1986-08-04 Water & Sewer
102
STRICT - AUGUST 4, 1986
SEMBLY
A Special Meeting of the New Hanover County Water and Sewe
.strict was held on Monday, August 4, 1986, at 7:46 o'clock P. .
the Assembly Room of the New Hanover County Administratio
ilding, 320 Chestnut Street, Wilmington, North Carolina.
District Members present were: Commissioners John Dolan
Ian O'Neal; Fred Retchin; Vice-Chairman Jonathan Barfield, Sr.
airman Claud 0' Shields, Jr.; County Manager, G. Felix Cooper
unty Attorney, Robert W. Pope; and Clerk to the District, Luci
Harrell.
Chairman O'Shields called the meeting to order.
ATUS REPORT ON CONSTRUCTION AND FINANCE OF COUNTY-WIDE
STEM
Director of Engineering and Facilities, Ed Hilton, gav
ckground information on the five phases of the sewer system
commented on annexed areas A and B stating the bids receive
d exceeded the City's projection for construction by 2.6
llion dollars. He stated County Engineer, Wyatt Blanchard, ha
d scussed the difference in cost with City Staff and was told th
r ason for the increased costs was due to placing pipes deepe
t an originally anticipated.
He stated Phase I originally included Annexation Area B
S agate and Wrightsville Sound. Seagate and Wrightsville Soun
w re built separately from the project and Area B was transferre
t the City. He stated the estimated construction costs fo
P ase I were 13.21 million dollars and as of this date with bid
r ceived, the construction costs are 19.69 million dollars for
d fference of 6.48 million dollars.
Engineering Director Hilton commented on the fact that th
1 2 cent sales tax funds and revenue sharing funds are the key t
t is project. He stated while Phase I exceeded constructio
c sts anticipated the Water and Sewer District did have
s fficient funds on hand to complete this phase. He emphasized
t e fact that if this phase is not completed, the District will
1 se the FmHA grant in the amount of $938,000 recommending
a lowing construction to proceed on a cash available basis with
a ard of the bids received at the last meeting. He presented
a financial model to be followed for completion of the project in
1 99.
Mr. Henry von Oesen, Consulting Engineer, presented
c elusions and reasons for increased porject costs. He stated
i Phase I/Areas 1, 2 and 3 the number of sewer connections
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:~:s R::::C::::::::T::::O 4:I::::E(:T::::~WIDE
S TEM (CONTINUED)
SEWER
r uired had grown from 2,201 to 3,607 which reflects a growt
tern of 16% per year for a total growth of 64%. This growth
required additional pipeline, pumping stations and other
ject costs. He also commented on the the underestimated cost
construction from the City stating he was not familiar with
reason for these increases. He also commented on difficulty
i acquiring rights of way and pump station sites along with
c nges in DOT and State regulations.
A lengthy discussion was held on additional costs of the
p ject and the financial model presented by the Director of
E ineering and Facilities.
A lengthy discussion was held on revisions to the current
f ilities fee for waste treatment plant expansion that applies
t new development. The Engineering Staff recommended the
c rent policy be expanded to 'include any construction in the
S er District beginning September 1, 1986. This revision would
r uire new construction to pay their share of future plant
c struction costs. Application for a building permit would
d ermine when construction would begin.
County Attorney Pope commented on the legalities involved in
t s change of policy and requested further research before
t ing action.
Chairman O'Shields asked if anyone from the general public
Id like to comment on the Status Report made by the Consulting
The following persons commented:
Mr. Al Ballard, a resident of New Hanover County, commented
o
f
t
presenting the true facts on an issue.
underestimated pro jection of cost
payer would bear the burden.
He expressed concern
figures stating the
Mr. William Funderburg, a resident of Castle Hayne,
mented on the presentation and questioned the Consulting
ineer. He presented Article 5 of the Federal Water Pollution
trol Act of 1972 as an exhibit. Mr. Funderburg commented on
e County being the lead agency with the City in the
ropolitan Sewerage District. '
Mr. Funderburg questioned Mr. von Oesen on the increased
n ber of pumping stations in the wrig~tsville Sound area
c menting on the costly grit system -being installed. He
c mented on the Northeast Interceptor being designed to relieve
blems in the Wrightsville Beach area.
104
MINTUE~ OF ~PECIAL MEETINC, AUCU6T 4, 1986 (CUNTiNU~U)
"-
1-
Mr. Funderburg expressed concern for the manner in which th
wer system was being handled reqeusting no award of bids unti
estions are answered with technical information.
ARD OF CONTRACTS PHASE I, AREA 2 AND 3
After discussion, Commissioner O'Neal MOVED, SECONDED b
mmissioner Retchin to award the following contracts a
r commended by the Engineering Staff and to approve the followin
B dget Amendment. Upon vote, the MOTION CARRIED UNANIMOUSLY.
Mr. Al Misko expressed concern for the tap in fee asking i
e fee would increase. Engineering Director Hilton explaine
e current fee.
Mr. Wilbur Bryant, a resident of Middle Sound Road
mmented on the report presented by the Consulting Enginee
pressing concern for continuance of the project with th
errun that has already occurred. He recommended no award 0
.ds and abolishment of the system immediately.
Mr. Bryan Cottle, a resident of New Hanover County for 5
ars, stated he was in favor of the Sewer System an
mplimented the District for approving this project. H
pressed concern for the expense involved to homeowners for ta
es, particularly low income families. He recommended some for
assistance for these people.
Chairman O'Shields expressed appreciation to persons fro
e general public commenting on the issue and thanked Mr. vo
sen for his presentation.
"
C ntract 1 Pipework (Area 2A) R. H. Moore Co. $2,484,160.00
2 Pipework (Area 2B) T. A. Loving Co. 3,050,227.50
3 Pipework (Area 3) T. A. Loving Co. 1,648,540.00
4 Lift Stations Dellinger, Inc. 637,000.00
5 Electrical T.A. Loving Co. 179,400.00
AMENDMENT
-00000007 Water & Sewer District Debit
Credit
Project - Phase I
nds Proceeds
$4,547,760
B
A- Phase II - Sewer
Proceeds
3,688,210
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MIN.TTTR~ DF-S~~TAT. MF.F.TTNG, ATTGU~T 4, 1 QS6 (~ONTTNTJF.n)
OF BIDS (CONTINUED)
Debit
Credit
B- Phase II - Sewer
Proceeds
$1,136,000
thside Wastewater Treatment
d Proceeds
354,264
FMHA Project - PHASE I
General Contractor
$4,547,760
ea A - Phase II - Sewer
Engineering
General Contractor
Inspections
Contingencies
13,000
3,534,210
91,000
50,000
rea B - Phase II - Sewer
General Contractor
Inspections
1,086,000
50,000
Souths ide Wastewater Treatment
Engineering
General Contractor
212,901
141,363
OPTION OF RESOLUTIONS - WATER AND SEWER DISTRICT REFUNDING
DS AND SEWER BONDS
Commissioner Retchin MOVED, SECONDED by Vice-Chairman
B field to adopt resolutions approving interest rates for both
i sues of bonds; adjust serial payments of refunding bonds;
a rove official statement; and call the bonds to be refunded on
J e 1, 1996. Upon vote, the MOTION CARRIED UNANIMOUSLY.
Commissioner Retchin MOVED, SECONDED by Vice-Chairman
B rfield to approve an Escrow Deposit Agreement with First
C tizens Bank as the County's Escrow Agent for bond transactions.
U on vote, the MOTION CARRIED UNANIMOUSLY.
Copies of the resolutions are contained in Exhibit Book I,
P ge 34.
JOURNMENT
Commissioner Dolan MOVED, SECONDED by Commissioner Retchin
t adjourn the meeting. Upon vote, the MOTION CARRIED
U ANIMOUSLY.
Chairman O'Shields adjourned the meeting at 9:39 o'clock
P M.
~t~~.
Lucie F. Harrell, Clerk
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