2001-05-07 Water & Sewer Distri
NEW HANOVER COUNTY WATER AND SEWER DISTRICTBOOK 2
REGULAR MEETING, MAY 7, 2001 PAGE 633
ASSEMBLY
The District Board of Commissioners of the New Hanover County Water and Sewer District
held a Regular Meeting Monday, May 7, 2001, at 6:20 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 William A. Caster; District
Commissioner Ted Davis, Jr.; County Manager, Allen O’Neal; County Attorney, Wanda M. Copley;
and Clerk to the District Board, Lucie F. Harrell.
NON-AGENDA ITEMS
Chairman Greer announced that time had been reserved to allow 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.
Mr. Bruce Pennington, a resident of 142 High Tide Drive, spoke on being the owner of a
house in Kings Grant since 1980 and stated that he voted for the sewer bonds in 1984 because the
residents in Kings Grant were told that sewer would be provided to the area. Since that time, he has
paid taxes and now he and other residents are being told that in order to receive sewer, a large
assessment will have to be paid. The County Commissioners owe these residents some type of
consideration. Since there are no funds to pay for construction of the sewer system, he would
suggest raising the tax rate for the entire county instead of jacking up a large assessment fee for the
residents of the Kings Grant area.
Ms. Mary Anna Bessellieu, representing the picket group protesting the proposed increase
in the property tax, spoke on the need for the County Commissioners to do a better job in prioritizing
needs and knowing where the money is spent. The property owners in the County cannot continue
to pay additional increases in the tax rate each year, and as policy makers, the County Commissioners
should honor the public trust and do what is right for the citizens.
APPROVAL OF MINUTES
Chairman Greer requested a motion to approve the minutes of the April 16, 2001 meeting.
Motion:
District Commissioner Caster MOVED, SECONDED by District Commissioner Boseman,
to approve the minutes of the Regular Meeting held on April 16, 2001, as presented by the Clerk to
the District Board. Upon vote, the MOTION CARRIED UNANIMOUSLY.
PRESENTATION ON THE KINGS GRANT SEWER SYSTEM
County Manager O’Neal referenced the desire of the residents in Kings Grant to speak about
their concerns regarding the Kings Grant Sewer System and he requested County Engineer Wyatt
Blanchard to present a brief status report.
NEW HANOVER COUNTY WATER AND SEWER DISTRICTBOOK 2
REGULAR MEETING, MAY 7, 2001 PAGE 634
County Engineer Blanchard reported that the contracts with the engineering firms of W. K.
Dickson/McKim and Creed and Kimley-Horn have been signed and are being routed for signature
by the Chairman of the District Board. The preliminary work has been performed and the design of
the Kings Grant Sewer System should be completed within six to nine months. Once the design is
completed, a period of six to nine months will be required to receive the necessary permits. The
project should be completed by late 2003. The estimated total project cost based on early design
figures is $15 million to serve 1,700 homes. The current tap fee a property owner to connect to the
system is $900. This fee must be paid within six months from the date of sewer availability as
outlined in the Water and Sewer Ordinance.
Chairman Greer explained that once water and sewer becomes available to an area, the
property owners can currently connect to the system for $900 within the first six months; however,
if a property owner waits more than six months to connect, the tap fee will increase to $1,800. He
explained that no specific figures have been discussed or decided by the District Board for the Kings
Grant Sewer Project.
Chairman Greer asked if any one from the public would like to comment.
Ms. Betty Scott, a resident of 4630 Manchester Drive, presented a resolution and a petition
with 700 signatures of residents living in the Kings Grant area and stated that Mr. Mark Cope would
read the resolution.
Mr. Mark Cope, a resident of 4910 Rye Lane, requested the residents from Kings Grant to
stand and show their support for the resolution. He read the following resolution into the record:
KINGS GRANT AREA SEWER RESOLUTION OF APRIL 16, 2001
KINGS GRANT AREA CONCERNED CITIZENS GROUP
BE IT RESOLVED:
(1)WHEREAS,
all Kings Grant area property owners have paid property taxes since the
inception of the New Hanover County Sewer Bond Issue in 1984, which promised completion
in 1993, amended to 2009, and in October 2000 amended to the year 2003; and
(2)WHEREAS,
the majority of Kings Grant area property owners voted in favor of the bond
issue of March 9, 1984, which set infrastructure construction fees at a $200 tap fee; and
(3) WHEREAS,
Kings Grant area “postage stamp” sized lots were at best minimal “filled”
wetland lots not substantial in size to accommodate more than two drain field repairs before
New Hanover County Health Department codes were violated, thereby, making said
properties useless, uninhabitable and unmarketable when failure conditions occur, and that
NEW HANOVER COUNTY WATER AND SEWER DISTRICTBOOK 2
REGULAR MEETING, MAY 7, 2001 PAGE 635
according to late New Hanover County Health Department reports, “the condition is critical”;
and
(4)WHEREAS,
surface water run-off from the Kings Grant area communities enters the Smith
Creek estuary, one of the highest in fecal pollution as evidenced by the county’s own ground
water pollution reports; and,
(5) WHEREAS,
allocated bond issue monies have been diverted to construction of sewerage
mains to new subdivisions; and
(6) WHEREAS,
New Hanover County has raised the property tax millage and the assessed
values while due to the lack of county sewer, real estate values are declining; and
(7) WHEREAS,
the New Hanover County Commissioners are asking each Kings Grants area
resident to pay for the infrastructure construction costs that are far greater than the original
bond agreement; and
(8) WHEREAS,
County sewer fund monies from sales taxes, bond issue money, sewer customer
profits, etc. have been found to subsidize other county construction projects; and
(9) WHEREAS,
the makeup of Kings Grant area communities citizens comprise a substantial
percentage of the counties work force: We take umbrage in being overlooked by our county
government;
THEREFORE,
it is our signature ratified resolution that New Hanover County provide the sewer
service to the Kings Great area communities as resolved by the Commissioners on October 16, 2000
without infrastructure construction costs greater than $200.00 per address as per the 1984 bond issue.
Should the county government continue its present course of action regarding infrastructure costs
(tap fees), the residents of the Kings Grant area will sue for class action remedy in the courts of law.
Instituted this day of April 16, 2001 by the attached signatures.
Mr. Cope requested the District Board to consider the statements in the resolution and do
what is right for the citizens of the Kings Grant area.
Mr. George C. Geissler, a resident of 1206 Kings Grant Road, asked if the original plan for
the bond issue included the provision of sewer to the Kings Grant area.
County Engineer Blanchard responded that the original plan did include the Kings Grants area
in 1984. After Phase I was completed, it was found that the amount of money estimated to perform
the project was not adequate to sewer the areas outlined in the plan. At that time, the District Board
NEW HANOVER COUNTY WATER AND SEWER DISTRICTBOOK 2
REGULAR MEETING, MAY 7, 2001 PAGE 636
decided to proceed on an as needed basis. The problem was not having enough money to perform
the job.
Mr. Richard Englehart, a resident of 4613 Terry Lane, objected to the fact that areas in
original plan for the sewer system have not received sewer service as scheduled while new
developments have received the service. He requested an explanation of why this has occurred.
Chairman Greer responded that no members of the current District Board of Commissioners
were in office when the $46 million sewer bond issue was approved by the voters in 1984; however,
it was his understanding that most of the bond money was spent toward providing sewer to areas
along the waterway to improve water quality. At that time, the County hired an engineering firm to
conduct an assessment and provide an estimated cost for construction of a sewer system in the
developed area of the unincorporated county down to Snow’s Cut. The study was performed and
the District Board felt the study and estimated cost were correct. A bond referendum was placed
before the voters and it was approved. As the County began to experience rapid growth, it became
apparent that growth projections were not correct and the bond issue was insufficient to cover the
cost of completing the system. The District Board then decided to extend the sewer system as
scheduled under the original Sewer Master Plan on a step-by-step basis with revenue generated from
the fees collected and the portion of the two ½ cent sales tax not designed for use by the schools.
As developers requested sewer for new developments many of them offered to pay for installing
sewer lines. For example, if a developer requests sewer for a new development and offers to pay for
installing a 10 inch line, the District Board requires the developer to pay for installing a 14 inch line
so this line can be used in the future to serve other areas without placing any of the cost on the
taxpayers. In the situation with Kings Grant, numerous septic tank failures occurred in the area and
the Health Department approached the District Board about this becoming a public health issue. The
District Board placed the Kings Grant project at the top of the scheduled list and has moved forward
with hiring engineers to design the system. The major problem with extending the sewer has been
a lack of funding.
Mr. Englehart strongly objected to residents in the Kings Grant area paying for the sewer
system for the past 16 years and not receiving sewer service. He also expressed concern for the
residents being requested to pay a large assessment and a tap fee of $900 instead of $200, and he
requested the Board to be fair and help the residents of Kings Grant.
Ms. Elizabeth Cope, a resident of 4910 Rye Lane, asked if any money had been taken from
the Water and Sewer District to be used for other purposes.
Finance Director Bruce Shell explained that the Water and Sewer District account was set up
to be funded by operator user fees and the portion of the two half-cent sales tax not designated for
schools. As the bond money was spent, additional debt had to be incurred to install interceptors to
make the system more efficient. No additional funds have been placed in the Water and Sewer
account; however, some of the sales tax has been used in other areas.
NEW HANOVER COUNTY WATER AND SEWER DISTRICTBOOK 2
REGULAR MEETING, MAY 7, 2001 PAGE 637
Ms. Cope referenced a debit of $331,580 from the Water and Sewer District approved by the
District Board on October 16, 2000, and she requested an explanation.
County Engineer Blanchard explained that the budget amendment was a lateral transfer of
funds. Money was received after the hurricane to perform snag and drag work to clean out ditches.
In order to move forward with drainage projects without long delays, funds in the amount of
$331,580 were removed from the Water and Sewer Account to perform the work and this money was
reimbursed to the Water and Sewer Account from the hurricane funds received for this purpose.
Ms. Cope asked how much money had been spent to date on the Sewer System.
County Engineer Blanchard responded that $120 million had been spent on the sewer system
with approximately 50% of funding furnished by developers.
Mr. Jeff Williams, a resident of 4638 Spring View Drive, referenced the bond referendum
pamphlet published by the County submitted in the package with the resolution submitted by Mr.
Cope and read the following statements that were presented as facts to the public:
“The purpose of the bond issue is to finance a sewer system in the unincorporated areas of
the County north of Snow’s Cut. The connection fee will be $200 for a typical residence and
a service fee of $5.00 per month plus a user fee of $1.60 per 1,000 gallons of discharge. A
minimum of $9.00 per month will be imposed. There will be no assessments or other Sewer
District charges. A very thorough and detailed financial plan has been developed so that user
charges, grants, and other County funds will pay for all costs associated with building and
operating the sewer system. It is not anticipated that property taxes would have to be
increased. Part of the proceeds from the ½ cent sales tax authorized by the 1983 General
Assembly and Federal Revenue Sharing will be the prime sources of local funding. Some
areas of the County might be annexed by the City of Wilmington prior to the construction of
the system, such as Areas A and B. When the annexation occurs, residents in areas A and B
will remain in the Sewer District.”
In closing, Mr. Williams informed the Board that this information was given to the taxpayers
before voting on the sewer bond. He objected to the manner in which the sewer has been extended
and stated that the residents of Kings Grant have not received what was promised to them.
Ms. Melinda Surgarick, a resident of 1013 Coleridge Drive, referenced the statement made
by the Finance Director regarding use of the ½ cent sales tax revenue in other areas and asked if
funding designated for Kings Grant had been reallocated to other developments on Gordon Road.
She expressed concern for the Kings Grant area not being considered a priority when the as needed
basis was established for extending sewer, and she asked if there was a record showing where and
how funds have been spent since passage of the 1984 bond issue.
NEW HANOVER COUNTY WATER AND SEWER DISTRICTBOOK 2
REGULAR MEETING, MAY 7, 2001 PAGE 638
Chairman Greer responded that County Engineer Blanchard would be glad to provide the
maps from 1984 to the current time and financial records to show how the money has been spent
since the bond issue. He requested Ms. Surgarick to contact Mr. Blanchard about obtaining this
information.
Mr. Aaron Tyrone McLean, referenced watching TV every day and said that America was
true and faithful to all mankind. He noted that if everybody would work together, the issue before
the District Board could be resolved. He requested the District Board to address the issues of
concern presented by these residents since they are the elected officials appointed to resolve
problems. He also expressed concern for the money being spent with no accounting for how it is
spent, and for people being told that something will be done with nothing being done.
In closing the public comment section, Chairman Greer expressed appreciation to the speakers
for their comments and he recognized the number of residents attending the meeting. He stated that
the District Board will try to do what is right for the residents; however, with increasing demands
from the State for additional funding to operate schools, courts, jails, and the Department of Social
Services, New Hanover County dollars are being stretched thin. He spoke on understanding the
concerns expressed by the residents and stated that bids for the Kings Grant Sewer Project have been
awarded and the sewer will be provided as soon as possible.
Copies of the resolution, signed petition, and flyer are hereby incorporated as a part of the
minutes and are contained in W&S Book II, Page 30.
ADJOURNMENT
Chairman Greer called for a motion to adjourn.
Motion:
District Commissioner Caster MOVED, SECONDED by Vice-Chairman Pritchett to
adjourn. Upon vote, the MOTION CARRIED UNANIMOUSLY.
Chairman Greer adjourned the meeting at 6:50 P.M.
Respectfully submitted,
Lucie F. Harrell
Clerk to the Board