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2001-10-15 Water & Sewer WS NEW HANOVER COUNTY WATER AND SEWER DISTRICTBOOK 2 WORK SESSION, OCTOBER 15, 2001 PAGE 678 ASSEMBLY The District Board of Commissioners of the New Hanover County Water and Sewer District held a Work Session on Monday, October 15, 2001, at 3:00 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. Chairman Greer called the meeting to order and stated that the purpose of the Work Session was to hear a report on the study performed by W.K. Dickson regarding the construction of a water treatment plant in the northern part of the County. He turned the meeting over to Mr. Dan Dawson to present the report. REPORT ON WATER FIELD AND WATER TREATMENT FACILITY STUDY Mr. Dan Dawson advised that W. K. Dickson had worked with the firm of Arcadis Geraghty & Miller in preparing the study. The following power point presentation was shown on the concept, design, and pre-design of the well field and water treatment plant. Project Objective: The objective is to develop a dependable source of high quality water, meet current and future needs, and prepare for expansion as the County continues to grow. Project Background: In the early 1970s, the U. S. Geological Survey did a detailed groundwater study and published a report that is still being used. In the 1980s, Dave Weaver prepared a study on developing groundwater. In 1996, there was a groundwater study prepared by Ed Andrews to determine the most suitable areas of the County to develop groundwater. At that time the City and County had established a Groundwater Task Force that determined the northeastern part of the County to be the most suitable for developing a water supply with a high quality of water that could be used in conjunction with surface water systems. Project Tasks: •Prepare preliminary layout of the well field •Recommend raw water main sizes and routes •Evaluate potential treatment processes •Prepare concept design of the proposed treatment system •Conduct preliminary scoping meetings with regulatory agencies •Evaluate options for concentrate disposal •Conduct limited feasibility analysis of aquifer storage and recovery wells •Recommend finished water main sizes and routes •Prepare a final concept design report NEW HANOVER COUNTY WATER AND SEWER DISTRICTBOOK 2 WORK SESSION, OCTOBER 15, 2001 PAGE 679 Existing Demands and Facilities: Water Consumption •Approximately 7,440 metered customers •Mostly single-family residences •Approximate bi-monthly demand per home is 12,000 gallons •Approximate monthly demand per home 6,000 gallons • Bi-Monthly Costs per Residence (Estimated) •Average Usage Bill$21.75 •Softening Expenses$20.00 •Total Cost$41.75 •The average cost per home is $21.00 •The average cost per 1,000 gallon is $3.50 The following information was presented on published City billing rates: Bi-Monthly •Inside City Rate$27.50 •Outside City Rate$58.00 Monthly •Inside City Rate$13.75 •Outside City Rate$29.00 Average Cost per 1,000 Gallons •Inside City Rate$ 2.29 •Outside City Rate$ 4.83 The County is managing six existing water systems in Wrightsboro-Castle Hayne, NorthChase, Murrayville Road, Marsh Oaks-Brickstone on both sides of Market Street, Prince George Estates and Kings Grant. Wrightsboro, NorthChase, Murrayville and Marsh Oaks are all interconnected at this time. Prince George Estates is separate, but it will be connected in the near future. Kings Grant is separate from the other systems because the elevation of the water tank is not compatible with other water systems at this time. The Wrightsboro Water System is consuming what it is producing. The NorthChase Water System produces 29,000 gallons per day but is consuming over 300,000 gallons per day from interconnections with Murrayville and the Bayshore area. The Murrayville Water System is about even, and the Marsh Oaks-Brickstone Water System produces an excess of 375,000 gallons per day. The County is producing about 1.76 to 1.8 million gallons of water per day, consuming about 1.6 million gallons per day. NEW HANOVER COUNTY WATER AND SEWER DISTRICTBOOK 2 WORK SESSION, OCTOBER 15, 2001 PAGE 680 Immediate demands for connections are the Cape Fear Community College North Campus, the new Jail Facility, and the Division Headquarters Office for the NCDOT in Castle Hayne. There is potential demand for the Porters Neck area, Figure Eight Island and Sharon Hills near the NCDOT facility. These connections represent an increase in use from 1.6 million gallons per day to 2.4 million gallons per day within the next 18 months. Projected Demands: The Planning Department has estimated that by the year 2020, approximately 7,500 new homes will be connected to the water system. This will create a total of 15,000 customers in the northern part of the County. If the immediate demand is added to the existing demand plus future demand, the total demand will be 3.9 million gallons per day for the 20 year build-out. In order to meet this demand, 16 wells producing about 250,000 gallons per day will be required as well as a 4 million gallon per day water treatment plant. Proposed Facilities: An area between Highway 17 and the new Northern By-Pass was defined as having the most suitable groundwater. A well field study was performed and it was determined that a reasonable yield for a well would be 350 gallons per minute per well for an average daily flow of 250,000 gallons. The wells will need to be installed approximately 1,000 feet apart. This will allow for careful monitoring of the withdrawal rate so the aquifer can be protected. The location of the wells is important because these wells will be used to provide raw water to the planned water treatment plant. Several types of water treatment plants were studied and narrowed down to two: (1) a conventional plant; and (2) a membrane treatment plant. Both plants would cost $9.7 million. The membrane treatment plant was selected based on economics, ease of operation, flexibility and the high quality of water this process produces. Other facilities reviewed were distribution and storage requirements with the primary focus on trunk mains to get the water produced at the plant and delivered to the system for consumer use. An elevated tank is an enhancement needed, and one is being built at the new Jail. A pumping facility is a potential need at the NorthChase water tank, and some distribution mains need to be upgraded to provide a better distribution of water across the system. Estimated Cost: The following figures were presented: •Wells$ 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 Million MGD Plant$14,917,000 Operation and Maintenance Costs: •Annual Wells and Water Treatment Plant Costs$874,000 •Cost per 1,000 Gallons$ 1.20 NEW HANOVER COUNTY WATER AND SEWER DISTRICTBOOK 2 WORK SESSION, OCTOBER 15, 2001 PAGE 681 •Distribution System O&M Cost per 1,000 gallons$ 0.45 •Total Operation and Maintenance Cost per 1,000$ 1.65 Total Costs: •Construction & Interest per 1,000 gallons$ 1.83 •Operation & Maintenance per 1,000 gallons$ 1.65 •Total Cost per 1,000 gallons$ 3.48 •Average Residence Monthly Consumption in Gallons 6,000 •Average Cost per Residence$ 20.80 In concluding the presentation, Mr. Dawson presented charts of county and municipal water systems showing the average monthly cost based on usage of 6,000 gallons per month. He then turned the meeting over to Finance Director Bruce Shell to discuss the financial aspects of the project. Finance Director Shell presented a spreadsheet showing two different funding scenarios : (1) construction of a 4 million gallon daily water treatment plant over a period of eight years; and (2) construction of a 4 million gallon daily water treatment plant in Phases I and II over a period of 10 years. If a rate is set at $3.75 (which is comparable to other counties) in the eighth year, the system will break even and then begin to accumulate some retained earnings to handle future capital costs. The rate will also allow the District to float some of the loss in the beginning of the operation. Discussion was held on the amount of revenue generated from adding a penny to the $3.75 rate. County Manager O’Neal advised that one penny would probably generate revenue in the amount of $54,000. Chairman Greer advised that Staff was waiting for a decision from the District Board to decide where to go from this point. In the past, companies have approached Staff about designing, building, and operating a water treatment facility for the District. The Board may want to pursue this matter and direct Staff to have these companies provide information on the cost of this service. If the information received is not acceptable, the District will then have to decide if an additional $15 million in debt can be incurred when the District is involved with the City in upgrading the Northside Wastewater Treatment Plant. Finance Director Shell advised that the District’s debt had increased; however, if the water treatment plant is a priority, the project can be financed. Discussion followed on the 1.6 million gallon water tower for the new Jail. Chairman Greer asked if there was enough water capacity in the existing wells to fill the Jail tower. NEW HANOVER COUNTY WATER AND SEWER DISTRICTBOOK 2 WORK SESSION, OCTOBER 15, 2001 PAGE 682 County Engineer Blanchard responded there was not sufficient capacity to meet the needs of the Jail. Commissioner Boseman asked if the cost of an additional well had been included in the total cost of the new Jail. County Engineer Blanchard responded that he was not sure if the actual cost of the well was included. Vice-Chairman Pritchett stressed the importance of having more information on the wells and she suggested placing this item on the next agenda. After discussion, the District Board requested Staff to place additional information regarding the wells on the agenda for the November 19, 2001, meeting and to move forward with obtaining information from companies interested in designing, building, and operating a water treatment plant for the District. Once this information is received, a report should be forwarded to the District Board. ADJOURNMENT Chairman Greer called for a motion to adjourn. Motion: District Commissioner Caster MOVED, SECONDED by District Commissioner Boseman to adjourn. Upon vote, the MOTION CARRIED UNANIMOUSLY. Chairman Greer adjourned the meeting at 4:15 P.M. Respectfully submitted, Lucie F. Harrell Clerk to the District Board