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2002-11-25 Water & Sewer Distri NEW HANOVER COUNTY WATER AND SEWER DISTRICT BOOK 2 MINUTES OF REGULAR MEETING, NOVEMBER 25, 2002PAGE 753 ASSEMBLY The District Board of Commissioners of the New Hanover County Water and Sewer District met in Regular Session on Monday, November 25, 2002, at 11:31 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 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 to limit their remarks to three minutes. No items were presented. APPROVAL OF MINUTES Chairman Greer called for a motion to approve the minutes of the November 12, 2002 meeting. Motion: Vice-Chairman Pritchett MOVED, SECONDED by District Commissioner Boseman, to approve the minutes of the Regular Meeting held on November 12, 2002, as presented by the Clerk to the District Board. Upon vote, the MOTION CARRIED UNANIMOUSLY. AWARD OF CONTRACT #02-0342 TO T. A. LOVING COMPANY FOR CONSTRUCTION OF WATER AND SEWER LINES IN THE BROOKFIELD-BRIERWOOD SEWER COLLECTION AND WATER SYSTEM, ADOPTION OF CAPITAL PROJECT ORDINANCE AND APPROVAL OF ASSOCIATED BUDGET AMENDMENT # 2003-10 Chairman Greer reported that the following bids were received in the Engineering Department for construction of water and sewer lines in the Brookfield-Brierwood area. All bids were below the original estimate with the lowest bid received from T. A. Loving Company. T.A. Loving Company $1,628,957.00 Hendrix-Barnhill $1,885,394.10 State Utility Contractors$2,152,856.00 Dellinger, Inc. $2,627,036.00 The low bid is divided between water and sewer as follows, and the associated budget amendment in the amount of $1,871,853 includes the cost of street resurfacing and a 10 percent NEW HANOVER COUNTY WATER AND SEWER DISTRICT BOOK 2 MINUTES OF REGULAR MEETING, NOVEMBER 25, 2002PAGE 754 contingency: Sewer $1,153,307.00 Water $ 475,650.00 $1,628,957.00 Chairman Greer asked if any member of the District Board would like to comment. District Commissioner Boseman expressed concern for the District not having sufficient capacity in the City’s Northside Wastewater Treatment Plant to serve the Brookfield-Brierwood Project, Kings Grant Project, Middle Sound Project and Castle Hayne Project with the delay in the joint City-County expansion of the plant. She stressed the importance of moving forward with the expansion and asked if the District could do anything to speed up the process. County Engineer Wyatt Blanchard responded that until the State permit is received, the project will be delayed. He explained that the City is requesting a different set of limits than what the State wants to impose. The limits normally imposed by the State on a river basin plant are 5 BOD and 1 ammonia. The City is requesting a BOD of 15, which is understandable, because the permit requirements are less stringent and the plant would be cheaper to operate. The State will render a decision on the limits to impose, and the permit will not be issued until this matter is resolved. Discussion followed on the need for the City and County to combine water and sewer services. County Manager O’Neal reported that on November 6, 1996, the Board of County Commissioners adopted a resolution to move forward with combining water and sewer services with a committee appointed to develop a plan; report back to both governing bodies on or before May 1, 1997; and have the structure of a combined utility in place by December 1, 1997. The City Council adopted the same resolution, and the County made every effort possible to move forward with combining utilities. Unfortunately, no progress has been made as of this date. District Commissioner Boseman noted that she had pushed to schedule a joint meeting with the City Council to see if water and sewer services could be combined because the residents of the City and County are suffering from the City’s inability or unwillingness to work with the County. It does not matter who operates the combined utility because the citizens deserve to receive utility services in the most efficient and effective way possible. District Commissioner Davis said that when he became a County Commissioner in December 1996, the Board voted to stop the architect from proceeding with a design of a Wastewater Treatment Plant to be constructed by the County. This action was taken based upon resolutions adopted by both governing bodies to combine water and sewer services. Over the years, numerous meetings have been held with little progress being made in combining utility services or jointly expanding the City’s Northside Wastewater Treatment Plant. NEW HANOVER COUNTY WATER AND SEWER DISTRICT BOOK 2 MINUTES OF REGULAR MEETING, NOVEMBER 25, 2002PAGE 755 County Engineer Blanchard informed the Board that once limits are set by the State and the permit is received, the joint expansion can move forward. He also explained that when a permit is issued by the State for a sewer project, the capacity is reserved in the receiving wastewater treatment plant. Since permits have been received from the State for the Bookfield-Brierwood Project, Kings Grant Project, and Middle Sound Project, capacity should be available in the City’s Northside Wastewater Treatment Plant. With the Castle Hayne Project not going on line for three years, capacity may not be available if the joint expansion of the Northside Wastewater Treatment Plant has not been completed. Chairman Greer agreed with all concerns expressed by members of the District Board and stated that the District may have to move in another direction to secure the future of the County Sewer System. Without sufficient capacity in the City’s Northside Wastewater Treatment Plant, the District will not be able to expand the Sewer System. If progress on the joint expansion is not made in the near future, the District may have no choice but construct a Wastewater Treatment Plant. Hearing no further comments, Chairman Greer called for a motion to award the contract to T. A. Loving, Company. Motion: District Commissioner Boseman MOVED, SECONDED by District Commissioner Caster, to award Contract #02-0342 to T.A. Loving Company, the lowest bidder, in the amount of $1,628,957 to construct water and sewer lines in the Bookfield-Brierwood area, approve the associated budget amendment, adopt the Capital Project Ordinance and authorize the Chairman to execute the necessary contract documents. Upon vote the MOTION CARRIED UNANIMOUSLY. A copy of the Capital Project Ordinance is hereby incorporated as a part of the minutes and is contained in Water and Sewer Exhibit Book II, Page 35. A copy of the contract is on file in the Legal Department. Budget Amendment #2003-10-Brookfield/Brierwood Sewer/Water Systems Adjustment Debit Credit Installment Loan Proceeds$1,871,853 Capital Project Expense$1,871,853 Explanation: To establish the budget according to the Capital Project Ordinance. AWARD OF CONTRACTS #03-0045 AND #03-0096 FOR CONSTRUCTION OF WATER AND SEWER LINES IN SECTIONS II AND III OF THE KINGS GRANT PROJECT AND APPROVAL OF ASSOCIATED BUDGET AMENDMENT # 2003-15 County Engineer, Wyatt Blanchard, reported that the following bids were received in the NEW HANOVER COUNTY WATER AND SEWER DISTRICT BOOK 2 MINUTES OF REGULAR MEETING, NOVEMBER 25, 2002PAGE 756 Engineering Department for construction of sewer lines in Section II of Kings Grant (including Crestwood) and for construction of water and sewer lines in Section III of Kings Grant (including Springview and a portion of Churchill Estates). He requested the District Board to award the low bids to Hendrix-Barnhill Company, Inc. for Section II and to Triangle Grading and Paving, Inc for Section III. He also noted that the associated budget amendment in the amount of $6,521,291 includes engineering services, a 10 percent contingency for all three sections of the Kings Grant Project, and money for resurfacing the streets after construction. Section II Bids: Hendrix-Barnhill Co., Inc. $1,873,172 T.A. Loving Company $2,206,298 Triangle Grading and Paving $2,223,536 State Utility Contractors $2,309,619 Dellinger, Inc. $2,819,485 Section III Bids: Triangle Grading and Paving, Inc. $2,949,452.45 T.A. Loving Company $3,502,912.00 State Utility Contractors, Inc. $3,582,204.00 Dellinger, Inc. $4,596,940.00 Park Construction Corporation $4,717,605.41 Chairman Greer asked if any member of the District Board would like to comment. Hearing no comments, Chairman Greer called for a motion to approve the two lowest bids and the associated budget amendment. Motion: District Commissioner Boseman MOVED, SECONDED by Vice-Chairman Pritchett, to award Contract #03-0045 to Hendrix-Barnhill Company, Inc. in the amount of $1,873,172; award Contract #03-0096 to Triangle Grading and Paving, Inc. in the amount of $2,949,452.45; approve the associated budget amendment; and authorize the Chairman to execute the necessary contract documents. Upon vote, the MOTION CARRIED UNANIMOUSLY. Copies of the contracts are on file in the Legal Department. Budget Amendment #2003-15-Kings Grant Sewer Adjustment Debit Credit Installment Loan Proceeds$6,521,291 Extended Project Expense$6,521,291 NEW HANOVER COUNTY WATER AND SEWER DISTRICT BOOK 2 MINUTES OF REGULAR MEETING, NOVEMBER 25, 2002PAGE 757 Explanation: To increase the project budget for anticipated costs of Sections II and III of the Kings Grant project. APPROVAL OF CONTRACT AMENDMENT TO CONTRACT #01-0167B WITH W. K. DICKSON, INC. FOR CONSTRUCTION ADMINISTRATION AND INSPECTION OF THE SEWER PROJECT FOR KINGS GRANT, SECTIONS I AND II County Engineer, Wyatt Blanchard, reported that the construction of the first section of the Kings Grant sewer system is scheduled to begin this month. The contract with W. K. Dickson, Inc. provides for construction administration and inspection, but the contract must be amended to provide the funding. The Budget Amendment (#2003-15) just adopted by the District Board includes funding for construction administration and inspection services. Chairman Greer asked if any member of the District Board would like to comment. Vice-Chairman Pritchett asked if an oversight request for Section III of the Kings Grant Project will be submitted. County Engineer Blanchard responded that a construction administration and inspection request will be submitted for Section III in approximately two months; however, funds have already been included in Budget Amendment #2003-15. Motion: District Commissioner Caster MOVED, SECONDED by District Commissioner Boseman, to approve a contract amendment to Contract #01-0167B with W. K. Dickson, Inc. in an amount not to exceed $67,792 for construction administration and $156,750 for inspection services for Sections I and II of the King Grant Project, and authorize the County Manager to sign the contract amendment. Upon vote, the MOTION CARRIED UNANIMOUSLY. A copy of the contract amendment is on file in the Legal Department. AWARD OF CONTRACTS #02-0262-1 AND #02-0262-3 FOR SEWER CONSTRUCTION IN DIVISIONS I AND III OF THE MIDDLE SOUND SEWER PROJECT AND APPROVAL OF BUDGET AMENDMENT # 2003-16 District Commissioner Boseman requested to be recused from voting on Items 4 and 5 since she just purchased a house in Queens Point and feels the sewer project will benefit the value of her property. Motion: District Commissioner Caster MOVED, SECONDED by Vice-Chairman Pritchett, to recuse District Commissioner Boseman from voting on Items 5 and 6 for the purpose stated. Upon vote, the MOTION CARRIED 4 TO 0. County Engineer Blanchard reported that the following bids were received in the Engineering Department to begin sewer construction in Divisions I and III of the Middle Sound Project: NEW HANOVER COUNTY WATER AND SEWER DISTRICT BOOK 2 MINUTES OF REGULAR MEETING, NOVEMBER 25, 2002PAGE 758 Division I Ralph Hodge Construction $ 5,054,217.50 Division IIID.F. King Construction $ 946,773.24 Chairman Greer requested County Engineer Blanchard to discuss why Division II was not being considered as part of the bid award. County Engineer Blanchard explained that Ralph Hodge Construction Company notified the County that a mistake was made in developing the bid for Division II by failing to add 20 percent for overhead and profit. After a review of the bid, Staff felt that a mistake did occur and the contractor should be able to withdraw the bid. He advised that Item 6 on the agenda will address this issue. After hearing no comments from the District Board, Chairman Greer called for a motion to award bids for Divisions I and III. Motion: District Commissioner Caster, MOVED, SECONDED by Vice-Chairman Pritchett, to award Contract #02-0262-1 to Ralph Hodge Construction Company in the amount of $5,054,217.50 to construct sewer lines in Division I; award the Contract #02-0262-3 to D.F. King Construction in the amount of $946,773.24 to construct sewer lines in Division III; approve associated Budget Amendment #2003-16; and authorize the Chairman to execute the necessary contract documents. Upon vote, the MOTION CARRIED 4 to 0 as follows: Ayes:Chairman Greer Vice-Chairman Pritchett District Commissioner Caster District Commissioner Davis Recused:District Commissioner Boseman Copies of the contracts are in file in the Legal Department. Budget Amendment #2003-16-Middle Sound Sewer Project Adjustment Debit Credit Installment Loan Proceeds$3,094,023 Extended Project Expense$3,094,023 Explanation: To increase the project budget for anticipated costs of Divisions I and II of the Middle Sound Sewer Project. NEW HANOVER COUNTY WATER AND SEWER DISTRICT BOOK 2 MINUTES OF REGULAR MEETING, NOVEMBER 25, 2002PAGE 759 RELEASE OF BID SUBMITTED BY RALPH HODGE CONSTRUCTION COMPANY FOR CONTRACT #02-0262-2 AND AWARD OF CONTRACT #02-0262-2 TO STATE UTILITY CONTRACTORS FOR SEWER CONSTRUCTION IN DIVISION II OF THE MIDDLE SOUND SEWER PROJECT County Engineer Blanchard reported that when bids were received for Division II of the Middle Sound Sewer Project, Ralph Hodge Construction Company submitted a low bid in the amount of $5,870,432.50. However, due to a 20 percent error in calculating the bid, the company has submitted a letter to request the District Board to release the company from the bid. After a review of the bid, Staff feels that a legitimate error was made and the company should be released from the bid and contract requirements for sewer construction in Division II of the Middle Sound Sewer Project. After this notification was received, Staff began negotiations with the next lowest bidder, State Utility Contractors, and the company agreed to reduce the bid by $218,235 for a total bid of $7,093,031. After further discussion, State Utility Contractors agreed to reduce the bid by an additional $46,000. County Engineer Blanchard requested the District Board to award the bid to State Utility Contractors in the amount of $7,093,031 with a change order prepared to further reduce the contract by $46,000 once the contract has been awarded. He advised that Staff could rebid Division II of the project, but when the 20 percent error made by Ralph Hodge Construction Company is added to the company’s bid of $5,870,432.50 and the reductions made by State Utility Contractors are taken into consideration, the bid amounts are almost the same. With the time involved in rebidding the project and the small difference in the bid awards, Staff recommends awarding the bid to State Utility Contractors. Hearing no comments from the District Board, Chairman Greer called for a motion. Motion: District Commissioner Caster MOVED, SECONDED by Vice-Chairman Pritchett, to release the Ralph Hodge Construction Company from the bid contract requirements and bid bond for constructing sewer lines in Division II of the Middle Sound Sewer Project; award Contract #02-0262- 2 to State Utility Contractors in the reduced amount of $7,093,031; authorize Staff to prepare a change order in the amount of $46,000 to further reduce the contract submitted by State Utility Contractors after award of the contract, and authorize the Chairman to execute the necessary contract documents. Upon vote, the MOTION CARRIED AS FOLLOWS: Ayes:Chairman Greer Vice-Chairman Pritchett District Commissioner Caster District Commissioner Davis Recused:District Commissioner Boseman NEW HANOVER COUNTY WATER AND SEWER DISTRICT BOOK 2 MINUTES OF REGULAR MEETING, NOVEMBER 25, 2002PAGE 760 A copy of the contract is on file in the Legal Department. APPROVAL OF CONTRACT AMENDMENT TO W. K. DICKSON CONTRACT #99-0395 TO DESIGN A FOUR MILLION GALLON PER DAY WATER TREATMENT PLANT AND WELLFIELD AND APPROVAL OF ASSOCIATED BUDGET AMENDMENT # 2003-17 County Engineer, Wyatt Blanchard, advised that on September 16, 2002, a presentation was made by W. K. Dickson, Inc. concerning the feasibility of constructing a groundwater treatment plant and wellfield. After hearing the presentation, the District Board directed Staff to negotiate a contract amendment with W. K. Dickson, Inc. to provide engineering design services to construct a 4,000,000 gallon per day water plant and wellfield in the northern part of the New Hanover County. A proposal has been received from W. K. Dickson, Inc. in the amount of $814,515 and Staff has prepared the associated budget amendment if the contract amendment is approved by the District Board. Chairman Greer asked if any member of the District Board would like to comment. Commissioner Boseman referenced the letter from Richard K. Spruill, Ph.D., Hydrogeologist and asked why the N. C. Division of Water Resources was not requested to review the study. She also asked if Staff had discussed the possibility of purchasing water from the City, which would be cheaper and less costly to the citizens. County Engineer Blanchard responded that purchasing water from the City would be cheaper than constructing a water treatment plant; however, there is an immediate need to provide a better quality of water to people living in the northern part of New Hanover County regardless of whether the water is purchased from the City or a water treatment plant is constructed. He also stated that the Division of Water Resources did not review the study but noted that Mr. Rick Shiver was on the committee that analyzed the groundwater study conducted by Mr. Ed Andrews. Assistant County Manager Dave Weaver stated that Mr. Rick Shiver does not work with the N. C. Division of Water Resources; however, he is a groundwater hydrogeologist who works with the Division of Water Quality. At one time, Mr. Shiver served as the State’s key person who assessed and permitted any type of groundwater activity. With reorganization of these departments by the State two years ago, the Division of Water Resources is now responsible for groundwater activities. A Groundwater Task Force was formed by the County approximately six years ago and Mr. Shiver served as a member of this group. All persons on the Task Force signed off and accepted the Phase II Groundwater Study conducted by Ed Andrews, a Consulting Hydrogeologist. Mr. Ed Andrews informed the Board that the letter received from Dr. Spruill had some good points and some inaccuracies. One minor concern was the use of early time data, and there was an inaccuracy about the transmissivity and values used in the models. Regardless of professional disagreements, the models are a good starting point. There is no doubt about the wellfield being able to provide 8 to12 million gallons of water per day. There is sufficient water to commence with constructing the proposed water treatment plant. Once the 4,000,000 gallon per day water treatment NEW HANOVER COUNTY WATER AND SEWER DISTRICT BOOK 2 MINUTES OF REGULAR MEETING, NOVEMBER 25, 2002PAGE 761 plant is operational, the models will be refined and will become extremely accurate. The beginning of the operational process will be a verification stage and it will provide sufficient data to know if the water capacity is beyond 8 to 12 million gallons per day. Discussion followed on treating salt water intrusion. Mr. Andrews advised that the proposed water treatment plant will be able to treat salt water intrusion through the reverse osmosis process. By having a central system, the District will be able to manage and develop long-term treatment of salt water intrusion. He urged the Board to move forward with the proposed project to provide good water to the northern section of New Hanover County. Mr. Rod Andrew, a consulting engineer with Andrew and Kuske, commented on groundwater being a major resource and he urged the District Board to move forward with constructing a water treatment plant and wellfield. He advised that the proposed project will allow the District to provide quality water to the northern part of the County at a rate competitive to the rate being charged by the City of Wilmington. It is important to understand that the City of Wilmington uses surface water coming down the Cape Fear River that is exposed to problems upstream. For example, the recent drought reduced the level of water in the river, which reduced the quality of the water and required more treatment. The District will not have these problems in a well managed groundwater system. Chairman Greer expressed appreciation to Mr. Ed Andrews and Mr. Rod Andrew for the comments and stated that he felt having two water sources for citizens living New Hanover County will be a real advantage in the future. After hearing no further comments, Chairman Greer called for a motion to move forward with the final design of the water treatment plant. Motion: District Commissioner Caster MOVED, SECONDED by District Commissioner Boseman, to authorize a contract amendment with W.K. Dickson, Inc. in the amount of $814,515 and approve the associated budget amendment. Upon vote, the MOTION CARRIED UNANIMOUSLY. A copy of the contract amendment is on file in the Legal Department. Budget Amendment #2003-17-Wellfield and Treatment System Adjustment Debit Credit Installment Loan Proceeds$814,515 Extended Project Expense$814,515 Explanation: To increase the project budget for the bid award to W.K. Dickson, Inc. NEW HANOVER COUNTY WATER AND SEWER DISTRICT BOOK 2 MINUTES OF REGULAR MEETING, NOVEMBER 25, 2002PAGE 762 ADJOURNMENT Chairman Greer called for a motion to adjourn the meeting. Motion: District Commissioner Caster MOVED, SECONDED by Vice-Chairman Pritchett, to adjourn the meeting. Upon vote, the MOTION CARRIED UNANIMOUSLY. Chairman Greer adjourned the meeting at 12:14 p.m. Respectfully submitted, Lucie F. Harrell Clerk to the District Board