2022-02-09 Regular Meeting Minutes
CAPE FEAR PUBLIC UTILITY AUTHORITY
AUTHORITY BOARD
MINUTES
FEBRUARY 9, 2022
Lucie Harrell Conference Room Regular Meeting 9:00 AM
230 GOVERNMENT CENTER DRIVE
WILMINGTON, NC 28403
I. CALL TO ORDER
Mr. Norris called the meeting to order at 9:00 AM with a quorum present. Mr. Zapple moved
to excuse Messrs. Corder and Hackney from the meeting and Dr. Cannon and Mr. Barfield until
their arrivals. Mr. Rivenbark seconded the motion, and it passed unanimously. Mr. Barfield
joined the meeting at 9:03 AM and Dr. Cannon at 9:04 AM.
II. DETERMINATION OF A QUORUM
Attendee Name Organization Title Status Arrived
Wesley Corder Cape Fear Public Utility Chair Excused
Authority
William Norris Cape Fear Public Utility Vice-Chair Present
Authority
Deans Hackney Cape Fear Public Utility Secretary Excused
Authority
Jennifer Adams Cape Fear Public Utility Treasurer Present
Authority
Jessica Cannon Cape Fear Public Utility Present 9:04
Authority AM
Hollis Briggs Cape Fear Public Utility Present
Authority
Larry Sneeden Cape Fear Public Utility Present
Authority
Jonathan Barfield Cape Fear Public Utility Remote 9:03
Authority AM
Charlie Rivenbark Cape Fear Public Utility Present
Authority
Rob Zapple Cape Fear Public Utility Present
Authority
Kenneth Waldroup Cape Fear Public Utility Executive Director Present
Authority
Linda Miles MIles Firm, PLLC CFPUA Consulting Attorney Present
Frank Styers Cape Fear Public Utility Deputy Executive Director Present
Authority
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MinutesAuthority BoardFebruary 9, 2022
Carel Cape Fear Public Utility Deputy Executive Director Present
Vandermeyden Authority
John McLean Cape Fear Public Utility Chief Financial Officer Present
Authority
Kristine Irick Cape Fear Public Utility Customer Service Director Present
Authority
Beth Eckert Cape Fear Public Utility Director of EMD Present
Authority
Vaughn Hagerty Cape Fear Public Utility Public Information Officer Present
Authority
Lori McKoy Cape Fear Public Utility Human Resources Director Present
Authority
Sara Eskew Cape Fear Public Utility Administrative Support Present
Authority Specialist
Judy Lawton Cape Fear Public Utility Executive Assistant Present
Authority
Elizabeth Severt Cape Fear Public Utility Strategy & Performance Present
Authority Manager
Cammie Bellamy Cape Fear Public Utility Assistant PIO Present
Authority
Joseph Conway City of Wilmington Present
Jason Lee New Hanover County Present
Jim Iannucci New Hanover County Present
Tim Holleman Lower Cape Fear Water & Present
Sewer Authority
Donna S. Pope Cape Fear Public Utility Clerk/Executive Secretary to Present
Authority the Board
III. ADOPTION OF AGENDA
Mr. Sneeden moved to adopt the day's Agenda. Mr. Briggs seconded the motion, and it passed
unanimously.
IV. APPROVAL OF MINUTES
1. Authority Board - Regular Meeting - Jan 12, 2022 9:00 AM
RESULT: ACCEPTED \[UNANIMOUS\]
MOVER: Jennifer Adams, Treasurer
SECONDER: Hollis Briggs, Board Member
AYES: Norris, Adams, Cannon, Briggs, Sneeden, Barfield, Rivenbark, Zapple
EXCUSED: Corder, Hackney
V. PUBLIC COMMENTS - 4 MINUTE LIMIT PER SPEAKER
There were no public speakers.
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VI. CONSENT AGENDA
1. $107,980 Kurita America, Inc. Sole Source Purchase for Richardson Plant
RESULT: APPROVED \[UNANIMOUS\]
MOVER: Rob Zapple
SECONDER: Charlie Rivenbark, CFPUA Board Member
AYES: Norris, Adams, Cannon, Briggs, Sneeden, Barfield, Rivenbark, Zapple
EXCUSED: Corder, Hackney
2. $14,000 McKim & Creed Amendment #3 for Kings Bluff Pump Station Project
RESULT: APPROVED \[UNANIMOUS\]
MOVER: Rob Zapple
SECONDER: Charlie Rivenbark, CFPUA Board Member
AYES: Norris, Adams, Cannon, Briggs, Sneeden, Barfield, Rivenbark, Zapple
EXCUSED: Corder, Hackney
3. Executive Director Authorization to Grant Easements
RESULT: APPROVED \[UNANIMOUS\]
MOVER: Rob Zapple
SECONDER: Charlie Rivenbark, CFPUA Board Member
AYES: Norris, Adams, Cannon, Briggs, Sneeden, Barfield, Rivenbark, Zapple
EXCUSED: Corder, Hackney
4. Access Control System upgrade
RESULT: APPROVED \[UNANIMOUS\]
MOVER: Rob Zapple
SECONDER: Charlie Rivenbark, CFPUA Board Member
AYES: Norris, Adams, Cannon, Briggs, Sneeden, Barfield, Rivenbark, Zapple
EXCUSED: Corder, Hackney
5. Audit Services Contract
RESULT: APPROVED \[UNANIMOUS\]
MOVER: Rob Zapple
SECONDER: Charlie Rivenbark, CFPUA Board Member
AYES: Norris, Adams, Cannon, Briggs, Sneeden, Barfield, Rivenbark, Zapple
EXCUSED: Corder, Hackney
VII. NEW BUSINESS
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A. Administrative Reports
i. Attorney's Report
Ms. Miles had no report for open session. She requested a closed session for the Board
to discuss an economic incentive initiative with other governmental agencies.
ii. Executive Director's Report
1. Key Indicators Report
Mr. Zapple asked for a report on employee vacancies. Ms. McKoy reported that
unemployment in the region is just under 3 percent. CFPUA has the highest
turnover in entry-level salaries in construction positions and call center customer
representatives. She and Mr. Waldroup reported that they are reviewing drivers
of turnover and will be analyzing CFPUA's compensation going into the budget
season.
RESULT: REVIEWED
2. Environmental Report
RESULT: REVIEWED
3. Safety Report
RESULT: REVIEWED
4. Deputy Chief Financial Officer
Mr. Waldroup presented the item. With additional funding opportunities arising
and Mr. McLean's workload having increased, hiring a Deputy Chief Financial
Officer is recommended. Mr. Waldroup requested that a Board member serve
on the interview committee for the applicants. Ms. Adams moved to approve
the item. Mr. Zapple seconded the motion, and it passed unanimously. Mr.
Sneeden added that CFPUA was fortunate to have a CFO of Mr. McLean's
strengths and caliber.
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RESULT: APPROVED \[UNANIMOUS\]
MOVER: Jennifer Adams, Treasurer
SECONDER: Rob Zapple
AYES: Norris, Adams, Cannon, Briggs, Sneeden, Barfield, Rivenbark, Zapple
EXCUSED: Corder, Hackney
B. Committee Reports
i. Executive Committee
1. Executive Committee - Regular - Feb 2, 2022 10:00 AM
RESULT: NO ACTION REQUIRED
ii. Long Range Planning Committee
1. Long Range Planning Committee - Regular - Jan 27, 2022 3:00 PM
RESULT: NO ACTION REQUIRED
2. LCFWASA Raw Water Line LRPC January 2022
Mr. Waldroup presented a summary of repairs to the Lower Cape Fear raw water
line. He reported that inspection and a condition assessment revealed a
systemic series of failures along approximately one mile of the 11-mile line
feeding the Sweeney water treatment plant. Staff recommends working with
other stakeholders and Board members who represent the City and County on
the LCFWASA Board to prioritize and move forward the construction of a parallel
line for the 11-mile portion of the raw water line. Mr. Waldroup answered
questions from Board members, and Mr. Sneeden reported that the LCFWASA
Board and staff understands CFPUA's concerns regarding the line. Mr. Sneeden
encouraged Board members to review the presentation incorporated into the
Agenda.
RESULT: REVIEWED
3. FY2023 CIP Drivers and Funding Opportunities
Mr. Vandermeyden presented the item The monies appropriated in the State
budget for CFPUA are designated for two purposes. One is capacity expansion,
and the other is replacing aging infrastructure. The State requested that CFPUA
identify projects in early February, and staff requested and received extra time
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to bring the discussion to the Board. Staff has researched project needs and
identified two options for use of the State funds, as follows:
1. Use the full $30 million to fund capacity expansion in the northern
portion of the service area, including the Greenview Ranches, Sidbury Road, and
Holly Shelter areas. It would cover four projects that include water
interconnections and replacement and expansion of force mains and sewer
infrastructure along North Kerr Avenue. The project would provide the
backbone for a large growth area in the region, and would be supported by
additional projects from New Hanover County and future work from the
development community; or
2. Use $20 million for the regional pump station identified in Option 1 and
use $10 million for aging infrastructure within the City limits. The infrastructure
project would be part of a partnership with the City streets and traffic
engineering section on Chestnut and Grace Streets between Third and 17th
Streets.
Staff recommended Option 1, funding capacity expansion in the northern
portion of the service area to provide the backbone for growth.
Several Board members commented on the value of adding to the customer
base and working with the County on the northern service area.
Board members discussed the needs within the City and the importance of
continuing to address new infrastructure. Staff reported that they believe
additional funding opportunities will be available for the Chestnut and Grace
Street projects. CFPUA and City staff will continue to work together so that
CFPUA can address aging infrastructure in tandem with City street projects. Staff
assured the Board that City projects will not be delayed.
Following a thorough discussion, Mr. Sneeden moved to approve Option 1,
spending the $30 million in state allocation on capacity expansion. Mr. Zapple
seconded the motion, and it passed unanimously.
RESULT: REVIEWED
iii. Finance Committee
1. Finance Committee - Regular Meeting - Feb 2, 2022 9:00 AM
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RESULT: NO ACTION REQUIRED
2. Monthly Financials
Mr. McLean presented the monthly financial data and answered questions from
the Board. With 58 percent of the year complete, revenues are at 64 percent of
budget. CFPUA has $71.3 million in unrestricted funds.
Ms. Irick reported on customer assistance programs. ARPA funding has been
approved for 459 accounts, with awards of $318,000. The median account
balance was $408. LIHWAP funding has been pledged for 605 accounts, in the
amount of $313,000. Mr. Waldroup reported that the nonprofit, Waterway, has
received a Medicare/Medicaid grant that will be available for customer
assistance.
RESULT: REVIEWED
3. $8,638,339 Construction Agreement with TA Loving Company for Mott's Creek
Pump Station Project
Mr. Styers presented the item and answered clarification questions. Ms. Adams
moved to approve, contingent upon budget ordinance adoption. Mr. Zapple
seconded the motion, and it passed unanimously.
RESULT: APPROVED \[UNANIMOUS\]
AYES: Norris, Adams, Cannon, Briggs, Sneeden, Barfield, Rivenbark, Zapple
EXCUSED: Corder, Hackney
4. Ordinance Appropriating Funds for the Mott's Creek Pump Station
Mr. McLean presented the item. Ms. Adams moved to approve the budget
ordinance. Mr. Rivenbark seconded the motion, and it passed unanimously.
RESULT: APPROVED \[UNANIMOUS\]
AYES: Norris, Adams, Cannon, Briggs, Sneeden, Barfield, Rivenbark, Zapple
EXCUSED: Corder, Hackney
iv. Sustainability Committee
1. Sustainability Committee - Regular - Jan 27, 2022 2:00 PM
RESULT: NO ACTION REQUIRED
2. Biogas Utilization and CHP Analysis Update
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The biogas report was in the Agenda packet for Board review.
RESULT: NO ACTION REQUIRED
VIII. OLD BUSINESS
There was no old business.
IX. CLOSED SESSION
Mr. Rivenbark moved to enter closed session to discuss an economic incentive matter in
partnership with other governmental agencies. Mr. Briggs seconded the motion, and it passed
unanimously. The Board entered closed session at 10:02 AM and received a report from Mr.
Waldroup and Ms. Miles.
Mr. Rivenbark moved to return to open session. Mr. Briggs seconded the motion, and it passed
unanimously. The Board returned to open session at 10:20 AM. Mr. Rivenbark moved to
authorize the Executive Director to execute a contract, subject to approval of General Counsel,
with Pender and New Hanover Counties regarding the development of certain tracts of land
located at or near the northern portion of Highway 421 along the New Hanover County border,
said contract including terms for construction over the next five years of a water line
interconnection between the Pender County water system and the CFPUA water system, with
Pender County paying the first $267,000 in construction costs and the balance being divided
equally between Pender County and CFPUA. Mr. Sneeden seconded the motion, and it passed
unanimously.
X. CLOSING COMMENTS
Mr. Waldroup reported that staff will be organizing small group tours for the Board to observe
the Sweeney construction site. The Board discussed public relations for the project.
Dr. Cannon expressed interest in joining the Communications Committee. Mr. Norris suggested
that she contact Mr. Corder regarding an appointment.
Mr. Rivenbark reported that the City Appointments Committee has recommended Councilman
Luke Waddell to join CFPUA as a Board member.
XI. ADJOURNMENT
There was no further business to come before the Board, and Mr. Rivenbark moved to adjourn.
Mr. Zapple seconded the motion, and it passed unanimously.
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The next regular meeting of the Cape Fear Public Utility Authority will be Wednesday, March 9,
2022. The Board will meet at 9:00 AM in the Lucie Harrell Conference Room, New Hanover
County Administration Building, 230 Government Center Drive, in Wilmington.
Respectfully submitted,
Donna S. Pope
Clerk to the Board
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