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2004-01-05 Water & Sewer NEW HANOVER COUNTY WATER AND SEWER DISTRICTBOOK 3 REGULAR MEETING, JANUARY 5, 2004 PAGE 51 ASSEMBLY The District Board of Commissioners of the New Hanover County Water and Sewer District met in Regular Session on Monday, January 5, 2004, at 6:41 p.m. in the Assembly Room of the New Hanover County Courthouse, 24 North Third Street, Wilmington, North Carolina. Members present were: Chairman William A. Caster; Vice-Chairman Robert G. Greer; District Commissioner Julia Boseman; District Commissioner Ted Davis, Jr.; District Commissioner Nancy Pritchett; County Manager, Allen O’Neal; County Attorney, Wanda M. Copley; and Clerk to the Board, Lucie F. Harrell. Chairman Caster called the meeting to order. NON-AGENDA ITEMS Chairman Caster announced that time had been reserved for anyone from the public to present an item that was not listed on the Regular Agenda. He requested all persons to limit their remarks to three minutes. No items were presented. APPROVAL OF MINUTES Chairman Caster called for a motion to approve the minutes. Motion: District Commissioner Boseman MOVED, SECONDED by Vice-Chairman Greer, to approve the minutes of the Closed Session held on November 3, 2003 and the Regular Meeting held on December 15, 2003 as presented by the Clerk to the District Board. Upon vote, the MOTION CARRIED UNANIMOUSLY. CONSIDERATION OF AWARD OF CONTRACT #04-0093 WITH T.A. LOVING COMPANY FOR CONSTRUCTION OF THE ROCK HILL WATER AND SEWER PROJECT Engineering Manager Greg Thompson reported that on Friday, December 12, 2003, New Hanover County received and opened bids for the Rock Hill Water and Sewer Project. The County received a total of three (3) bids. The successful low bidder was T.A. Loving Company from Goldsboro, North Carolina, with a total bid amount of $743,527.50. Federal Funds in the amount of $600,000 are available from a HUD grant that can be used to pay for the infrastructure of the project; however, this funding is insufficient to cover the cost of the water and sewer connections as shown below: Water Construction$286,150.00 (T.A. Loving) Sewer Construction$457,377.50 (T.A. Loving) Water Connection Cost$ 25,000.00 Sewer Connection Cost$100,000.00 Easements$ 5,000.00 Total Project Costs:$873,527.50 Staff recommends award of the sewer construction portion of the project to T. A. Loving Company in the amount of $457,377.50 with the remaining $142,722.50 from the $600,000 HUD grant being used to provide sewer to approximately 143 households in the Rock Hill area. Chairman Caster referenced the bid tabulation sheet in the agenda packet and requested Engineer Thompson to explain why the bid from T. A. Loving Company was considerably lower than the other bids. Engineer Thompson responded that all contractors were contacted to discuss their bid proposals. Since T. A. Loving Company has local crews readily available that can immediately begin work and complete the project within the stipulated time frame, the bid was considerably less. The other contractors would have to mobilize and bring crews NEW HANOVER COUNTY WATER AND SEWER DISTRICTBOOK 3 REGULAR MEETING, JANUARY 5, 2004 PAGE 52 into the area, which is quite expensive. District Commissioner Pritchett spoke on installing only the sewer and asked if the wells in the Rockhill area provided good drinking water. Engineer Thompson responded that the water is drinkable; however, it is hard and has to be treated with water softeners. He stated that Staff felt the provision of sewer was more important than providing water to this area at this time. Vice-Chairman Greer asked how the HUD grant was secured. County Engineer Wyatt Blanchard explained that the $600,000 was the amount of money remaining from the HUD grant received for the last hurricane which has to be spent before the extended deadline of June 30, 2004. Hearing no further comments, Chairman Caster requested direction from the District Board. Motion: District Commissioner Boseman MOVED, SECONDED by Vice-Chairman Greer, to approve Contract # 04- 0093 with T.A. Loving Company in the amount of $457,377.50 to construct the sewer infrastructure in the Rock Hill Community from a $600,000 HUD grant with the remaining grant funds used to provide sewer to approximately 143 households. Upon vote, the MOTION CARRIED UNANIMOUSLY. A copy of the contract is on file in the Legal Department. PRESENTATION BY MS. BETTY W. SCOTT REGARDING CONCERNS ABOUT THE KINGS GRANT PROJECT Ms. Betty W. Scott, representing the Kings Grant area, advised that she was appearing before the Board again to express concern about the District charging a $2,000 sewer tap fee to residents in Kings Grant to connect to the Sewer System when the fee was only $900 a few years ago. She stated that since 1972, billions of dollars have been available in grants or low-interest loans from the federal and state governments to assist residents with payment of these connections fees. In 1982, when the bond referendum was passed by the voters, the older homes were to receive priority as the Sewer System was expanded to prepare for future development. The people of Kings Grant have been cheated because many residents have lived in homes with failing septic tanks for the past 20 years with sewer backing up in their homes and backyards. The Health Department has 6,000 recorded septic tank failures in this area. It is difficult to understand why the elected officials and Health Department have allowed this condition to exist for the past 20 years. It is also unfair to charge these residents a $2,000 sewer tap fee when many of them live on modest incomes. The District Commissioners have given excuses for allowing the residents of Kings Grant to live in such awful conditions for years and no real answers have been received. The residents want and deserve to have answers to these question. Ms. Scott reported that the State borrowed a billion dollars to provide grants or low-interest loans to help residents throughout the state. People in the Piedmont and mountain areas have received low-interest loans to pay for these types of utility fees. The money is available and New Hanover County should apply to receive the funds. Vice-Chairman Greer explained to Ms. Scott that increased tap fees are necessary to continue to expand the Water and Sewer System to provide services to more areas of the unincorporated county. He stated that if low-interest loans or grant funds had been available, the District would have applied for the funds. It would have been foolish for the District not to apply for funds that could help the residents. In further discussion, Chairman Caster suggested that he meet with Ms. Scott and Mr. Mark Cope to discuss this issue within the next two weeks. NEW HANOVER COUNTY WATER AND SEWER DISTRICTBOOK 3 REGULAR MEETING, JANUARY 5, 2004 PAGE 53 Ms. Scott advised that she and Mr. Cope would meet with Chairman Caster if the residents are charged less money. Chairman Caster responded that he could not promise to reduce the tap fees, but he would request County Engineer Blanchard to check to see if any grants or low-interest loans are available. County Manager O’Neal reported that New Hanover County has one of the best records in the State for receiving and managing grant funds. The County deals with millions of grant dollars on a daily basis. Grant funds are not awarded without a specific use for the money. Federal and state grants are distributed in strict categories with stringent requirements that have to be met. Unfortunately, New Hanover County is too wealthy to be eligible to apply for many of the low-interest loans and grants. District Commissioner Boseman stated that it was difficult for her to believe that some residents of Kings Grant would not be eligible to receive some type of low- interest loans or grants. County Engineer Blanchard spoke on the number of rental houses in Kings Grant and stated that this could be one reason why this area does not meet grant eligibility requirements. In closing, Ms. Scott advised that it was difficult to understand why all prior and current County Administrators have known about wetlands and the fact that septic tanks should not be placed in these areas. The District Commissioners have not done their job and the people have suffered. It is not fair for these increased tap fees to be charged to the residents of King Grant. CLOSED SESSION Chairman Caster called for a motion to enter into a Closed Session pursuant to N.C.G.S. 143-318.11(a)(3) to consult with the County Attorney regarding a matter of litigation Motion: District Commissioner Boseman MOVED, SECONDED by Vice-Chairman Greer, to call a Closed Session for the stated purpose. Upon vote, the MOTION CARRIED UNANIMOUSLY. Chairman Caster convened to Closed Session at 6:59 p.m. Chairman Caster reconvened to Regular Session at 7:47 p.m. He reported that the District Board consulted with the County Attorney regarding a matter of potential litigation in Closed Session and stated that no action was taken. ADJOURNMENT Chairman Caster called for a motion to adjourn the meeting. Motion: District Commissioner Boseman MOVED, SECONDED by Vice-Chairman Greer, to adjourn. Upon vote, the MOTION CARRIED UNANIMOUSLY. Chairman Caster adjourned the meeting at 7:48 p.m. Respectfully submitted, Lucie F. Harrell Clerk to the District Board