CFPUA CIP Workshop 1 13 2016
CAPE FEAR PUBLIC UTILITY AUTHORITY
CAPITAL IMPROVEMENTS PROGRAM WORKSHOP
JANUARY 13, 2016
Authority Members Present:
Pat Kusek, Chair
Jim Brumit, Vice-Chair
Mike Brown,Secretary
Larry Sneeden, Treasurer
Rob Zapple
Charlie Rivenbark
Kevin O’Grady
Jim Quinn
Bill Norris
Authority Members Excused:
Cindee Wolf
Woody White
Authority Staff Present:
Jim Flechtner, Executive Director
Frank Styers, Chief Operating Officer
Carel Vandermeyden, Engineering Director
Cheryl Spivey, Chief Financial Officer
Beth Eckert, Environmental Management Director
Gary McSmith, Engineering Manager
Mike McGill, Chief Communications Officer
John Payne, Internal Auditor
Leslie Ogilvie, Assistant to the Executive Director
Donna S. Pope, Clerk to the Board
Attorney Present:
Linda A. Miles, the Miles Firm, PLLC
Guest Present:
Richard King, City of Wilmington
The Cape Fear Public Utility Authority held a workshop to review capital projects for Fiscal Year 2017.
Ms. Kusek called the meeting to order at 11:15 AM. The Board excused Ms. Wolf and Mr. White.
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Mr. Vandermeyden presented an overview of the capital budget and recommended projects for the
fiscal year beginning July 1, 2016. The capital budget is $21,540,000, which is $2,500,000 less than
projected last year. Approximately 81 percent of the projects is to rehabilitation or replace existing
infrastructure.
Projects were evaluated based on the following criteria:
Regulatory compliance.
Efficiency leading to future operating or capital savings.
Capacity increases.
Customer growth.
Staff recommended 43 projects for the fiscal year, with 31 projects falling in the replace/rehab category,
eight for enhancement, and four for expansion. Wastewater collection would have the highest number
of projects at 16 totaling $7,330,000. Nine water distribution projects would total $8,750,000. Mr.
Vandermeyden presented an overview of major projects, answered questions and received feedback
from Board members.
The Board briefly reviewed the projected ten-year CIP. Rehabilitation or replacement of existing
infrastructure represents approximately 81 percent of the ten-year plan. The ten-year CIP is estimated
at $212,660,000, which is $93,600,000 less than anticipated last year.
Ms. Spivey presented three debt scenarios reflecting a five percent growth in expenses, different
percentages of customer growth, varying amounts of debt service coverage, and increased use of cash-
funding for projects. Board members briefly discussed the philosophies behind using the different
scenarios.
The Long Range Planning Committee will review the FY17 CIP on January 28 with the goal of
recommendation to the full Board for adoption at the February 10 meeting. Ms. Kusek thanked
Authority staff for their work on the CIP.
Mr. Rivenbark moved to adjourn. Mr. Norris seconded the motion, and it passed unanimously. The
Board adjourned at 12:10 PM.
Respectfully submitted,
Donna S. Pope
Clerk to the Board
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