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NEW HANOVER COUNTY WATER AND SEWER DISTRICTBOOK 2
REGULAR MEETING, JANUARY 19, 2000 PAGE 549
ASSEMBLY
The District Board of Commissioners of the New Hanover County Water and Sewer District
met in Regular Session on Wednesday, January 19, 2000, at 11:08 a.m. in the Assembly Room of the
New Hanover County Courthouse, 24 North Third Street, Wilmington, North Carolina.
Members present were District Commissioner Buzz Birzenieks; District Commissioner Ted
Davis, Jr.; District Commissioner William A. Caster; Vice-Chairman Charles R. Howell; Chairman
Robert G. Greer; 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 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. Steve Vosnock, a resident of 1109 Marathon Avenue, Castle Hayne, North Carolina,
requested a status report on construction of the sewer line to provide sewer capacity to Del Labs and
the Pender County School System.
County Engineer, Wyatt Blanchard, reported that approximately three weeks ago, the
Engineering Department received a preliminary set of plans as to how Pender County might connect
to the District’s sewer line; however, no definite plan has been approved by the Pender County Board
of Commissioners.
Chairman Greer requested Mr. Vosnock to check with Pender County to obtain the latest
information on the status of the sewer line.
APPROVAL OF MINUTES
Motion:
District Commissioner Caster MOVED, SECONDED by District Commissioner
Birzenieks to approve the minutes of the Regular Meetings of December 6, 1999, and January 3,
2000, as presented by the District Clerk to the Board.
APPROVAL FOR RELEASE OF CAROLINA EAST DEVELOPERS, INC. FROM
CONTRACT #96-0452-A FOR CONSTRUCTION OF SEWER FORCE MAIN ALONG THE
RIVER ROAD FROM LAMBS BLUFF TO THE MOTTS CREEK PUMP STATION
Chairman Greer reported that he and County Engineer Blanchard attended a meeting with
representatives from Carolina East Developers about their request to withdraw from Contract #96-
0452-A for construction of a sewer force main along River Road from the Lambs Bluff to Motts
NEW HANOVER COUNTY WATER AND SEWER DISTRICTBOOK 2
REGULAR MEETING, JANUARY 19, 2000 PAGE 550
Creek Pump Station. As a result of this meeting, the request being made today is different from the
information presented in the agenda packet.
Chairman Greer explained that when a developer agrees to pay and construct the sewer line
to provide sewer to a new development, an agreement is negotiated between the developer and the
New Hanover County Water and Sewer District. In order for the developer to recoup the cost of
constructing the sewer line, a development fee of $450 is charged for any property owner connecting
to the line. This money is paid to the District and in turn forwarded to the developer until sewer line
construction costs have been paid, or until the date when the District would have originally provided
sewer to this area as outlined in the Sewer Master Plan.
Chairman Greer advised that in this case, Landmark Development was one of three parties
involved in the sewer construction contract. The other parties were East Coast Developers and the
New Hanover County Water and Sewer District. Landmark Development and East Coast
Developers, Inc. agreed to pay $20,000 each and the District agreed to pay $60,000 to share the
sewer line construction cost estimated at $100,000. After the contract was signed, the County
purchased property on Carolina Beach Road owned by Landmark for the Veterans Park School
Complex, which required the District to provide sewer to the area. Since Landmark had sold all of
its property, the company asked to be released from the contract and agreed to forfeit the $20,000.
The District Board agreed to release Landmark from the contract in November 1998. Carolina East
Developers, Inc. then sold part of its property to another company, and Carolina East Developers,
Inc. has requested to be released from the contract with forfeiture of the $20,000. However, the
company purchasing the property from Carolina East Developers, Inc. does not feel that the
development fee of $450 per lot should be paid when they were one of the original parties in the
contract. With the estimated cost of construction at $300,000, the cost per party is now $60,000
instead of $20,000.
Chairman Greer stated after holding the meeting with representatives from East Coast
Developers, Inc., it was agreed to resolve this matter by reducing the $450 development fee to $225
for the remaining 150 lots and prohibit the developer from recouping the money over a period of
years as done under normal circumstances.
District Commissioner Davis asked if this was a fair way to resolve this matter.
County Engineer Blanchard stated when Carolina East Developers, Inc. became aware of the
increase in the estimated contract, the Company requested to be released from the contract with
forfeiture of the $20,000 payment. A letter was received from Attorney Harold Seagle, representing
Carolina East Developers, stating that the remaining portion of Arrondale Subdivision had been sold
and it was felt that a precedent had been set when the District allowed Landmark Development to
withdraw from the contract with forfeiture of the $20,000 after selling the property to New Hanover
NEW HANOVER COUNTY WATER AND SEWER DISTRICTBOOK 2
REGULAR MEETING, JANUARY 19, 2000 PAGE 551
County. He stated the proposed compromise was an excellent way to resolve the matter because the
District will benefit in the long-term.
Attorney Harold Seagle, representing Carolina East Developers, Inc., said the company was
in agreement with the proposed compromise.
District Commissioner Davis requested the motion to clearly state that the developer will
waive any reimbursement from the District in the future.
Motion:
District Commissioner Caster MOVED, SECONDED by District Commissioner
Birzenieks, to release Carolina East Developers, Inc. from Contract #96-0452-A, retain the $20,000,
charge a fee of $225 per lot for the remaining 150 lots in the project, and waive any reimbursement
to Carolina East Developers in the future. Upon vote, the MOTION CARRIED UNANIMOUSLY.
ADJOURNMENT
Motion:
District Commissioner Birzenieks, MOVED, SECONDED by District Commissioner
Caster, to adjourn. Upon vote, the MOTION CARRIED UNANIMOUSLY.
Chairman Greer adjourned the meeting at 11:30 a.m.
Respectfully submitted,
Lucie F. Harrell
Clerk to the District Board