HomeMy WebLinkAbout05.a Minutes 060226 MINUTES
CLAY COUNTY UTILITY AUTHORITY
June 2, 2026
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 McNees called the meeting to order at 2:00 P.M.
Item No. 2—Invocation/Pledge of Allegiance
Vice-Chairman 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 McNees, Vice-Chairman Petty, Ms. Lebesch, Mr. McCall, and Mrs. Taylor in
attendance.
Also present at the meeting were Executive Director Jeremy Johnston, Chief Operations Officer Darryl Muse, Chief
Engineer Darrell Damrow, Chief Financial Officer Karen Osbourne, Assistant Chief Operations Officer/Distribution
& Collection Department General Superintendent David Rawlins, Environmental Compliance Manager Heather
Webber, Information Technology Manager Philip Vitale, Development Services Manager Melisa Blaney, Customer
Service & Billing Manager Diana Strickland, Procurement Manager Darrin Parker, Communication & Public
Relations Specialist Ashley Taliaferro, Contract & Procurement Specialist Countney Hinson, Administrative
Assistant Operations Alicia Ellis, and Grady H. Williams, Jr., legal counsel to the CCUA.
Item No. 4—Approval of Minutes
a. Board of Supervisors Regular Meeting,May 19, 2026
After discussion, Ms. Lebesch moved, seconded by Vice-Chairman Petty, and carried 5-0, to approve the
minutes of the Regular Meeting held on May 19, 2026.
Item No. 5—Approval of Consent Agenda
Mr. Williams requested Item No.5(e)01- Developer Agreement GC25/26-6 — Clay Dairy Parkway Infrastructure
Only be removed from consideration, it will be brought back before the Board for consideration at a future meeting.
After discussion, Vice-Chairman Petty moved, seconded by Mrs. Taylor, and carried 5-0, to approve the Consent
Agenda with the exception of Item No.5(e)01, as follows;
a. Approval of Financial and Operational Activities
1) Approval of Payment of Warrants
Warrants totaling$1,971,363.07
a. Schedule of payments to Sole Sources—None
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
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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 the 4th Contract Renewal for the Sewer, Wetwell, and/ or
Manhole Rehabilitation Services Contract(Parts B & C) -ITB#2018/2019-A7
b. Proposed Approval of Contract Extension of the Bio-Solid Treatment Agreement
with BCR Environmental Corporation
2) Approval of Supplemental Agreements and Change Orders
a. Proposed Supplemental Agreement No. 8 to Master Contract RFP No. 2021/2022-A05
for TankRehab.com, LLC to provide Ground Storage Tank No. 1, Cleaning and Repairs
at Pace Island Water Treatment Plant-ITB No. 2021/2022-A28
c. Approval of Financing Requests—None
d. Approval of Contract Usage
1) Request for Advance Approval to Piggyback with the Clay County Contract No. 2023/2024-
221 and ImageStoreHouse.com,LLC for Document Scanning Services
e. Approval of Developer Agreements,Warranty Deeds &Easements
(1) Developer Agreement GC25/26-6 — Clay Dairy Parkway Infrastructure Only (Governors
Park South Community Development District) - $3,764.83
(2) Developer Agreement KH25/26-12—Water Service to 6750 Linwood Drive (Kathy Redfearn
and Angela Smart) — 1 ERC water, 1 ERC AWS, 1 ERC SJRWMD, 1 ERC debt service -
$4,198.00
(3) Developer Agreement KU25/26-38 — Water and Wastewater Service to 6084 Pine Avenue
(Brad Hamilton)— 1 ERC water, 1 ERC wastewater, 1 ERC AWS, 1 ERC SJRWMD, 1 ERC
environmental impact, 1 ERC debt service- $6,696.44
(4) Developer Agreement RU25/26-4 — Water and Wastewater Service to Black Creek
Veterinary Kennel Facility at 4106 County Road 218 (Black Creek Swamp Ventures LLC)—
1.5 ERC's water, 1 ERC wastewater, 1.5 ERC's AWS, 1.5 ERC's SJRWMD, 1 ERC
environmental impact, 1 ERC debt service- $26,440.86
(5) Grant of Easement—2376 Blanding Blvd—Grantor—Aileron Middleburg,LLC
Item No. 6—Customer Account Adjustments
Joseph D Baltazar, Jr—Request for Credit Relief Adjustment-2211 Crystal Cove Drive
Customer Service & Billing Manager Diana Strickland presented a request for relief on behalf of Joseph D
Baltazar, Jr. of 2211 Crystal Cove Drive, Green Cove Springs, Florida. Mr. Baltazar submitted an affidavit
stating that he discovered an irrigation leak resulting from a freeze event in February. According to the
affidavit, which was submitted on May 26, 2026, his irrigation system was not repaired; instead, the system
was disconnected. Since no repair was completed, the account did not qualify for a 50% leak adjustment
under current CCUA policy. Records indicate after the leak had occurred and after receipt of the high bill,
Mr. Baltazar registered his online account and enrolled in leak alerts on May 11, 2026. At that time, the
customer was still unable to view usage data because the MXU was malfunctioning and not transmitting
meter readings. The MXU was repaired and a new meter was installed on May 19, 2026. The customer is
now able to monitor usage and receive leak alerts. Mr. Baltazar is requesting a 100% adjustment credit for
consumption charges exceeding his normal usage. His average monthly utility bill is approximately $95.
CCUA's Leak Credit Policy does not provide 100% leak adjustment credits for water consumption, nor does
it allow any leak adjustments without proof of repair. Based on CCUA policy and the information provided
by the customer in his Leak Credit Affidavit, staff did not recommend providing any credit relief to his
account. Mr. Baltazar attended the meeting and clarified the statement he made in his Leak Credit Affidavit,
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explaining to the Board the leak was in a small portion of his irrigation system which had been added to
irrigate a small flower bed. He stated all the additional piping to the flower bed has now been completely
removed. After discussion, Mrs. Taylor moved, seconded by Vice-Chairman Petty, any carried 5-0, to deny
Mr. Baltazar's request for a 100% credit, but approved a 50% credit based on CCUA's Leak Credit Policy,
and offered to provide a twelve-month payment plan for the amount remaining after the 50% credit has been
applied.
Item No. 7—Business discussed at committee meetings—None
Item No. 8—Executive Director's Business
a. April 2026 Financial Package
Chief Financial Officer Karen Osbourne presented the Financial Statements for April 2026 and reported
Operating Income is $1,646,441 (12%) over budget due to unfavorable revenue and a favorable expense
variance. Operating Revenue is $948,142 (2%) under budget and Operating Expenses are $2,594,584 (9%)
under budget. CCUA has gained 663 active water accounts and 668 active sewer accounts during fiscal year
2025/2026. After discussion, Mrs. Taylor moved, seconded by Ms. Lebesch, and carried 5-0, to accept the
Financial Statements for April 2026, as presented by Ms. Osbourne.
b. Consideration and Adoption of the Cybersecurity and Artificial Intelligence Use Policy
Executive Director Jeremy Johnston and Information Technology Manager Philip Vitale presented for
consideration CCUA's proposed Cybersecurity and Artificial Intelligence Use Policy. CCUA operates
critical public infrastructure where a digital breach can pose a direct threat to public health, operational
safety,utility uptime, and customer data. Modern water infrastructure relies heavily on interconnected digital
systems; while this maximizes efficiency, our vulnerability to sophisticated ransomware and data leaks also
increases. CCUA has made considerable investments in modernizing most of the electronic systems. With
this modernization, staff requests the Board approve a Cybersecurity and AI Use Policy. To mitigate these
risks, this proposed policy provides a formalized governance framework that transitions the utility to a strict,
audited resilience model. The policy draws a definitive line of defense around our corporate enterprise
networks (Information Technology, IT) and our physical operational systems (Operational Technology,
OT/Supervisory Control and Data Acquisition, SCADA) while establishing safety guidelines for employee
use of AI in strict alignment with state and federal laws. Crucially, legal counsel from CCUA's insurance
provider notes that formalizing this framework significantly enhances our cyber insurability and will expand
our vendor options in the commercial insurance market, positioning the organization for measurable
premium savings. After discussion, Vice-Chairman Petty moved, seconded Mr. McCall, and carried 5-0, to
approve the Cybersecurity and Artificial Intelligence Use Policy, as presented.
c. Approval of Resolution 2025/2026-05 - Updates to Clay County Utility Authority's Pretreatment Resolution
to incorporate language required by the Florida Department of Environmental Protection
Environmental Compliance Manager Heather Webber requested approval of Resolution 2025/2026-05
Updates to Clay County Utility Authority's Pretreatment Resolution to incorporate language required by the
Florida Department of Environmental Protection. CCUA's Pretreatment Program regulates industrial
wastewater discharges to the Authority's wastewater system, consistent with General Pretreatment
Regulations found in Chapter 62-625, Florida Administrative Code (F.A.C.). Per Chapter 62-625, F.A.C.,
CCUA is the `Control Authority' for industrial customers who discharge process wastewater into the
CCUA's collection system. As the Control Authority, CCUA originally adopted Resolution No. 97/98-11,
which set policies and regulations concerning pretreatment of industrial waste and other substances
discharged into CCUA's wastewater systems. The Pretreatment Resolution adopted requirements with
respect to general sewer use and pretreatment of wastewater and thereby established local limits for
June 2, 2026 3
wastewater pollutants discharge and policies and procedures for application and issuance of wastewater
discharge permits. Over time, the Pretreatment Resolution has been revised to incorporate new rules, such as
the Dental Amalgam Rule, and the Grease Waste Removal and Disposal Rule. The FDEP has regulatory
authority and regularly audits CCUA's Pretreatment Program. Most recently, FDEP conducted an audit on
January 7, 2026. During the audit it was noted that some required language was not included in CCUA's
Pretreatment Resolution. This revision will address those omissions and clean up a few wording and
formatting issues. After discussion, Ms. Lebesch moved, seconded by Mrs. Taylor, and carried 5-0, to
approve, adopt and enact Resolution 2025/2026-05,with an effective date of June 2, 2026.
d. Other
Mr. Johnston shared the updated 2026/2027 budget approval timeline is in the For Your Information section
of today's agenda package. He also informed the Board that members of staff are currently compiling the
information necessary for the Joint Budget Committee meeting and CCUA's Annual Report.
Item No. 9—Legal Business
a. Other-None
Item No. 10—Old Business/New Business -None
Item No. 11 —Public Comment-None
Item No. 12—Supervisor Comments
Chairman McNees thanked staff for their efforts in preparing and presenting the agenda items and supporting
documentation for today's meeting.
Mr. McCall shared he may not be able to attend the meeting on June 16, 2026.
Item No. 13 —Adjournment
Chairman McNees adjourned the meeting at 2:57 P.M.
Michael C. McNees, Chairman
Janice Loudermilk, Recording Secretary
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