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2005-04-18 Water & Sewer NEW HANOVER COUNTY WATER AND SEWER DISTRICT REGULAR MEETING, APRIL 18,2005 BOOK 3 PAGE 116 ASSEMBLY The District Board of Commissioners of the New Hanover County Water and Sewer District met in Regular Session on Monday, April 18, 2005, at 12: 15 p.m. in the Assembly Room of the New Hanover County Courthouse, 24 North Third Street, Wilmington, North Carolina. Members present were: District Chairman William A. Caster; District Vice-Chairman William A. Kopp, Jr.; District Commissioner Ted Davis, Jr.; District Commissioner Robert G. Greer; District Commissioner Nancy H. Pritchett; County Manager Allen O'Neal; County Attorney Wanda Copley; and Clerk to the District Board Sheila L. Schult. District Chairman Caster called the meeting to order. NON-AGENDA ITEMS District Chairman Caster announced that time had been reserved for anyone from the public to present an item that was not listed on the Regular Agenda. He requested all persons to limit their remarks to three minutes. Jason Ruth, resident of Blossom Ferry subdivision in Castle Hayne, stated that he is representing multiple residents in the area. Approximately a month ago the Health Department notified ten of the twelve homeowners that their wells showed contamination. The County is in the process of researching possible reasons for the contamination and homeowners have been told not to use the water for cooking or cleaning. The homeowners are requesting the County Commissioners aid them in getting County water to the subdivision. The builder and the County knew about the contamination before the Certificates of Occupancy were issued. The Certificates of Occupancy were issued based on waivers signed by the builder that the well problems would be corrected. Environmental Health Service Manager Diane Harvell stated that the Health Department is working with a building contractor who has agreed to dig a deeper well. Currently, the wells are shallow at 40' deep. Monitoring of the wells is ongoing with some improvement in test results. Tammy Harts, a resident of Blossom Ferry Road, stated that she is experiencing the same contamination problems and her well is 80' or deeper. She requested better communication and more frequent updates from the Health Department. County Engineer Greg Thompson reported that the City of Wilmington operates the water system in the surrounding area. Expansion would need to come from the City water system into this area. District Chairman Caster directed County Engineer Thompson to contact the appropriate City officials concerning the water problems and keep the residents updated on the progress. Commissioner Pritchett requested Staff check into ways of providing the homeowners with water and requested the homeowners appoint a contact person to aid in communicating with the Health Department. District Chairman Caster directed County Manager O'Neal to look into the issuance of the Certificates of Occupancy. APPROVAL OF MINUTES District Chairman Caster called for a motion to approve the minutes of the regular meeting held on April 4, 2005, as presented by the Clerk to the District Board. Motion: District Vice-Chairman Kopp MOVED, SECONDED by District Chairman Caster, to approve the minutes of the regular meeting held on April 4, 2005, as presented by the Clerk to the District Board. Upon vote, the MOTION CARRIED UNANIMOUSLY. NEW HANOVER COUNTY WATER AND SEWER DISTRICT REGULAR MEETING, APRIL 18,2005 BOOK 3 PAGE 117 UPDATE ON THE NORTHSIDE WASTEWATER TREATMENT PLANT County Engineer Greg Thompson reported the City and County are involved in a joint venture to expand the Northside Wastewater Treatment Plant capacity from eight million gallons per day to sixteen million gallons per day. The anticipated bidding process will begin early this summer with construction to begin in September. A three to six month construction timeline is anticipated. Construction will be ongoing while the plant is in operation. The plan has been finalized with a potential revised budget: $66,686,300 - 1/31/05 Base Estimate (no contingency) 8,336,000 - Potential Cost Savings Agreed to by COW and NHC 58,350,300 - Potential New Base Amount (no contingency) 8,752,545 - 15% Contingency 67,102,845 - Potential Construction Budget with Contingency 7,554,517 - Engineering Fees $74,657,362 - Potential New Project Budget Amount When construction is complete the City and County will jointly own the plant. The plant design has been delayed for three years while the City appealed the discharge limit standards to the State. CONSIDERATION OF APPROVAL OF ORDINANCE CHANGES FOR ENHANCEMENTS OF CUSTOMER SERVICE PROVIDED BY WATER AND SEWER FINANCE TO INCLUDE APPROVAL OF NEW POSITIONS AND ADDITIONAL REVENUE SOURCES AND ASSOCIATED BUDGET AMENDMENT Finance Director Bruce Shell reported that the Water and Sewer Finance operation proposed enhanced services to its customers requiring changes to the Ordinance and hiring additional staff. Representatives of the New Hanover County Board of Realtors and Home Builders Association have endorsed the recommended changes. Staff is requesting approval of ordinance changes, three new Fiscal Support Technicians, change in two temporary positions to full-time permanent Fiscal Support Assistants and the related budget amendment. The Board must take action on the ordinance change as part of the Regular Agenda. The areas within Water and Sewer Finance Department that will be enhanced are: . Customer Services, providing more telephone services . Delinquent account processing needs full time staffing due to the growing customer base . Billing services need full time staff (the supervisor currently performs 50% of this now) . Setting up new services to include on-line services and payments Additional revenues proposed include: . Application fee of $15 for new services set up via telephone . Credit card convenience fee of 3% on amounts greater than $250 . Increase in the fee for a change in billing methods to $100 The proposed ordinance changes are: I. Chapter 56, Division 1. Sections 56-31, Domestic and commercial connections, subsections (b), (f), (g) and h(5)(b). Section 56-31(b), (t), (2) and h(5)(b). Domestic and commercial connections: (b) Applications for service must be made, by the owner, to New Hanover County Water and Sewer District, 111 Chestnut Street, Wilmington, N. C. in accordance with procedures set forth in section 56-252. NEW HANOVER COUNTY WATER AND SEWER DISTRICT REGULAR MEETING, APRIL 18,2005 BOOK 3 PAGE 118 (f) Inquiries on billing, termination and connection requests, reconnection of service, reinstallation of meters and payments shall be made to New Hanover County Water and Sewer District, 111 Chestnut Street, Wilmington, N. C. (g) Problems with leaks should be reported to the New Hanover County Water and Sewer District, 111 Chestnut Street, Wilmington, N.C. (h)(5)(b)Payment of all charges, fees and penalties associated with reconnection of service must be made in cash, credit card, certified check or money order and paid, in person, in the office of the New Hanover County Water and Sewer District, 111 Chestnut Street, Room 1101, Wilmington, N.C. II. Chapter 56, Division 1. Sections 56-39, Penalties, subsection (d). Section 56-39( d). Penalties: (d) If an owner becomes delinquent on his account for billing of the basic user charges, a late penalty will be assessed on the account equal to -l----l-,Q- 10 percent of the outstanding balance due with a maximum late penalty of $5.00 per billing cycle. In order to maintain his account in a current status, each owner is given a ten-day grace period from the due date of the bill, for a total of 30 days from the date the bill is mailed, in which to pay the total outstanding balance due. III. Chapter 56, Division 7. Sections 56-252, Procedure for required connections, subsections (b)(I)(a), (b)(I)(b), (b)(2)(b) and (b)(2)(c). Section 56-252(b)(I)(a), (b)(I)(b), (b)(2)(b) and (b)(2)(c). Avvlication vrocedures for new connections: (b)(I)(a). The owner must apply to New Hanover County Water and Sewer District, 414 Chestnut Street, Wilmington, N. C. (b)(I)(b). The owner must complete and sign all required documents the application process and all required fees, as specified in division 9 of this article, must be paid at the time application is made, either in person, by telephone or online. (b )(2)(b). The contractor, developer or other party shall pro','ide the mailing address of the o':mer so that all required documents may be mailed directly to the ovmer for completion. A service fee set from time to time and contained in appendix B viill be charged to coyer the cost of mailing the documents. may set up a billing account in their name, but shall be responsible for all costs and fees until such time as notification of change in ownership of the property is made to the New Hanover County Water and Sewer District. (b)(2)(c). The owner must complete, sign and haye notarized all required documents and return the documents to the NeVi Hano','er County Water and SeVier District, 111 Chestnut Street, 'Nilmington, NC 28101, the application process within 30 days from the date of notification by the district. IV. Chapter 56, Division 7. Sections 56-252, Procedure for required connections, subsection (c). Section 56-252(c). Avvlication vrocedures for chan2es in service: NEW HANOVER COUNTY WATER AND SEWER DISTRICT REGULAR MEETING, APRIL 18,2005 BOOK 3 PAGE 119 (c). The owner may notify the district in person or by telephone of any changes in service. If notification is made by telephone, the district viill mail all required documents to the ovmer for completion and required signatures. If applicable, an administrative fee set from time to time and contained in appendix B will be applied to the owner's account. If fees, other than the administrati','e fee, are required in accordance 'liith di','ision 9 of this article, the owner must complete and sign all required documents and all required fees paid as specified in subsection (b) of this section. V. Chapter 56, Division 9. Section 56-313. Basic user char2es, subsections (b) and (c). Section 56-313(b). Flat rate ovtion for residential vrovertv: The owner of residential property occupied with only one structure served by a sewer line may elect to pay flat bimonthly rates in lieu of metered bimonthly rates. If the owner initially chooses a flat rate, the owner may change to a metered rate at any time; hO'lie','er, the ovmer is allovied to change one and only one time from the initial application. The ovmer must pay upon payment of an administration/inspection fee set from time to time and contained in appendix B and the cost of installation of meters, if applicable per section 56-252. If a meter does not function properly due to the owner's water quality (i.e. sand) and the meter has been replaced twice, the district shall remove the meter and charge the flat rate. Section 56-313(c). Metered rate ovtion for all other vrovertv: All residential property owners not electing the flat rate option, all commercial and industrial properties, and all other properties shall be charged based on metered rates. Metered rates shall be either residential or nonresidential rates. If the owner initially chooses a metered rate, the owner may change to the flat rate option only after six bimonthly billings on the metered rate. The ovmer is allovied to change one and only one time from the initial application. The owner must pay upon payment of an administration/inspection fee set from time to time and contained in appendix B. If a meter does not function properly due to the owner's water quality (i.e. sand) and the meter has been replaced twice, the district shall remove the meter and charge the flat rate. VI. Chapter 56, Division 9. Section 56-315. Svecific fees, subsections (e)(2), (3), (4) and (5). Delete the following subsections: (e) (2). Sewer devosit. (e) (3). Industrial avvlication fee. (e) (4). Cancellation venaltv. (e) (5). 1-40 Business Park sewer imvrovements vroiect assessment fee. Add the following new subsections: (e) (2). Billin2 method chan2e. A fee, as set forth in Appendix B, shall be charged for each occurrence when customers request a change in the billing method. (e) (3). Avvlication fee. NEW HANOVER COUNTY WATER AND SEWER DISTRICT REGULAR MEETING, APRIL 18,2005 BOOK 3 PAGE 120 An application fee, as set forth in Appendix B, shall be charged for new service. (e) (4). Credit card. A credit card convenience fee, as set forth in Appendix B, shall be charged on total amounts of $250.00 or more. VII. Appendix B, Chapter 56. Utilities, Article II, Water Service, Section 56-31(h)(2)(c). Section 56-31(h)(2)(c): (2) G:- d. Processing fee for worthless check. . . $~ 25.00 VIII. Appendix B, Chapter 56. Utilities, Article II, Water Service, Section 56-37(b)(5). Section 56-37(b)(5). Other fees. Add a new subsection (e): Additional fee if no person of reasonable age and with appropriate authority present when service reconnected... ... $50.00. IX. Appendix B, Chapter 56. Utilities, Article III, Sewer System, Section 56-252(b)(2)(b). Delete Section 56-252(b )(2)(b). X. Appendix B, Chapter 56. Utilities, Article III, Sewer System, Section 56-252(c). Delete Section 56-252(c). XI. Appendix B, Chapter 56. Utilities, Article III, Sewer System, Division 9, Fee Schedule, Section 56-313(b). Section 56-313(b): Administration/inspection fee fef to change to flat rate option for residential property . . . $~OO 100.00 XII. Appendix B, Chapter 56. Utilities, Article III, Sewer System, Division 9, Fee Schedule, Section 56-313(c). Section 56-313(c): Administration/inspection fee fef to change to metered rate option for residential property. . . ~ 100.00 XIII. Appendix B, Chapter 56. Utilities, Article III, Sewer System, Division 9, Fee Schedule, Section 56-315(e)(2), (4) and (5). Section 56-315(e)(2): Se'lier deposit: a. Residential. . . $1 0.00 NEW HANOVER COUNTY WATER AND SEWER DISTRICT REGULAR MEETING, APRIL 18,2005 BOOK 3 PAGE 121 b. Nonresidential: Higher of minimum bimonthly se'lier charge fee appropriate meter size or . . . 10.00 Fee for change in billing method for each occurrence...$100.00 Section 56-315(e)(4): Minimum penalty. . .25.00 Application fee for new service...$15.00 Section 56-315(e)(5): I 10 Business Park sewer improyements project assessment fee. . . 10.00 Credit card convenience fee...3% total charge over $250.00. Commissioner Pritchett stated that she would prefer the fee for change in billing method for each occurrence be reduced for the first change. Additional changes in the billing method could be at the recommended $100 fee. Motion: District Commissioner Greer MOVED, SECONDED by District Vice-Chairman Kopp, to approve three new Fiscal Support Technicians, change in two temporary positions to full-time permanent Fiscal Support Assistants and the related budget amendment. Upon vote, THE MOTION CARRIED 4 to 1. District Commissioner Pritchett voted in opposition. Budget Amendment #05-0181- Water and Sewer Finance Adjustment Debit Credit Water and Sewer: Appropriated Fund Balance Water and Sewer Finance: Water and Sewer Application Fee Credit Card Convenience Fee Other Temporary Salaries Medical Insurance Departmental Supplies $14,697 $ 1,875 $ 1,000 $ 5,000 $13,860 $ 2,212 $ 7,000 Explanation: To budget new sources of revenue recommended for approval on April 18, 2005. Budget changes are for five new positions. ADJOURNMENT There being no further business, District Chairman Caster requested a motion to adjourn. Motion: District Commissioner Greer MOVED, SECONDED by District Vice-Chairman Kopp, to adjourn the meeting. Upon vote, THE MOTION CARRIED UNANIMOUSLY. District Chairman Caster adjourned the meeting at 1:02 p.m. Respectfully submitted, Sheila L. Schult Clerk to the District Board