from Contributor Reports
While Oxford Mayor Al Woodlief did not attend the meeting of the Kerr Lake Regional Water System partners on April 9 at 10:00 a.m. at City Hall, and his name was not mentioned, no time was lost in contradicting his published assessment that Henderson “is confronted with a roughly three-decade old water plant in need of extensive work…” as the the agenda of the Kerr Lake Regional Water Authority was amended to include the topic of upgrades to KLRWS in past years.
Since 1996, at least $6.4 million has been expended to upgrade filters, put in a loop line, put in high service pumps and upgrade raw water pumps not to mention putting in a new intake which will be vital in drought times. This is debt that the system is still carrying and paying. Frank Frazier, Assistant City Manger, assured the group that the plant, while not state of the art, was extremely adequate and was supplying quality water.
Larry Thomas, Oxford’s Public Works Director, commended the management of the water system when it was reported that there was $2 million in revenue funds at present. Woodlief’s other published claim that, “They kept the water rates down to keep in office and now that everyone is gone, they’ve hit the ceiling,” also was challenged when it was reported that there will be a 5% increase in water rate sales proposed for this budget, whereas last year’s rate increase was 14%. It was also pointed out that for the first time, in last year’s budget $105,000 was set aside in capital reserve and the same is planned for this year’s budget.
This reserve money will not go very far if Henderson’s City Council approves the hiring of a consulting engineering firm and a legal firm to oversee the KLRWS’s application for an Interbasin Transfer as requested by the Advisory Committee. The estimated cost from the engineers is $128,000 for 600 labor hours with additional legal costs added at an hourly rate. The work is estimated to take about six months for phase one of the study. This initial phase will include an update on all projections and a review of work previously done. The partnership has already spent around $150,000 to begin this process which includes a scoping document and an environmental assessment.
Acquiring an IBT permit is the first step in getting permission to expand the water treatment plant so that more gallons of water per day can be treated. The plans for the plant expansion have been drawn and approved by the state, according to Frazier,. However, state law requires an IBT permit. One of the primary requirements for obtaining a permit is that all users must prove that they all doing all they can to utilize and conserve all present water. Part of this requirement is that municipalities have water rate charges that reflect this philosophy. The City of Oxford and Warren County presently have such structures where the more water you use, the higher the rate; however, the City of Henderson’s rate structure does not adhere. In some cases in Henderson, the more water you use, the lower the rate. Therefore, the incentive to conserve is reduced.
Henderson is under contract to sell 3 million of its 6 million gallon per day allotment to Franklin County. Oxford wants a commitment from Henderson to sell 500,000 gallons per day to Oxford, for Oxford in turn to sell to Creedmoor. Interim City Manager Ed Wyatt stated that the city felt an obligation to be able to supply water to Vance County. Paul Kiesow, an Oxford Commissioner, said that as far as he knew, Granville County was not looking at water.
Thomas informed the group that in negotiations with Creedmoor, Oxford was “selling a part of the waste water plant to them” as part of the water deal. This will mean that the water sold to Creedmoor will return to Oxford. If the water was reclaimed and discharged into the Neuse River Basin, then that would be a possible impediment for an IBT permit.
Henderson City County member Mike Inscoe offered to negotiate to sell to Oxford 250,000 gallons per day if Oxford would commit 250,000 of their allotment to Creedmoor. Thomas replied that Oxford would “eat up their allocation pretty quickly. The Regional Plant needs to be expanded in any case.”
Click here to see a copy of a grant proposal for the improvement of the water plant.
Ed Wyatt stated that the $25 million cost for a new plant would go against the debt threshold for the city and the city might need financial help with sharing that debt load. Paul Kiesow, Oxford Commissioner, wanted a timetable for the water plant expansion. “We can’t sign with Creedmoor without the 20 million gallon expansion.” Thomas pushed for a restructuring of the Regional Water System by asking that it move into a pure Water Authority and “lump together and sell as much water as we can sell.” The 10 million allocation to the partners he said, “is not doing us any good unless if we sell it.”
Warren County representatives were absent from the meeting.