2000-10-16 Water & Sewer Distri
NEW HANOVER COUNTY WATER AND SEWER DISTRICTBOOK 2
REGULAR MEETING, OCTOBER 16, 2000 PAGE 588
ASSEMBLY
The District Commissioners of the New Hanover County Water and Sewer District met in
Regular Session on Monday, October 16, 2000, at 9:51 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 Charles R. Howell;
District Commissioner Buzz Birzenieks; District Commissioner William A. Caster; District
Commissioner Ted Davis, Jr; County Manager, Allen O’Neal; County Attorney, Wanda M. Copley;
and Clerk to the 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 or to comment on an item listed on the Consent Agenda.
He requested all persons speaking to limit their remarks to three minutes.
Mr. Mark Cope, a resident of Kings Grant, asked the following questions.
1. Where is the sewer system that was promised Kings Grant 16 years ago?
2. Why is it so difficult to finish a long overdue job, but easy to approve new projects?
3.Does the District Board think that residents of Kings Grant are willing to accept this
stop gap appeasement method?
Mr. Cope requested the members of the District Board to stop talking and do something
about providing sewer to the Kings Grant area.
Chairman Greer informed Mr. Cope that this item was on the agenda, and the District Board
would be glad to respond to these questions at that time.
APPROVAL OF MINUTES
Chairman Greer called for a motion to approve the minutes.
Motion:
District Commissioner Caster MOVED, SECONDED by District Commissioner Birzenieks,
to approve the minutes of the Regular Meeting of October 2, 2000, as presented by the Clerk to the
District Board. Upon vote, the MOTION CARRIED UNANIMOUSLY.
APPROVAL OF CONTRACT WITH THE N. C. DEPARTMENT OF TRANSPORTATION
(NCDOT) FOR THE REMOVAL OF THE DIVISION DRIVE SEWER PUMP STATION
County Engineer Wyatt Blanchard reported as part of the Smith Creek Parkway extension
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from 23 Street to Castle Hayne Road, the City and NCDOT are constructing a sewer line to serve
industry on Division Drive now being served by a small wastewater treatment plant near the NCDOT
complex. Construction of the sewer line will pass by the County complex on Division Drive which
will allow the District to remove the pump station now serving the County Complex. Staff has
NEW HANOVER COUNTY WATER AND SEWER DISTRICTBOOK 2
REGULAR MEETING, OCTOBER 16, 2000 PAGE 589
requested the City and NCDOT to participate in the project at a cost of $52,735 to remove the pump
station. Payment of this sum will save the District money in the future by not having to operate and
maintain the pump station.
After hearing no questions or comments from the members of the District Board, Chairman
Greer requested a motion.
Motion:
District Commissioner Birzenieks MOVED, SECONDED by District Commissioner Caster,
to authorize the District to participate in the contract with the City of Wilmington and the NCDOT
by paying $52,735 to eliminate the Division Drive sewer pump station. Upon vote, the MOTION
CARRIED UNANIMOUSLY.
PRESENTATION AND STATUS REPORT ON THE PROVISION OF SEWER SERVICE
TO THE KING GRANT AREA
County Engineer Wyatt Blanchard presented the following cost for providing sewer service
to Kings Grant and surrounding areas.
Kings Grant (east and west)$ 6,440,000
Spring View$ 1,394,000
Churchill Estates$ 1,210,000
Crestwood$ 2,204,000
Wildflower$ 1,090,000
Total Cost$12,338,000
The estimated cost was made to determine the magnitude of the project. In addition to the
estimated cost, $2,910,000 will have to be added to pay for the Spring Branch interceptor for a total
project cost of $15,248,000.
Since sewer for this area is not scheduled until the year 2009, wastewater treatment capacity
at the Northside Wastewater Treatment Plant is not available at this time. Design, permitting, and
construction of sewer lines to an area of this size will take approximately three years. Construction
of the Northside Wastewater Treatment Plant expansion is scheduled for completion by December
2003; therefore, both projects would be completed at approximately the same time.
Since the Kings Grants Subdivision is in desperate need of sewer because of failing septic
tanks, the District Board may want to consider funding only portions of this area. If the District
Board decides to provide sewer to the entire area, some source of funding will have to be addressed
and Staff should be authorized to begin the survey and design process in order for the project to be
completed when the Northside Wastewater Treatment Plant expansion is completed.
NEW HANOVER COUNTY WATER AND SEWER DISTRICTBOOK 2
REGULAR MEETING, OCTOBER 16, 2000 PAGE 590
District Commissioner Davis referenced the questions asked by Mr. Cope, and he requested
County Engineer Blanchard to explain why this area has not received sewer as promised.
County Engineer Blanchard explained that the $46 million sewer bond referendum held in
1984 was to secure funds to provide sewer to areas along the waterway as a top priority and then to
other parts of the county. Unfortunately with unprecedented growth that was not projected correctly
at the time of the study, the $46 million in bond proceeds was used to provide sewer from Bradley
Creek to the Whiskey Creek and for the expansion of the Southside Wastewater Treatment Plant.
District Commissioner Caster requested an explanation of the events that have occurred with
the City and County in trying to expand the Northside Wastewater Treatment Plant.
County Engineer Blanchard advised that in 1993, the District received a 4 million gallon per
day NPDES permit for construction of a Northside Wastewater Treatment Plant. An engineer was
hired and a preliminary design of the District plant was submitted to the State for approval. Since
the basic philosophy of the State of North Carolina is to construct regional wastewater treatment
facilities instead of small treatment plants, the District was asked to see if an agreement could be
reached with the City of Wilmington to provide a joint facility. In 1996, a contract was negotiated
with the City for expansion of the City’s Northside Wastewater Treatment Plant. In March 1999, an
engineer was selected to design the combined plant and the District was granted access to the unused
capacity at the Northside Wastewater Treatment Plant.
District Commissioner Davis noted that in simple terms, the District ran out of money. He
then asked if the Kings Grant project would have any impact on the provision of sewer to the Castle
Hayne area.
County Engineer Blanchard stated if the Kings Grant project is approved prior to the
provision of sewer to Castle Hayne, the scheduling of the Castle Hayne project could be impacted.
He explained that construction of a small project in Castle Hayne is scheduled to begin as soon as
permits are received. The design for the major Castle Hayne sewer project will begin in 2002 with
construction starting in 2003, which should be prior to the Kings Grant area.
Vice-Chairman Howell asked if Kings Grant was promised sewer 16 years ago.
County Engineer Blanchard responded when the study was conducted, Kings Grant was
included in the Master Plan with sewer to be provided by 1995.
District Commissioner Birzenieks commented on the last two phases of annexation and asked
if any of these areas needed water and sewer services.
NEW HANOVER COUNTY WATER AND SEWER DISTRICTBOOK 2
REGULAR MEETING, OCTOBER 16, 2000 PAGE 591
County Manager O’Neal responded that most areas had either water or sewer with pockets
of space that were not connected.
District Commissioner Birzenieks stressed the importance of everyone understanding that the
City’s last two annexations were an example of annexation by revenue instead of annexation by need,
which is not the intent of State Statutes for annexation. After referencing the many residents in the
Kings Grant area desperate for sewer, District Commissioner Birzenieks suggested moving forward
with the project and working with the City to expand the Northside Wastewater Treatment Plant.
Chairman Greer noted that unfortunately, the City did not follow the natural progression of
annexation, which would have included the Kings Grant area. He informed the residents that when
the District provides sewer to Kings Grant, the City will probably annex that area.
A lengthy discussion was held on financing the Kings Grant project. Finance Director Bruce
Shell reported that District Boards had basically followed the Master Plan for providing sewer service
to areas as scheduled; however, there have been some exceptions. In these instances, an extra fee has
been charged to allow these residents to receive the sewer service before the scheduled time.
The following funding scenarios were presented on the residents paying a percentage of the
costs:
75%/25% Scenario:
1. If the District pays 75% of the estimated cost of $15,248,000
and the residents pay 25%, the cost to the District would be $11,436,000 and the cost
to the residents would be $3,812,000 with a charge of $2,026 to each individual
customer.
67%/33% Scenario:
2. If the District pays 67% of the estimated cost of $15,248,000
and the residents pay 33%, the cost to the District would be $10,216,160 and the cost
to the residents would be $5,031,840 with a charge of $2,674 to each individual
customer.
50%/50% Scenario:
3. If the District pays 50% of the estimated cost of $15,248,000
and the residents pay 50%, the cost to the District and residents will be $7,624,000
with a charge of $4,051 to each individual customer.
Finance Director Shell noted that these figures include a tap fee without the cost of the
connection from the home to the street. He stated that a review of the ½ cent sales tax use would
be necessary if the District Board decides to move forward with providing sewer to the entire Kings
Grant area.
After discussion of the best way to move forward with the project, County Manager O’Neal
suggested speeding up the process by authorizing Staff to proceed with hiring an engineer to begin
NEW HANOVER COUNTY WATER AND SEWER DISTRICTBOOK 2
REGULAR MEETING, OCTOBER 16, 2000 PAGE 592
the survey and design process and work with the City in expanding the Northside Wastewater
Treatment Plant.
Chairman Greer explained that once the survey and design processes are completed, the
District will have a much better idea of the actual cost of the project. He also suggested holding a
Public Hearing to discuss funding scenarios with the residents.
Commissioner Birzenieks noted that every time discussions of this type are held about a joint
City and County effort, he feels that consolidation of the two governments makes more sense.
After hearing no other remarks, Chairman Greer called for a motion.
Motion:
District Commissioner Davis MOVED, SECONDED by District Commissioner Birzenieks,
to authorize Staff to proceed with the survey, design, and permitting process for providing sewer to
the Kings Grant area. Upon vote, the MOTION CARRIED UNANIMOUSLY.
APPROVAL OF BUDGET AMENDMENT #01-0049 TO ROLL OVER EXPENDED FUNDS
Chairman Greer called for a motion to approve the budget amendment as presented.
Motion:
District Commissioner Birzenieks MOVED, SECONDED by District Commissioner Caster,
to approve Budget Amendment #01-0049 to roll over unexpended water and sewer funds from FY
1999-2000 to FY 2000-2001 for the drainage program. Upon vote, the MOTION CARRIED
UNANIMOUSLY.
Budget Amendment #01-0049
ADJUSTMENTDEBITCREDIT
Water & Sewer:
Appropriated Fund Balance$331,580
Contracted Services$331,580
ADJOURNMENT
Chairman Greer called for a motion to adjourn.
Motion:
District Commissioner Howell MOVED, SECONDED by District Commissioner
Birzenieks, to adjourn. Upon vote, the MOTION CARRIED UNANIMOUSLY.
NEW HANOVER COUNTY WATER AND SEWER DISTRICTBOOK 2
REGULAR MEETING, OCTOBER 16, 2000 PAGE 593
Chairman Caster adjourned the meeting at 10:25 a.m.
Respectfully submitted,
Lucie F. Harrell
Clerk to the District Board