2021-02-10 Regular Meeting Minutes
CAPE FEAR PUBLIC UTILITY AUTHORITY
AUTHORITY BOARD
MINUTES
FEBRUARY 10, 2021
Wilmington Convention Center Regular Meeting 9:00 AM
10 CONVENTION CENTER DR.
WILMINGTON, NC 28401
I. CALL TO ORDER
Mr. Corder called the meeting to order at 9:05 AM with a quorum present. Mr. O'Grady moved
to excuse Dr. Cannon and Mr. Briggs. Mr. Zapple seconded the motion, and it passed
unanimously.
II. DETERMINATION OF A QUORUM
Attendee Name Organization Title Status Arrived
Wesley Corder Cape Fear Public Utility Chair Present
Authority
William Norris Cape Fear Public Utility Vice-Chair Present
Authority
Deans Hackney Cape Fear Public Utility Secretary Present
Authority
Jennifer Adams Cape Fear Public Utility Treasurer Present
Authority
Jessica Cannon Cape Fear Public Utility Excused
Authority
Hollis Briggs Cape Fear Public Utility Excused
Authority
Larry Sneeden Cape Fear Public Utility Present
Authority
Jonathan Barfield Cape Fear Public Utility Present
Authority
Kevin O'Grady Cape Fear Public Utility Present
Authority
Charlie Rivenbark Cape Fear Public Utility Present
Authority
Rob Zapple Cape Fear Public Utility Present
Authority
Carel Cape Fear Public Utility Deputy Executive Director Present
Vandermeyden Authority
Frank Styers Cape Fear Public Utility Deputy Executive Director Present
Authority
Linda Miles Miles Firm, PLLC CFPUA Consulting Attorney Present
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Lindsey Hallock Cape Fear Public Utility Director of Public and Present
Authority Environmental Policy
John McLean Cape Fear Public Utility Chief Financial Officer Present
Authority
Kristine Irick Cape Fear Public Utility Customer Service Director Present
Authority
Lori McKoy Cape Fear Public Utility Human Resources Director Present
Authority
Vaughn Hagerty Cape Fear Public Utility Public Information Officer Present
Authority
Makeba Robinson Cape Fear Public Utility Present
Authority
Cammie Bellamy Cape Fear Public Utility Assistant PIO Present
Authority
Cord Ellison Cape Fear Public Utility Chief Information Officer Present
Authority
III. ADOPTION OF AGENDA
Mr. Zapple moved to adopt the day's Agenda. Mr. O'Grady seconded the motion, and it passed
unanimously.
IV. APPROVAL OF MINUTES
1. Authority Board - Regular Meeting - Jan 13, 2021 9:00 AM
RESULT: ACCEPTED \[UNANIMOUS\]
MOVER: Deans Hackney, Secretary
SECONDER: Rob Zapple
AYES: Corder, Norris, Hackney, Adams, Sneeden, Barfield, O'Grady, Rivenbark, Zapple
EXCUSED: Cannon, Briggs
V. PUBLIC COMMENTS - 4 MINUTE LIMIT PER SPEAKER
There were no public speakers.
VI. CONSENT AGENDA
1. Authorize the Executive Director to Execute Contract Amendment #2 with Cape Fear
Engineering for Phase II Waterline Interconnect Design in the Amount of $46,750
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RESULT: APPROVED \[UNANIMOUS\]
MOVER: Jennifer Adams, Treasurer
SECONDER: Rob Zapple
AYES: Corder, Norris, Hackney, Adams, Sneeden, Barfield, O'Grady, Rivenbark, Zapple
EXCUSED: Cannon, Briggs
2. Authorize the Executive Director to Award Well 46 and Well 47 Improvements
Construction Contract to A.C. Schultes in the amount of $1,289,119.00
RESULT: APPROVED \[UNANIMOUS\]
MOVER: Jennifer Adams, Treasurer
SECONDER: Rob Zapple
AYES: Corder, Norris, Hackney, Adams, Sneeden, Barfield, O'Grady, Rivenbark, Zapple
EXCUSED: Cannon, Briggs
3. Authorize the Executive Director to Approve an Amendment in the Amount of $81,700
to McKim and Creed for Construction Administration and Observation of Well 46 and
Well 47 Improvements
RESULT: APPROVED \[UNANIMOUS\]
MOVER: Jennifer Adams, Treasurer
SECONDER: Rob Zapple
AYES: Corder, Norris, Hackney, Adams, Sneeden, Barfield, O'Grady, Rivenbark, Zapple
EXCUSED: Cannon, Briggs
4. $1,867,160.25 Construction Contract Award to T.A. Loving, Company for Ogden Water
Interconnect Project
RESULT: APPROVED \[UNANIMOUS\]
MOVER: Jennifer Adams, Treasurer
SECONDER: Rob Zapple
AYES: Corder, Norris, Hackney, Adams, Sneeden, Barfield, O'Grady, Rivenbark, Zapple
EXCUSED: Cannon, Briggs
5. $204,200 Contract Amendment #7 with HDR Engineering Incorporated for Ogden Water
System Interconnect Project
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RESULT: APPROVED \[UNANIMOUS\]
MOVER: Jennifer Adams, Treasurer
SECONDER: Rob Zapple
AYES: Corder, Norris, Hackney, Adams, Sneeden, Barfield, O'Grady, Rivenbark, Zapple
EXCUSED: Cannon, Briggs
6. $1,008,230 Construction Contract Award to Carolina Civil Works, Inc. for Pump Station
Prioritization and Rehabilitation Project
RESULT: APPROVED \[UNANIMOUS\]
MOVER: Jennifer Adams, Treasurer
SECONDER: Rob Zapple
AYES: Corder, Norris, Hackney, Adams, Sneeden, Barfield, O'Grady, Rivenbark, Zapple
EXCUSED: Cannon, Briggs
7. $122,250 Kimley- Horn and Associates, Inc. Contract Amendment # 2 for Pump Station
Prioritization and Rehabilitation Project
RESULT: APPROVED \[UNANIMOUS\]
MOVER: Jennifer Adams, Treasurer
SECONDER: Rob Zapple
AYES: Corder, Norris, Hackney, Adams, Sneeden, Barfield, O'Grady, Rivenbark, Zapple
EXCUSED: Cannon, Briggs
8. Approval to Pursue Electric Vehicle Charing Station Grant
Mr. Zapple asked for clarification on the item and the location of the electric vehicle
charging station. Ms. Hallock provided updated information on the project and the
grant application to the North Carolina Division of Air Quality. If CFPUA receives the
grant, the charging station will be located at the Sweeney Water Treatment Plant for
use with fleet vehicles, employee cars, and potential visitors. Mr. Zapple moved to
approve. Mr. Hackney seconded the motion, and it passed unanimously.
RESULT: APPROVED \[UNANIMOUS\]
MOVER: Rob Zapple
SECONDER: Deans Hackney, Secretary
AYES: Corder, Norris, Hackney, Adams, Sneeden, Barfield, O'Grady, Rivenbark, Zapple
EXCUSED: Cannon, Briggs
VII. NEW BUSINESS
A. Administrative Reports
i. Attorney's Report
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Ms. Miles had no report and did not require a closed session.
ii. Executive Director's Report
1. Key Indicators Report
Staff answered questions regarding the report.
RESULT: REVIEWED
2. Environmental Report
RESULT: REVIEWED
3. Safety Report
RESULT: REVIEWED
4. Customer Service Update - February
RESULT: REVIEWED
B. Committee Reports
i. Executive Committee
1. Executive Committee - Regular - Feb 3, 2021 10:30 AM
Mr. Corder reported that the Executive Committee had reviewed a staff
recommendation to address delinquencies and concerns regarding the use of
flow restrictors on water meters. The Sustainability Committee will review the
recommended policy changes at its February 25 meeting. Mr. Zapple asked for
clarification on another discussion item referenced in the Executive Committee
minutes.
RESULT: NO ACTION REQUIRED
ii. Long Range Planning Committee
1. Long Range Planning Committee - Regular - Jan 28, 2021 3:00 PM
Mr. Sneeden reported that the Committee conducted a preliminary review of
the FY22 capital improvement project budget (CIP) on January 28. Staff will send
the proposed CIP to all Board members, and the Board will review the CIP during
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the March 10 meeting. Staff and Committee members will be available to
discuss Board questions or concerns before the March meeting if needed.
RESULT: NO ACTION REQUIRED
iii. Finance Committee
1. Finance Committee - Regular Meeting - Feb 3, 2021 9:00 AM
RESULT: NO ACTION REQUIRED
2. Monthly Financial Report
Mr. McLean reviewed December and January financial data. Through the end of
December, expenditures exceeded revenues by $13.1 million. Expenditures to
date for the fiscal year included a $1.3 million debt service payment. The
number if equivalent resident units (ERUs) is slightly below budget, but use per
ERU is above budget for both water and sewer.
RESULT: REVIEWED
3. Budget Ordinance Appropriating Liquid Alum Settlement Proceeds
Mr. McLean presented the item and summarized CFPUA's policy on the uses of
one-time funds. The recommended use of the settlement proceeds to reduce
debt will save $177,000 annually in interest. Ms. Miles answered questions
about the class action lawsuit. Ms. Adams moved to approve the item. Mr.
O'Grady seconded the motion, and it passed unanimously.
RESULT: ADOPTED \[UNANIMOUS\]
MOVER: Jennifer Adams, Treasurer
SECONDER: Kevin O'Grady
AYES: Corder, Norris, Hackney, Adams, Sneeden, Barfield, O'Grady, Rivenbark,
Zapple
EXCUSED: Cannon, Briggs
4. Proposed FY22 System Development Charges
Mr. McLean presented the item. He reviewed the statutory requirements and
methodology for setting each year's System Development Charges (SDCs). The
SDC is a fee charged per connection for new buildings, and it is structured for the
new customer to pay for his/her/their portion of the infrastructure already in
place and funded by ratepayers.
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The recommended FY22 SDC for water is $2,120, which is $200 more than FY21.
The recommended FY22 SDC for sewer is $2,180, which is $110 more than FY21.
CFPUA is legally required to publish the calculation and SDC on its website for
public comment for at least 45 days. This year, the data will be published on the
website from February 10 through March 31. Online comments will be provided
to the Board. The public hearing will be held on April 14, and the Board can
adopt the SDC after the public hearing. Should the SDC amount be revised after
April 14, the Board can adopt it on June 9 with the FY22 budget.
Mr. McLean answered Board member questions regarding the methodology and
drivers behind the calculation. Mr. Zapple stated that it is important to note that
the SDCs are separate from water and sewer rates and do not create an increase
in customer usage charges.
RESULT: NO ACTION REQUIRED Next: 3/10/2021 9:00 AM
iv. Sustainability Committee
1. Sustainability Committee - Regular - Jan 28, 2021 4:00 PM
RESULT: NO ACTION REQUIRED
2. Increasing Block Rate Structure Recommendation
Both the Sustainability and Finance Committees reviewed and recommended an
increasing block rate structure for residential water use and irrigation meters for
the fiscal year beginning July 1, 2021. The recommended rate structure will
make bills more affordable for 85 percent of CFPUA's residential customers and
will improve rate equity for 70 percent of residential customers. The increasing
tiers support water conservation, which in turn will decrease capacity demands
on infrastructure and associated capital costs.
The recommended blocks and preliminary pricing for residential use are:
0-3,000 gallons $2.16/1,000 gallons
3,000-6,000 gallons $3.09/1,000 gallons
6,000-15,000 gallons $5.15/1,000 gallons
15,000-25,000 gallons $7.73/1,000 gallons
25,001 and more $10.30/1,000 gallons
The recommended blocks and preliminary pricing for irrigation meters are:
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0-5,000 gallons$5.15/1,000 gallons
5,000-20,000 gallons $7.73/1,000 gallons
20,001 and more $10.30/1,000 gallons
The final FY22 pricing per 1,000 gallons may differ slightly as the budget is
developed. Each residential or irrigation customer will pay for use in each block.
An example would be a person using 6,000 gallons will be billed for the first
3,000 at the lowest rate, and the second tier for the next 3,000 gallons.
Residential customers with separate irrigation meters will pay the price for the
use through the separate meters.
Mr. McLean explained the data and methodology used to analyze affordability
and equity and to develop the block rates or tiers. He answered questions from
Board members about the pricing structure, the impacts on apartment or
condominium residents with master meters, and CFPUA's use of increasing block
rates in its earlier years of operations. Ms. Miles reported that no public hearing
is required for water and sewer rates but that the rates will be a part of the
budget and subject to the budget hearing. Mr. McLean reported that staff
recommends the implementation of the increasing block rates on September 1,
2021, allowing several months of messaging and public outreach to customers.
Following discussion, Ms. Adams moved the Sustainability and Finance
Committee recommendation to adopt an increasing block rate structure and to
develop tier pricing for FY2022. Mr. O'Grady seconded the motion, and it passed
unanimously.
RESULT: ADOPTED \[UNANIMOUS\]
MOVER: Jennifer Adams, Treasurer
SECONDER: Kevin O'Grady
AYES: Corder, Norris, Hackney, Adams, Sneeden, Barfield, O'Grady, Rivenbark,
Zapple
EXCUSED: Cannon, Briggs
VIII. OLD BUSINESS
IX. AUTHORITY Q & A/ CLOSING COMMENTS
Mr. Corder thanked staff and the Sustainability and Finance Committees for their work in
researching and developing the new rate structure. He thanked the Board for listening to
public concerns regarding water shutoffs and flow restrictors and staff for finding ways to
address those concerns.
X. CLOSED SESSION
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There was no closed session.
XI. ADJOURNMENT
There was no further business, and Mr. Hackney moved to adjourn. Ms. Adams seconded the
motion, and it passed unanimously. The meeting adjourned at 10:30 AM.
The next regular CFPUA meeting will be Wednesday, March 10, 2021. The meeting will begin at
9:00 AM and will be held in the Wilmington Convention Center.
Respectfully submitted,
Donna S. Pope, Clerk to the Board
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