HomeMy WebLinkAbout2003-06-16 Water & Sewer
NEW HANOVER COUNTY WATER AND SEWER DISTRICTBOOK 3
REGULAR MEETING, JUNE 16, 2003PAGE 23
ASSEMBLY
The District Board of Commissioners of the New Hanover County Water and Sewer District met in Regular
Session on Monday, June 16, 2003, at 6:18 p.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 Ted Davis, Jr.; District Commissioner William A. Caster; County Manager,
Allen O’Neal; County Attorney, Wanda M. Copley; and Clerk to the Board, Lucie F. Harrell.
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. He requested all persons to limit their remarks to three minutes.
No items were presented.
APPROVAL OF MINUTES
Chairman Greer called for a motion to approve the minutes.
Motion:
District Commissioner Boseman MOVED, SECONDED by District Commissioner Caster, to approve the
minutes of the Regular Meetings held on May 19, 2003 and June 2, 2003 as presented by the Clerk to the District
Board. Upon vote, the MOTION CARRIED UNANIMOUSLY.
ADOPTION OF FISCAL YEAR 2003-2004 BUDGET ORDINANCE FOR THE NEW HANOVER COUNTY
WATER AND SEWER DISTRICT
Chairman Greer emphasized the importance of the public understanding that the Water and Sewer District
does not receive property tax revenue. The District Board has the authority to levy a tax, but this action has not been
considered. The District is self-sustaining and operates on revenue generated from fees and a small portion of the ½
cent sales tax.
Budget Director Griffin reported that the total FY 2003-2004 Budget for the Water and Sewer District is
$13,267,924 with a transfer from the General Fund in the amount of $1,943,319 collected from a portion of the ½ cent
sales and the remainder of revenue generated by user fees.
Chairman Greer asked if anyone would like to comment on the budget.
Vice-Chairman Pritchett asked if debt service was included in the figure presented.
Budget Director Griffin responded that debt service was included in the $13,267,924.
Hearing no further comments, Chairman Greer called for a motion to adopt the Budget Ordinance.
Motion:
District Commissioner Boseman MOVED, SECONDED by Vice-Chairman Pritchett, to adopt the FY 2003-
2004 Budget Ordinance as presented for the New Hanover County Water and Sewer District. Upon vote, the motion
CARRIED UNANIMOUSLY.
A copy of the Ordinance is hereby incorporated as a part of the minutes and is contained in W&S Exhibit
Book II, Page 39.
NEW HANOVER COUNTY WATER AND SEWER DISTRICTBOOK 3
REGULAR MEETING, JUNE 16, 2003PAGE 24
ADOPTION OF RESOLUTION ACCEPTING PUBLIC DEDICATIONS FOR THE MIDDLE SOUND AND
CHURCHILL AREA SEWER COLLECTION SYSTEM
Chairman Greer reported that the New Hanover County Water and Sewer District is currently in the process
of installing a sewer collection system to serve the Middle Sound Area A and Churchill Area B. In order to complete
the system, it will be necessary to run sewer lines along roads that are not currently State maintained. He presented
a map showing the rights-of-way and drainage easements platted and offered for public acceptance in Areas A and
B. The Board was requested to adopt a resolution to accept these rights-of-way, drainage easements and common areas
for water and sewer utility purposes.
Motion
: District Commissioner Boseman MOVED, SECONDED by District Commissioner Caster, to adopt the
resolution accepting the rights-of-way, drainage easements and common areas for Middle Sound Area A and Churchill
Area B for water and sewer utility purposes. Upon vote, the motion CARRIED UNANIMOUSLY.
A copy of the resolution is hereby incorporated as a part of the minutes and is contained in W&S Exhibit Book
II, Page 39.
APPROVAL OF A CHANGE ORDER TO CONTRACT #97-0351 WITH MCKIM AND CREED ENGINEERS
FOR DESIGN AND CONSTRUCTION ADMINISTRATION SERVICES FOR THE MIDDLE SOUND SEWER
PROJECT
Finance Director Bruce Shell reported that the New Hanover County Water and Sewer District approved an
agreement in 1997 with McKim and Creed for the design and construction administration services of the Middle Sound
Sewer Project . The contract was established based on the engineering fee being a percentage of the total construction
project. The initial engineering fee was estimated on a total construction cost of $11,500,000 resulting in an
engineering fee of $776,250. After bidding the project, the total construction cost was $13,312,257 resulting in an
engineering fee of $885,265 representing a fee increase of $109,015.
Pursuant to the contract, the District can use a project inspector supplied by the engineer to assure compliance
with the sewer system plans and specifications by the contractors. The original contract established a fee of $38 per
hour for the inspector. Since the contract was originally awarded in 1997, the fee has increased. The current fee for
an inspector is $65 per hour. Due to the extended time period, Staff recommends that the hourly fee for an inspector
be increased to $65. The estimated number of hours necessary for an inspector is 2,340 hours during the life of the
project at a cost of $152,100. There is also an additional surveying and mapping fee of $9,700 which was required for
wetland delineation to obtain Corps of Engineers and NCDENR permits. The engineer paid all the necessary permits
in the amount of $4,750 which was outside the scope of the contract. During the process of working with the State and
landowners, there have been eleven (11) sets of changes to the drawings at a cost of $6,000. The total increase to the
contract is $281,565
In closing, Finance Director Shell advised that McKim and Creed has requested the Board to determine the
amount of the inspector fee and approve the other increases as recommended in Change Order #3. He stated that in
order to be fair, the inspector fee should be increased to at least $60 per hour, which represents a difference of $11,700
less than the amount requested by McKim and Creed.
Chairman Greer asked if anyone representing McKim and Creed would like to comment.
Mr. Tony Bohen, a representative of McKim and Creed from the Raleigh Office, reported that he had worked
on the Middle Sound Project for approximately six years and stated that he was in the process of moving to
Wilmington. He advised that the District Board could keep the inspector fee at $38 per hour, but he did not feel this
would be fair. The Middle Sound Project is complex with three contractors operating eight or nine crews at one time,
which means the inspector must have a great deal of experience to manage a project of this size. Mr. Bohen requested
the District Board to consider increasing the fee to $65 per hour because the person being sent for the job is an expert
NEW HANOVER COUNTY WATER AND SEWER DISTRICTBOOK 3
REGULAR MEETING, JUNE 16, 2003PAGE 25
in this field
District Commissioner Davis asked Mr. Bohen if he could live with $60 per hour as recommended by the
Finance Director.
Mr. Bohen responded that he would prefer $65 per hour.
Vice-Chairman Pritchett spoke on County Engineer Blanchard being very pleased with the inspector selected
for the job and asked if the fee is reduced to $60 per hour, would the company select the same inspector to perform the
work.
Mr. Bohen responded that this decision would have to be made by officials at a higher company level.
Vice-Chairman Pritchett asked Mr. Bohen if his response meant that the same person would not be sent for
the job.
Mr. Bohen responded that since he has a vested interest in this project being successful, he would send the
same person and absorb the loss in lieu of the project getting out of hand with a less experienced person.
Hearing no further comments, Chairman Greer called for a motion.
Motion:
District Commissioner Davis MOVED, SECONDED by District Commissioner Caster, to increase the
inspector fee to $60 per hour representing a difference of $11,700, approve Change Order #3 as amended with the
change in the hourly rate, and authorize the County Manager to execute the Change Order. Upon vote, the MOTION
CARRIED UNANIMOUSLY.
A copy of the Change Order is on file in the Legal Department.
ADJOURNMENT
Chairman Greer called for a motion to adjourn the meeting.
Motion:
District Commissioner Boseman MOVED, SECONDED by District Commissioner Caster, to adjourn. Upon
vote, the MOTION CARRIED UNANIMOUSLY.
Chairman Greer adjourned the meeting at 6:44 p.m.
Respectfully submitted,
Lucie F. Harrell
Clerk to the District Board