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HomeMy WebLinkAbout1994-07-05 Water & Sewer NEW HANOVER COUNTY WATER AND DISTRICT BOARDBOOK 2 REGULAR MEETING, JULY 5, 1994PAGE 169 ASSEMBLY The District Board of Commissioners of the New Hanover County Water & Sewer District met in Regular Session on Tuesday, July 5, 1994, at 6:51 P.M. in the Assembly Room of the New Hanover County Courthouse, 24 North Third Street, Wilmington, N. C. District Commissioners present were: Commissioners William A. Caster; Robert G. Greer; William E. Sisson, Jr.; Vice-Chairman Sandra Barone; Chairman E. L. Mathews, Jr.; County Manager, Allen O'Neal; County Attorney, Wanda M. Copley; and Clerk to the District Board, Lucie F. Harrell. Chairman Mathews called the meeting to order. APPROVAL OF MINUTES Motion: District Commissioner Sisson MOVED, SECONDED by District Commissioner Greer to approve the minutes of the Regular Meetings of June 6, 1994, and June 20, 1994, as presented by the Clerk to the District Board. PRESENTATION OF SEWER TASK FORCE RECOMMENDATIONS Chairman Mathews expressed appreciation to the following members of the Sewer Task Force for the work and effort given during the past three years to prepare recommendations for completing the County-wide Sewer System: Dean Potter, Chairman Commissioner Barone Herb McKim, Jr. Carlton Fisher Sue Hayes Dan Dawson Rod Andrew Dave Weaver, Assistant County Manager Wyatt Blanchard, County Engineer Julie Griffin, Deputy Finance Director Chairman Mathews reported the recommendations will be presented with no decision rendered until a Work Session has been scheduled for further discussion of this matter. Assistant County Manager, Dave Weaver, reported Mr. Dan Dawson will make the presentation since Mr. Dean Potter will not be attending the meeting. Mr. Dan Dawson, a member of the Sewer Task Force, presented maps of drainage basins and charts reflecting the unserved areas of the County. The cost to provide sewer to these areas is $167 million. After discussion of several funding mechanisms, such as the Land Transfer Tax or the Food and Beverage Tax, the Task Force decided to use another approach and break down the cost for each NEW HANOVER COUNTY WATER AND DISTRICT BOARDBOOK 2 REGULAR MEETING, JULY 5, 1994PAGE 170 area. Working with staff, areas were identified as to which area should receive sewer first, the cost for construction of each area, and the ability of the County to maintain the expansion of the system in each phase. After considering these factors, a revenue stream was developed on user fees that would be generated by each phase, and a plan was developed for completion of the Sewer System at a shortage of approximately $500,000 per year. The Task Force did not identify a revenue source to fund this shortfall. A chart was presented reflecting the construction schedule with completion of the Northside Waste Water Treatment Plant by June 30, 1997 and completion of the County-wide Sewer System by the year 2027. The debt payments were outlined beginning with Phase 1, construction of the Northside Waste Water Treatment Plant, being financed with an EPA loan and the collection of impact fees; Phase 2 being financed with Certificates of Participation at a rate of 6% for 20 years; Phase 3 being financed with Certificates of Participation at a rate of 8% for 20 years; and Phase 4 being financed with Certificates of Participation at a rate of 10% for 20 years. General obligation bonds were not considered and revenue bonds were not considered due to the operating losses of the Sewer District. Additional operating costs will be met by additional revenues generated and the 1/2 cent sales tax is budgeted at $4,092,889 for FY 1994-95 with a 5% increase projected for each succeeding year. Mr. Dawson reported this plan should be monitored, updated and reviewed on a regular basis. Hopefully, the plan will provide direction for future years and serve as a guide for completion of the County-wide Sewer System. Vice-Chairman Barone asked if the revenue generated from the 1/2 cent sales tax was included in the income projections? Mr. Dawson reported the 1/2 cent sales tax was included in the income projections and should not be appropriated for any other purpose. Vice-Chairman Barone asked if the figure for the 1/2 cent sales tax was expanded to cover inflation over the 5-year period? County Engineer Blanchard reported this figure was expanded to cover inflation. Assistant County Manager, Dave Weaver, reported the 1/2 cent sales tax revenues have been expanded conservatively; however, if the City annexes as proposed, these revenues will drop drastically. Mr. Dawson reported the Task Force feels the District should consider providing water as well as sewer because of the revenue generated from a water system. NEW HANOVER COUNTY WATER AND DISTRICT BOARDBOOK 2 REGULAR MEETING, JULY 5, 1994PAGE 171 District Commissioner Caster asked if water and sewer pipes could be placed in the same ditch? County Engineer Blanchard reported the pipes must be separated, and in his opinion the pipes should be placed on the opposite side of the road. If the pipes are placed in the same ditch, the State law requires the sewer pipe to be at one level and the water pipe at another level which can create problems with the high water table in New Hanover County. Chairman Mathews inquired as to how frequently the plan should be updated? Mr. Dawson reported the plan should be reviewed every six months. There are private developers who would like to extend lines and would greatly assist the District in completing the Sewer System. Due to this rapid growth, the plan should be reviewed frequently to utilize the private funds in the community. Eventually, the Sewer District should work with the developers to encourage a public/private project in developing some areas of the County. Vice-Chairman Barone inquired as to whether the Sewer Task Force should remain in existence to assist with the monitoring of the plan? Mr. Dawson reported the Task Force has performed its assigned task as to how the system can be completed and funded. The role of the Task Force could be expanded to monitor the plan, or the Task Force could study how the funding shortfall can be addressed. District Commissioner Greer commented on Page 1 under debt service and questioned how the numbers correspond, particularly to the construction of the Waste Water Treatment Plant? Assistant County Manager Weaver reported the Task Force incorporated the debt service figures for expansion of the Northside Waste Water Treatment Plant in 10 years. This financing has been added to the first level of financing. District Commissioner Greer inquired as to whether the priority listing of phases was the choice of the Task Force? Mr. Dawson reported after working closely with staff to produce the plan, information was gathered to prioritize the phases and estimate the revenues as projected. Ms. Gerry Ceravolo, President of the League of Women Voters of New Hanover County, expressed appreciation to the Task Force for the time given to prepare the report for completion of the County Sewer System. Concern was expressed for the environmental impact of the sewer expansion and for the suggested method of funding. NEW HANOVER COUNTY WATER AND DISTRICT BOARDBOOK 2 REGULAR MEETING, JULY 5, 1994PAGE 172 The League feels the natural resources position calls for the promotion of an environment beneficial to life through the protection and wise management of natural resources in the public interest. Government must recognize the inter-relationships between land use, air quality, energy, waste management and water resources. The proposed sewer expansion is expected to cost $167 million and will lead to greatly increased residential and commercial development. The District Commissioners were urged to consider the inter-relationships between land use and environmental quality before moving forward with this project. The League feels an environmental impact study should be performed. As to funding, New Hanover County is in need of new schools and roads. How can the citizens of the County pay for this badly needed infrastructure? The League is opposed to using the 1/2 cent sales tax because of its regressive nature; therefore, the League would urge the use of impact fees as the funding source. In summary, the League is not opposed to completion of the Sewer System, but feels consideration must be given to the impact on the environment and the quality of life in New Hanover County. Mr. Dawson reported the Task Force has discussed all environmental concerns during the past three years. An environmental assessment has been performed on the proposed County Sewer System, and the State of North Carolina will not approve water and sewer lines without an environmental assessment of the proposed infrastructure. The Task Force felt the State and Federal governments would perform a thorough examination of environmental concerns. Chairman Mathews expressed appreciation for the remarks received and the time and effort given by the Task Force to prepare the recommendations. ADJOURNMENT Motion: District Commissioner Sisson MOVED, SECONDED by District Commissioner Caster to adjourn. Upon vote, the MOTION CARRIED UNANIMOUSLY. Chairman Mathews adjourned the meeting at 7:20 P.M. Respectfully submitted, Lucie F. Harrell Clerk to the District Board