BOC weighs waste water options

[barbmarz]

FROM THE DAILY ADVANCE



County eyes wastewater options at Ocean Sands

By Cindy Beamon

The Daily Advance

Thursday, June 16, 2011UCK — After being hit three times with hefty fines, Currituck has
no choice but to replace its aging wastewater system in Ocean Sands,
the county manager says.

“The do-nothing option is not an option,” County Manager Dan Scanlon told commissioners during a work session Tuesday.
Under pressure from the state, the county will need to begin work on a
new plant — and soon, he said. The state has fined the county five
times, including $9,000 in January 2010, then $10,000 in June 2010, and
another $15,000 more recently. The state fines will go up and the
timetable for fixing the problems will shorten unless the county moves
quickly to figure out how to replace the 40-year-old system, county
officials said.
To avoid paying additional penalties, the county must choose among several options by July 14, Scanlon said.
Depending on what commissioners decide, the estimated cost ranges from
$16 million to more than $73 million, according to a recently released
cost study.
“This is a big decision, in every sense of the word, big. Big in scope,
big in cost — the impact on the citizens is going to be big,” Scanlon
said.
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The cost to customers would vary depending on the replacement option
the county chooses. Under one scenario, the hook-up fee for a new
customer with a septic tank would be $31,000.
In addition, customers could see sewer bills double or jump five times
higher than existing rates, according to estimates from County Engineer
Eric Weatherly.
One commissioner suggested that the county should consider raising
property taxes to spread out the construction cost to more people.
Commissioner John Rorer said the Outer Banks is an “economic engine”
and that raising taxes would be one way of protecting the county’s tax
base. The resort is “subsidizing a great part of the mainland tax
burden,” and county taxpayers should recognize that contribution, Rorer
said. He suggested a 5-cent tax increase in 2013 when property is
revalued may be a good option for financing the project.
“If we could fix the problem at a nickel, maybe we should look at it,” said Rorer.
Commissioner Owen Etheridge countered that raising taxes to fund a
sewer system in the county runs contrary to the county’s users-pay
policy. Normally, customers who benefit from the service pay for it.
Etheridge said raising taxes should not be an option, unless the county
plans to extend sewer service to everyone, which would not be feasible.
A 5-cent property tax increase would be a “big hit” to taxpayers,
particularly local businesses struggling in a tight economy, Etheridge
said.
How the county pays for the new system will be one of several decisions
commissioners will need to decide for the new project, Scanlon said.
First, the county will need to decide if it will replace the system at
Ocean Sands only or opt for a regional system with more Outer Banks
customers.
Replacing the Ocean Sands system is estimated to cost $16 million.
If the county decides on a regional system, it will then need to
determine if it will operate alone or partner with a private company to
pay for the new system.
Outer Banks Ventures, the developer of Corolla Light, has proposed
partnering with the county to replace the two aging systems at Corolla
Light and Ocean Sands. A regional system for the two subdivisions is
estimated to cost between $33 million and $47 million, depending if it
includes sections G and T in Ocean Sands.
Richard Willis, vice president for Outer Banks Ventures, said the cost
study shows that a public-private partnership would be the less
expensive, “but I know it’s a tough decision because the cost is so
big.”
The county is also looking at a regional system that would extend
services to other residences on the Outer Banks that now use septic
tanks. According to the cost study, extending service to Corolla
Village, Ocean Hill and Whalehead would not be feasible in future years
unless they are added to the proposed regional system. Extending the
service to these subdivisions would add another $34 million to the cost
for a regional system. Adding Monteray Shores is not feasible, according
to the cost study.
The county will need to decide among the options within 30 days to meet
the state’s timetable for replacing the system, Scanlon said. Under a
special order of consent, the N.C. Department of Environmental and
Natural Resources has agreed to suspend fines and allow the county to
operate its existing system at relaxed standards while it constructs a
new plant. Under the state-ordered deadlines, the county would complete
an environmental assessment and master plan for the project by January
2012, begin construction on Dec. 1, 2013, and finish construction a year
later. If the county does not meet the deadlines, it would be subject
to more fines.
The state cited the county for high nitrate levels in treated
wastewater and for deficiencies in the plant’s operation due to its age.



Key tract back in play

By Cindy Beamon

The Daily Advance

Thursday, June 16, 2011
If Currituck commissioners opt to build a regional wastewater plant on
the Outer Banks, the county may need to purchase property it once
spurned with threats of eminent domain.

During an easement dispute with the county last summer, the owner of a
35-acre tract in Monteray Shores offered to sell the property for $1.3
million.
The county refused the offer.
All the county wanted was a 20-foot easement to lay underground pipe to
a pond on the property. Land owner Bob DeGabrielle asserted the use of
his pond was worth more than the $11,700 the county was offering.
Instead, he proposed some higher-priced alternatives, including the sale
of the entire tract.
The impasse over the easement price eventually led the county to file
notice of its intent to use eminent domain. The move would have allowed
the county to immediately seize the easement for a flood drainage
project and settle the price in court later. County attorney Ike McRee
said the case never went to court and DeGabrielle agreed to a $20,000
purchase price.
Now the purchase appears to be on the table again.
A recent feasibility study for a regional wastewater system suggests the tract is needed for waste water holding tanks.
Richard Willis, vice president of Outer Banks Ventures, said he’s
prepared to sell the tract for what it cost him plus closing costs. He
bought the property at $1.35 million a couple months ago from
DeGabrielle in hopes of partnering with the county on building the
regional plant.
The purchase hinges on what commissioners decide about building a
wastewater treatment plant on the Outer Banks. County manager Dan
Scanlon said commissioners will need to decide by July 14 if the county
should build a regional system or opt to build a less costly standalone
plant for Ocean Sands. If the county opts for a more costly regional
system, it will need to purchase the 35-acre tract for holding tanks,
said David S. Briley, associate with Hazen and Sawyer in Raleigh, which
prepared the feasibility study.
The tract in Monteray Shores has a history of controversy.
For several years, the property could not be developed because of
building moratorium enacted in 2002 over wastewater issues at Monterary
Shores.
In 2009, the ban was lifted and DeGabrielle planned to sell the
property for a fun park with a go-kart track and other amusements. The
project was opposed by county planners who said a portion of tract was
not available for development because it had been designated as a “green
area.” Later, plans for the fun park fell through, and DeGabrielle
filed suit against I.G. Holdings of Kitty Hawk for allegedly backing out
of an agreement to buy the 35 acres for the fun park.