee Meetings -None
Item No. 10—Executive Director's Business
a. April 2024 Financial Statements
Chief Financial Officer Karen Osbourne presented the Financial Statements for April and reported
operating income is $1,278,026 (13%) over budget due to an unfavorable revenue and favorable expense
variance. Operating revenue is $585,064 (2%) under budget and operating expenses are $1,863,090
under budget. CCUA has gained 799 active water accounts and 805 active sewer accounts during fiscal
year 2023/2024. After discussion, Mr. Gardella moved, seconded by Vice-Chairman. Lebesch, and
carried 5-0, to accept the Financial Statements for April 2024, as presented by Ms. Osbourne.
b. Proposed Final Approval of FY 2024/2025 Budget
Ms. Osbourne presented a request for approval of the budget and rates for the 2024/2025 Fiscal Year
which included the 2024/2025 Operating Budget, Self-Insurance Budget, Capital Budget, Five Year
Capital Plan, Departmental and Capital Budget and Rates. After discussion, Vice-Chairman Lebesch
moved, seconded by Mr. Gardella and carried 5-0, to accept the Fiscal Year 2024/2025 Budget, as
presented.
c. Saratoga Springs, Letter of Understanding, Interlocal Agreement and Master Utility Agreement
Service Availability Manager Melisa Blaney and Chief Engineer Paul Steinbrecher reviewed the
proposed Letter of Understanding, Interlocal Agreement and Master Utility Agreement associated with
the Saratoga Springs development. The Board adopted the Lake Asbury Master Plan Area Trunk Main
Capital Cost Recovery Policy (LAMPA TMCCRP) on September 19, 2023, with the intent to extend
master trunk mains in conjunction with the construction of the First Coast Expressway (FCE) to support
the growth in this area. The policy established a cost recovery program to ensure an equitable
apportionment of the cost of these trunk mains to all properties that received the immediate benefits
within the LAMPA TMCCRP service area. In February 2024, the property owner Peters Creek
Investments, LLP (PCI) and proposed developer SRTG Dev Owner, LLC ("Freehold" affiliate)
approached staff about their interest in purchasing and developing a 2,396 +/—acre parcel previously
known as Saratoga Springs in two phases, consisting of 4,500 single-family homes. This parcel is
located east of the First Coast Expressway, north and south of Cathedral Oaks Parkway. In the February
meeting and follow-up meetings with staff, the Owner and developer representatives approached the
staff with a proposal to advance and facilitate the design, permitting, and construction services for a
portion of the infrastructure considered in the LAMPA TMCCRP earlier than CCUA's FY 24/25 and
FY25/26 timeframe. After analyzing the proposal with our third-party LAMPA Program manager,
Dewberry Engineering, Inc. staff concluded the proposal remained within the finance limits under
LAMPA and was in the public interest, could bring economic efficiencies and expedite CCUA's cost
recovery. Staff worked closely with our long-term development attorney, Bill Sundstrom, to collaborate
with the Owner, developer, Community Development District (CDD) representatives, and their legal
counsel to achieve two purposes: 1 - The Development Agreements needed for the Freehold
Development, and 2 - the terms and conditions by which the CDD can design/bid/build the referenced
LAMPA TMCCRP Trunk Mains with CCUA funding those. This collaboration has resulted in three (3)
agreements: a Letter of Understanding, an Interlocal Agreement, and a Master Utility Agreement. These
agreements memorialize the terms and conditions relating to the design, permitting, cost, and
September 17, 2024 3
construction of a portion of the LAMPA pipes and their alignment with the master development. The
agreements are attached and briefly summarized as follows:
• Letter of Understanding (LOU): The LOU outlines the initial commitments between the
parties,providing the framework for developing and installing utilities. It reflects mutual
goals and expectations, creating a foundation for more detailed agreements.
• Interlocal Agreement (ILA): The ILA formalizes cooperation between CCUA and the Feed Mill
CDD to ensure economically efficient infrastructure work. This agreement emphasizes shared
responsibilities, cost allocations, and the execution of the utility work to design and build (CDD)
and fund(CCUA)the work under mutually agreed timelines.
• Master Utility Agreement (MUA): The MUA is the agreement between CCUA and the property
owner (Peters Creek Investments, LLP) detailing the obligations of CCUA or its successors to
provide utility services in perpetuity, and the Owner/Developer's obligations to pay all
applicable rates, fees, and charges for the utility services in accordance with CCUA's published
rate resolution which is in force at the time for development connection.
Two terms require additional negotiations before the agreements can be fully finalized: Engineering
Cost Consideration: Due to timing, the Developer/CDD advanced on the design and engineering work
for the infrastructure. Staff believes a portion of this is shared expense between the Developer and
CCUA. Both parties are working to establish what is equitable to that portion. Sanitary Sewer Cost Cap:
A cap on the costs associated with the sanitary sewer portion of the project is under review. The
Developer proposed setting the cap at the dollar amount described by the original, longer version of the
sewer force main reflected in the LAMPA policy, even though their proposed new force main routing is
shorter and could reasonably be installed for less. Staff continues to analyze sewer costs and expects the
proposed project to cost less than the amount initially calculated in the LAMPA policy. After discussion,
Mr. Gardella moved, seconded by Mr. Hingst, and carried 5-0, to approve the three documents, as
presented and granting approval rights to the Executive Director of the remaining terms as outlined
above.
d. Peters Creek Allowance Summary Presentation
Mr. Steinbrecher provided an update on the Peters Creek Allowance Summary regarding the
construction of the pipelines associated with a future parkway and roads in the vicinity of the Peter's
Creek WRF. This report was for the Board's information only; no action was requested or required at
this time.
e. Other
Mr. Johnston informed the Board CCUA's 30th anniversary will be celebrated by both current and
former Board members, a proclamation, and refreshments at the next meeting on October 1, 2024.
Item No. 11 —Legal Business
a. Approval of Annual Private Attorney Services Agreements
1) Ludwig Hulsey, P.A.
Mr. Williams presented a request for approval of the Attorney Engagement Package with
Ludwig Hulsey, P.A. After discussion, Mr. Gardella moved, seconded by Vice-Chairman
Lebesch, and carried 5-0, to approve the Attorney Engagement Package, as presented.
September 17, 2024 4
b. Executive Director's Annual Evaluation
Mr. Williams briefly discussed with the Board the results of the Executive Director's annual evaluation
and reported Mr. Johnston's final evaluation score was 4.7, which equates to an overall rating of 94%.
Based on this score, Mr. Johnston would be entitled to a merit raise of 2%, consistent with the existing
Executive Director's Evaluation Policy and Procedures. After discussion, Mr. Gardella moved, seconded
by Mr. Hingst, and carried 5-0, to approve the results and scoring, adopt and accept the Executive
Director's Performance Evaluation, and approve a 2% merit increase based on existing policy, as
presented by Mr. Williams.
c. Other-None
Item No. 12—Old Business/New Business -None
Item No. 13 —Public Comment-None
Item No. 14—Supervisor Comments
Vice-Chairman Lebesch thanked Mrs. Taylor for filling in at the Personnel Committee meeting, she shared she
enjoyed the employee milestones and looking forward to the upcoming events here at CCUA.
Mr. Gardella shared this was his last meeting, and serving on this Board has been one of his greatest honors.
Mrs. Taylor said the enjoyed seeing staff's milestones celebrated and shared she appreciated all the effort which
went into the presentations today.
Mr. Hingst echoed everyone's comments and said it has been a pleasure serving with Chairman Starnieri and
Mr. Gardella.
Chairman Starnieri expressed how much he has enjoyed celebrating employee's milestones during his tenure
here and thanked everyone for their hard work during the past last six years.
Item No. 14—Adjournment
Chairman Starnieri adjourned the meeting at 3:15 P.M.
James Starneri, Chairman
Janice Loudermilk, Recording Secretary
September 17, 2024 5