2004-01-20 Water & Sewer
NEW HANOVER COUNTY WATER AND SEWER DISTRICT BOARDBOOK 3
REGULAR MEETING, JANUARY 20, 2004 PAGE 54
ASSEMBLY
The District Board of Commissioners of the New Hanover County Water and Sewer District met in Regular
Session on Tuesday, January 20, 2004, at 3:00 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 Nancy Pritchett; County Manager, Allen O’Neal; County Attorney, Wanda M.
Copley; and Clerk to the Board, Lucie F. Harrell.
District Commissioner Ted Davis, Jr. was absent because of a court case.
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 of January 5, 2004 meeting.
Motion:
District Commissioner Boseman MOVED, SECONDED by Vice-Chairman Greer, to approve the minutes
of the Regular Meeting held on January 5, 2004, as presented by the Clerk to the District Board. Upon vote, the
MOTION CARRIED 4 to 0.
AWARD OF CONTRACT #04-0179 TO T. A. LOVING COMPANY IN THE AMOUNT OF $253,465 FOR
CONSTRUCTION OF SEGMENTS OF THE NORTH CHASE CONNECTOR WATER LINE EXTENSION
AND APPROVAL OF BUDGET AMENDMENT # 04-0130
Engineering Manager Jim Craig reported that the District has designed and obtained permits for the
construction of several segments of the North Chase Connection water line to enhance the ability of the District's water
system to transport water. Proposals were received for approximately 6,600 linear feet of 12-inch water line and
appurtenances extending from North Chase south along NC 132 to Murrayville Station. The following bids were
received:
T.A. Loving$253,465.00
Thomson & Company$295,179.80
State Utility$420,665.00
Staff recommends that the contract be awarded to T.A. Loving Company, the lowest bidder, in the amount
of $253,465, plus a ten percent contingency, and approval of the associated budget amendment.
Motion:
After discussion of T. A. Loving Company being a reputable firm, District Commissioner Boseman MOVED,
SECONDED by Vice-Chairman Greer, to award Contract # 04-0179 to T.A. Loving Company, the lowest bidder, in
the amount of $253,465 plus a 10% contingency to construct several segments of the North Chase Connector water
line extension, approve associated Budget Amendment # 04-0130, and authorize the Chairman to execute the necessary
contract documents. Upon vote, the MOTION CARRIED 4 to 0.
Budget Amendment #04-0130-Water and Sewer Engineering
Adjustment Debit Credit
Appropriate Fund Balance$278,900
Capital Project Expense$278,900
NEW HANOVER COUNTY WATER AND SEWER DISTRICT BOARDBOOK 3
REGULAR MEETING, JANUARY 20, 2004 PAGE 55
Explanation: To appropriate fund balance to establish budget for water line extension for the North Chase
Connector including a 10% contingency.
A copy of the contract is on file in the Legal Department.
AWARD OF CONTRACT # 04-0180 IN THE AMOUNT OF $141,440, TO T.A. LOVING COMPANY FOR
CONSTRUCTION OF THE GREENVIEW RANCH CONNECTOR WATER LINE EXTENSION AND
APPROVAL OF ASSOCIATED BUDGET AMENDMENT # 04-0129
Engineering Manager Jim Craig reported that the District has designed and obtained permits for construction
of several segments of water line to enhance the ability of the District's water system to transport water. Proposals were
received for 2,477 linear feet of 12-inch water line and appurtenances through the Greenview Ranch area. The
following bids were received:
T.A. Loving$141,440.00
Thomson & Company$183,223.40
State Utility$231,728.00
Staff recommends that the contract be awarded to T.A. Loving Company in the amount of $141,440 plus a
10% contingency, and approval of the associated budget amendment.
Motion:
District Commissioner Boseman MOVED, SECONDED by Vice-Chairman Greer, to award Contract # 04-
0180 to T. A. Loving Company, the lowest bidder, in the amount of $141,440 plus a 10% contingency to construct
2,447 linear feet of a 12-inch water line and appurtenances through the Greenview Ranch area, approve associated
Budge Amendment # 04-0180, and authorize the Chairman to execute the necessary contract documents. Upon vote,
the MOTION CARRIED 4 TO 0.
Budget Amendment #04-0129-Water Sewer Engineering
Adjustment Debit Credit
Appropriate Fund Balance (W&S)$155,600
Capital Project Expense$155,600
Explanation: To appropriate fund balance to establish the budget for a water line extension through the
Greenview Ranch area.
A copy of the contract is on file in the Legal Department.
PRESENTATION BY DICKSON ENGINEERING ON THE STATUS OF THE PLANNED COUNTY
DRINKING WATER TREATMENT PLANT
Mr. Dan Dawson commented on the growth occurring in the northern part of the County and the need to meet
the anticipated demand after the Water Treatment Plant is operational. Based on the growth and information provided
by the Planning Department, it is felt the initial capacity of the Water Treatment Plant should be expanded to meet the
anticipated growth.
After submitting background information on the status of the project, Mr. Dawson advised that he met with
officials from the Center for Marine Science at UNCW to discuss the project. After discussion, guidance was provided
on the location of the water line and on the opportunity to work with golf courses in the Porters Neck area for use of
the byproduct from the Water Treatment Plant for irrigation purposes to reduce the amount of groundwater withdrawn
in this area. Meetings were also held with the N. C. Division of Water Resources to secure the necessary permits. In
these discussions, the Water Resources Division requested the District to focus on the Castle Hayne Aquifer as the
primary source of water instead of the Pee Dee Aquifer. Since the quality of water in the Pee Dee Aquifer is better,
NEW HANOVER COUNTY WATER AND SEWER DISTRICT BOARDBOOK 3
REGULAR MEETING, JANUARY 20, 2004 PAGE 56
it will be more costly to treat water from the Castle Hayne Aquifer. However, after giving some thought to the
suggestion by the Division of Water Resources, W. K. Dickson feels that it would be better to use both aquifers and
design the plant to treat both sources of raw water.
The Division of Water Resources also suggested development of a Groundwater Management Plan. The
Planning Department and W. K. Dickson are in the process of developing this plan. The purpose of the plan is to
protect the quality of water and the amount of water withdrawn from the ground. When the project first began, it was
anticipated that a Water Treatment Plant should be constructed to provide 4 million gallons of water per day. After
reviewing the current statistics, it was found that the New Hanover County Water System now serves 7,500 customers
averaging approximately 1.5 million gallons of water per day which increases to 3.3 million gallons per day during
the summer season. This demand is now being served by withdrawing water primarily from the Pee Dee Aquifer. The
proposed project is designed to eliminate the existing 22 wells and focus on better management of the water.
With continued growth, it is felt that the capacity of the Water Treatment Plant should be expanded from 4
million gallons of water per day to 6 million gallons of water per day at a cost of $24 million versus the original cost
of $15 million, which will include running lines for the byproduct to be carried to golf courses in the Porters Neck area.
This additional capacity will meet the water demand for future growth in Porters Neck area, Figure Eight Island and
the new Jail
.
The plan is to use two-thirds of the groundwater from the Castle Hayne Aquifer and one-third from the Pee
Dee Aquifer to blend treatment for both water sources. The average monthly rate for customers using the water system
will be $21 per month which will provide sufficient revenue to operate the Water Treatment Plant. No additional
revenue will be generated at this rate. Very few water systems remain revenue neutral; however, the District Board
will have to determine if the rate should be increased in the future.
In concluding the presentation, Mr. Dawson requested the Board to consider increasing the capacity of the
Water Treatment Plant to 6 million gallons of water per day and prepare the Environmental Assessment for 8 million
gallons per day so that any future expansion of the plant will not require another Environmental Assessment.
District Commissioner Boseman requested County Engineer Wyatt Blanchard to comment on the proposed
increase in capacity.
County Engineer Blanchard responded that based on the monthly rate of $21 per customer, he agreed with
expanding the capacity to 6 million gallons per day to meet future demands. He stated that the increased number of
customers should pay for the operation of the Water Treatment Plant.
Finance Director Bruce Shell advised that based upon the preliminary analysis and a review of the numbers
and spread sheets, he would concur with expanding the Water Treatment Plant to 6 million gallons per day.
After further discussion of expanding the plant, Chairman Caster advised that anyone interested in reading
the entire report could contact Mr. Dawson for a review of the recommendation.
Motion:
After discussion of the need to construct a Water Treatment Plant to meet the District’s needs, Vice-Chairman
Greer MOVED, SECONDED by District Commissioner Boseman, to increase the capacity of the Water Treatment
Plant to 6 million gallons per day, increase the figure in the Environmental Assessment to 8 million gallons per day,
and use the Castle Hayne Aquifer and Pee Dee Aquifer as recommended by W. K. Dickson. Upon vote, the MOTION
CARRIED 4 to 0.
MEETING CONVENED FROM REGULAR SESSION TO HOLD A CLOSED SESSION
Chairman Caster reported that a Closed Session was needed to consult with the County Attorney regarding
a matter of litigation pursuant to N.C.G.S. 143-318.11(a)(3).
NEW HANOVER COUNTY WATER AND SEWER DISTRICT BOARDBOOK 3
REGULAR MEETING, JANUARY 20, 2004 PAGE 57
Motion:
Vice-Chairman Greer MOVED, SECONDED by District Commissioner Boseman, to hold a Closed Session
for the stated purpose. Upon vote, the MOTION CARRIED 4 TO 0.
Chairman Caster convened to Closed Session at 3:30 p.m.
Chairman Caster reconvened to Regular Session at 4:15 p.m. He reported that during the Closed Session, the
District Board received consultation from the County Attorney regarding a matter of potential litigation 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 District Commissioner Pritchett, to adjourn.
Chairman Caster adjourned the meeting at 4:18 p.m.
Respectfully submitted,
Lucie F. Harrell
Clerk to the District Board