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HomeMy WebLinkAbout2002-09-16 Water & Sewer Distri NEW HANOVER COUNTY WATER AND SEWER DISTRICT BOOK 2 MINUTES OF REGULAR MEETING, SEPTEMBER 16, 2002PAGE 737 ASSEMBLY The District Board of Commissioners of the New Hanover County Water and Sewer District met in Regular Session on Monday, September 16, 2002, at 12:48 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 District 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 speaking to limit their remarks to three minutes. No items or comments were presented. Approval of Minutes Chairman Greer called for a motion to approve the minutes. Motion: District Commissioner Caster MOVED, SECONDED by District Commissioner Boseman, to approve the minutes of the Regular Meeting held on September 3, 2002, as presented by the Clerk to the District Board. Upon vote, the MOTION CARRIED UNANIMOUSLY. APPROVAL OFCONTRACT #03-0064AND ASSOCIATED BUDGET AMENDMENT #03- 0033 FOR EXTENSION OF THE WATER LINE ALONG MARKET STREET TO THE ENTRANCE OF MARSH OAKS SUBDIVISION Engineering Director Wyatt Blanchard reported that Staff has received a request from Andrew and Kuske, representing Forge Development, RGM Investments, LLC and Scarfoni Associates, NC, Inc., for permission to extend the sixteen (16) inch water line along Market Street from the entrance of Marsh Oaks Subdivision, approximately 3,040 feet, to a commercial tract just south of the Porters Neck Shopping Center. The proposed water line extension is a portion of the planned Bald Eagle and Figure Eight Island water line project. The County will participate in the cost of increasing the water line from eight (8) to sixteen (16) inches in size. If the District installs the sixteen (16) inch water line, it will cost approximately $145,600; however, by participating with the developers, the extension will cost the District only $69,050. NEW HANOVER COUNTY WATER AND SEWER DISTRICT BOOK 2 MINUTES OF REGULAR MEETING, SEPTEMBER 16, 2002PAGE 738 After discussion of the money saved by allowing developers to participate in the project, Chairman Greer called for a motion to approve the contract. Motion: District Commissioner Caster MOVED, SECONDED by Vice-Chairman Pritchett, to approve Contact 03-0064 with Forge Development, RGM Investments, LLC and Scarfoni Associates, NC, Inc. in the amount of $69,050 for the District to increase the size of the Market Street water line from 8 inches to 16 inches, approve the associated budget amendment, and authorize the Chairman to execute the necessary contract documents. Upon vote the MOTION CARRIED UNANIMOUSLY. Budget Amendment # 03-0033-Water & Sewer/Water & Sewer Engineering AdjustmentDebitCredit Water & Sewer: Appropriated Fund Balance$69,050 Water & Sewer Engineering Capital Project Expense$69,050 Explanation : To adjust the budget for the District’s participation in extending the Market Street water line. A copy of the contract is on file in the Legal Department. AWARD OF CONTRACT # 03-0031 TO T. A. LOVING COMPANY FOR CONSTRUCTION OF SECTION 1 OF THE KINGS GRANT SEWER SYSTEM AND APPROVAL OF ASSOCIATED BUDGET AMENDMENT #2003-07 County Engineer Blanchard reported that Staff advertised and received the following bids for constructing Section 1 of the Kings Grant Project: Alderman Brothers Construction, Inc.$1,622,272 T. A. Loving Company$1,787,640 State Utility Contractors, Inc.$2,139,591 Hendrix-Barnhill Company, Inc.$2,357,029 Dellinger, Inc.$2,639,096 R.H. Moore Company, Inc.$2,863,389 Carmichael Construction Company$3,128,036 County Engineer Blanchard advised that Alderman Brothers Construction, Inc. submitted the lowest bid; however based on the information submitted in the bid package, the company did not have experience in sewer line construction and Staff felt the bid was too low. After a review of the NEW HANOVER COUNTY WATER AND SEWER DISTRICT BOOK 2 MINUTES OF REGULAR MEETING, SEPTEMBER 16, 2002PAGE 739 remaining bids, Staff recommends award of the bid to T. A. Loving Company, the second lowest bidder. After discussion of when the Kings Grant Project construction will begin, County Engineer Blanchard presented the following schedule: Beginning DateEstimated Completion Date Section 1November 2002February 2004 Section 2January 2003April 2004 Section 3January 2003April 2004 Chairman Greer requested an explanation on the difference in the amount of the budget amendment and the bid received from T. A. Loving Company. County Engineer Blanchard explained that the budget amendment includes contingencies and money to resurface the roads upon completion of the project. Further discussion was held on when the property owners would have to pay the tap fee. County Engineer Blanchard explained that the property owners would be notified on February 1, 2004 about payment of the $2,000 tap fee within a six-month period. If the payment is not received in six months, the tap fee will increase and the property owners will be billed on a flat rate. A lengthy discussion followed on the status of the City/County Northside Wastewater Treatment Plant expansion project. County Engineer Blanchard reported that City and County Staff have been working on obtaining the necessary permits, which has required a tremendous amount of time because of the stringent limits and constraints placed on the permits. If the permitting process is completed within the next six months, the expansion should be completed by 2005. He assured the Board that sufficient capacity was available in the Northside Wastewater Treatment Plant for the projects approved by the District; however, if infiltration should become an issue, particularly when the groundwater table rises, some of the reserved flow could be negatively impacted. Chairman Greer stressed the importance of sufficient capacity being available and requested Staff to present a progress report on the Northside Wastewater Treatment Plant expansion. After hearing no further comments, Chairman Greer called for a motion to award the bid. Motion: Vice-Chairman Pritchett MOVED, SECONDED by District Commissioner Caster, to award the bid to T. A. Loving Company, the second lowest bidder, in the amount of $1,787,640 for construction of Section 1 of the Kings Grant Project, approve the associated budget amendment, and authorize the Chairman to execute the necessary contract documents. Upon vote, the MOTION CARRIED UNANIMOUSLY. NEW HANOVER COUNTY WATER AND SEWER DISTRICT BOOK 2 MINUTES OF REGULAR MEETING, SEPTEMBER 16, 2002PAGE 740 Budget Amendment #2003-07 - Kings Grant Sewer Capital Project Adjustment Debit Credit Installment Loan Proceeds$2,420,000 Extended Project Expense$2,420,000 Explanation: To increase the budget for the construction and road resurfacing costs. A copy of the contract is on file in the Legal Department. APPROVAL OF NEW FISCAL SUPPORT TECHNICIAN POSITION FOR WATER AND SEWER FINANCE AND APPROVAL OF ASSOCIATED BUDGET AMENDMENT # 03- 0038 Finance Director of the Water and Sewer District, Julie Griffin, requested the Board to approve a new Fiscal Support Technician position. She explained that over the last 10 years, the customer base has grown from 6,400 to 28,000; however, the District has operated with the same Staff level for 8 of the 10 years. The Water and Sewer Finance Staff handles 4,000 customers per employee. Comparing this figure with the City of Wilmington Water and Sewer Division, who has 21 employees to serve 45,000 customers, each employee handles only 2,100 customers. The additional position will improve efficiency, collection efforts, and customer service. After hearing no comments from the District Board, Chairman Greer called for a motion. Motion: District Commissioner Boseman, MOVED, SECONDED by District Commissioner Caster, to approve a new Fiscal Support Technician position for Water and Sewer Finance and approve associated budget amendment #03-0038. Upon vote the MOTION CARRIED UNANIMOUSLY. Budget Amendment # 03-0038-Water & Sewer/Water & Sewer Finance Adjustment DebitCredit Water & Sewer: Appropriated Fund Balance$25,275 Water & Sewer Finance: Salaries and Wages$19,094 Social Security Taxes$ 1,461 Retirement-Local Govt. Employee$ 315 Medical Insurance Expense$ 4,365 Long-Term Disability Insurance$ 40 Explanation: To budget appropriated fund balance for additional position for the last nine NEW HANOVER COUNTY WATER AND SEWER DISTRICT BOOK 2 MINUTES OF REGULAR MEETING, SEPTEMBER 16, 2002PAGE 741 months of FY 2002-2003. The full-year cost of the position in FY 2003-2004 will be $34,540. PRESENTATION BY CONSULTANTS ON THE FEASIBILITY OF CONSTRUCTING A GROUNDWATER TREATMENT PLANT County Engineer Wyatt Blanchard reported that W. K. Dickson, Inc. has completed a preliminary design and feasibility plan for constructing a groundwater treatment plant in the northern part of New Hanover County. He requested Mr. Dan Dawson, Branch Manager and Vice- President of W. K. Dickson, Inc. to make the presentation. Mr. Dawson reported that the Project Team was comprised of Staff from the Manager’s Office, Finance Department, Legal Department, and Engineering Department. The consulting team was comprised of W. K. Dickson, Inc., Arcadis/Geragthy & Miller, Edwin Andrews & Associates, and Cayton Well Drilling. He advised that the preliminary design documents have been prepared and the major objective was to develop a dependable source of quality drinking water to meet the current needs and future needs in the northern part of New Hanover County. Mr. Dawson reported that in 1970 a groundwater study was conducted and published by the U.S. Geological Survey and the State of North Carolina. This study is still considered to be one of the most comprehensive studies ever performed in the State. In 1989, the Drinking Water In New Hanover County study was conducted by the New Hanover County Planning Staff, which is still a valuable document in studying groundwater. In 1990, the New Hanover County Board of Commissioners established a Task Force to study the potential for a groundwater supply system. In 1995, the firm of Edwin Andrews & Associates was hired as a consultant to study groundwater conditions, and a report was published in 1996 on the quantity and quality of groundwater in the northern part of the New Hanover County. In this study, it was found that the groundwater is of high quality and can be used as a conjunctive supply to surface water systems when needed. The proposed groundwater system is designed to meet existing demands, projected immediate demands, and future demands. The system is not designed to stimulate additional growth, but it is designed to meet growth already anticipated by the Planning Department. The system has flexibility to adjust to future needs and will allow for better management and protection of the aquifers. The recent annexations by the City of Wilmington have divided the County into northern and southern sections. The proposed plan is designed to provide a water system for the northeastern section of the County, which is divided by the northern by-pass with one part being the Porters Neck and the other part being the Castle Hayne area. The following work was conducted during the preliminary design process: •Evaluated the well field area and prepared the preliminary layout of the well field •Recommended raw water main sizes and routes •Evaluated potential treatment processes and sites •Prepared concept design of the proposed treatment system NEW HANOVER COUNTY WATER AND SEWER DISTRICT BOOK 2 MINUTES OF REGULAR MEETING, SEPTEMBER 16, 2002PAGE 742 •Conducted preliminary scoping meetings with regulatory agencies •Evaluated options for concentrated disposal •Conducted limited feasibility analysis of aquifer storage and recovery wells •Identified finished water main sizes and routes •Prepared a final concept design report Based upon 12 months of water meter flow records prior to last August with approximately 7,440 metered customers, the following figures were presented showing single-family residences with a bi-monthly demand per home of 12,000 gallons and monthly demand per home of 6,000 gallons: Estimated bi-monthly cost per residence$23.70 Conditioning Expenses 20.00 Total Bi-monthly Cost $43.70 Average Cost Per Home$21.85 per month Average Cost per 1,000 gallons$ 3.64 The current daily demand in the northeastern section of the County averages 1.54 million gallons daily (MGD). The immediate demands are to provide water to the North Campus of Cape Fear Community College, the new Jail, N. C. Department of Transportation Division Office, Shearin Hills, Porters Neck, and Figure Eight Island which will equal 0.84 MGD for a total of 2.38 MGD. These well sites have been tested and wells are being drilled to provide additional capacity by the end of the summer. Future demands based upon population projections by the year 2020 will add an additional 1.5 million MGD for a total demand of 3.8 MGD. To satisfy this demand will require a well field consisting of 16 new wells plus a 4 MGD Water Treatment Plant. Through the well field investigation, it was found that the Castle Hayne Aquifer and Peedee Aquifer have more than sufficient capacity to meet the water needs for the northern section of New Hanover County. There are concerns for the water quality, the treatment required, groundwater impact, and the management needed to minimize these impacts. It has been determined that each well in the well field will be capable of producing approximately 350 gallons per minute which produces an average of 250,000 gallons per well. With 16 new wells producing 4 MGD, careful monitoring of the groundwater will be required to protect the aquifers. In order to meet these demands, a water treatment plant will be required. Two types of plants, the conventional plant and membrane nano filtration plant, were reviewed and studied. Each plant will cost approximately $9.7 million. The membrane nano filtration treatment plant was selected because of lower operating and maintenance costs and the flexibility of being able to adapt to salt water intrusion by converting the water into good drinking water without suffering a loss in water production. Other related issues are immediate enhancements to the existing water system, financing options, and environmental assessments and permits. Obtaining the permits will be a critical NEW HANOVER COUNTY WATER AND SEWER DISTRICT BOOK 2 MINUTES OF REGULAR MEETING, SEPTEMBER 16, 2002PAGE 743 part of completing the project in a timely manner. The following figures were presented on capital project costs: Wells$3,279,000 Raw Water Transmission Mains 1,501,000 Water Treatment Plant 9,654,000 Finished Water Transmission Mains 483,000 Total Cost for 4 MGD Water Treatment Plant$14,917,000 The following figures were presented on Operation and Maintenance costs: Annual Wells and Water Treatment Plant Costs$874,900 Cost per 1,000 gallons$ 1.20 Distribution System O&M Cost per 1,000$ 0.45 Total O&M Cost per 1,000 gallons$ 1.65 The following figures were presented on total costs: Construction and Interest per 1,000 gallons$ 1.83 O&M per 1,000 gallons$ 1.65 Total Cost per 1,000 gallons$ 3.48 Average Residence Monthly Consumption in gallons6,000 Average Cost per Residence$20.88 Mr. Dawson advised that a study was made of alternative sources such as privatization, public-private partnerships, and purchasing water from the City of Wilmington. The recommended alternative source is purchasing water from the City of Wilmington. After discussion between the City and County members of staff, the following figures were received. Water Purchased from the City Water System Initial proposed rates for County residences to use water purchased from the City $2.47 per 1,000 gallons (Comparison Uses for 25-year amortization period instead of 20 years to be consistent with the City) Proposed County Groundwater System County Rate$2.95 per 1,000 gallons (25 years) County Rate$3.48 per 1,000 gallons (20 years) NEW HANOVER COUNTY WATER AND SEWER DISTRICT BOOK 2 MINUTES OF REGULAR MEETING, SEPTEMBER 16, 2002PAGE 744 The following comparison of the two options was presented: Water Purchased from the City Water System Cost of 1,000 gallons equals $2.47 Capacity available for existing and immediate demands Capacity and cost to serve future demands are unknown Subject to safe yield of the Cape Fear River and Water Treatment Plant capacity Multiple connections Implementation time is 6 to 12 months after establishing interlocal agreements Proposed County Groundwater System Cost per 1,000 gallons equals $2.95 Best method to manage safe yield of aquifers Protected water source Conjunctive source with surface water system Independent control of cost and expansion Capability to treat water if saltwater intrusion occurs in the future Implementation time for new Wastewater Treatment Plant is 2 ½ to 3 years Mr. Dawson concluded the presentation by saying that a thorough search has been made for sources of water to provide drinking water to County residents. After thoroughly investigating groundwater sources, surface water, and different types of management systems, there are basically two options: 1. A County owned and operated groundwater based water system. 2. Purchase water from the City to meet existing and immediate demands; however, beyond the 3.5 million MGD demand, there is some uncertainly as to what the cost will be to the County. The City Water Plant will have to be expanded and no cost has been determined at this time. In discussion of the two options, District Commissioner Caster noted that if the District decides to purchase water from the City, it would be more economical because the rate per gallon would be cheaper and the treated surface water would be purchased, which would eliminate the need to build and operate a Water Treatment Plant. The major issue would be to precisely calculate water capacity needs for the District and negotiate an interlocal agreement with the City to meet these needs. Mr. Dawson agreed with the statements made by District Commissioner Caster, but stated if the District decides to work with the City, the major concerns will be sufficient capacity to meet future demands and the cost charged for future expansion of the City Water Plant. These are issues that are not known at this time. If the District Board decides to move forward with constructing a groundwater treatment plant, the District will have control of the cost for future expansions. He NEW HANOVER COUNTY WATER AND SEWER DISTRICT BOOK 2 MINUTES OF REGULAR MEETING, SEPTEMBER 16, 2002PAGE 745 advised that people in the northern part of the County want a higher quality of drinking water and the time has come for the District Board to make a decision on how the immediate needs will be addressed. Discussion was held on whether the untreated discharge from the proposed membrane nano filtration water treatment plant could be reused by surrounding golf courses. Mr. Ed Andrews explained that during the early stages of operation, the salinity concentrate in the discharge could reused by surrounding golf courses, but in the later stages of operation (10 to 15 years), the salinity concentrate would not be acceptable. District Commissioner Caster commented on this being an opportune time for the District to explore the possibility of working with the City to combine water and sewer services and asked if this issue should be explored. Chairman Greer responded that he was very much in favor of the City and County combining water and sewer utilities; however, after years of trying to accomplish this goal, it is difficult to believe that another effort will be successful. After a lengthy discussion on the options presented, the possibility of other communities participating in construction of the water treatment plant or selling water to surrounding communities, Chairman Greer suggesting deferring action on this item until November 25, 2002, and requesting Staff to investigate the following items: (1) contact the Town of Hampstead or other nearby communities in northern area of the County to see if they are interested in participating in the construction of a groundwater treatment plant or purchasing water; and (2) determine the quantity of water that can be supplied by the City to the County. The Board agreed and deferred action until November 25, 2002. ADJOURNMENT Chairman Greer called for a motion to adjourn the meeting. Motion: District Commissioner Caster MOVED, SECONDED by District Commissioner Boseman, to adjourn. Upon vote, the MOTION CARRIED UNANIMOUSLY. Chairman Greer adjourned the meeting at 1:59 p.m. Respectfully submitted, Lucie F. Harrell Clerk to the District Board