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HomeMy WebLinkAbout1995-10-12 Work Session NEW HANOVER COUNTY BOARD OF COMMISSIONERS WORK SESSION, OCTOBER 12, 1995 BOOK 25 PAGE 53 ASSEMBLY The New Hanover County Board of Commissioners held a Work Session on Thursday, October 12, 1995, at 10:30 A.M. in Room 501 of the New Hanover County Administration Building, 320 Chestnut Street, wilmington, North Carolina. Members present were: Commissioners Sandra Barone; William A. Caster; William E. Sisson, Jr.; vice-Chairman E. L. Mathews, Jr.; Chairman Robert G. Greer; County Manager, Allen O'Neal; County At torney, Wanda M. Copley; and Clerk to the Board, Lucie F. Harrell. Chairman Greer called the Work Session to order and reported the purpose of the meeting was to discuss alternative revenue sources for addressing infrastructure needs. PRESENTATION ON ALTERNATIVE REVENUE SOURCES TO ADDRESS INFRASTRUCTURE NEEDS Assistant County Manager, Dave Weaver, commented on the tremendous amount of growth in the County which has placed a demand on services and facilities that have outstripped the ability of the County to pay for these expansions. The significant costs associated with growth are the need for additional school facilities, recreational facilities, water and sewer, roads, and drainage. The following recommendations were presented and discussed: 1. Proposed Centralized County Water System: with urbanization of the County, a central, public water system should be considered since the Water & Sewer District has already acquired several water systems. A centralized water system would complement the operation of the sewer system and would be relatively profitable. A drinking water impact fee assessed when the building comparable to the impact wilmington. of $735 per household should be permit is issued. This fee is fee charged by the City of All new subdivisions would be required to construct drinking water distribution systems that would meet the following requirements: (a) Lines must be sized to handle fire flows regardless of whether or not adequate elevated water storage is available to provide the fire flows. (b) Stubs must be provided on the water lines where fire hydrants can be placed by the New Hanover County Fire Service District so they will be ready to handle fire flows when adequate elevated water storage becomes available. (c) Payment of $1,500 per fire hydrant stub to the Fire Service District as required by the County Fire Marshal. 2. Expansion of the Sewer System: The typical costs for sewer collection, transportation, and treatment is approximately $3,716 to $4,016 per household. If the collection cost is removed at $2,100, which is paid by the developer, the minimum cost is still $1,700 per house. The County currently charges an impact fee of $375 per household which generates $400,000 of revenue per year. The following revenues scenarios were presented based on three levels of sewer impact fees calculated on 1,300 units per year: NEW HANOVER COUNTY BOARD OF COMMISSIONERS WORK SESSION, OCTOBER 12, 1995 BOOK 25 PAGE 54 Impact Fee Per Household $ 735 $1,100 $1,500 Revenue Generated $1,000,000 $1,400,000 $2,000,000 Discussion was held on implementing a stormwater management plan. It was generally agreed that in order to address this item, a projected cost would have to be determined. Further discussion was held on the City's stormwater management plan. Assistant County Manager Weaver advised that the City of wilmington charges fees based on the size of the facility needed to serve each development. The City ordinance requires all developed land to have adequate stormwater facilities to retain the natural rate of flow at pre-development levels. Several options are offered to developers for compliance. The developers not served by existing stormwater systems are required to design and build their own systems according to the City's Manual of Technical Specifications. Plans for these systems must be submitted as part of the permit application. These permits are reviewed by the City's Engineering Staff and a fee is charged for the review. In circumstances where a new development would be served by an existing stormwater facility, developers are required to reimburse the City an amount equal to the cost of providing an acceptable facility. Discussion was held on the possibility of establishing a stormwater utility. Assistant County Manager Weaver reported some communities create a stormwater utility to carry out the stormwater management plan. Rates vary across the country with a high of $108 annually per single family residence in Sacramento, California, to a low of $2.88 annually per single family residence in St. Louis, Missouri. Typical rates across the country range from $24 to $45 annually. Charlotte charges a fee per household based on the square footage of each house. Charges range from $2.22 per month ($26.64 per year) for houses under 2,000 square feet to $2.92 per month ($35.04 per year) for houses over 2,000 square feet. Chairman Greer recommended hiring a consultant to perform a study of the drainage issue and present a report reflecting the cost and best options available for implementing a stormwater management plan. Discussion was held on moving forward with the water and sewer expansions. Chairman Greer advised that the County should consider the areas that are going to be annexed by the City. He stated, in his opinion, it would be foolish to incur additional expenses for water and sewer when many of the areas will be annexed within two years. County Manager 0' Neal advised that one al ternati ve to consider would be for the City and County to seriously discuss the possibility of developing collectively a comprehensive Water and Sewer Authority. Commissioner Barone advised that a Water and Sewer Authority was already in place. She reported the Lower Cape Fear Water and Sewer Authority would be glad to work with the City and County in developing an authority. After further discussion, the County Manager was requested to prepare a request for proposals on the performance of a county-wide stormwater management plan with a more detailed analysis on one basin; prepare a proposal for increasing the sewer impact fee to $735 plus the $1,500 fee for fire hydrants, and prepare a proposal for charging a drinking water impact fee. DISCUSSION OF EXPANDING THE SEWER SYSTEM SOUTH OF MONKEY JUNCTION Assistant County Manager Weaver presented a map showing where the expansion of the sewer system south of Monkey Junction would be NEW HANOVER COUNTY BOARD OF COMMISSIONERS WORK SESSION, OCTOBER 12, 1995 BOOK 25 PAGE 55 located. He informed the Board that the cost of the project was approximately $1.6 million which could be financed through Certificates of Participation. He reported an item to consider was the amount of developable acres within the Motts Creek Basin. Staff estimates there will be approximately 1,700 vacant developable acres which should create 4,250 potential units to be served by the proposed sewer expansion. After review of the project, Staff recommends consideration of the following action: (1) charge a transportation fee, in addition to the existing impact fee, at a cost of $1,000 per acre of developable land; or (2) charge $450 per household at the time the building permit is issued. The following revenue scenarios were presented on the Motts Creek Basin: $1,000 per acre transportation fee $ 450 per unit transportation fee $1,700,000 $1,900,000 If the County decides to expand the sewer system south of Monkey Junction, the transportation fee would be charged for only ten years because this portion of the sewer system was not to be completed until the year 2006 as outlined in the Master Plan. Any property developed after the 10-year period would not be required to pay a transportation fee. Discussion was held on shifting priorities in the Master Plan. Commissioner Sisson expressed concern for changing the priority listing in the Master Plan and he reminded the Commissioners that persons living in the northern end of the County have been paying sewer impact fees and the debt service of the sewer system since the original bond issue. He cautioned altering the priorities as outlined in the Master Plan. Chairman Greer reminded the Board that the offer being made by the private sector would save the County money by not having to build a temporary pump station that would not be usable within two or three years. Discussion was held on whether enough development would occur south of Monkey Junction to pay for the $1.6 million sewer extension proj ect. Mr. Dan Dawson, representing the private developers, commented on the last feasibility study performed in June, 1990, and reported the plan called for completion of the interceptor on River Road by June, 1996; however, due to a lack of funds, this time schedule was not possible. He reported with the growth occurring in the southern end of the County, he felt the demand would be strong enough to generate the necessary funds to pay for the $1.6 million sewer expansion project. He emphasized the importance of providing an incentive for development and reminded the Commissioners that the density factor of 2.5 units per acre was not a fixed figure because one developer had already planned to request a density factor of 10.2 units per acre, which would increase the amount of revenue generated to the County. Ms. Janet Durham, President of the League of Women Voters, reported many citizens who have relocated to the County within the last ten years are very concerned about the rapid development that continues to occur. This growth has created drainage problems, traffic problems, and the need to expand all services, which has become quite costly to the taxpayers. She emphasized the importance of controlled growth and stated this will be a key issue during the 1996 election for members to serve on the Board of County Commissioners. Mr. Terry Turner, a local builder, reported approximately 50% of the homes constructed in the Monkey Junction area had been sold NEW HANOVER COUNTY BOARD OF COMMISSIONERS WORK SESSION, OCTOBER 12, 1995 BOOK 25 PAGE 56 to retirees because the area was desirable and had the necessary commercial services readily available. He advised the Board that expansion of the sewer south of Monkey Junction should not create an additional burden on the school system. Consensus: the issues the County 6, 1995. After further discussion of the need to address all of discussed, it was the consensus of the Board to direct Manager to place these items on the agenda for November ADJOURNMENT Chairman Greer expressed appreciation to all persons present and adjourned the meeting at 11:50 A.M. Respectfully submitted, Lucie F. Harrell Clerk to the Board