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HomeMy WebLinkAbout2025-11-12 MinutesCAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES NOVEMBER 12, 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. Mr. Zapple moved to excuse Ms. Adams and Mr. Waddell. Mr. Rivenbark seconded the motion, and it passed unanimously. Those present were: Authority members: Wesley Corder, Chair Deans Hackney, Vice -Chair Jessica Cannon, Secretary Bill Smith, Treasurer Leslie Hudson Hank Miller Charlie Rivenbark, Councilmember Dane Scalise, Commissioner Rob Zapple, Commissioner Staff: Kenneth Waldroup, Executive Director Nicolette Fulton, Authority Attorney Beth Eckert, Deputy Execuive Director John McLean, CFO and Deputy Executive Director Kevin Morris, Deputy Executive Director Lori Tayson, HR Director Julia Vosnock Faircloth, Deputy CFO Brittany McKim Spell, Deputy Attorney Mackenzie Coulter, Deputy Attorney Cammie Bellamy, PIO Craig Wilson, Assistant Operations Director Gary McSmith, Assistant Engineering Director Elizabeth Severt, Strategy & Performance Manager Amanda King, Strategy & Performance Fellow Kelsey Mongeau, Strategy & Performance Analyst Ethan D. Walters, Strategy & Performance Analyst Deborah T. Leonard, HR Manager Heather Wochele, Workforce Development Manager Sherry Brooks, HR Business Partner Mary Rivenbark Kirkley Jerry Kirkley Bill Rivenbark, New Hanover County Commission Chairman Susan Walton Courtney Swain Judy Lawton, Deputy Clerk Makeba Robinson, Deputy Clerk Jennifer Rigby, New Hanover County Jessica Loeper, New Hanover County Donna S. Pope, Clerk to the Board II. DETERMINATION OF A QUORUM Mr. Corder determined that a quorum was present. III. ADOPTION OF AGENDA Mr. Zapple moved to adopt the day's agenda, with the addition of Item A, 2, viii, a Resolution opposing Fuquay-Varina's Interbasin Transfer request and adding the monthly financial data to the Finance Committee report, Item 2, iii. Mr. Rivenbark seconded the motion, and it passed unanimously. IV. RECOGNITION FOR MR. RIVENBARK Mr. Corder read a Resolution thanking Mr. Rivenbark for his service as an Authority member. Mr. Rivenbark was appointed as a City Council representative to the Board in 2010 and is the longest -serving member. He has served on the Long Range Planning Committee, participated in the selection of two Executive Directors, and supported large infrastructure projects to serve the community. Mr. Corder thanked Mr. Rivenbark personally for his support of him when he was a new Board Authority member. Mr. Rivenbark introduced his family. He noted that his term had included the completion of a Consent Decree with the Environmental Protection Agency and the construction of granular activated charcoal treatment at the Sweeney plant to address PFAS. He said it had been an honor to work with CFPUA and its ground -breaking work. He thanked staff and his fellow Board members and expressed his pride of CFPUA and its employees. Mr. Scalise moved to adopt the Resolution. Mr. Miller seconded the motion, and it passed unanimously. Those present gave Mr. Rivenbark a standing ovation. V. 2025 ANNUAL REPORT A. CFPUA 2025 Annual Report Mr. Waldroup presented the 2025 Annual Report. In May, the Board adopted the FY26 operating budget of $129.35 million. In August, CFPUA hosted graduate students with the UNC-W Cameron School of Business Executive MBA International Residency. The group studied CFPUA's business practices, finding it to be a well - managed utility and making recommendations for continued improvements. The Wrightsville Beach consolidation successfully closed in September, adding 2,800 water and sewer customers to CFPUA's service area. In October, CFPUA was recognized with the AMWA 2025 Platinum Award for Utility Excellence. November 12 will be the groundbreaking ceremony for the Southside project. CFPUA will build a modernized water reclamation plant built above the 500- year floodplain, adding biological nutrient removal, and increasing capacity from 12 to 16 million gallons per day. The current project estimate is $400 million, making it the single largest project CFPUA has undertaken, one that will serve many generations to come. Other infrastructure project underway during the year include the parallel raw water main project, lead gooseneck and galvanized water service replacements, repair and rehabilitation of existing lines, and a project to extend water mains in the Bayshore residential area. In FY25, CFPUA's revenues were $120,211, 713, and expenditures $117,801,944. CFPUA's rates are among the most affordable in the region, at 1.63 percent of the median household income. VI. APPROVAL OF MINUTES A. Approval of Minutes - Regular Meeting - October 8, 2025 Dr. Cannon presented the October minutes. Mr. Smith moved to approve the minutes. Mr. Miller seconded the motion, and it passed unanimously. VII. PUBLIC COMMENTS - 4 MINUTE LIMIT PER SPEAKER VIII. CONSENT AGENDA Mr. Scalise moved to approve the Consent Agenda, as presented. Mr. Zapple seconded the motion, and it passed unanimously. A. Artificial Intelligence Use Policy B. Sole Source Purchase of a Spare 100 Horse Power Submersible Pump IX. NEW BUSINESS A. Administrative Reports Attorney's Report Ms. Fulton did not have a report for open session. She requested a closed session to discuss potential litigation and two cases, Ivey Builders v. CFPUA and CFPUA v. Chemours. 2. Executive Director's Report The monthly updates were in the packet for review. Key Indicators Mr. Zapple commended staff on the revised graphics in the key indicators report. Ms. Hudson requested more information about disconnections and customer assistance programs. Mr. Waldroup reported that staff watches disconnection statistics closely. Disconnections will be suspended around the December holidays. New Hanover County has provided some funds for assistance, and there are other charitable sources that help. He reported that several utility directors in the state are discussing lobbying the legislature to set up a program similar to LIHWAP assistance provided by the Federal government during the Covid- 19 pandemic. ii. Safety Report The report was in the agenda packet for review. iii. Environmental Report The report was in the agenda packet for review. iv. Strategic Plan Update The report was in the agenda packet for review. V. Economic Development Projects Update The report was in the agenda packet for review. vi. Quarterly CIP Update The report was in the agenda packet for review. vii. Ordinance Appropriating Funds for the 421 Fire Station Water Connection ILA Mr. Waldroup presented the item. Dr. Cannon moved to approve the budget ordinance. Mr. Smith seconded the motion, and it passed unanimously. viii. Resolution to Oppose Fuquay-Varina Interbasin Transfer and Request Public Hearing Mr. Waldroup presented the resolution, and he and Ms. Fulton answered questions from Board members. In 2020, the Town of Fuquay-Varina requested an interbasin transfer (IBT) that would remove water from the Cape Fear River Basin and release it into the Neuse River Basin. Utilities in the Cape Fear basin requested records from both Fuquay-Varina and the City of Sanford, which would provide water to Fuquay- Varina if the IBT is approved. They did not receive any requested documents. In July of 2024, CFPUA requested documents from NC DEQ regarding the IBT request. CFPUA obtained the requested documents in October of this year. The Environmental Management Commission (EMC) has set a deadline for public comment on the IBT request for February 1, 2026. There are three public hearings scheduled, as follows: December 4, 2025, in Fayetteville, December 9, 2025, in Raleigh, and December 11, 2025, in Pittsboro. The recommended resolution opposes the IBT request and Fuquay-Varina's draft Environmental Impact Statement as submitted and amended. It opposes any IBT request that removes water from the Cape Fear basin and does not return water to the basin. The resolution further requests additional time for affected utilities in the Cape Fear basin to respond and submit comments to the EMC. The resolution requests that an additional public hearing be held in New Hanover County in December 2025 or January 2025. Mr. Scalise moved to adopt the Resolution, as presented by staff. Mr. Miller seconded the motion, and it passed unanimously. The Board discussed detrimental impacts on the raw water allocation and supply at the CFPUA's and LCFWASA's King's Bluff raw water intakes. They discussed additional community partners who could support the resolution. Mr. Zapple reported that he had spoken with the Natural Resources Secretary and stressed the need for an additional hearing in this region. Following discussion, Mr. Corder called the question, and it passed unanimously. B. Committee Reports 1. Executive Committee Executive Committee 11/5/25 The minutes of the November Committee meeting were in the packet for review. Resolution Opposing the Expansion of the Chemours Fayetteville Works Facility Ms. Fulton presented the item, and she and Mr. Waldroup answered clarification questions. Mr. Zapple moved to adopt the Resolution. Mr. Rivenbark seconded the motion, and it passed unanimously. Dr. Cannon commended Ms. Fulton on the Resolution's content and statement representing CFPUA and its ratepayers' interests. 2. Finance Committee Finance Committee 11/5/25 The minutes of the November Committee meeting were in the packet for review. Monthly Financials Mr. McLean presented the October financial data. The unassigned fund balance is $38.3 million. Retail revenues and SDCs are slightly under budget, while expenditures are at 30.19 percent of budget. Mr. McLean provided an overview of CFPUA's outstanding debt, debt coverage, investments, and monies associated with the Wrightsville Beach consolidation. Board members irrigation rates. Mr. Waldroup answered questions regarding system development charges related to the on the budget. Mr. Rivenbark reminded those present that growth within in the City is under 2 percent and that growth is occurring in the unincorporated parts of New Hanover County and in Brunswick and Pender Counties. iii. $3,988,132.20 Contract with Carbon Activated Corporation for Granular Activated Carbon regeneration at Sweeney Water Treatment Plant. Mr. Smith presented the item, which the Finance Committee had requested be placed in the report. Mr. Waldroup answered clarification questions from Board members. Mr. Rivenbark moved to approve the contract. Mr. Smith seconded the motion, and it passed unanimously. 3. Sustainability Committee Sustainability Minutes 10/23/2025 The minutes of the October Committee meeting were in the agenda packet for review. Dr. Cannon reported that the Committee discussed re -aligning CFPUA's greenhouse gas goals to actual use and Duke Energy greenhouse goals. She reported that the new Southside plant will require more energy use but will release a higher - quality treated effluent back into the river. The Artificial Intelligence Policy that was reviewed and recommended by the Committee was adopted in the Consent Agenda. Mr. Smith reminded staff that training and management is a crucial component of Al use. X. OLD BUSINESS Mr. Waldroup reported that CFPUA won the 2025 Platinum Award for Utility Excellence from the Association of Metropolitan Water Associations. The award recognizes utilities for demonstrated, exceptional management. CFPUA won the Association's Gold Award in 2022. Board members commended staff on the honor. XI. AUTHORITY Q & A / CLOSING COMMENTS There were no further comments or questions. XII. CLOSED SESSION Mr. Rivenbark moved to enter closed session to maintain attorney -client privilege in discussing potential litigation and Ivey Builders v. CFPUA and CFPUA v. Chemours. Mr. Zapple seconded the motion, and it passed unanimously. The Board entered closed session at 10:22 AM, with the attorneys, clerks, and Messrs. Waldroup, McLean, Morris, McSmith, and Wilson in attendance. The Board received a report from legal counsel and provided feedback. Mr. Rivenbark moved to return to open session. Mr. Miller seconded the motion, and it passed unanimously. The Board returned to open session at 11:13 AM. XIII. ADJOURNMENT There was no further business to come before the Board, and Mr. Rivenbark moved to adjourn. Mr. Miller seconded the motion, and it passed unanimously. The meeting adjourned at 11:15 AM. The next regular Authority meeting will be Wednesday, December 10, 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. The Agenda will be posted online prior to the meeting. Respectfully submitted, Donna S. Pope Clerk to the Board