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1996-02-19 Water & Sewer NEW HANOVER COUNTY WATER AND SEWER DISTRICT BOOK 2 REGULAR MEETING, FEBRUARY 19, 1996PAGE 277 ASSEMBLY The District Board of Commissioners of the New Hanover County Water and Sewer District met in Regular Session on Monday, February 19, 1996, at 11:40 A.M. in the Assembly Room of the New Hanover County Courthouse, 24 North Third Street, Wilmington, North Carolina. Members present were: District Commissioners William A. Caster; Robert G. Greer; William E. Sisson, Jr.; Vice-Chairman Sandra Barone; County Manager, Allen O'Neal; County Attorney, Wanda M. Copley; and Deputy Clerk to the Board, Teresa P. Elmore. Chairman E. L. Mathews, Jr. was absent. Vice-Chairman Barone called the meeting to order. APPROVAL OF MINUTES Motion: District Commissioner Caster MOVED, SECONDED by District Commissioner Sisson to approve the minutes of the Regular Meeting of February 5, 1996, as presented by the Clerk to the District Board. Upon vote, the MOTION CARRIED AS FOLLOWS: Voting Aye: District Commissioner Caster District Commissioner Sisson District Commissioner Greer Vice-Chairman Barone Absent: Chairman Mathews CONSIDERATION OF APPEAL BY THE LANDFALL HOTEL GROUP CONCERNING THE AMOUNT OF THE SEWER IMPACT FEE Assistant County Manager, Dave Weaver, reported the Landfall Hotel Group was constructing a hotel in the Landfall commercial area and has requested the District to reduce the sewer impact fees from $64,581.25 to $21,518.75. When the ordinance was adopted on December 18, 1995, the Board also adopted a policy that allowed home builders to pay the old impact fees even though their building permit applications were incomplete, as long as the fees were paid by December 19, 1995. The Landfall Hotel Group had been informed of the old impact fee and had an opportunity to pay the fee before December 19, 1995. Mr. Gene Singleton, developer of the Landfall Hotel Group, reported their building permit application was submitted and accepted by the County Inspections Department in November; and they were told the process would take approximately four weeks. The week prior to December 19, 1995, the company was concerned about the possibility of being annexed by the City of Wilmington and wanted to avoid reapplying for another building permit. To expedite the process, they decided to get a foundation permit. Upon their visit to the Inspections Department to pay the NEW HANOVER COUNTY WATER AND SEWER DISTRICT BOOK 2 REGULAR MEETING, FEBRUARY 19, 1996PAGE 278 foundation permit and sewer impact fees, they were told the sewer impact fees were $64,581. Since the Landfall Hotel Group was from out of town, they were unaware that the sewer impact fees had increased. Mr. Singleton commented the company develops properties in several areas of the State and sewer impact fees are routinely paid at the same time as the building permits; therefore, he considered the amount due was the amount calculated by the County on November 21, 1995. District Commissioner Greer asked if the County had calculated the sewer impact fees as submitted in the agenda package and dated November 21, 1995. Assistant County Manager Weaver responded the Clerk in the Water and Sewer Finance Department had calculated the sewer impact fees. District Commissioner Greer advised that if he had requested the amount of his impact fees and received a printed calculation of the fees, he would expect to pay the amount quoted. Unless the Landfall Hotel Group had been notified of a fee increase, the amount quoted should be paid. Motion: District Commissioner Greer MOVED, SECONDED by District Commissioner Caster to charge the Landfall Hotel Group $21,518.75, for the sewer impact fees based upon the amount quoted on November 21, 1995. Vice-Chairman Barone inquired if there were other occurrences of someone missing the deadline. Deputy Finance Director Julie Griffin and County Engineer Wyatt Blanchard reported they were unaware of any other occurrences. Upon the call for the vote, the MOTION CARRIED AS FOLLOWS: Voting Aye: District Commissioner Caster District Commissioner Greer Vice-Chairman Barone Voting Nay: District Commissioner Sisson Absent: Chairman Mathews District Commissioner Greer suggested in the future, employees should be notified of possible changes concerning their departments in order to properly inform the public. NEW HANOVER COUNTY WATER AND SEWER DISTRICT BOOK 2 REGULAR MEETING, FEBRUARY 19, 1996PAGE 279 CONSIDERATION OF REQUEST TO CONNECT A WASTEWATER TREATMENT PLANT AT CASTLE HAYNE TO THE DISTRICT'S NORTHCHASE DISCHARGE County Engineer, Wyatt Blanchard, reported Mr. John Berman has requested to construct and operate a wastewater treatment plant in the Castle Hayne area and to connect the plant to the District's discharge line at NorthChase. The proposed wastewater treatment plant would support a shopping center project in Castle Hayne at the intersection of N. C. Highway 132 North and Highway 117. The proposed capacity is 20,000-30,000 gallons. County Engineer Blanchard expressed concern for the County's potential liability in accepting the discharge from a privately operated treatment plant into the District's discharge line. Also, he cautioned that the County may have complications in transferring the NPDES permit to the Northside Treatment Plant if additional plants were connected to the discharge. The District Board has approved Vision Software to temporarily use the District's NorthChase discharge. Mr. Dan Dawson, a consulting engineer representing John Berman, explained that Mr. Berman has been unable to develop his property in Castle Hayne because of no accessible sewer service. The previous owner of the NorthChase treatment plant would not allow Mr. Berman to connect to the discharge line. Now that the NorthChase treatment plant is no longer a private-for-profit operation, Mr. Berman would like to construct a wastewater treatment plant and connect to the District's discharge. The plant would be taken off line once the County is connected to the Northside Treatment Plant on Twenty-third Street. Mr. Dawson commented on the tremendous need in the Castle Hayne area for the sewer system and how the owners were limited in developing their properties. The shopping center would include retail stores and restaurants, which would be of great economic benefit to the area. The proposed plant would be built according to State requirements for non-industrial wastewater plants. Assistant County Manager Weaver advised the Board that this type of treatment plant should be tested at least monthly; however, D.E.M. usually monitors waste treatment plants on a complaint- driven basis. Mr. Dawson stated the State requires the licensing of wastewater treatment plants. In order to satisfy the County, the owner is willing to pay the County to operate and maintain the plant. The County operates other wastewater treatment plants nearby. Furthermore, the treatment plant could be built larger to accommodate adjoining properties, if the County was involved. County Engineer Blanchard responded the County has one individual operating four wastewater treatment plants in the area; however, he did not know whether the operator could handle another NEW HANOVER COUNTY WATER AND SEWER DISTRICT BOOK 2 REGULAR MEETING, FEBRUARY 19, 1996PAGE 280 plant without additional help. Assistant County Manager Weaver warned it would be setting a precedent, and there may be several requests for small package treatment plants because of the limited sewerage capacity in the Castle Hayne area. District Commissioner Greer questioned why the County would oppose assisting individuals in the Castle Hayne area, who are willing to pay the total cost, when the County is spending millions of dollars throughout the District to provide sewer service. District Commissioner Sisson cautioned the County should not rely on the State for providing proper inspections of residential and non-residential treatment plants, because the State does not have adequate personnel available for regular inspections. Mr. Dawson commented that wastewater treatment plants would be an interim arrangement until the County sewer system is available in the area. Consensus: After further discussion on the need for the County to have a policy for connections of private wastewater treatment plants to the District's discharge, it was the consensus of the Board to postpone the decision on Mr. Berman's request and to direct Staff to submit a proposed policy at the meeting of March 18, 1996. Also, the Board wanted assurance that the County's NPDES permit would not be jeopardized by allowing the connections. CONSIDERATION OF REQUEST FOR BULK WATER SERVICE BY KINGS GRANT WATER COMPANY FOR THE MURRAYVILLE AREA County Engineer, Wyatt Blanchard, reported due to the extreme unexpected growth and declining water quality in the main production well at NorthChase, the County will need to provide for a more dependable water system. The County plans to construct a water line between NorthChase and the water system located between Murrayville Road and Ogden. In order to accomplish this, the County will need to reclaim the section of water line under I-40 from Kings Grant Water Company. Unless water is purchased from the County, the water company will be unable to supply water to approximately 105 customers on the east side of I-40. They have asked for a wholesale rate. County Engineer Blanchard explained the County planned for future water systems by having a 12" water line installed under I- 40 when it was constructed. Kings Grant Water Company contracted with the County instead of constructing its own line. The contract required the County to give a six-month notice before reclaiming the water line, which the County has given. County Engineer Blanchard explained if the County provides the water, the water company will need to pay the cost of connecting to NEW HANOVER COUNTY WATER AND SEWER DISTRICT BOOK 2 REGULAR MEETING, FEBRUARY 19, 1996PAGE 281 the County's line. He expressed concern that these customers would take 25,000-30,000 gallons of storage capacity from the new water tank in Ogden. However, there is sufficient capacity in the tank at the present time. Mr. Web Trask, president of Kings Grant Water Company, reported the County contracted with the water company in order to provide service to Laney and Trask Schools. He requested the County to provide the lowest possible rate to allow him to continue the service for the schools and the community. At the current rate, the customers will have a 68% increase. At a bulk wholesale rate of $.468 per 1,000 gallons, the customers would receive a 36% increase. For the reduced rate, the company would read the meters, invoice and collect from the customers, and pay all the expenses. Mr. Trask felt he did not need to purchase a $10,000 meter to connect to the County's line because individual meters were connected to the homes. Mr. Trask stated the company will require a 90-day period once the County has established a rate in order to petition the Utilities Commission for a rate increase to his customers. District Commissioner Sisson explained that one of the reasons the County purchased the extra capacity for the tank in Ogden was to address the salt water intrusion problem in wells of the developed areas in Ogden. The County was obligated to consider these neighborhoods before extending water service to another area. Mr. Trask responded the community near the Murrayville Station consists of well-established homes, schools and commercial areas with very few undeveloped lots. District Commissioner Greer noted that the rate charged to customers of Kings Grant Water Company should be in line with the rate charged to the District's residential customers. However, a single customer should have a cheaper rate for larger quantities. County Engineer Blanchard responded most of the District's customers pay the rate of $1.25 per 1,000 gallons. However, Mr. Trask will have to charge the rate approved by the Utilities Commission. Vice-Chairman Barone asked if an ordinance change for bulk rate users should be implemented since there is an advantage of having one customer versus 130, and if it was necessary to purchase the expensive meter. County Engineer Blanchard replied if a meter is installed, Mr. Trask would be responsible for any breaks in the lines beyond the meter. If it is not installed, the County would have to repair the lines. NEW HANOVER COUNTY WATER AND SEWER DISTRICT BOOK 2 REGULAR MEETING, FEBRUARY 19, 1996PAGE 282 Mr. Trask responded the cost of the meter at $10,000 would cover a lot of breakages since there were few water line breaks. District Commissioner Greer commented the County should have the meter for its protection, but the County should pay for half of the cost. In further discussion, District Commissioner Sisson asked Mr. Trask if he would sell the company to the County. Mr. Trask responded he would be willing to sell at fair market value, but he had been told the County was unwilling to purchase. Assistant County Manager Weaver replied the County's policy, under the direction of the Board, had been limited to purchases of water systems that would generate a positive cash flow. County Manager O'Neal explained that bulk rate customers were usually large single users, such as plants or industrial sites, as opposed to residential users. He cautioned the County will need to carefully consider the precedent being set because of other situations that may arise with other private systems. Consensus: After further discussion of the need to have a policy to address bulk rate users, it was the consensus of the Board to postpone action until the March 18, 1996 meeting. Staff will propose a bulk rate or another tier rate to be considered. ADJOURNMENT Motion: District Commissioner Sisson MOVED, SECONDED by District Commissioner Caster, to adjourn. Upon vote, the MOTION CARRIED AS FOLLOWS: Voting Aye: District Commissioner Caster District Commissioner Sisson District Commissioner Greer Vice-Chairman Barone Absent: Chairman Mathews Vice-Chairman Barone adjourned the meeting at 12:50 P.M. Respectfully submitted, Teresa P. Elmore Deputy Clerk to the District Board