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HomeMy WebLinkAbout06.a Minutes 100725 MINUTES CLAY COUNTY UTILITY AUTHORITY October 7, 2025 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 Lebesch called the meeting to order at 2:00 P.M. Item No. 2—Invocation/Pledge of Allegiance Mrs. Taylor offered the Invocation and led those in attendance in the Pledge of Allegiance. Item No. 3—Roll Call Roll Call was taken with Chairman Lebesch, Vice-Chairman McNees, Mr. Bourre, Mr. Hingst, Mr. McCall, 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 Karen Osbourne, Chief Human Resources Officer Kim Richardson, Chief Engineer Darrell Damrow, Assistant Chief Engineer Joe Paterniti, Service Availability Manager Melisa Blaney, Facilities Manager James Moore, Procurement Manager Angelia Wilson, Communications and Public Relations Specialist Ashley Talliferro, Administrative Assistant Operations Alicia Ellis, High School Intern Reagan Hughes, and Grady H. Williams, Jr., legal counsel to the CCUA. Item No. 4—Election of Chairman and Vice-Chairman Chairman Lebesch opened the floor for nominations for Chairman. Mr. Petty nominated Vice-Chairman McNees serve as Chairman for the 2025/2026 Fiscal Year. After discussion, Mr. Bourre seconded the nomination, and carried, 7-0, for Mr. McNees to serve as Chairman. Chairman McNees nominated Mr. Petty to serve as Vice Chairman. After discussion, Mr. McCall seconded the nomination, and carried 7-0, for Mr. Petty to serve as Vice-Chairman for the 2025/2026 Fiscal Year. Item No. 5 —Approval of Minutes a. Board of Supervisors Regular Meeting, September 17, 2024 After discussion, Mrs. Taylor moved, seconded by Mr. McCall, and carried 7-0, to approve the minutes of the Regular Meeting held on September 17, 2024. Item No. 6—Approval of Consent Agenda After discussion, Ms. Lebesch moved, seconded by Mr. Hingst and carried 7-0, to approve the Consent Agenda follows; a. Approval of Financial and Operational Activities October 7, 2025 1 1) Approval of Payment of Warrants Warrants totaling $1,385,138.10 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 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—None e. Approval of Developer Agreements, Warranty Deeds & Easements 1) Developer Agreement KU23.24-55 — Wastewater Service to 50 Harmony Hall Road (Corey and Renee Kurlander)— 1 ERC wastewater, 1 ERC environmental impact, 1 ERC debt service - $8,736.13 ($8,434.13 financed) 2) Developer Agreement MU23/24-27 — Parcel 61, Phase 1B — 113 Single Family Lots (Parcel 61 Ventures, LLC) — 113 ERC's water, 113 ERC's wastewater, 113 ERC's reclaimed, 113 ERC's AWS, 113 ERC's SJRWMD, 113 ERC's debt service - $945,896.88 ($603,781.60 deferred) 3) Developer Agreement SS23/24-9 — PJ's Coffee of New Orleans — 3470 Royal Pines Drive, Suite 104 — Settlement Agreement #4 (Royal Pines Shopping Center Bldg C, LLC) — 0.223 ERC's water, 0.223 ERC's wastewater, 0.223 ERC's AWS, 0.223 ERC's SJRWMD, 0.223 ERC's environmental impact, 0.223 ERC's debt service - $1,532.08 4) First Amendment to Grant of Easement — Grantor — Segovia Ventures, LLC and Pam, LLC 5) Grant of Easement— 1013 Floyd Street—Grantor—Robbin Dianne Fuller 6) Grant of Easement— 3153 Creighton Landing Road— Grantor— Bruce Lynn Cooper, Jr. and Ana M. Cooper 7) Grant of Easement — Calvary Assembly of God — Grantor — The Peninsular Florida District Item No. 7—Customer Account Adjustments -None Item No. 8—Business discussed at Committee Meetings -None Item No. 9—Executive Director's Business a. PFM Proposed Financing Presentation Executive Director Jeremy Johnston introduced Jeremy Niedfeldt, Managing Director of PFM Financial Advisors LLC, who addressed the Board regarding the upcoming closing on the 2025 Loan and refunding of the 2023 Loan. The interest rate for the 2025 Loan will be 4.285%,which adjusts the October 7, 2025 2 prepayment penalty on the 2023 Loan to $838,000, resulting in an approximate 1.2m net benefit for the CCUA. This report was for the Board's information only; This report was for the Board's information only; action will be taken under the Legal Business section of today's agenda. The Chairman and Recording Secretary will execute the necessary loan documents of behalf of CCUA after today's meeting is adjourned, in advance of the closing, which is scheduled for Thursday, October 9, 2025. b. August 2025 Financial Package Chief Financial Officer Karen Osbourne presented the Financial Statements for August and reported operating income is $6,348,702 (34%) over budget due to a favorable revenue and favorable expense variance. Operating revenue is $1,208,646 (2%) over budget and operating expenses are $5,140,056 (11%) under budget. CCUA has gained 1,070 active water accounts and 1,054 active sewer accounts during fiscal year 2024/2025. After discussion, Ms. Lebesch moved, seconded by Mrs. Taylor, and carried 7-0, to accept the Financial Statements for August 2025, as presented by Ms. Osbourne. c. Resolution 2025/2026-01 Updates Presentation Ms. Osbourne provided a presentation outlining the changes to CCUA's Golden Opportunity/Disability Program and the Customer Water and Sewer Deposits which are included in Resolution 2025/2026-01. This report was for the Board's information only; action will be taken on the Resolution under the Legal Business section of today's agenda. d. Compensation Presentation by Bolton Partners, Inc. Chief Human Resources Officer Kim Richardson introduced Dan Ripberger of Bolton Partners, Inc., who provided a Compensation Presentation which was prepared by his firm. No action was requested or required on this item at this time. e. Proposed award of the contract to DB Civil Construction, LLC for the Lift Station#20 Upgrades Project Assistant Chief Engineer Joe Paterniti and Procurement Manager Angelia Wilson presented a proposed award of the contract to DB Civil Construction, LLC for the Lift Station #20 Upgrades Project. Lift Station #20 is located along Cheswick Oak Avenue, approximately 0.2 miles south of Savannah Glen Boulevard, in Orange Park, FL. On August 11, 2025, staff publicly advertised the project on CCUA's OpenGov Procurement Portal and in the Florida Times-Union. During the bid opening on September 9, 2025, CCUA received three (3) bids. The Engineer of Record, Jones Edmunds & Associates Inc., reviewed the references and submitted information from the lowest bidder and has recommended awarding the project to DB Civil Construction, the qualified, responsive, and responsible bidder. The total project budget is $1,503,638.20. Staff created the FY25/26 budget based on the Engineer's Opinion of Probable Cost of $1,043,000. Subtracting the Design Engineer's contract of $122,574, leaves a remaining fund balance of$1,381,064.20 for the construction of the Lift Station #20 Upgrades Project. The lowest responsible bid, provided by DB Civil Construction, LLC, is $1,514,087. This bid amount includes a 3% or $40,197, allowance for construction testing and a 10 % or $133,990, contingency amount for unforeseen conditions. Staff requested an additional $150,000 be allocated from the Capital Budget Management Reserve Account for the construction of LS #20 Upgrades Project. Staff will return any remaining funds to the account after the project is complete. After discussion, Mr. Hingst moved, seconded by Mr. Bourre, and carried 7-0, approve the bid documents, award and authorize execution of the contract, grant approval of deductive change orders and owner-direct purchase orders to save sales taxes on major materials and equipment, as authorized by the Executive Director or his designee and as recommended by the Chief Engineer, as presented. October 7, 2025 3 f. Other Mr. Johnston extended an invitation to the members of the Board to attend the luncheon being held from 11:30 A.M. until 1:30 P.M during CCUA's first Employee Training and Appreciation Day on Monday, October 13, 2025. Item No. 10—Legal Business a. Action on proposed Resolution No. 2025/2026-01 — Annual Rate Resolution and Service Availability Policy Mr. Williams presented for approval proposed Resolution No. 2025/2026-01 which is adopting, amending, and restating the water and wastewater utility rates, Service Availability Policy, and Fire Hydrant Meter Policy. After discussion, Vice-Chairman Petty moved, seconded by Mr. Hingst, and carried 7-0, to approve, adopt, and enact the Resolution with an effective date of October 1, 2025. c. Action on proposed Resolution No. 2025/2026-02—Annual Budget Resolution Mr. Williams presented Resolution No. 2025/2026-02 — adopting the Annual Budget. After discussion, Mrs. Taylor moved, seconded by Ms. Lebesch, and carried 7-0, to approve, adopt, and enact the Resolution with an effective date of October 1, 2025, as presented. c. Action on proposed Resolution No. 2025/2026-03 —Annual Five-Year Capital Plan Resolution Mr. Williams presented Resolution No. 2025/2026-03 adopting the Annual Five-Year Capital Plan. After discussion, Ms. Lebesch moved, seconded by Mr. McCall, and carried 7-0, to approve, adopt, and enact the Resolution with an effective date of October 1, 2025, as presented. d. Action on proposed Resolution No. 2025/2026-04—Bond Resolution Truist Loan Series 2025A Mr. Williams introduced Emily Magee, Partner with Butler Snow, LLP, who presented and discussed proposed Resolution No. 2025/2026-04 — Bond Resolution Truist Loan Series 2025A in the amount of $110,535,000. After discussion, Vice-Chairman Petty moved, seconded by Mrs. Taylor, and carried 7-0, to approve the Resolution as presented. e. Approval of Annual Private Attorney Services Agreements 1) Glenn A. Taylor Professional Association 2) De la Parte, Gilbert, McNamara& Caldevilla, P.A. 3) Sundstrom&Mindlin, LLP 4) Ludwig Hulsey, P.A. 5) Grady H. Williams, Jr., LL.M., Attorneys at Law, P.A. 6) Bachara Construction Law Group 7) Butler Snow, LLP Mr. Williams presented a request for approval of the Attorney Engagement Package with Glenn A. Taylor Professional Association, De la Parte, Gilbert, McNamara & Caldevilla, P.A., Sundstrom & Mindlin, LLP, Ludwig Hulsey, P.A., Grady H. Williams, Jr., LL.M., Attorneys at Law, P.A., Bachara Construction Law Group, and Butler Snow, LLP. After discussion, Mr. Bourre moved, seconded by Mrs. Taylor, and carried 7-0, to approve the Attorney Engagement Packages, as presented by Mr. Williams. October 7, 2025 4 f. Other-None Item No. 11 —Old Business/New Business -None Item No. 12—Public Comment-None Item No. 13 —Supervisor Comments Chairman McNees thanked the members of the Board for selecting him to serve as Chairman for the 2025/2026 Fiscal Year and shared his appreciation for staff's efforts in preparing the information on the agenda items included in today's meeting. Item No. 14—Adjournment Chairman McNees adjourned the meeting at 3:03 P.M. Michael C. McNees, Chairman Janice Loudermilk, Recording Secretary October 7, 2025 5