2018-03-20 Special Meeting Minutes
CFPUA SPECIAL MEETING
MARCH 20, 2019
Board Members Present:
Bill Norris, Chair
Jennifer Adams, Secretary
Mike Brown, Treasurer
Pat Kusek
Rob Zapple
Charlie Rivenbark
Jessica Cannon
Deans Hackney
Larry Sneeden
Board Member Excused:
Wes Corder, Vice-Chair
Staff Present:
Jim Flechtner, Executive Director
Frank Styers, COO
Beth Eckert, Environmental Management Director
Gary McSmith, Assistant Engineering Director
Vaughn Hagerty, PIO
Donna S. Pope, Clerk
Attorney Present:
Linda A. Miles, the Miles Firm, PLLC
The Cape Fear Public Utility Authority held a special meeting on Wednesday, March 20, 2019.
Mr. Norris called the meeting to order at 3:30 PM and declared a quorum present. Mr.
Rivenbark moved to excuse Mr. Corder. Mr. Hackney seconded the motion, and it passed
unanimously.
Mr. Flechtner presented a proposed amendment to the rate and fee schedule to include a rate
for short-term mutual aid bulk water sales. The Town of Wrightsville Beach is unable to use
one of its wells due to PFAS in the groundwater aquifer from which its well draws water. Town
order to qualify for the special mutual aid rate, any utility requesting water must meet the
following criteria:
1. Connection to CFPUA with a meter at least eight inches in diameter;
2.
3. The customer have at least five miles of privately permitted water main larger than two
inches in diameter;
4. The customer provides for operation and maintenance of active water storage no less
than 75, 000 gallons, for a minimum of a half-day of its annual average daily demand;
5. The customer have a Public Water System (NC) identification number and operate and
maintain its system in conformance with Public Water Supply rules and regulations;
6. The customer re-sells the water to a minimum of 300 unrelated service accounts; and
7.
approval by CFPUA bond counsel.
The Town of Wrightsville Beach and its water system meets the criteria.
The rate would be available for up to 18 months during a three-year period. The rate would not
be used for a long-term water supply. The rate is available to water systems within New
Hanover County, and a supporting interlocal agreement will be required between CFPUA and
the other water system purchasing the bulk water. The customer would pay a $100/month flat
fee per bulk meter, and the rate would be $0.65/1,000 gallons for FY19. The fee will be
reviewed annually.
Mr. Flecthner reviewed the calculations used to develop the mutual aid bulk rate. He explained
costs CFPUA incurs in providing water to its retail customers that would not be applicable to the
sale of bulk water. Mr. Flechtner answered questions from Board members about the rate
need for bulk water. Board members provided input on
items to be negotiated as part of the Interlocal Agreement with Wrightsville Beach. Three
options for Wrightsville Beach will be included in the agreement, as follows:
At the end of the three- system will
be consolidated with CFPUA (42 months from the
date of the interlocal agreement);
Following the three-year mutual aid period, the Town will become a long-term bulk
customer and pay the prevailing bulk water; or
The Town will reimburse CFPUA for the difference between the short-term mutual aid bulk
water rate and the prevailing bulk rate for water previously consumed and billed under the
short term mutual aid bulk water rate.
Following discussion, Mr. Sneeden moved to approve the special mutual aid bulk rate of
$0.65/1,000 gallons. Mr. Rivenbark seconded the motion, and it passed unanimously.
/ƌƚƭĻķ {ĻƭƭźƚƓʹ Mr. Brown moved to enter closed session to discuss a legal claim. Mr.
Rivenbark seconded the motion, and it passed unanimously. The Board entered closed session
at 4:05 PM with Mr. Flechtner, Ms. Miles, and Ms. Pope present.
Following discussion with legal counsel, Mr. Rivenbark moved to return to open session. Ms.
Kusek seconded the motion, and it passed unanimously. The Board returned to open session at
4:10 PM.
and enter
into an Interlocal Agreement with the Town of Wrightsville Beach, including the following
requirements:
The Town of Wrightsville Beach release any claims against CFPUA for PFAS
contamination; and
The Town agree to the following options:
1. At the end of the three-
(42 months from the date of the interlocal agreement);
2. Following the three-year mutual aid period, the Town will become a long-term bulk
customer and pay the prevailing bulk water; or
3. The Town will reimburse CFPUA for the difference between the short-term mutual
aid bulk water rate and the prevailing bulk rate for water previously consumed and
billed under the short-term mutual aid bulk water rate.
Mr. Sneeden seconded the motion.
Ms. Miles reminded the Board that the Interlocal Agreement would come back to the full
Board for approval. Mr. Flechtner reported that the agreement should be available for the
April 10 Board agenda.
Mr. Norris called the question, and the motion passed unanimously. Mr. Norris thanked Board
members for accommodating the special meeting in their schedules. Mr. Rivenbark moved to
adjourned at 4:17 PM.
Respectfully submitted,
Donna S. Pope, Clerk