HomeMy WebLinkAbout2021-06-09 Regular Meeting Minutes
CAPE FEAR PUBLIC UTILITY AUTHORITY
AUTHORITY BOARD
MINUTES
JUNE 9, 2021
Wilmington Convention Center Regular Meeting 9:00 AM
10 CONVENTION CENTER DR.
WILMINGTON, NC 28401
I. CALL TO ORDER
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 Present
Authority
Larry Sneeden Cape Fear Public Utility Present
Authority
Jonathan Barfield Cape Fear Public Utility Present
Authority
Kevin O'Grady Cape Fear Public Utility Present
Authority
Charlie Rivenbark Cape Fear Public Utility Present
Authority
Rob Zapple Cape Fear Public Utility Present
Authority
Jim Flechtner 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
Authority
Carel Cape Fear Public Utility Deputy Executive Director Present
Vandermeyden Authority
Beth Eckert Cape Fear Public Utility Director of EMD Present
Cape Fear Public Utility Authority Page 1
MinutesAuthority BoardJune 9, 2021
Authority
Kristine Irick Cape Fear Public Utility Customer Service Director Present
Authority
John McLean Cape Fear Public Utility Chief Financial Officer Present
Authority
Vaughn Hagerty Cape Fear Public Utility Public Information Officer Present
Authority
Cord Ellison Cape Fear Public Utility Chief Information Officer Present
Authority
Lori McKoy Cape Fear Public Utility Human Resources Director Present
Authority
Cammie Bellamy Cape Fear Public Utility Assistant PIO Present
Authority
Karen Durso Cape Fear Public Utility Real Estate Manager Present
Authority
Sara Eskew Cape Fear Public Utility Present
Authority
Annette Flechtner Present
Mike Brown Former Board Chair Present
Donna S. Pope Cape Fear Public Utility Clerk/Executive Secretary to the Present
Authority Board
III. ADOPTION OF AGENDA
Mr. Zapple moved to adopt the day's agenda. Mr. Rivenbark seconded the motion, and it
passed unanimously.
IV. APPROVAL OF MINUTES
1. Authority Board - Regular Meeting - May 12, 2021 9:00 AM
RESULT: ACCEPTED \[UNANIMOUS\]
MOVER: Deans Hackney, Secretary
SECONDER: Kevin O'Grady
AYES: Corder, Norris, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, O'Grady,
Rivenbark, Zapple
V. PUBLIC COMMENTS - 4 MINUTE LIMIT PER SPEAKER
There were no public comments.
A. Recognition and Resolution Honoring James R. Flechtner, Executive Director
Mr. Corder read a Resolution into the record, thanking Mr. Flechtner for his service to
CFPUA since 2008 and his guidance and dedication as Executive Director. Mr. Norris moved
to adopt the Resolution. Mr. Zapple seconded the motion, and it passed unanimously.
Cape Fear Public Utility Authority Page 2
MinutesAuthority BoardJune 9, 2021
Mr. Flechtner thanked the Board and noted that CFPUA has had 36 Board members since its
inception in 2007. He thanked Mrs. Flechtner for her love and unflagging support, and he
recognized his fellow staff members for their hard work and public service. The group gave
Mr. Flechtner a standing ovation.
VI. PRESENTATION OF FY2022 BUDGET AND PUBLIC HEARING
1. Public Hearing and Adoption of FY22 Budget
Mr. McLean presented the budget for the fiscal year beginning July 1, 2021. The total
operating budget is $91,968,325, and the capital budget is $27,530,000. The budget
contains no increases to user rates for water and sewer services. The Finance
Committee recommended adoption of the budget, and the Board has received updates
over the past three months.
Ms. Adams moved to open the public hearing on the budget. Mr. Briggs seconded the
motion, and it passed unanimously. There were no speakers for the budget hearing.
Mr. Briggs moved to close the public hearing. Ms. Adams seconded the motion, and it
passed unanimously.
Mr. Norris moved to adopt the FY22 budget, its supporting ordinance, and the rate and
fee schedule. Mr. Zapple seconded the motion, and it passed unanimously.
RESULT: ADOPTED \[UNANIMOUS\]
MOVER: Rob Zapple
SECONDER: Charlie Rivenbark, CFPUA Board Member
AYES: Corder, Norris, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, O'Grady,
Rivenbark, Zapple
VII. CONSENT AGENDA
1. Authorization for the Executive Director to Enter into a six-month $86,000 Sole Source
Contract with Water Guard Inc. for Corrosion Inhibitor Treatment Chemicals
RESULT: APPROVED \[UNANIMOUS\]
MOVER: Jennifer Adams, Treasurer
SECONDER: Charlie Rivenbark, CFPUA Board Member
AYES: Corder, Norris, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, O'Grady,
Rivenbark, Zapple
2. Authorize the Executive Director to Add the Cost Recovery Fee for the Forest Creek
Outfall to the Rate and Fee Schedule.
Cape Fear Public Utility Authority Page 3
MinutesAuthority BoardJune 9, 2021
RESULT: ADOPTED \[UNANIMOUS\]
MOVER: Jennifer Adams, Treasurer
SECONDER: Charlie Rivenbark, CFPUA Board Member
AYES: Corder, Norris, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, O'Grady,
Rivenbark, Zapple
3. Laboratory Testing Services
Ms. Adams moved to approve the laboratory testing contracts. Mr. Rivenbark seconded
the motion, and it passed unanimously.
RESULT: REVIEWED
4. SCADA Services On-Call Contract
RESULT: APPROVED \[UNANIMOUS\]
MOVER: Jennifer Adams, Treasurer
SECONDER: Charlie Rivenbark, CFPUA Board Member
AYES: Corder, Norris, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, O'Grady,
Rivenbark, Zapple
5. Interim Executive Director
RESULT: APPROVED \[UNANIMOUS\]
MOVER: Jennifer Adams, Treasurer
SECONDER: Charlie Rivenbark, CFPUA Board Member
AYES: Corder, Norris, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, O'Grady,
Rivenbark, Zapple
VIII. NEW BUSINESS
A. Administrative Reports
i. Attorney's Report
Ms. Miles did not have a report for open session. She requested a closed session to
discuss CFPUA's Motion to Intervene in the case of NC DEQ v. Chemours.
ii. Executive Director's Report
1. Key Indicators Report
Mr. Vandermeyden answered questions regarding water use in the Monterey
Heights system. Staff has applied for and anticipates approval of an increase in
production from that well system from 1 MGD to 1.5 MGD.
Cape Fear Public Utility Authority Page 4
MinutesAuthority BoardJune 9, 2021
RESULT: REVIEWED
2. Environmental Report
RESULT: REVIEWED
3. Safety Report
RESULT: REVIEWED
4. Customer Service Update - June
RESULT: REVIEWED
B. Committee Reports
i. Executive Committee
1. Executive Committee - Regular - Jun 2, 2021 10:00 AM
Mr. Corder reported that Congressman David Rouzer joined the Executive
Committee at its June 2 meeting. The Committee discussed PFAS and regulatory
agencies.
RESULT: NO ACTION REQUIRED
2. Kenneth Waldroup contract
Mr. Corder presented Mr. Waldroup's contract for the position of Executive
Director. Mr. Sneeden moved to approve the contract. Dr. Cannon seconded the
motion, and it passed unanimously.
ii. Finance Committee
1. Finance Committee - Regular Meeting - Jun 2, 2021 9:00 AM
RESULT: NO ACTION REQUIRED
2. Monthly Financials May 2021
Mr. McLean reported that CFPUA has $1 million in revenues over expenditures.
He anticipated $18 million in transfers to capital funding. Mr. Zapple
commended Mr. McLean and all staff on tight budgeting and predictions on
water revenues.
Cape Fear Public Utility Authority Page 5
MinutesAuthority BoardJune 9, 2021
Ms. Irick answered questions regarding payment plans for delinquent accounts.
RESULT: REVIEWED
iii. Sustainability Committee
1. Sustainability Committee - Regular - May 27, 2021 2:00 PM
RESULT: NO ACTION REQUIRED
2. Resolution on Customer Assistance Funding
Dr. Cannon reported that the Committee has developed short and long term
goals for customer assistance. Mr. Flechtner reported that the recommended
Resolution would provide support for CFPUA to pursue legislative changes to
provide more funding for customer assistance.
Ms. Hallock presented the item. Using census and GIS data combined with
customer service records, staff determined that there are 1,700 accounts for
customers who regularly struggle to pay their water-sewer bills, with more than
one service shutdown in a year. That struggle is largely due to income
limitations. The corresponding dollar amount of those delinquencies is
$400,000.
WaterWay Inc., the non-profit that raises funds administered by NHC DHHS, has
raised $15,000 this year and receives approximately $10,000 annually from the
City and County. New Hanover County has agreed to provide $500,000 from its
American Rescue Plan monies to fund assistance to customers who were unable
to pay their bills due to the pandemic. WaterWay will pursue grant
opportunities that may be available in the future from the community
foundation set up to handle monies from the NHRMC sale.
The proposed resolution would provide staff with Board direction to pursue
options for CFPUA to develop an internal customer assistance fund. There may
be other water-sewer utilities in the state that would support legislative
revisions to Chapter 162A, the Water and Sewer Authorities Act, to help provide
those options. Ms. Hallock reported that a legislator from the Chapel Hill area
introduced a bill some months ago that would allow water and sewer authorities
to fund customer assistance. Other utilities in the state already have assistance
programs similar to WaterWay that are not funded through revenues.
Cape Fear Public Utility Authority Page 6
MinutesAuthority BoardJune 9, 2021
Dr. Cannon, Ms. Hallock, and Messrs. McLean and Flechtner answered questions
from Board members. Mr. McLean reported that CFPUA's rates are at the
midpoint for large North Carolina utilities and below some other peer utilities.
The rate dashboard for NC utilities can be provided to Board members. Mr.
Rivenbark observed that the City and County had been very deliberate in the
way CFPUA was structured, including billing, and that the City had previously
funded customer assistance.
Mr. Zapple thanked Ms. Hallock for defining the number of customer accounts
that could use assistance on a regular basis, stating that it had been an elusive
number until staff developed their research and analysis methodology. Dr.
Cannon thanked Messrs. Barfield and Zapple for helping to get WaterWay
funding from the County through the ARP monies.
Dr. Cannon moved to approve the Resolution. M.r O'Grady seconded the
motion. Mr. Sneeden proposed additional language to the Resolution that
would direct staff to pursue any available Federal funding, in addition to County,
City, and endowment support. After discussion, Mr. Sneeden moved to amend
the resolution to allow pursuit of Federal funding. Mr. Norris seconded the
amended motion, and the amended language passed unanimously. Dr. Cannon
moved to adopt the amended Resolution. Mr. Zapple seconded the motion, and
it passed unanimously.
RESULT: ADOPTED AS AMENDED \[UNANIMOUS\]
MOVER: Jessica Cannon, Board Member
SECONDER: Rob Zapple
AYES: Corder, Norris, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield,
O'Grady, Rivenbark, Zapple
IX. OLD BUSINESS
There was no old business.
X. AUTHORITY Q & A/CLOSING COMMENTS
Mr. Corder commended staff on the addition of a position in development services. He added
that he had reason to meet with staff more over the last few months and believed they exhibit
amazing commitment and dedication. He stated that was a legacy from Mr. Flechtner. He
thanked Ms. McKoy for her work on the process of advertising and hiring a new Executive
Director.
XI. CLOSED SESSION
Cape Fear Public Utility Authority Page 7
MinutesAuthority BoardJune 9, 2021
Mr. Norris moved to enter closed session to discuss CFPUA's Motion to Intervene in NC DEQ v.
Chemours. Mr. Rivenbark seconded the motion, and it passed unanimously. The Board
entered closed session at 9:48 AM, with Ms. Miles, Ms. Pope, and Messrs. Flechtner,
Vandermeyden, and Hagerty present.
Following a report from Ms. Miles and direction to legal counsel, Mr. Rivenbark moved to
return to open session. Mr. Norris seconded the motion, and it passed unanimously. The
Board returned to open session at 10:45 AM.
XII. ADJOURNMENT
Mr. Rivenbark thanked Mr. Flechtner for his years of service to the City and to CFPUA. He
remembered their first meeting in the early 1990s, when he was a newly-elected City
Councilman and Flechtner was in the City traffic engineering division. He stated that he would
leave huge shoes to fill at CFPUA and in service to the community, and Board members agreed.
Mr. Norris moved to adjourn. Mr. Zapple seconded the motion, and it passed unanimously.
The Board adjourned at 10:48 AM.
The next regular CFPUA meeting will be Wednesday, July 14, 2021. 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
Cape Fear Public Utility Authority Page 8