Vance County Water District Overview and Update

1. Vance County Water District Overview and Update Jordan McMillen Deputy County Manager Director of Planning and Development Department 156 Church St. Suite 3 Henderson, NC 27536 (252) 738-2091

2. Presentation Outline • History of Project • Water System Details/Maps • Connection Options • Connection Costs • Water Rate Comparisons • Benefits • Questions?

3. History of Project • 1996 • Land Use Plan identified need for water throughout the county • 2004 • Vance County Water District formally established (Oct. 4, 2004) • Preliminary Engineering Report Completed (Engineering firm: Hobbs and Upchurch Associates) • 2006 • Jan – March; 1st set of public meetings • 2008 • March – April; Public information meetings • May; Bond Referendum for $27 million passed • October; USDA committed loan funds to Phase 1A • November; USDA $1 million grant • December; NC Rural Center $1 million grant

4. History Cont. • 2009 • January; Authorized beginning of engineering field work and signup campaign • July – preliminary design complete; Project SHOVEL READY • October – Kittrell Water Association expressed interest in Phase 1B; Application made to USDA for Phase 2A & 2B funding. Application made to NC Rural Center for $1 million grant for Phase 2A & 2B. • November – Sign up campaign officially began with mass mailing and signup meetings (12/1, 12/3, 12/10). • 2010 • March – Made aware of successful funding for Phase 2A and 2B • April – Sign up campaign for Phase 2 with mass mailing and signup meetings (4/15, 4/19, 4/26). • 2011 • Finalized water purchase agreement with City of Henderson • Phase 1A tank site secured; Location off of Warrenton Road

5. History Cont. • 2012 • Secured meter vault site (connection site to City of Henderson); • Phase 1A advertised for bidding; Selected H.G. Reynolds for waterline construction and Caldwell Tanks for tank construction; • July 9, 2012 – Official start of Construction for Phase 1A (anticipate 12 months of construction); • 2013 • Phase 1A System turned on – October 28, 2013; • November 14,2013 – Groundbreaking for Phase 2A & 2B; • Final policies, procedures and rates adopted • 2014 • January 2, 2014 – Official start of construction for Phase 2A &2B (anticipate 9 months of construction);

6. Water System Details • Phase 1A • Total Projected Cost - $7.8 million • Total Project Miles – approx. 36 miles. • Total Signups – approx. 900 of which 620 are located along roads that will be served. • Received $2 million grant (25%) • Phase 2A • Total Projected Cost - $3.9 million • Total Project Miles – approx. 28 miles • Total Signups to date – 380 • Received 42% grant – stimulus money • Phase 2B • Total Projected Cost - $6 million • Total Project Miles – approx. 44 miles (has been reduced due to signups) • Total Signups to date – 375 • Received 33% grant – stimulus money

8. Connection Options • Wet Tap Option • Payment of $125 Connection/Capacity Fee (for standard residential 3/4 inch meter) • Customer agrees to become an active water user within 90 days of notification that water system is active. If not connected within 90 days, a $30 monthly base fee will be charged from that point forward. • Dry Tap Option • Payment of $800 Connection/Capacity Fee (for standard residential 3/4 inch meter) • Customer is not required to connect to the water system and no monthly base fee will be charged until connection is made. Dry taps are good for those that have vacant land or that do not plan to connect for at least 2-3 years.

9. Connection Costs • During Construction • $125 Connection AND Capacity Fee (wet tap) • $150 Refundable Security Deposit at connection (refundable when account closed) • $50 plumbing permit • After Construction • $1,100 Connection Fee • $500 Capacity Charge (for residential ¾ inch meters) • $150 Refundable Security Deposit at connection (refundable when account closed) • $195 Cost of meter and installation • $50 plumbing permit Total = $325 VS. $1,995

10. Connection Costs Continued…

11. Water Rate Comparison • $30 base fee and $7.19 per $1,000 gallons usage fee • Translates into a usage fee of $0.00719 per gallon (less than a penny) • Example – Cost Comparison • $1.07 at convenience store • Could buy 8 bottles for less than 1¢ • Could buy 1 gallon for less than a 1¢

12. Did you Know? • The national average for water use per person is 33 gallons per day. For a family of 4 this equates to just under 4,000 gallons per month. • In NC counties similar to Vance County, the average household use is 3,600 gallons per month. • Avg. Vance County water bill using 3,600 gallons per month = $55.18 An 8 minute shower = 16-32 gallons of water . Each flush = approx. 2 gallons of water use. 3 loads per week = 18 gallons used each day. Data Sources: US EPA, Water use varies based upon fixture type. See SWFWMD water use calculator.

13. Benefits of Water System • Safety – secured, regulated, constantly monitored; less likely to contamination than private wells. • Reliability – ongoing and sustainable during power outages, drought resistant. • Quality – wells are not monitored and routinely experience changes in quality and quantity; wells more subject to contamination, high mineral content, discoloration, or noticeable odors. • Rural Fire Protection – hydrants every 2000 ft. • Insurance Premiums – Access to water allows for reduced ISO insurance ratings and reduced homeowners insurance premiums. • Upfront cost and maintenance cost for wells can be very high. • Economic Development - Ability to encourage and attract new development while enhancing existing development • Ability to utilize wells for outside uses (washing car, watering plants) • Great investment for Vance County’s future

14. Questions/Contacts Vance County Planning and Development 156 Church Street, Suite 3 (County Courthouse) Henderson, NC 27536 252-738-2080 Envirolink, Inc. PO Box 670 Bailey, NC 27808 252-235-4900 888-754-9878 Envirolink Field Office 122 Young Street Henderson, NC 252-235-4900