2002-09-16 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