HomeMy WebLinkAbout05.a Minutes 110624 MINUTES
CLAY COUNTY UTILITY AUTHORITY
November 6, 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
Vice-Chairman McNees called the meeting to order at 2:00 P.M.
Item No. 2—Invocation/Pledge of Allegiance
Vice-Chairman McNees offered the Invocation and led those in attendance in the Pledge of Allegiance.
Item No. 3—Roll Call
Roll Call was taken with Vice-Chairman McNees, Mr. Bourre, Mr. Hingst, Mr. McCall, and Mr. Petty in
attendance.
Also present at the meeting were Executive Director Jeremy Johnston, Chief Operations Officer Darryl Muse,
Chief Engineer Paul Steinbrecher, Chief Financial Officer Karen Osbourne, Assistant Chief Engineer Joe
Paterniti, Service Availability Manager Melisa Blaney, Utility Engineer Heather Cavanaugh, Communications
and Public Relations Specialist Kasandra Ortiz, Contract and Procurement Specialist Darrin Parker,
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, October 15, 2024
After discussion, Mr. Bourre moved, seconded by Mr. McCall, and carried 5-0, to approve the minutes
of the Regular Meeting held on October 15, 2024.
Item No. 5—Approval of Consent Agenda
After discussion, Mr. Petty moved, seconded by Mr. Hingst, and carried 5-0, to approve the Consent Agenda as
follows;
a. Approval of Financial and Operational Activities
1) Approval of Payment of Warrants
Warrants totaling $5,484,441.39
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. Statement from Grady H. Williams, Jr. LL.M.
2) Request for Asset Disposal Authorization—None
3) Sole Source Designation—None
November 6, 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—None
2) Approval of Supplemental Agreements and Change Orders
a. Proposed Amendment No.1 to Supplemental Agreement No. 6 with J. Collins &
Associates, Inc. to the Civil and Environmental Engineering Professional Services
Agreement 2018/2019 RFQ No. 3, to provide Professional Engineering Services
for the Fleming Island Regional Water Reclamation Facility 2nd BCR Plant
Project
c. Approval of Financing Requests—None
d. Approval of Contract Usage—None
e. Approval of Developer Agreements, Warranty Deeds &Easements
1) Developer Agreement CU24/25-2 — Oakleaf Village Townhomes, Phase 1 (Meritage
Homes of Florida, Inc.) — 95 ERC's water, 95 ERC's wastewater, 1 ERC reclaimed, 95
ERC's AWS, 95 ERC's SJRWMD, 95 ERC's debt service - $502,685.43 ($479,104.00
deferred)
2) Developer Agreement CU24/25-3 — Oakleaf Village Townhomes, Phase 2 (Meritage
Homes of Florida, Inc.) — 123 ERC's water, 123 ERC's wastewater, 2 ERC's reclaimed,
123 ERC's AWS, 123 ERC's SJRWMD, 123 ERC's debt service - $ 648,465.95
($620,313.60 deferred)
3) Developer Agreement KH24/25-1 —Water Service to 456 SE 43rd Street (Noah Sliker)—
1 ERC water, 1 ERC AWS, 1 ERC SJRWMD, 1 ERC debt service - $2,657.29
4) Developer Agreement KU24/25-1 — Wastewater Service to 274 Eventide Drive (Gustav
Schage III & Raina Schage) — 1 ERC wastewater, 1 ERC environmental impact, 1 ERC
debt
5) Developer Agreement RU24/25-2 — Assist 2 Build Office — 4206 County Road 218
(Assist 2 Build, Inc.) — 1.5 ERC's water, 1.5 ERC's AWS, 1.5 ERC's SJRWMD, 1.5
ERC's wastewater, 1.5 ERC's environmental impact, 1.5 ERC's debt service -
$27,522.70
6) Grant of Easement— 81 Swimming Pen Drive — Grantor—Mary Ann Dorsey and Steven
Alvin Marsh
Item No. 6—Customer Account Adjustments—None
Item No. 7—Business discussed at committee meetings -None
Item No. 8—Executive Director's Business
a. Enterprise Resource Platform Update
Executive Director Jeremy Johnston provided an update on the Enterprise Resource Platform deployment.
This report was for the Board's information only; no action was requested or required on this item.
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b. Proposed Change Order No. 1 to the Statement of Work for Workday Lean-on Services Support with
Collaborative Solutions Inc. an affiliate of Cognizant Worldwide Limited
Chief Financial Officer Karen Osbourne presented a proposed Change Order No. 1 to the Statement of
Work for Workday Lean-on Services Support with Collaborative Solutions Inc. an affiliate of Cognizant
Worldwide Limited. CCUA has never used an industry standard inventory system or software program to
track material. Staff expensed all items as incurred except for our meters and MXU's which were tracked in
our legacy Filemaker system. With the implementation of Workday, CCUA planned to fully implement the
inventory module and begin to track these items consistent with industry standard processes. CCUA was
without an Inventory Manager for five months during the most critical stage of our Workday
implementation. During that time, staff made the decision to scale back this part of the ERP implementation.
We set-up and tested the inventory processes for the main warehouse and the items housed there. Very
shortly after go-live, we began to experience some accounting anomalies related to the inventory
transactions. We attempted to work through these with Cognizant but were unable to identify the underlying
cause or remedy the situation. We made the decision to turn off the inventory tracking at that time so we
could focus on more pressing implementation issues and revisit the inventory system later. The ERP
transition has reached a stabilization period, and we now have the necessary resources to implement the
system. After discussion, Mr. Petty moved, seconded by Mr. McCall, and carried 5-0, to approve Change
Order No. 1 to the Statement of Work for Workday Lean-on Services Support with Collaborative Solutions
Inc. an Affiliate of Cognizant Worldwide Limited in the not to exceed amount of$62,400, as presented by
Ms. Osbourne.
c. June 2024 Financial Package
d. July 2024 Financial Package
Ms. Osbourne briefly reviewed the June 2024 Financial Package and presented the Financial Statements for
July and reported operating income is $4,300,669 (30%) over budget due to a favorable revenue and
favorable expense variance. Operating revenue is $1.521,382 (3%) over budget and operating expenses are
$2,779,287 (7%) under budget. CCUA has gained 1,407 active water accounts and 1,391 active sewer
accounts during fiscal year 2023/2024. After discussion, Mr. Petty moved, seconded by Mr. Bourre, and
carried 5-0, to accept the Financial Statements for June and July 2024, as presented by Ms. Osbourne.
e. Proposed Board of Supervisors Compensation Adjustment
Ms. Osbourne presented a proposed compensation adjustment for members of the Board as anticipated and
addressed in CCUA's Enabling Legislation F.S. 94-491 Section 5(7). The proposed compensation
adjustment is evaluated every five years, and the proposed increase was not included in the Fiscal Year
24/25 operating budget. The total of the proposed annual increase of $8,048.35 will be transferred from
contingency if approved. After discussion, Mr. Hingst moved, seconded by Mr. McCall, and carried 5-0, to
approve the adjusted compensation amount of$358.59, per meeting to be paid to the members, subject to an
annual maximum of$8,606.16, transferring the shortfall of$8,048.35, from contingency, as presented.
f. Presentation for Interlocal Agreement with Clay County for the Bonded Transportation Program Project 3B
Sandridge CR-209B realignment(Roundabout)Plans
Assistant Chief Engineer Joe Paterniti presented for consideration a proposed Interlocal Agreement with
Clay County for the Bonded Transportation Program (BTP) Project 3B Sandridge CR-209B realignment
(Roundabout) Plans. As part of the BTP, the County intends to conduct roadway widening and other
improvements along the eastern portion of Sandridge Road and a portion of Russell Road. CCUA has utility
infrastructure within the Sandridge Road right-of-way that conflicts with the roadway improvements. This
November 6, 2024 3
Agreement will allow CCUA to utilize the County's roadway design engineer and contractor to address the
utility infrastructure conflicts. CCUA utilized a similar agreement for the County's BTP #4 for
improvements to the western portion of Sandridge Road, which is nearing completion. The County used an
alternative procurement method, Construction Management at Risk, to perform the 3B project and
contracted with the same design engineer, GAI Engineering, and roadway contractor, Kiewit, to complete
the 3B segment of the Sandridge Road project. CCUA maintains utility infrastructure in the eastern 3B
portion of Sandridge Road right-of-way and within easements. CCUA currently has no utility infrastructure
along the Russell Road portion of the project. The County's engineer completed the design, and Kiewit
prepared their estimate based on that final design. CCUA didn't provide the County with information on the
proposed locations of the CCUA mains to be constructed on the eastern end of Sandridge Road before the
County completed their design and pricing of the roadway design. The construction of CCUA mains along
Sandridge Road to serve Anabelle Island was completed after the construction price was set. The design of
the stormwater management piping system conflicted with CCUA utilities located within the right-of-way
and utility easements. Based on CCUA comments, the County requested that the engineer redesign the
storm piping system to avoid the CCUA utility infrastructure. The contractor has revised the cost for
installing stormwater piping in areas where there were conflicts with the original design to avoid affecting
CCUA utility infrastructure and is requesting additional fees for the new installation. The County requests
that CCUA pay a portion of this additional design and construction cost to avoid CCUA infrastructure
within the public right-of-way. To facilitate the payment to the county, CCUA staff and the County agreed
that an Interlocal Agreement between the two parties is the appropriate mechanism to allow the contract
amendments and conduct the work. The Agreement provides a framework for designing and constructing
the project around CCUA utility infrastructure using the County's design engineer and general contractor,
and it delegates responsibilities to each respective party. Both CCUA, the County staff, and attorneys have
reviewed the requirements and language contained within the Agreement. CCUA and County staff consider
this joint construction project to be in the best interests of the County's residents and CCUA ratepayers to
collaborate on this project. As outlined in the Agreement, CCUA will pay its share of project costs for the
utility work up front to the County. The fees include CCUA's portion of the design and shared construction
costs. The County will request CCUA's share of the funds for the project within thirty (30) days of the
Notice to Proceed to the Contractor. CCUA's estimated portion of the redesign and construction is
$88,903.76. After discussion, Mr. Petty moved, seconded by Mr. Bourre, and carried 5-0, to approve
execution of the Interlocal Agreement, as presented by Mr. Paterniti.
g. Ratification of a Memorandum of Understanding between the CCUA and the Town of Orange Park to
provide licensed water and wastewater operator services at facilities owned by the Town of Orange Park on
an as requested basis
Mr. Johnston requested ratification of a Memorandum of Understanding between the CCUA and the Town
of Orange Park to provide licensed water and wastewater operator services at facilities owned by the Town
of Orange Park on an as requested basis. After discussion, Mr. Bourre moved, seconded by Mr. Petty, and
carried 5-0, to ratify the Memorandum of Understanding between the CCUA and the Town of Orange Park,
as presented.
h. Other
Mr. Johnston informed the Board the Workshop Session- Information Tour will be held on January 10,
2025, and CCUA will also be participating in Operation Green Light during November to honor veterans
and their service to our country. He also shared he will be presenting an overview of CCUA's Rate Study to
the Clay County Board of County Commissioners on November 12, 2024, and the first of three
Informational Workshops for the Board regarding the data contained in the Rate Study will be held during
the next meeting on November 19, 2024.
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Item No. 9—Legal Business
a. Amendment to Resolution No. 2024/2025-01-Annual Rate Resolution and Service Availability Policy
Mr. Williams presented for consideration a proposed Amendment to Resolution No. 2024/2025-01-Annual
Rate Resolution and Service Availability Policy which amends the Exhibit"A"which was included with the
Resolution approved on October 1, 2024. The schedule of fees and charges which was attached did not
reflect the final rates after the requested cuts to the budget were made. After discussion, Mr. Hingst moved,
seconded by Mr. McCall, and carried 5-0, to approve, adopt and enact with an effective date of October 1,
2024, Resolution No. 2024/2025-04, as presented.
b. Other
Mr. Williams shared how grateful he is for the members of the CCUA Board.
Item No. 10—Old Business/New Business -None
Item No. 11 —Public Comment-None
Item No. 12—Supervisor Comments
Mr. Petty shared he and his family attended the recent Touch a Truck event. He felt the event was a success and
was very proud of how well CCUA was represented.
Mr. McCall inquired if there were any issues associated with the recent Clay Electric power outage and staff
reported there were no lingering issues once the power was restored to the area.
Item No. 13 —Adjournment
Vice-Chairman McNees adjourned the meeting at 2:38 P.M.
Michael C. McNees, Vice-Chairman
Janice Loudermilk, Recording Secretary
November 6, 2024