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