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Board approves temporary extension with Cape Fear Public Utilities Authority, sets capacity and milestones to 2028

3384558 · May 19, 2025
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Summary

Pender County approved an amended agreement with Cape Fear Public Utilities Authority to extend wastewater treatment capacity through 2028 at an 85,000 gallon baseline and set engineering and construction milestones that could trigger multipliers if not met.

The Pender County Board of Commissioners on May 19 approved an amended agreement with the Cape Fear Public Utilities Authority (CFPUA) that extends wastewater treatment arrangements through 2028, sets an 85,000‑gallon capacity baseline for the county, and establishes engineering and construction milestones intended to reduce multiplier penalties if the county does not meet project milestones.

Key points from the agreement - The agreement sets an 85,000 gallons per day capacity baseline for the county and contains milestones for architectural/engineering work and construction: architecture/engineering by March 31, 2026, and construction by March 31, 2027, with full completion to be achieved no later than Dec. 31, 2028. - The contract includes multiplier provisions that increase financial penalties if the county misses milestones or exceeds minor growth allowances; those multipliers can be waived in extenuating circumstances, county staff said. - County staff said the multipliers were significantly reduced in negotiation compared with earlier drafts, and they characterized the revised terms as a favorable outcome for the county while committing to meet the stated milestones.

Why this matters The agreement provides a temporary pathway for wastewater service capacity while the county pursues longer‑term options (including independent treatment or developer‑led systems) and a McKim & Creed engineering study underway will analyze best options to eliminate reliance on CFPUA by 2028.

Board action Commissioner George and staff led presentation and negotiation updates; the board voted to approve the agreement by voice vote.

Next steps County staff said they will continue to meet milestones and work with McKim & Creed to evaluate alternatives, including localized treatment capacity and phased reductions in reliance on CFPUA after 2028. Staff will bring progress updates to the board as the engineering analysis proceeds.