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HomeMy WebLinkAbout2025-10-08 MinutesCAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES OCTOBER 8, 2025 Room 139 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 Mr. Miller. Mr. Waddell seconded the motion, and it passed unanimously. Those present were: Board Members: Wes Corder, Chair Deans Hackney, Vice -Chair Jessica Cannon, Secretary Jennifer Adams Leslie Hudson Bill Smith Charlie Rivenbark, Councilman Dane Scalise, Commissioner Luke Waddell, Councilman Rob Zapple Commissioner Staff: Kenneth Waldroup, Executive Director Nicolette Fulton, Authority Attorney Beth Eckert, Deputy Executive Director Kevin Morris, Deputy Executive Director John McLean, Chief Finance Officer and Deputy Executive Director Lori Tayson, Human Resources Director Vaughn Hagerty, Chief Communications Officer Cord Ellison, Chief Information Officer Julia Vosnock Faircloth, Deputy Finance Officer Brittany McKim Spell, Deputy Attorney Gary McSmith, Assistant Engineering Director Craig Wilson, Asistant Operations Director Matt Tribett, Assistant Operations Director Sherry Brooks, HR Business Partner Elizabeth Severt, Strategy & Performance Manager Amanda King, Strategy & Performance Analyst Kelsey Mongeau, Strategy & Performance Analyst Makeba Robinson, Deputy Clerk Donna S. Pope, Clerk Guests: Thomas Plaskett, Customer Amy Chapman, Customer Kenny Chapman, Customer Jennifer Rigby, New Hanover County Jessica Loeper, New Hanover County II. DETERMINATION OF A QUORUM A quorum was present. III. ADOPTION OF AGENDA Mr. Corder reported that staff requested two modifications to the day's agenda, as follows: 1. Move Item VI.0 from the Consent Agenda and renumber it as Item B.3.vi, in order to keep the recommended budget ordinance with the accompanying resolution; and 2. Add a walk-in item to the Executive Director's Report, Item A.2.vi, Resolution Adopting the Southeastern North Carolina Hazard Mitigation Plan. Mr. Rivenbark moved to adopt the Agenda, with the recommended changes. Mr. Smith seconded the motion, and it passed unanimously. IV. APPROVAL OF MINUTES A. Approval of Minutes - Regular Meeting - September 10, 2025 Dr. Cannon moved to approve the September minutes. Mr. Waddell seconded the motion, and it passed unanimously. V. PUBLIC COMMENTS - 4 MINUTE LIMIT PER SPEAKER Mr. Tom Plaskett thanked the Board for the work CFPUA does. He thanked individual staff members who had provided information and met with him prior to his attending the board meeting. He addressed increased irrigation rates and requested that the Board reconsider irrigation to spread the load among all customers who irrigate. He further requested enhanced transparency regarding rates and suggested a ratepayer advisory committee. VI. CONSENT AGENDA Ms. Adams requested clarification on Item E. Mr. Smith moved to approve Items A-E and Item F. Mr. Rivenbark seconded the motion, and it passed unanimously. A. Amendment to the Construction Services Contract with State Utility Contractors, Inc. for Find -It, Fix -It to Increase the Not -to -Exceed Amount by $550,000 and Extend the Contract Term by Not -to -Exceed 1 Year B. $132,725 Change Order to the Construction Contract for R.H. Moore Company on the Northern New Hanover County Water & Sewer Main Project — Holly Shelter Road Corridor C. $227,000 Purchase of two 2026 Ford F-350 Palfinger Crane Truck D. $540,750 Construction Contract with Atlantic Construction and Development, Inc. for Water Valve Replacement #3 E. Resolution Accepting NCDEQ Grant Funding for Water Main Extensions for the Bayshore Phase A Water Extension Project Following clarification questions, Ms. Adams moved to approve the item. Mr. Waddell seconded the motion, and it passed unanimously. F. Ordinance Appropriating Emerging Contaminants in Small or Disadvantaged Communities Grant (ECSDC) for Bayshore Phase A — Water Extensions VII. NEW BUSINESS A. Administrative Reports 1. Attorney's Report Ms. Fulton had no report for open session. She requested a closed session to discuss CPFUA v. Chemours and pending litigation items. 2. Executive Director's Report Mr. Waldroup presented the monthly reports. Staff is working to refine the reports for Board review. Key Indicators The report was in the agenda packet for review. Mr. Zapple noted that Southside plant showed greatly reduced flow of 6.47 MGD. Mr. Waldroup reported that staff believes that amount to be an anomaly and are investigating potential causes. Staff will report back to the Board through the Long Range Planning Committee. ii. Safety Report The report was in the agenda packet for review. There were no questions. iii. Environmental Report The report was in the agenda packet for review. There were no questions. iv. Strategic Plan Update Mr. Zapple asked for information regarding CFPUA's application to the New Hanover Community Endowment for grant assistance for the Southside project and projects to connect communities with contaminated wells to water. Ms. Spell reported on CFPUA staff's meetings with Endowment staff and Endowment staff's concerns regarding bill affordability for underserved communities and what avenues exist to mitigate water and sewer bills. Mr. Waldroup reported that staff may ask our Board for a resolution supporting Endowment funding for some projects, and he stated that input from CFPUA's elected officials could be helpful in gaining Endowment support. Mr. Scalise added that the Endowment will work with applicants to refine their applications. He stressed proper framing and taking a long view with Endowment applications. V. Economic Development Projects Update The report was in the agenda packet for review. There were no questions. vi. Resolution Adopting Southeastern NC Hazard Mitigation Plan (WALK-IN AGENDA ITEM) Ms. Eckert presented the item and answered questions from Board members. CFPUA has previously participated in hazard mitigation with the County and City. Formal adoption of the hazard mitigation plan is required in order to apply for grants associated with the plan. CFPUA has two pump station projects on its CIP that are candidates for grant funding. Grant funding would free CIP monies for other projects. Ms. Adams moved to adopt the Southeastern NC Hazard Mitigation Plan. Mr. Zapple seconded the motion, and it passed unanimously. B. Committee Reports Executive Committee Executive Committee Minutes 10.1.2025 Mr. Zapple noted a correction needed in the minutes. Mr. Waldroup and Ms. Fulton answered questions regarding CFPUA's strategy to oppose inter -basin transfers and addressing 1,4 dioxane. 2. Long Range Planning Committee LRP Minutes 9.25.2025 Mr. Zapple noted a correction needed in the minutes. Revision to KPIs for Development Service Activities Staff is developing revisions to the key performance indicators. iii. Modernizing Facility Names by Replacing "Wastewater Treatment Plant" with "Water Reclamation Facility" Mr. Waldroup presented the item. Board members supported renaming the Southside and Northside facilities. Mr. Rivenbark moved the item. Mr. Zapple seconded the motion, and it passed unanimously. 3. Finance Committee i. Finance Committee Minutes 10.1.2025 The Committee minutes were in the agenda packet for review. There were no questions. ii. Monthly Financial Report Mr. McLean presented the September financial data. Financial reports for FY25 (fiscal year ended June 30, 2025) are complete, and the audit will be presented at the November Annual Meeting. The unassigned fund balance is $31.5 million, following transfers to the capital budget at the beginning of FY26. System Development Charges were lower than budgeted for FY25. The budgeted amount was $1.6 million, and actual SDC revenues were $1.4 million. Mr. McLean briefly reviewed CFPUA's investments and liquidity. iii. $22,361,131 Change Order for GMP #2 -Long Lead Time Equipment and Yard Piping for the Southside Wastewater Treatment Plant Replacement and Capacity Upgrade Project with Crowder Construction Company. Mr. Smith presented the item, and staff was available to answer questions. Mr. Rivenbark moved to approve the item. Mr. Scalise seconded the motion, and it passed unanimously. iv. Resolution Accepting Low Interest State Loan for Southside Wastewater Treatment Plant Replacement and Capacity Upgrade Project Mr. Scalise moved to adopt the Resolution. Mr. Zapple seconded the motion, and it passed unanimously. V. Executive Director Approval Limits Mr. Scalise moved approve the revisions to the Executive Director's contract approval limits. Mr. Zapple seconded the motion, and it passed unanimously. vi. Ordinance Appropriating CWSRF Loan Proceeds and reducing Bond Proceeds for the Southside Wastewater Treatment Plant Replacement and Upgrade Project Ms. Adams moved to approve the Budget Ordinance, a companion to Item iv. Mr. Rivenbark seconded the motion, and it passed unanimously. Dr. Cannon requested a brief update on the Southside project schedule. Messrs. Waldroup and Morris reported that the final design should be complete in January, with the third guaranteed maximum price due in May 2026. Construction should begin in mid-2026, and the project is expected to be complete in 2030. 4. Sustainability Committee The Committee did not meet in September. 5. Human Resources Committee Human Resources Committee Minutes 9.10.2025 The Committee minutes were in the agenda packet for review. There were no questions regarding the minutes. Employee Benefits Review 2026 In Mr. Miller's absence, Mr. Corder presented the item. The Committee reviewed changes and increased to the State Health Plan for calendar year 2026. The Committee recommended a funding ratio for employee -spouse and employee - coverage with 75 percent paid by CFPUA and 25 percent paid by the employee. Employee only and employee child coverage would be at the funding ratio set by the State. The Committee directed staff to find a strategy to mitigate the impact of increased costs on employees. Mr. Waldroup reported that the State Treasurer interpreted 2025 legislation to include 114 local governmental units participating in the health State Health Plan as being responsible for appropriations into the state retirement system that will be directed towards state employee health coverage. Staff will work with the League of Municipalities to understand and address the requirement. If upheld, that requirement would impact CFPUA's ability to mitigate premium increases for its employees. Dr. Cannon suggested that Board members consider foregoing their monthly stipend, with the money going into a pool to assist employees with increased costs. Mr. Waldroup answered questions regarding the funding ratios, the two plans offered under the State Health Plan, and CFPUA's funding ratios compared to its peers. Following discussion, Mr. Scalise moved the Committee's recommendation for funding ratios, and the Committee's recommendation to develop mitigation strategies. Ms. Adams seconded the motion, and it passed unanimously. 6. Communication Committee Communication Committee Minutes 9.18.2025 The Committee minutes were in the agenda packet for review. There were no questions. VIII. OLD BUSINESS There was no old business. IX. AUTHORITY Q & A / CLOSING COMMENTS There were no questions or closing comments. X. CLOSED SESSION Mr. Rivenbark moved to enter closed session to discuss CFPUA v. Chemours and potential litigation items. Mr. Waddell seconded the motion, and it passed unanimously. The Board entered closed session at 10:05 AM, with a quorum present. Following a report from legal counsel, Mr. Rivenbark moved to return to open session. Mr. Smith seconded the motion, and it passed unanimously. The Board returned to open session at 10:19 AM. XI. ADJOURNMENT Mr. Rivenbark moved to adjourn. Mr. Zapple seconded the motion, and it passed unanimously. The Board adjourned at 10:20 AM. The next regular Cape Fear Public Utility Authority meeting will be Wednesday, November 12, 2025. The Board will meet at 9:00 AM 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