2022-04-13 Regular Meeting Minutes
CAPE FEAR PUBLIC UTILITY AUTHORITY
AUTHORITY BOARD
MINUTES
APRIL 13, 2022
Lucie Harrell Conference Room Regular Meeting 9:00 AM
230 GOVERNMENT CENTER DRIVE
WILMINGTON, NC 28403
I. CALL TO ORDER
Mr. Corder called the meeting to order at 9:00 AM with a quorum present. Mr. Rivenbark
moved to excuse Messrs. Barfield, Briggs, Sneeden, and Waddell. Mr. Norris seconded the
motion, and it passed unanimously.
II. DETERMINATION OF A QUORUM
Attendee Name Organization Title Status Arrived
Wesley Corder Cape Fear Public Utility Chair Present
Authority
William Norris Cape Fear Public Utility Vice-Chair Present
Authority
Deans Hackney Cape Fear Public Utility Secretary Present
Authority
Jennifer Adams Cape Fear Public Utility Treasurer Present
Authority
Jessica Cannon Cape Fear Public Utility Present
Authority
Hollis Briggs Cape Fear Public Utility Excused
Authority
Larry Sneeden Cape Fear Public Utility Excused
Authority
Jonathan Barfield Cape Fear Public Utility Excused
Authority
Charlie Rivenbark Cape Fear Public Utility Present
Authority
Luke Waddell Cape Fear Public Utility Excused
Authority
Rob Zapple Cape Fear Public Utility Present
Authority
Kenneth Waldroup Cape Fear Public Utility Executive Director Present
Authority
Linda Miles Miles Firm, PLLC CFPUA Consulting Attorney Present
Frank Styers Cape Fear Public Utility Deputy Executive Director Present
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Authority
Carel Cape Fear Public Utility Deputy Executive Director Present
Vandermeyden Authority
John McLean Cape Fear Public Utility Chief Financial Officer Present
Authority
Beth Eckert Cape Fear Public Utility Director of EMD Present
Authority
Kristine Irick Cape Fear Public Utility Customer Service Director Present
Authority
Lori McKoy Cape Fear Public Utility Human Resources Director Present
Authority
Vaughn Hagerty Cape Fear Public Utility Public Information Officer Present
Authority
Cord Ellison Cape Fear Public Utility Chief Information Officer Present
Authority
Elizabeth Severt Cape Fear Public Utility Strategy & Performance Manager Present
Authority
Cammie Bellamy Cape Fear Public Utility Assistant PIO Present
Authority
Kathryn Pohlman Cape Fear Public Utility Assistant Director of EMD and Present
Authority Sustainability
Sara Eskew Cape Fear Public Utility Administrative Support Specialist Present
Authority
Judy Lawton Cape Fear Public Utility Executive Assistant Present
Authority
Donna S. Pope Cape Fear Public Utility Clerk/Executive Secretary to the Present
Authority Board
III. ADOPTION OF AGENDA
Mr. Waldroup reported that there were two walk-in items, a resolution required by the state
accepting the $30 million in special appropriations for work in the northern area of the county
and a resolution recognizing Water WEek. Mr. Zapple moved to adopt the agenda as revised.
Mr. Norris seconded the motion, and it passed unanimously.
IV. APPROVAL OF MINUTES
1. Authority Board - Regular Meeting - Mar 9, 2022 9:00 AM
RESULT: ACCEPTED \[UNANIMOUS\]
MOVER: William Norris, Vice-Chair
SECONDER: Jennifer Adams, Treasurer
AYES: Corder, Norris, Hackney, Adams, Cannon, Rivenbark, Zapple
EXCUSED: Briggs, Sneeden, Barfield, Waddell
V. PUBLIC COMMENTS - 4 MINUTE LIMIT PER SPEAKER
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There were no public speakers.
VI. PUBLIC HEARING AND ADOPTION OF FY23 SDCS
1. Proposed FY23 System Development Charges
Mr. Corder opened the public hearing. Mr. McLean presented the recommended
FY2023 System Development Charges of $2,230 for water and $2,160 for sewer. The
hearing was properly advertised, and the rate calculation was posted on the website for
45 days, as required by statute.
There were no public speakers regarding SDCs, and Mr. Norris moved to close the
hearing. Mr. Rivenbark seconded the motion, and it passed unanimously.
Mr. Rivenbark moved to adopt the FY2023 System Development Charges, as developed
and recommended by staff. Ms. Adams seconded the motion, and it passed
unanimously.
RESULT: REVIEWED
VII. CONSENT AGENDA
1. Contract Renewal with Hazen and Sawyer for On-Call Hydraulic Modeling and Water
Quality Professional Services
RESULT: APPROVED \[UNANIMOUS\]
MOVER: William Norris, Vice-Chair
SECONDER: Charlie Rivenbark, CFPUA Board Member
AYES: Corder, Norris, Hackney, Adams, Cannon, Rivenbark, Zapple
EXCUSED: Briggs, Sneeden, Barfield, Waddell
2. Engineering Services Amendment #3 for Rehabilitation and Replacement of Gravity
Sanitary Sewer in Downtown Area
RESULT: APPROVED \[UNANIMOUS\]
MOVER: William Norris, Vice-Chair
SECONDER: Charlie Rivenbark, CFPUA Board Member
AYES: Corder, Norris, Hackney, Adams, Cannon, Rivenbark, Zapple
EXCUSED: Briggs, Sneeden, Barfield, Waddell
3. Elkmont Well Rehabilitation Project
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RESULT: APPROVED \[UNANIMOUS\]
MOVER: William Norris, Vice-Chair
SECONDER: Charlie Rivenbark, CFPUA Board Member
AYES: Corder, Norris, Hackney, Adams, Cannon, Rivenbark, Zapple
EXCUSED: Briggs, Sneeden, Barfield, Waddell
4. Resolutions Authorizing Grant and Loan Applications for Various Water and Wastewater
Projects
RESULT: APPROVED \[UNANIMOUS\]
MOVER: William Norris, Vice-Chair
SECONDER: Charlie Rivenbark, CFPUA Board Member
AYES: Corder, Norris, Hackney, Adams, Cannon, Rivenbark, Zapple
EXCUSED: Briggs, Sneeden, Barfield, Waddell
5. Inter-Local Agreement with the City of Wilmington for the College Acres Drive and Clear
Run Branch Drainage Improvements and Stream Restoration Phase 1 Project
RESULT: APPROVED \[UNANIMOUS\]
MOVER: William Norris, Vice-Chair
SECONDER: Charlie Rivenbark, CFPUA Board Member
AYES: Corder, Norris, Hackney, Adams, Cannon, Rivenbark, Zapple
EXCUSED: Briggs, Sneeden, Barfield, Waddell
6. Resolution - Sale of 2015 Kenworth T440 Vactor Truck
RESULT: APPROVED \[UNANIMOUS\]
MOVER: William Norris, Vice-Chair
SECONDER: Charlie Rivenbark, CFPUA Board Member
AYES: Corder, Norris, Hackney, Adams, Cannon, Rivenbark, Zapple
EXCUSED: Briggs, Sneeden, Barfield, Waddell
7. $817,675 Engineering Contract Award to McKim and Creed for the Northern New
Hanover County Pump Stations and Force Mains Project, Part A
RESULT: APPROVED \[UNANIMOUS\]
MOVER: William Norris, Vice-Chair
SECONDER: Charlie Rivenbark, CFPUA Board Member
AYES: Corder, Norris, Hackney, Adams, Cannon, Rivenbark, Zapple
EXCUSED: Briggs, Sneeden, Barfield, Waddell
8. $1,535,750 Engineering Contract Award to Carollo for the Northern New Hanover
County Regional Pump Stations and Force Mains Project, Part B
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RESULT: APPROVED \[UNANIMOUS\]
MOVER: William Norris, Vice-Chair
SECONDER: Charlie Rivenbark, CFPUA Board Member
AYES: Corder, Norris, Hackney, Adams, Cannon, Rivenbark, Zapple
EXCUSED: Briggs, Sneeden, Barfield, Waddell
9. $48,750 Contract Amendment #15 with McKim & Creed Inc for Walnut Street Pump
Station Project
RESULT: APPROVED \[UNANIMOUS\]
MOVER: William Norris, Vice-Chair
SECONDER: Charlie Rivenbark, CFPUA Board Member
AYES: Corder, Norris, Hackney, Adams, Cannon, Rivenbark, Zapple
EXCUSED: Briggs, Sneeden, Barfield, Waddell
10. $772,633 Carolina Civilworks, Inc. Change Order #1 for Emergency Construction Services
RESULT: APPROVED \[UNANIMOUS\]
MOVER: William Norris, Vice-Chair
SECONDER: Charlie Rivenbark, CFPUA Board Member
AYES: Corder, Norris, Hackney, Adams, Cannon, Rivenbark, Zapple
EXCUSED: Briggs, Sneeden, Barfield, Waddell
11. $1,322,012 Evoqua Water Technologies, LLC Amendment # 4 for Odor & Corrosion
Control
RESULT: APPROVED \[UNANIMOUS\]
MOVER: William Norris, Vice-Chair
SECONDER: Charlie Rivenbark, CFPUA Board Member
AYES: Corder, Norris, Hackney, Adams, Cannon, Rivenbark, Zapple
EXCUSED: Briggs, Sneeden, Barfield, Waddell
12. Resolution in support of a North Carolina General Assembly special appropriation for
the Lower Cape Fear Water and Sewer Authority
RESULT: APPROVED \[UNANIMOUS\]
MOVER: William Norris, Vice-Chair
SECONDER: Charlie Rivenbark, CFPUA Board Member
AYES: Corder, Norris, Hackney, Adams, Cannon, Rivenbark, Zapple
EXCUSED: Briggs, Sneeden, Barfield, Waddell
VIII. NEW BUSINESS
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A. Administrative Reports
i. Attorney's Report
Ms. Miles had no report and did not require a closed session.
ii. Executive Director's Report
Mr. Vandermeyden presented a Resolution accepting $30 million in special
appropriations from the North Carolina General Assembly. Mr. Norris moved to adopt
the Resolution. Mr. Hackney seconded the motion, and it passed unanimously.
Mr. Waldroup a Resolution recognizing May 1 - May 7 as 2022 Water Week. Mr.
Rivenbark moved to adopt the Resolution. Mr. Norris seconded the motion, and it
passed unanimously.
1. Key Indicators Report
Mr. Waldroup answered questions regarding employee turnover in the water
treatment division.
RESULT: REVIEWED
2. Environmental Report
RESULT: REVIEWED
3. Safety Report
RESULT: REVIEWED
4. Quarterly CIP Report
RESULT: REVIEWED
B. Committee Reports
i. Executive Committee
1. Executive Committee - Regular - Apr 6, 2022 10:00 AM
Dr. Cannon reminded the Board that it approved a Resolution in June 2021 to
work on expanding affordability options for customers. She asked how Board
and staff can facilitate that process. Mr. Waldroup reported that he would like
to bring a portfolio of options through the Executive and Sustainability
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Committees following the adoption of the FY23 budget. Mr. Corder added that
the Executive Committee advocated reaching out to other utilities to see what
their affordability goals and initiatives may be. Dr. Cannon agreed with that
position.
Mr. Waldroup reported that there is support for permanent funding of LIWHAP
(Low Income Water Housing Assistance Program). He will be visiting
Washington, D.C. with other utility representatives in support of LIWHAP funding
and will work with our area's Federal delegation to identify and address water
and sewer utility needs. He will work with the Board to develop action plans on
the state legislative level.
Board members discussed NCGS 162(A) and its direction that water-sewer
utilities be run as enterprise funds. They discussed the funding options available
to cities and counties that are not available to authorities such as CFPUA. Mr.
Waldroup reported that the City of Wilmington and New Hanover County have
each agreed to increase their WaterWay contributions from $10,000 annually to
$50,000 annually. Those funds are administered through DHHS. Mr. Zapple
added that he had expected the County's $500,000 contribution from ARPA
funds to continue to assist CFPUA customers, but that the City and County had
ended the $1,000,000 funding for customer assistance.
RESULT: NO ACTION REQUIRED
ii. Finance Committee
1. Finance Committee - Regular Meeting - Apr 6, 2022 9:00 AM
RESULT: NO ACTION REQUIRED
2. Monthly Financials
Mr. McLean presented the monthly financial data. March 31 marked 75 percent
of the fiscal year complete, and revenues were at 79 percent of budget.
February 28 marked 67 percent of the fiscal year complete, and expenditures
were at 68.5 percent of budget. The unrestricted fund balance is $70 million.
Staff anticipates that the balance of the pay-go capital reserve will be spent by
the end of the fiscal year.
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RESULT: REVIEWED
3. Ordinance Appropriating Funds for a Consolidation Study, a Rate Study and an
Economic Impact Study
Mr. Waldroup presented the item and recapped the methodologies used to
develop a consolidation and unique characteristics of the potential
consolidation. Mr. Zapple stated that CFPUA's existing customers should be
protected from any rate increase related to a consolidation with Wrightsville
Beach. Mr. Waldroup answered questions about the cost of providing bulk
water to the town.
Following discussion, Ms. Adams moved the item. Mr. Hackney seconded the
motion, and it passed unanimously.
RESULT: APPROVED \[UNANIMOUS\]
MOVER: Jennifer Adams, Treasurer
SECONDER: Deans Hackney, Secretary
AYES: Corder, Norris, Hackney, Adams, Cannon, Rivenbark, Zapple
EXCUSED: Briggs, Sneeden, Barfield, Waddell
4. FY 23 Preliminary Operating Budget
Mr. McLean presented an overview of the recommended budget for the fiscal
year beginning July 1, 2022. The budget is $103,214,759, an increase of $11.1
over the current budget. With the Sweeney improvements going into use,
optimal removal of PFAS to a level of under 10 parts per trillion will add $3.7
million to the budget.
The recommended budget includes 13.5 percent increases in salaries and
benefits. There are step and range adjustments, and four new positions are
included in the budget. A Diversity, Equity, and Inclusion Officer is
recommended, to be funded at a future date.
The budget includes cost-of-living adjustments of 10, 8, and 5 percent, tiered so
that 216 employees in positions with the lowest salaries will receive 10 percent,
50, employees with receive 8 percent, and 68 employees will receive 5 percent.
The COLA increases are tired so that divisions with the highest turnover related
to salaries will receive a higher percentage of compensation. No merit increases
are included in the FY23 budget.
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CFPUA has not raised rates since 2019. Mr. McLean presented three options for
rate adjustments that would cover the recommended budget, including optimal
PFAS removal. They were:
1. A "just in time" increase for FY23 of 13 percent. This option would
capture all increases in FY23;
2. A two-year "smoothing" with 8 percent increases in FY23 and FY24. This
option would include using $4.2 million in fund balance and borrowing $2.5
million to maintain the an unrestricted fund balance of $50 million; and
3. A three-year "smoothing" with 7 percent increases in FY23, FY24, and
FY25. This option would include the use of $7.2 million in fund balance and
borrowing $2.5 million.
Mr. McLean spoke to the advantages and disadvantages of each option. He
reported that staff recommends the second option of two-year rate smoothing
at 8 percent for FY23 and FY24. The average bill would increase approximately
$5.00 per month for FY23. CFPUA still compares favorably to its regional peers,
using peer data for FY22. Staff does not have projected rate increases for peer
utilities for FY23, but staff anticipates CFPUA will continue to compare favorably
to other utilities in the area and state.
Mr. McLean reported that CFPUA must maintain a debt coverage of 1.6. Rating
agencies Standard & Poors and Moody's review CFPUA's finances prior to any
issuance of bonds. Mr. McLean speaks with rating agency representatives
annually. CFPUA carries an AAA rating.
Mr. McLean answered questions from Board members regarding rate scenarios.
The Board discussed implementing moderate, incremental rate increase annually
instead of "as-needed" increases.
Staff answered questions regarding, projected growth in the system,
recommended COLA increases for employees and the unfunded Diversity,
Equity, and Inclusion position.
Mr. McLean reviewed the budget calendar. He requested that Board members
provided him and Mr. Waldroup with budget notes and questions by April 20.
The final recommended budget will go to the Finance Committee at its May 4
meeting. The FY23 Capital Improvement Plan will be presented for adoption at
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the May 11 meeting. Staff will schedule a the budget hearing for the May 11
meeting, and the Board can adopt the budget in May or June.
RESULT: NO ACTION REQUIRED Next: 5/11/2022 9:00 AM
iii. Sustainability Committee
1. Sustainability Committee - Regular - Mar 31, 2022 12:30 PM
Dr. Cannon reported that the Committee met on March 31 and met Ms.
Pohlman, who provided an update on sustainability and resiliency initiatives at
CFPUA.
RESULT: NO ACTION REQUIRED
2. Sustainability Overview
RESULT: REVIEWED
iv. Human Resources Committee
1. Human Resources Committee - Regular - Mar 14, 2022 2:00 PM
Mr. Hackney reported that the Committee met on March 14 and reviewed and
approved the compensation recommendations that were included in the FY23
budget.
RESULT: NO ACTION REQUIRED
2. Compensation recommendations for FY2023
RESULT: NO ACTION REQUIRED
IX. OLD BUSINESS
There was no old business.
X. AUTHORITY Q & A/CLOSING COMMENTS
Mr. Rivenbark complimented staff on the television spots highlighting the Sweeney treatment
enhancements.
XI. ADJOURNMENT
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There was no further business to come before the Authority, and Mr. Norris moved to adjourn.
Mr. Hackney seconded the motion, and it passed unanimously. The meeting adjourned at
10:40 AM.
The next regular CFPUA meeting will be Wednesday, May 11, 2022. The Board will meet in the
Lucie Harrell Conference Room, New Hanover County Administration Building, 230 Government
Center Drive, Wilmington, North Carolina.
Respectfully submitted,
Donna S. Pope
Clerk to the Board
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