Candidates Call for Shake-Up at CFPUA

Some see restructuring and a change in leadership as part of the fix 

They may come from different parties, but they all agree on one thing: There is a need for change at the Cape Fear Public Utility Authority. New Hanover County Commissioner candidates have discussed everything from sky rocketing rates and spending, to the complete reorganization of the struggling utility.

Each of the candidates is quick to explain they understand there are things that need to be fixed in the aging water and sewer infrastructure. They also agree the spending and rate increases have got to be brought under control. Three of the candidates, Berger, Butler, and Catlin have each stated they want seats on the Authority board if elected.

Brian Berger is one of the most outspoken candidates on the Authority. He warned citizens of potential problems with the authority in 2007, long before it was ever created. In hindsight, his insight now seems somewhat prophetic. Ultimately Berger would like to see the Authority dissolved but comments that may not be possible at this point.

This past week Deborah Butler called for the removal of CEO Matt Jordan during an interview on the a local radio show The Morning Beat with Chad Adams.  NHC Commissioner Chairman Jason Thompson has called for Jordans removal as well if the situation does not improve.

Butler is also an outspoken opponent to the Authority’s tiered rate water structure, which is punitive to families. Authority reports back up Butlers concerns. 

Butler’s website had the following statement on the CFPUA: “…the merger that created the CFPUA was not properly supervised by the County Commission resulting in delinquent billing, disruptive Landlord/Tenant policies, and unrecoverable accounts receivable. Further, the rates have dramatically increased while the CEO is receiving “incentive” monies. Meanwhile, parts of the County still don’t have the sewer service they were promised years and years ago and the infrastructure continues to fail contaminating our environment.”

Rick Catlin believes the CFPUA should be dissolved and completely restructured if possible. Catlin has also stated the current rate of spending and price increases is unsustainable.

Catlin’s website had the following comments on the CFPUA: “I do not believe the Authority is sustainable. They have no way to pay for decades of deferred maintenance except through higher and higher usage fees. The Authority exists outside the traditional concepts of accountability and will continue to struggle to maintain and expand basic public health services as a self-sufficient utility enterprise. I believe clean water and sanitation are basic responsibilities of local government. We need to make substantive changes to the Authority.”

Sid Causey is one of the more reserved candidates when it comes to the CFPUA. But even Causey expressed concerns over the utility rates running people out of the county.

Accountability of the CFPUA to the citizens, or lack there of, is a common concern. When the authority was created, control of water and sewer utilities were handed from officials who were elected to an appointed board. Citizens found themselves being governed by a government corporation, with little or no voice in its direction or decisions making.

The candidates concerns are well founded. The Cape Fear Public Utility Authority was created under NC General Statute 162A. Under that statute the Authority is given the unregulated ability to spend money and raise rates. It is also exempted from oversight by the North Carolina Utilities Commission.

Voters will decide on November 2nd who their new county commissioners will be. The face of the Cape Fear Public Utility Authority will change soon there after.

WATCHDOG Group Calls for Cape Fear Public Utility Authority to Televise its Meetings

In light of recent events, board should make transparency a priority

During the public comment portion of Wednesday’s Cape Fear Public Utility Authority board meeting a formal request was made for the CFPUA to televise its board meetings.

The presentation made three specific requests: That audio recordings of all past CFPUA board meeting be made available online, that CFPUA begin filming and broadcasting meetings, and that meeting videos with associated meeting documents be made available on line.

The presentation cited several reasons that the authority should film its meetings. The first reason was that the CFPUA written minutes were subjective and contained errors. The presentation went on to point out errors and omissions in existing CFPUA meeting records. It also highlighted cases where customer concerns expressed during the public speaking portion were relegated to one sentence, but appearing in the same minutes was a whole paragraph written about an award given to the board chair.

Secondly the presentation pointed out that the two bodies that created the CFPUA, the Wilmington city council and New Hanover County Commission, both film and broadcast their meetings, and that the CFPUA should be held to the same standard. It recommended using the Wilmington City Council website as a model for posting videos and meeting documents.

Finally the presentation explained that as a result of the creation of the CFPUA we find ourselves being ruled by a government corporation; an appointed board with the power of elected officials. With the creation of these authorities, the state legislature has essentially allowed for the birth of an unregulated spending monster, obligating citizens of New Hanover county to hundred of millions of dollars in debt.

Under the guise of “it’s broken and we have to fix it,” there is virtually no spending the CFPUA can’t justify. According to 2010 data from the North Carolina Association of County Commissioners, the Cape Fear Public Utility Authority spends more money than 70% of the counties in the state of North Carolina. Board member and County Commissioner Bobby Greer has stated in the past that the board has to quit spending so much money.

CFPUA minutes show that in February of 2010 there was some discussion regarding broadcasting authority meetings. Several members were in favor of the idea at that time. Former board member Kathryn Johnston stated that transparency and openness was a concern. Six months later it is evident that this is not a priority and there has been little progress toward that end.

Citizens can hold city council and the county commission accountable at the ballot box. They can not do the same with the appointed members of the CFPUA board, regardless of the public’s dissatisfaction with their direction. This authority is an unelected, unaccountable, government body. It represents a fundamental change in how we are governed and is truly taxation without representation.

The CFPUA should be held to the highest standard of openness and transparency and this board should willingly offer video recordings of their meetings, including meeting documents, available on line for the public’s review.

CFPUA oversteps authority threatening customers with police enforcement

As a result of a major water main break, the Cape Fear Public Utility Authority issued a number of emergency alerts on July 23rd. The 8pm alert threatened customers with police enforcement for violation of their mandatory water restrictions. The alert read “New Hanover County and Wilmington Police will be helping with enforcement.” Problem is, the CFPUA is claiming police powers they don’t have.

In conversations we had with law enforcement, they stated they’d not be enforcing any CFPUA codes, quite frankly, that it was not their job. Their job is dealing with crime, not whether or not someone was watering their yard or washing their car.

To be specific, law enforcement officials said they would not be responding to any to calls regarding enforcement of CFPUA codes. CFPUA Code enforcement was the responsibility of the CFPUA employees, not the Wilmington Police Department or the New Hanover County Sheriffs department.

When a local afternoon radio talk show broadcasted the CFPUA police enforcement threat it solicited a number of calls. Many callers questioned the CFPUA’s ability to use police to enforce its codes.

It’s clear the CFPUA overstepped its authority by using the threat of police enforcement to scare customers into compliance. It is problem when this Authority starts making claims and threatening customer with police action, something they have no authority to do.

Bottom line, this is a serious violation of public trust and someone at the Cape Fear Public Utility Authority should be held accountable.

(This is a link to a pdf copy of how the original notice appeared in case it disappears off the CFPUA website.)

Water bills to increase 500% as Cape Fear Public Utility Authority annexes Porters Neck

Some 700 Porters Neck households will soon be annexed by the Cape Fear Public Utility Authority. On Wednesday, the CFPUA held two meetings at the Porter Neck Clubhouse so residents could learn more about the expansion project. Residents were anything but receptive to the Authority’s takeover of their water supply, many leaving the meeting irate regarding the coming rate increases.

Porter Neck residents are currently supplied with water by the Porters Neck Company (PNC) at a rate of $1.25 per 1000 gallons. Based on the PNC’s rate schedule, if a household used 6000 their bill would be $7.50. Those 6000 gallons of water from the CFPUA will now cost residents $ 35.21, an increase of nearly 500% over current rates.

Porter Neck residents will suffer the same fate as many other New Hanover County families have before them. One day they are purchasing water from privately owned water utility. (Keep in mind, these private water utilities were not giving the water away, they were selling it at a profit. ) The next day, the Cape Fear Public Utility Authority takes over; rates go through the roof, and continue to climb. The 500% increase Porters Neck residents will see is just the beginning of the increases in their water costs.

The Authority’s tiered rate scheme only compounds the rate increase problem. Many residents will find the water that formerly cost them $1.25 per thousand gallons will now cost $ 4.50 per thousand gallons under the CFPUA’s tiered rate scheme.

Homeowners that attended the meeting felt helpless stating there was no one that represented them on the CFPUA board. “This is a textbook case of taxation without representation,” one resident said. He was right on target. While the CFPUA has many of the same powers as a city council or county commission, CFPUA board members are appointed rather than elected, leaving citizens with no recourse if they are not satisfied with the actions or performance of the board.

The bitter taste left in the mouths of Porters Neck residents will be the plight of other families as the CFPUA continues to raise rates and annex customers to expand its domain. We’ll have more on the unrestricted powers of the CFPUA in an upcoming article

CPFUA 2 year anniversary much more costly to some families than others

How the CFPUA targets families with rate increases

When the Cape Fear Public Utility Authority took control of our water and sewer utilities in 2008 the board implemented a tiered rate structure. Under the tiered rate structure, families pay a higher price per gallon as more water is used. Families with more members use more water and in turn pay a higher price per gallon. Since its inception larger families have argued they are unfairly discriminated against under the tiered rate structure. Two years of rate increases under CPFUA’s reign have proven them right.

Below is an illustration which shows how rate increases affect families based on size. Keep in mind that while each family below is using the exact same amount of water per person, there is a marked difference in the price increases they’ve seen.

The usage rates are calculated using the exact same amount of water per person. Based on given data in the CFPUA’s Water and Sewer Rates Briefing December 2008 for basic water needs.

Using the City of Wilmington’s former usage rate of $1.87 as a baseline, the typical family with 1 or 2 members have seen the rate they pay rise 19%, to $2.22. A family with 3-4 members have seen the price they can pay jump 80%, from $1.87 to $ 3.36. A family with as few as 5 members have seen the price they can pay skyrocket 141%, from $ 1.87 to $4.50.

Does the CFPUA target families with rate increases? Absolutely it does, and proudly so. Families claiming rate discrimination find no sympathy from the CFPUA leadership.

CEO Matt Jordan readily admits larger families, while using water at the exact same rate per person as smaller families, and who are even conserving water, will still pay a higher price per gallon under the tiered rate scheme. He has stated in the past that under the tiered rate scheme some families must pay more so that others can pay less. Jordan’s cohort, CFPUA Board Chairman Gene Renzaglia, is also an outspoken supporter of the tiered rate scheme.

With board members that are appointed rather than elected, citizens are left with virtually no voice for change. Fortunately for the families of New Hanover County, not all CFPUA board members are drinking the cool aid served up by leadership. There are rumblings among some board members which may lead to changes in the rate structure.

Until then, as water rates continue to spiral upward at staggering pace, discrimination against families in water rates will remain the gold standard for the Cape Fear Public Utility Authority.

Hello World!

Welcome to CFPUA Watchdog! Our goal is to educate the public providing news and information on the Cape Fear Public Utility Authority and it's tiered rate scheme not found elsewhere and not filtered by the CFPUA spin machine. This blog is an extension of wilmingtonwater.org.