2003-04-21 Water & Sewer
NEW HANOVER COUNTY WATER AND SEWER DISTRICTBOOK 3
REGULAR MEETING, APRIL 21, 2003PAGE 10
ASSEMBLY
The District Board of Commissioners of the New Hanover County Water and Sewer District met in Regular
Session on Monday, April 21, 2003 at 9:51 a.m. in the Assembly Room of the New Hanover County Courthouse, 24
North Third Street, Wilmington, North Carolina.
Members present were: Chairman Robert G. Greer; Vice-Chairman Nancy H. Pritchett; District Commissioner
Julia Boseman; District Commissioner William A. Caster; County Manager, Allen O’Neal; County Attorney, Wanda
M. Copley; and Deputy Clerk to the Board, Teresa P. Elmore.
District Commissioner Ted Davis, Jr. was not present.
Chairman Greer called the meeting to order.
NON-AGENDA ITEMS
Chairman Greer announced that time had been reserved for anyone from the public to present an item that
was not listed on the Regular Agenda.
No items were presented.
APPROVAL OF MINUTES
Chairman Greer called for a motion to approve the minutes of the following meetings:
Regular Meeting December 16, 2002
Regular Meeting March 24, 2003
Motion:
Vice-Chairman Pritchett MOVED, SECONDED by District Commissioner Boseman, to approve the minutes
of the regular meetings held on December 16, 2002 and March 24, 2003, as presented by the Clerk to the District
Board. Upon vote, the MOTION CARRIED 4 TO 0.
CONSIDERATION OF POLICY FOR EXTENDED PAYMENTS OF SEWER TAP FEES
Finance Director Bruce Shell reported that construction of the first section of the Kings Grant sewer collection
system is proceeding as planned. Some residents with elevated needs will desire to connect to the system within sixty
days of its completion. The tap fees have increased to $2,000 and some of the people would like to have extended
payment terms. A policy will need to be established in order to provide extended payment terms to those homeowners
in the three project areas of Kings Grant, Middle Sound, and Brookfield/Brierwood.
Finance Director Shell said that a tap fee of $2,000 from the 3,280 homes will generate $6,560,000. The
County will be paying 75% of the project costs of $27,906,314 for the three projects.
Finance Director Shell said that the Water and Sewer District will fund these projects with user fees, tap fees,
and transfers of $1.9 million from the half-cent sales tax. He proposed that the Board may want to provide the same
payment terms as the County used with the Wilmington-Hanby Beach water and sewer project. Financing the $2,000
tap fee over a ten year period at 4% interest amounts to an annual payment of $256. Once the sewer is available for
an area, the Engineering Department will notify the homeowners by letter that they have six months to connect to the
sewer. The tap fee will increase to $2,500 if they do not connect during the first six months. The offer is an incentive
for the homeowner to connect promptly and to make the payment flexible and more affordable.
District Commissioner Boseman asked if spreading the payment over ten years will jeopardize future projects.
Finance Director Shell responded that staff included these payments with the accumulated fund balance to
NEW HANOVER COUNTY WATER AND SEWER DISTRICTBOOK 3
REGULAR MEETING, APRIL 21, 2003PAGE 11
plan for future sewer construction projects.
Chairman Greer confirmed that the policy will apply to current projects since it is unknown what future
interest rates will be. The Board has the authority to change the payment terms as new projects come along. Low
income homeowners may qualify for another program at lower interest rates.
Finance Director Shell concurred saying the payment terms will be brought back to the Board as a policy
change for future projects. The Board can change the interest rates and the number of years for the payments. He also
reported that bills have been mailed to property owners of the Wilmington-Hanby Beach area and for the first phase
of Mason Inlet.
Finance Director Shell explained that once the project is complete, staff will report back to the Board with
the date of the actual billing. The County is trying to time the billing so that it is not a work load issue.
Motion:
District Commissioner Boseman MOVED, SECONDED by District Commissioner Caster, to approve the
policy for extended payments of sewer tap fees for the current sewer construction projects of Kings Grant, Middle
Sound, and Brookfield/Brierwood. Upon vote, the motion CARRIED 4 TO 0.
CONSIDERATION OF REIMBURSEMENT CONTRACT # 03-0183 FOR CONSTRUCTION OF A PUMP
STATION SERVING THE AREA NORTH OF FUTCH CREEK ROAD AND EAST OF MARKET STREET
Assistant County Manager Dave Weaver reported that Contract #97-0239, approved May 30, 1997 between
the District and two developers, D&F Investment Corporation and Sidbury Estate Properties, LLC, provided for the
construction of a pump station, 8,040 feet of force main, and 2,989 feet of gravity sewer line serving most of the area
north of Futch Creek Road and east of Market Street. The total apportioned cost of the system was $517,012.99. The
District paid $261,701 from the CDBG project funds for the Kirkland community and the developers paid $255,311.99.
The Kirkland project provided interceptor service to the region in 1998. Contract #03-0183 provides for
reimbursements to the developers from new developments as approved in the original contract (#97-0239). The
reimbursement fee for each new residential unit is $450 and each commercial connection is $1.50 per gallon of daily
usage. The developers will receive reimbursements for 15 years.
Assistant County Manager Weaver explained that the District shares the cost of an interceptor line when the
developer constructs his sewer project larger than required in order to allow for other new developments to connect.
In return the developer is paid back over time when new developments are connected to the system. This is beneficial
to the new development and to the District in that the County can expand the system at less cost and earlier than
anticipated.
Chairman Greer asked why the contract was beginning now instead of when the initial agreement was made
five years ago and when the 15 year reimbursement period of the contract began.
Assistant County Manager Weaver responded that he was unsure, but the 1997 contract did specify that
reimbursements would be addressed at a later date. These type contracts should be based on when the District plans
to expand the sewer system to that area. The cutoff date for the reimbursements depends on when the District had
planned to serve that particular area. When a new development connects to that system, a premium of $450.00 per
lot will have to be paid.
Chairman Greer suggested that the District use the 1997 date as the beginning of the fifteen year period.
County Manager O’Neal responded that if the 1997 date is incorrect, he requested the motion to include that
the County Manager have the authority to change it so that the item would not have to come before the Board again.
NEW HANOVER COUNTY WATER AND SEWER DISTRICTBOOK 3
REGULAR MEETING, APRIL 21, 2003PAGE 12
Motion:
District Commissioner Boseman MOVED, SECONDED by District Commissioner Caster, to approve the
Reimbursement Contract # 03-0183 with D & F Investment Corporation and Sidbury Estate Properties, LLC, with the
effective date beginning in 1997, and to allow the County Manager to change the effective date if necessary. Upon
vote, the motion CARRIED 4 TO 0.
CONSIDERATION OF BOND ORDER AUTHORIZING THE ISSUANCE OF $10,500,000 OF GENERAL
OBLIGATION WATER AND SEWER REFUNDING BONDS
Finance Director Bruce Shell reported that due to a drop in interest rates and the maturity of water and sewer
bonds, it is feasible for the County to "refund" $9.43 million of water and sewer bonds. A "refunding" is essentially
a refinancing of the debt at a lower interest rate. The County will save approximately $590,000 over the remaining
eight years of the debt. If approved, the bonds will be sold on May 28, 2003. The Board is required to introduce the
bond order and call for a public hearing on May 5, 2003. The County Finance Officer will file a statement of debt with
the Clerk to the Board prior to the public hearing on May 5, 2003.
Chairman Greer stated that the Board needs to consider and take action on a resolution that approves the
introduction of a bond order authorizing the issuance of $10,500,000 General Obligation Refunding Bonds of New
Hanover County Water and Sewer District. He read the bond order resolution into the record and requested a motion
for adoption.
Motion:
District Commissioner Boseman MOVED, SECONDED by District Commissioner Caster, to adopt the
resolution introducing the bond order authorizing the issuance of $10,500,000 General Obligation Refunding Bonds
of New Hanover County Water and Sewer District and scheduling the public hearing on May 5, 2003. Upon vote, the
motion CARRIED 4 TO 0.
Chairman Greer stated that the resolution shall become effective immediately upon its adoption.
A copy of the resolution is hereby incorporated as a part of the minutes and is contained in the Water and
Sewer Exhibit Book II, Page 36.
ADDITIONAL ITEMS:
District Commissioner Caster asked if a response from the County had been given to Mr. Evans concerning
his letter asking the reason why water lines were not installed at the same time as the sewer lines.
Assistant County Manager Dave Weaver responded that the County will not have capacity to provide water
to the Middle Sound area until a water treatment plant has been constructed, which is several years away. Furthermore,
there is a minimum separation between water and sewer lines and it would not be advantageous to install both at the
same time. Water lines are easier to install than sewer lines because they do not require disruption in service.
District Commissioner Caster asked Assistant County Manager Weaver to reply to Mr. Evans.
Chairman Greer reported that County Engineer Wyatt Blanchard had met with officials of NCDOT to work
out a plan to install the sewer lines along Middle Sound Road prior to the paving project to avoid tearing up the road.
However, NCDOT paved further down Middle Sound Road than they had agreed, which has upset the homeowners
in the area. The State has apologized for the error.
ADJOURNMENT
Chairman Greer called for a motion to adjourn the meeting.
Motion:
District Commissioner Boseman MOVED, SECONDED by District Commissioner Caster, to adjourn the
meeting. Upon vote, the MOTION CARRIED 4 TO 0.
NEW HANOVER COUNTY WATER AND SEWER DISTRICTBOOK 3
REGULAR MEETING, APRIL 21, 2003PAGE 13
Chairman Greer adjourned the meeting at 10:21 a.m.
Respectfully submitted,
Teresa P. Elmore
Deputy Clerk to the District Board