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HomeMy WebLinkAbout2024-10-09 MinutesCAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES OCTOBER 9, 2024 Room 139 Regular Meeting 9:00 AM 230 GOVERNMENT CENTER DRIVE WILMINGTON, NC 28403 I. CALL TO ORDER Ms. Adams called the meeting to order at 9:00 AM. II. DETERMINATION OF A QUORUM A quorum of the Board was present. Mr. Zapple moved to excuse Messrs. Rivenbark, Smith, and Waddell. Mr. Hackney seconded the motion, and it passed unanimously. Also present were: Staff: Ken Waldroup, Executive Director Nicolette Fulton, Authority Attorney John McLean, CFO & Deputy Executive Director Beth Eckert, Deputy Executive Director, EMD, Sustainability, & Linear Assets Lori McKoy, HR Director Julia Vosnock Faircloth, Deputy Finance Officer Matt Tribett, Deputy Operations Director Heidi Hackett, Deputy Customer Service Director Cammie Bellamy, Public Information Officer Debbie Leonard, Human Resources Manager Jill Deaney, Assistant Director EMD & Sustainability John Kupinski, Project Manager Ben Kearns, Water Resources Manager Kelsey Mongeau, Strategy & Performance Analyst Ethan Walters, Strategy & Performance Analyst Judy Lawton, Deputy Clerk Makeba Robinson, Deputy Clerk Donna S. Pope, Clerk Guest: LeAnn Bagasala, Mauldin & Jenkins, CPAs III. ADOPTION OF AGENDA Mr. Briggs moved to adopt the day's Agenda. Mr. Zapple seconded the motion, and it passed unanimously. IV. AWARD PRESENTATION Ms. Deaney and Mr. Kearns presented the Authority with the Water Research Foundation Subscriber Impact Award for 2024. CFPUA is the first North Carolina utility to win the award. Staff has worked with the Foundation since 2008, with 16 employees serving on various Foundation Boards and Committees. CFPUA has participated in 13 WRF research projects, with two projects currently underway. The Board thanked Ms. Deaney and Mr. Kearns. Mr. Waldroup added that they participate in CFPUA's upcoming leaders' cohort and that both are active with other professional industry organizations. V. 2024 ANNUAL COMPREHENSIVE FINANCIAL REPORT A. 2024 Annual Comprehensive Financial Report Ms. Bagasala presented the audit results for Fiscal Year 2024, which ended on June 30, 2024. Maudlin & Jenkins has conducted the audit for the past three years. The audit used generally accepted audit standards and government audit standards. CFPUA received a clean, unmodified audit opinion. Ms. Bagasala reviewed the auditing procedures and the financial policies reviewed by her audit team. She reported that staff provided full cooperation throughout the audit. She reported on auditing requirements that will be implemented in future years. There were no questions from the Board regarding the audit. The 2024 Annual Comprehensive Financial Report prepared by CFPUA staff was available in the Agenda packet. VI. APPROVAL OF MINUTES A. Approval of Minutes - Regular Meeting - September 10, 2024 Dr. Cannon presented the minutes from the September 10 Authority meeting. There were no corrections, and Mr. Barfield moved to approve the minutes. Mr. Corder seconded the motion, and it passed unanimously. VII. PUBLIC COMMENTS - 4 MINUTE LIMIT PER SPEAKER There were no public speakers. VIII. CONSENT AGENDA Mr. Corder moved to approve the Consent Agenda. Ms. Hudson seconded the motion, and it passed unanimously. A. $80,600.00 contract Amendment for Black & Veatch B. $1,284,000 Construction Contract to MB Kahn Waterworks, LLC for the Northside Wastewater Improvement Project. C. Resolution Approving NCGLISA Western Carolina Donations IX. NEW BUSINESS A. Administrative Reports 1. Attorney's Report Ms. Fulton reported that staff is reviewing backflow testing protocols and the ordinance in order to comply with legislation that changed the required testing from one year to three years. Staff answered questions from Board members regarding the backflow legislation. Ms. Fulton further reported that she required a closed session to discuss the City of Asheboro v. the State of North Carolina. 2. Executive Director's Report Mr. Waldroup presented the regular monthly reports for Board review. Key Indicators Mr. Zapple requested clarification on the "cash on hand" category, stating that it was the lowest in 12 months. Mr. McLean reported that reimbursements on some State Revolving Fund projects are taking longer than anticipated, but that CFPUA is not experiencing any difficulties with cash flow and is able to make timely payments to contractors on those projects. Mr. Waldroup added that the General Assembly has authorized considerable assistance to the Western part of the state following Hurricane Helene, and that may cause delays in reimbursements. Mr. Zapple noted the downward trend in new meter installations. Mr. McLean reported that staff continues to analyze meter data, but there may be a slowing trend n building. Board members discussed delays in permitting. Mr. Waldroup reported that staff is considering the possibility of delegating permitting from State staff to local agencies. Mr. Corder requested updates on the Northern and Southern County -area projects to be included in the Key Indicators. ii. Safety Report iii. Environmental Report iv. Strategic Plan Update V. Statewide Mutual Aid Agreement Mr. Waldroup presented the item and reported on utility needs in the Western part of North Carolina following Hurricane Helene. CFPUA sent two crews to assist under its membership in NC Water Warn. The recommended mutual aid agreement enables CFPUA to help through additional agencies. It also provides liability coverage and the ability to be reimbursed for expenses. Mr. Zapple moved to approve the agreement. Mr. Corder seconded the motion, and it passed unanimously. Ms. Adams thanked staff for their assistance to utilities impacted by the hurricane for working with the North Carolina Emergency Operations Command during the storm event. Mr. Zapple added that County staff worked with local governments in the Western part of the state, helping to consolidate incident command centers under one umbrella. Board members discussed CFPUA and regional preparedness. B. Committee Reports 1. Executive Committee The minutes were in the Agenda packet for review. Minutes from 10.2.24 2. Long Range Planning Committee The Committee did not meet in September. 3. Finance Committee Finance Committee minutes 10.2.2024 The minutes were in the Agenda packet for review. ii. Monthly Financials Mr. McLean presented the September financial data. CFPUA ended FY24 with $46.8 million in the unassigned fund balance, short of the $50 million annual goal set by the Board. Revenues from rates and system development charges are continuing to trend under budget. Mr. McLean reviewed methodologies that can be used to right - size the unassigned fund balance. Mr. Tribett reviewed projects that are under way to support the Wrightsville Beach consolidation. He and Mr. McLean answered questions regarding those projects and related contract expenses. 4. Sustainability Committee The Committee did not meet in September. X. OLD BUSINESS XI. AUTHORITY Q & A / CLOSING COMMENTS Ms. Adams reminded Board members that the office employee appreciation picnic would be on Friday, October 11. There were no additional questions from Board members. XII. CLOSED SESSION Mr. Barfield moved to enter closed session to discuss City of Asheboro v. the State of North Carolina. Mr. Briggs seconded the motion, and it passed unanimously. The Board entered closed session at 10:10 AM with Ms. Fulton, Ms. Eckert, Mr. Waldroup, and the Clerks in attendance. The Board received an update from Ms. Fulton and provided direction. Mr. Barfield moved to return to open session. Dr. Cannon seconded the motion, and it passed unanimously. The Board returned to open session at 10:40 AM. XIII. ADJOURNMENT Mr. Zapple moved to adjourn. Mr. Briggs seconded the motion, and it passed unanimously. The meeting adjourned at 10:41 AM. The next Cape Fear Public Utility Authority meeting will be Tuesday, November 12, 2024. This will be the Authority's Annual Meeting, an the Board will receive the FY2024 Annual Report. The meeting will begin at 9:00 AM and will be held in Rooms 138 and 139, New Hanover County Administration Building, 230 Government Center Drive, Wilmington, North Carolina. Respectfully submitted, Donna S. Pope Clerk to the Board Makeba Robinson Deputy Clerk to the Board