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HomeMy WebLinkAbout04.a Minutes 061626 (2) MINUTES CLAY COUNTY UTILITY AUTHORITY June 16, 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 Mr. Bourre 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, Mr. Bourre, Mr. Hingst, Ms. Lebesch, 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 Darrell Damrow, Assistant Chief Operations Officer/ D&C General Superintendent David Rawlins, Customer Service & Billing Manager Diana Strickland, Service Availability Manager Melisa Blaney, Procurement Manager Darrin Parker, Communication & Public Relations Specialist Ashley Taliaferro, Development Services Analyst Jennifer Cron, Contract & Procurement Specialist Courtney Hinson, Administrative Assistant Operations Alicia Ellis, Procurement Buyer Claire Smith, and Grady H. Williams, Jr., legal counsel to the CCUA. Item No. 4—Employee Recognition a. Brent Langford—25 years b. Jack March— 5 years c. Marvin Short— 5 years d. Matt Jeffers— 5 years e. Mike Rapp— 15 years Executive Director Jeremy Johnston presented a plaque to Water/Wastewater Maintenance Mechanic Matt Jeffers, Field Service Technician Jack March, Repairs Foreman Marvin Short their acknowledging five years of service. Chief Operator Water Mike Rapp and Sewer Line Inspection Technician Brent Langford also received a plaque in recognition of their fifteen and twenty-five respective years of employment with the CCUA. Item No. 5 —Approval of Minutes a. Board of Supervisors Regular Meeting, June 2, 2026 After discussion, Mr. Bourre moved, seconded by Ms. Lebesch, and carried 5-0, to approve the minutes of the June 2, 2026, Regular Meeting. Item No. 6—Approval of Consent Agenda After discussion, Mrs. Taylor moved, seconded by Mr. Bourre, and carried 5-0, to approve the Consent Agenda as follows; June 16, 2026 a. Approval of Financial and Operational Activities 1) Approval of Payment of Warrants Warrants totaling $3,877,473.61 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 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 Extension of the Benefits Administrative Services Agreement with Risk Management Associates, Inc. dba Public Risk Insurance Advisors 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 KH25/26-13 — Water Service to 13 & 17 SE Nelsons Point (W T Construction, Inc.) — 2 ERC's water, 2 ERC's AWS, 2 ERC's SJRWMD, 2 ERC's debt service - $6,372.37 2) Developer Agreement KU25/26-40 — Settlement Agreement #2 for Lincoln Memorial University at 1750 Wells Road (Lincoln Memorial University) — 1.232 ERC's water, 1.232 ERC's AWS, 1.232 ERC's SJRWMD, 1.232 ERC's debt service - $1,751.70 3) Developer Agreement KU25/26-41 — Water and Wastewater Service to 600 Aberdeen Court (Millely and William Summers, III) — 1 ERC water, 1 ERC wastewater, 1 ERC AWS, 1 ERC SJRWMD, 1 ERC environmental impact, 1 ERC debt service - $16,531.21 4) Developer Agreement MU25/26-11 — Kelli Grove Multi-Family — 90 Units — 2542 Sandridge Road (Kelli Grove, Ltd.) — 31.50 ERC's water, 31.50 ERC's wastewater, 5.00 ERC's reclaimed, 31.50 ERC's AWS, 31.50 ERC's SJRWMD, 31.50 ERC's debt service - $216,450.41 Item No. 7—Customer Account Adjustments—None Item No. 8 —Business discussed at Committee Meetings -None Item No. 9—Executive Director's Business a. Alternative Water Supply 2026 Annual Update Chief Engineer Darrell Damrow provided an update on the Alternative Water Supply (AWS) surcharge and the increases to the potable water connection charges which were authorized and implemented under CCUA Rate Resolution Number 2015-2016-01. Section 4.(7) of the Resolution requires staff to report to the Board each year regarding the adequacy of the current AWS surcharge and connection charges. He also reviewed the progress of the project during the 2025/2026 Fiscal Year and recommended a 3% increase to AWS surcharge and connection charge, which is consistent with the adopted plan. The June 16, 2026 proposed 3% increase to the AWS surcharge from $1.26 to $1.30 and connection fee from $411.64 to $423.99, will be included as a part of the proposed 2026/2027 Fiscal Year Budget, as presented by Mr. Damrow. No action was requested or required on this item; it will be included in the 2026/2027 Fiscal Year Budget. b. Proposed Amendment No. 1 to Supplemental Agreement No. 2 with Ardurra Group, Inc. for Civil and Environmental Engineering Professional Services Agreement RFQ 2023/2024-A01 to provide professional engineering services Keystone Heights WRF Expansion Mr. Damrow presented proposed Amendment No. 1 to Supplemental Agreement No. 2 with Ardurra Group, Inc. for Civil and Environmental Engineering Professional Services Agreement RFQ 2023/2024- A01 to provide professional engineering services associated with the proposed Keystone Heights WRF Expansion. CCUA operates and maintains the KH WRF that serves predominately commercial portions of the Keystone Heights service area. The KH WRF has a permitted annual average daily flow (AADF) treatment capacity of 0.074 million gallons per day (mgd) and discharges treated water to rapid infiltration basins (RIBs) that have a permitted AADF capacity of 0.200 mgd. The Keystone Heights area is a prominent recharge area, so this water is beneficially reused through recharge. Ardurra recently completed the design to increase the capacity of the KH WRF to 0.200 mgd AADF and convert it to a 4- stage nutrient removal process. The design includes provisions to meet high level disinfection in the future. The expansion to 0.200 mgd would likely serve the KH service area for ten to fifteen years before further expansion is needed. With the 100% design, Ardurra delivered an updated Opinion of Probable Construction Costs (OPCC) to expand the plant. The updated OPCC of$9,124,857.20 exceeds the project budget of $8,629,021 and the OPCC delivered with the Basis of Design Report (BODR), $6,244,155, by 46%. Given the exceedances noted above, staff would like to reevaluate the expansion plan to determine if a smaller capital investment could serve the needs of the community for 3-5 years. A preliminary analysis indicates that an expansion to 0.100 mgd could be accomplished using a combination of the current plant, existing surplus equipment, and more modest improvements that would allow KH WRF to serve the immediate needs of the area. It would not prepare the plant to meet high level disinfection standards, but those standards are not likely to be implemented in the near term. With Ardurra having completed the BODR, full design, and original permit modification application,the most efficient action is to engage them to do the additional analysis. Their work completed to date will allow them to analyze and modify modeling, process flow, calculations, applications, etc., with far less effort than engaging a new consultant. Ardurra has provided a scope and fee proposal to perform the analysis, design, and permitting for $51,013.80. There is $29,636.87 remaining on SA 2 for unused services that can be applied toward the revised scope of work. The amendment proposed is for a not to exceed total of $21,376.93. Because the design and permitting are dependent on the results of the analysis, the work will be billed on a time and materials basis. After discussion, Mr. Hingst moved, seconded by Mrs. Taylor, and carried, 5-0, to approve Amendment No. 1 to Supplemental Agreement No. 2 with Ardurra Group, Inc. for Civil and Environmental Engineering Professional Services Agreement RFQ 2023/2024-A01 to provide professional engineering services Keystone Heights WRF Expansion in the not-to-exceed amount of$21,376.93. c. Lake Asbury Master Planned Area Capital Cost Recovery Per ERC Adjustment 2026-2027 Service Development Services Analyst Jennifer Cron presented the proposed Lake Asbury Master Planned Area (LAMPA) Capital Cost Recovery Per ERC Adjustment-FY 2026-2027. The LAMPA was established in 2022 to extend trunk water, wastewater, and reclaimed water infrastructure to service existing and future residential and commercial developments within the designated boundary. In accordance with the 2022 LAMPA Cost Recovery Policy, the CCUA would invest approximately $30M in several networks of master trunk mains. The mains were initially based on the original master planned concepts, provided by developers and engineers. As actual parcels are now being developed, final alignments of the master trunk mains have been sited to serve the area most efficiently in accordance June 16, 2026 with updated roadway and utility corridors. CCUA is beginning the design of the final portion of trunk mains (referred to as LAMPA Red) that will be completed in late 2026. CCUA recovers infrastructure investment costs through per-Equivalent Residential Connection (ERC) allocations. Under this methodology, each parcel that connects to the systems is assessed a capital recovery charge based on the number of ERCs. This charge is reviewed annually in June/July to reflect inflationary pressures and the carrying costs associated with CCUA's ongoing capital investments. As a result, the ERC-based charge changes incrementally each year. The proposed charges of $849.63 water, $1,232.49 wastewater, and $1,081.49 reclaimed are consistent with CCUA's cost recovery policy and are presented for tentative approval. Upon tentative approval, the updated charges will be incorporated into the FY 26/27 Rates for public notices, presentation at the Public Rate Hearing, and final Board approval. After discussion, Ms. Lebesch moved, seconded by Mr. Bourre, and carried 5-0, to grant tentative approval as requested. d. Middleburg Service Area Development 2026 Annual Updated Acreage Charge Mrs. Cron provided a presentation to the Board regarding the Middleburg Service Area Development Policy & Cost Recovery. The Middleburg Service Area ("MSA") was developed to extend water and wastewater service to existing and future commercial developments in Middleburg. As part of the 1999 MSA policy, the recovery method of CCUA investment is allocated on an acreage basis; therefore, each parcel that connects to the infrastructure will pay an allocated charge multiplied by the total number of acres in each parcel. This allocated acreage charge is reviewed annually to reflect inflation and carrying costs for the CCUA's investment. With carrying charges added to CCUA's investment, the proposed MSA distribution and collection infrastructure charges for the 2026/2027 fiscal year are $5,867 for water and $11,272 for wastewater. After discussion, Mr. Mrs. Taylor moved, seconded by Mr. Hingst, and carried, 6-0, to tentatively approve the updated fees to be included in the proposed 2026/2027 Fiscal Year Budget. e. Proposed Approval of the Wastewater Residuals Hauling and Disposal Services Contract with Residual Management Services, LLC Contract & Procurement Specialist Courtney Hinson presented the proposed Wastewater Residuals Hauling and Disposal Services Contract with Residual Management Services, LLC (RMS) associated with ITB# 2025/2026-A03. The current Wastewater Residual Disposal Agreement with RMS is scheduled to expire on June 30, 2026, approval of this contract will allow for the continuation of their services. This contract includes the hauling and disposal of residuals and contaminated soil generated at CCUA's Water Reclamation Facilities. On May 1, 2026, staff publicly advertised the above-referenced project on CCUA's OpenGov Procurement Portal and in the Florida Times-Union. During the bid opening on June 3, 2026, CCUA received one (1) bid from RMS. Staff has evaluated and determined that RMS remains a qualified, responsive, and responsible bidder. After discussion, Ms. Lebesch moved, seconded by Mrs. Taylor, and carried 5-0, to approve and authorize execution of the contract with Residual Management Services, LLC for the Wastewater Residuals Hauling and Disposal Services Project ITB #2025-2026-A03. f. Other Mr. Johnston informed the Board CCUA's water conservation messaging has been very effective in reducing water usage during the Phase III Water Shortage. He reminded the members of the upcoming Joint Budget Committee Meeting on July 7, 2026, at noon and shared CCUA's administrative office will be closed in observance of Juneteenth and Independence Day. Item No. 10—Legal Business Mr. Williams informed the Board he has been served information regarding a lawsuit which was filed against CCUA by the Glenhaven Homeowner's Association. June 16, 2026 Item No. 11 —Old Business/New Business -None Item No. 12—Public Comments Mr. James Starnieri of 1800 Southlake Drive, Middleburg, Florida addressed the Board regarding the recent water main break in front of his home. He shared how pleased he was with staff's timely repair and CCUA's subcontractor completed the restoration of his driveway. Item No. 13— Supervisor Comments Chairman McNees expressed his gratitude for staff's efforts in preparing the information and presentations for today's meeting. Item No. 14—Adjournment Chairman McNees adjourned the meeting at 2:54 P.M. Michael C. McNees, Chairman Janice Loudermilk, Recording Secretary June 16, 2026