2005-06-20 Water & Sewer
NEW HANOVER COUNTY WATER AND SEWER DISTRICT
REGULAR MEETING, JUNE 20, 2005
BOOK 3
PAGE 129
ASSEMBLY
The District Board of Commissioners of the New Hanover County Water and Sewer District met in
Regular Session on Monday, June 20, 2005, at 10:45 a.ill. 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; Deputy County Attorney Kemp Burpeau 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.
Larry Mead, resident of 349 Scottsdale Drive, requested the Board's permission for a residential building
permit recognizing the possibility that water and sewer may not be available at the time construction is completed.
APPROVAL OF MINUTES
District Chairman Caster called for a motion to approve the minutes of the regular meeting held on June 6,
2005, as presented by the Clerk to the District Board.
Motion: District Vice-Chairman Kopp MOVED, SECONDED by District Commissioner Greer, to approve the
minutes of the regular meeting held on June 6,2005, as presented by the Clerk to the District Board. Upon vote, the
MOTION CARRIED UNANIMOUSLY.
CONSIDERATION OF FISCAL YEAR 2005-2006 BUDGET ORDINANCES FOR THE NEW HANOVER
COUNTY WATER AND SEWER DISTRICT
Budget Director Cam Griffin presented the FY 2005-2006 Budget Ordinance for the New Hanover County
Water and Sewer District in the amount of $15,3 92,031.
Revenue Source
Charges for Service
Operating Transfer/One-Half Cent Sales Taxes (Art 40 & 42)
Interest and Other
Appropriated Fund Balance
Total Revenues - Water and Sewer District Fund
Amount
$12,225,376
1,942,319
304,000
920,336
$15,392,031
District Chairman Caster asked for direction from the Board.
Motion: District Vice-Chairman Kopp MOVED, SECONDED by District Commissioner Greer, to adopt the Fiscal
Year 2005-2006 Budget Ordinance for the New Hanover County Water and Sewer District as presented. Upon vote,
the MOTION CARRIED UNANIMOUSLY.
A copy of the Budget Ordinance is hereby incorporated as a part of the minutes and is contained in the
Water and Sewer Exhibit Book III, Page 6.
CONSIDERATION OF PROPOSED WATER AND SEWER CHARGES
Finance Director Bruce Shell reported that effective with the FY05-06 budget the Board is requested to
approve the following changes in the water user charges. The change increases the charges for water usage based on
per 1,000 gallons of usage. These changes result in an approximate 5% increase in water rates generating
NEW HANOVER COUNTY WATER AND SEWER DISTRICT
REGULAR MEETING, JUNE 20, 2005
BOOK 3
PAGE 130
approximately $81,000 in additional water revenues for the upcoming FY05-06 budget. Once the new system is on-
line the water quality will be improved. The Board must take action on the ordinance change as part of the Regular
Agenda.
Article II. Water Service, Fee Schedule, Appendix B. ~ 56-37(b)(3)(a). Water usage charges:
Gallons, per 1.000 gallons
0-45,000
45,000 - 562,500
Over 562,500
Current Charge
~
~
~
Proposed Charge
$1.70
$1.45
$1.20
The City's current water rates based on a usage of 65,000 gallons per month is $18.96. With the approved
increase the County will charge $15.55 per month, currently the County charges $14.90 per month.
After discussion, the consensus of the Board was to take action on the ordinance change as part of the
Regular Agenda.
UPDATE ON BLOSSOM FERRY SUBDIVISION
Assistant County Manager Dave Weaver reported that, as directed by the Board, Staff has developed
options to provide clean drinking water to Blossom Ferry residents. The options and funding scenarios are:
Option A - Extend water system from Shearin Hills:
Funding Option A-I - Residents pay all costs
Funding Option A-2 - Residents pay individual costs; County pays system costs
Funding Option A-3 - County pays all costs
Option B - County extends line from Holly Shelter Road main:
Funding Option B-1 - Residents pay all costs, including Shearin Hills bypass
Funding Option B-2 - Residents pay individual and distribution costs; the County pays bypass costs
Funding Option B-3 - County pays all costs, including Shearin Hill bypass
Deputy County Attorney Burpeau explained that there are two methods in place for connecting County
residents to the City system: 1) by contract agreement with a deed of trust and, 2) by special assessment. The
County has an ordinance in place for connecting County residents to the County system.
Assistant County Manager Weaver continued explaining the options and funding scenarios:
Option C - Alternative Technologies - Environmental Health is researching the possibility of using
alternative technologies for each lot, such as individual chlorine injection pumps and ultraviolet radiation
treatment.
Option D - The County could simply do nothing and let individual lot owners pursue their own remedies,
such as drilling new wells or using bottled drinking water.
The Board does not need to make a final decision at this time, but Staff recommends Option B Funding
Option B-2 as the most effective long-term solution.
District Commissioner Pritchett clarified with Assistant County Manager Weaver that extending the county
line from the Holly Shelter Road main would require state permitting with the possibility of an additional 30-45
days added to the completion time frame. If negotiations were favorable with the City, no additional time would be
required.
NEW HANOVER COUNTY WATER AND SEWER DISTRICT
REGULAR MEETING, JUNE 20, 2005
BOOK 3
PAGE 131
District Commissioner Davis stated that in order to be fair, he would like to see the fees handled as they
have been in the past, and would favor the plan that would allow the residents to have fire hydrants.
District Vice-Chairman Kopp stated that he would favor extending the county line from the Holly Shelter
Road main as the best scenario.
District Chairman Caster clarified with Assistant County Manager Weaver that if the land was undeveloped
the County would have required the developer to pay for the water main from Holly Shelter Road and for the
distribution lines.
Jason Ruth, resident of Blossom Ferry subdivision in Castle Hayne, stated that he is representing multiple
residents in the area. He would support extending the county line from the Holly Shelter Road main but would like
the builder or developer to pick up a portion of the homeowners hook-up fees. He believes the builder was aware
that some of the tests were positive for fecal coliform contamination during the construction period. He questioned
why Certificates of Occupancy were issued by the Health Department.
Deputy County Attorney Kemp Burpeau stated that in conversations with the developer/builder they have
indicated that their obligation to provide a clean source of drinking water has been fulfilled.
Peter Longo, resident on Mossy Rock Road, stated that he feels that the County has the obligation to
provide water to the Blossom Ferry area and requested the Board approve the funding through various options and
grants.
District Vice-Chairman Kopp stated that he feels that if the developer/builder is not legally responsible for
a portion of the costs, perhaps they have a moral responsibility.
Jay Michael Hudson, lot owner on Mossy Court, stated his concern that Certificates of Occupancy were
issued and he feels that the developer/builder was aware of the water quality issues. He requested that the Board pay
the cost of the line to the subdivision.
After brief discussion, District Chairman Caster asked for direction from the Board.
Motion: District Vice-Chairman Kopp MOVED, SECONDED by District Chairman Caster, to proceed with
Option B, extending the line from the Holly Shelter Road water main, with specific financing options to be decided
at a later date. Upon vote, the MOTION CARRIED UNAIMOUSL Y.
ADDITIONAL ITEM
District Chairman Caster asked County Engineer Greg Thompson when the County stopped IssUIng
building permits with the 120-day waiver.
County Engineer Thompson reported that beginning December 2004, the County no longer issued building
permits with the 120-day waiver noting that this was due to changes in the state statutes.
After brief discussion, the consensus of the Board was to direct Deputy County Attorney Burpeau to
investigate the state statutes and report back to the Board. The Board requested County Engineer Thompson to keep
the Meads informed.
ADJOURNMENT
There being no further business, District Chairman Caster requested a motion to adjourn.
NEW HANOVER COUNTY WATER AND SEWER DISTRICT
REGULAR MEETING, JUNE 20, 2005
BOOK 3
PAGE 132
Motion: District Commissioner Pritchett MOVED, SECONDED by District Vice-Chairman Kopp, to adjourn the
meeting. Upon vote, THE MOTION CARRIED UNANIMOUSLY.
District Chairman Caster adjourned the meeting at 11:49 a.ill.
Respectfully submitted,
Sheila L. Schult
Clerk to the District Board