REQUEST FOR ACTION RFA-18-0500

Meeting Date: May 17, 2018

Prepared By: Niel Brooks

MEETING TYPE: Council Regular Meeting

TITLE: Resolution R18-388 to Accept an Interlocal Agreement for Funding of the Northeast
Wastewater System Expansion Between Brunswick County and the Town of Leland

PURPOSE: To accept and authorize the Mayor to execute an Interlocal Agreement for Funding of
the Northeast Wastewater System Expansion Between Brunswick County and the
Town of Leland.

BACKGROUND: Brunswick County owns and operates the Northeast Brunswick Regional Wastewater
Reclamation Facility, associated regional pump stations, sewer transmission force
mains and effluent disposal facilities (together comprising the "Northeast System"),
with daily treatment capacity of 2.475 million gallons. The Town of Leland has a
participation agreement related to the construction and use of these facilities
along with the Town of Navassa, the City of Northwest, and H2GO Brunswick
Regional Water and Sewer, a sanitary district (Northeast Participants). In April
2017, Brunswick County engaged McKim & Creed to perform an engineering
study to assist in determining logical plant and transmission system expansion
alternatives based on flow history and growth patterns. The engineering
report found that in 2016 the Northeast Plant rated at 76% capacity for its
average annual day, with its peak month flow exceeding 90%. Based on
engineering analysis of historical growth rates, the Northeast Plant would
exceed its rated capacity based on the average annual day with peaking factor
in 2021. However, due to growth rates in excess of historical values and permit
requirements that necessitate meeting hydraulic and contaminant limits on a
monthly basis, permit infractions could occur sooner.

SUMMARY: Brunswick County has put forth an Agreement to establish an

intergovernmental approach to fund expansion of wastewater treatment
services for the benefit of the Northeast Participants. The Scope of the Project
would have the County, with funding assistance from the Northeast
Participants, construct an expansion of the Northeast System for wastewater
treatment, transmission system improvements, and effluent disposal to be
able to provide the Northeast Participants with an additional 2.5 MGD
transmission and treatment capacity at a cost of approximately $39.1 million.
The Town of Leland's portion of this capacity would be 0.810301 MGD at a
cost of approximately $12.67 million. In order to execute this expansion, the
Town would need to adopt a resolution accepting the Interlocal Agreement for
Funding of the Northeast Wastewater System Expansion Between Brunswick
County and the Town of Leland.

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SUPPORT OF STUDIES NA
OR PLANS:

FINANCIAL: The Town would be responsible for $12.67 million of the expansion's total $39.1
million cost. This cost would correlate with the Town's share (32.41%) of the the total
new capacity of the plant (0.810301 MGD). The County intends to issue a 20-year
revenue bond to finance the project. Upon issuance of the financing dept, the County
will provide an amortization schedule to the Town showing the monthly cost and
semi-annual payment schedule for the Town. The Town would pay the County semi-
annually for the sums indicated in accordance with the actual amortization schedule.

ALTERNATIVES: The Town Council could choose to approve or deny the resolution.

RECOMMENDATION: Staff recommends approval of the resolution.

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 Resolution R18-388
Introduced By: Niel Brooks
Date: May 17, 2018

Resolution Accepting an Interlocal Agreement for Funding of the Northeast

Wastewater System Expansion Between Brunswick County and the Town of Leland

WHEREAS, Brunswick County owns and operates the Northeast Brunswick Regional
Wastewater Reclamation Facility, associated regional pump stations, sewer transmission force
mains and effluent disposal facilities (together comprising the "Northeast System"), with daily
treatment capacity of 2.475 million gallons (MGD); and

Whereas, the Town of Leland has a participation agreement related to the construction and use
of these facilities along with the Town of Navassa, the City of Northwest, and H2GO Brunswick
Regional Water and Sewer, a sanitary district (Northeast Participants); and

Whereas, Brunswick County has put forth an Agreement to establish an intergovernmental

approach to fund expansion of wastewater treatment services for the benefit of the Northeast
Participants, and the availability of these services is vital to the public health, welfare and
economic growth of these units of local government; and

Whereas, the Scope of the Project would have Brunswick County, with funding assistance from
the Northeast Participants, construct an expansion of the Northeast System for wastewater
treatment, transmission system improvements, and effluent disposal to be able to provide the
Northeast Participants with an additional 2.5 MGD transmission and treatment capacity at a
cost of approximately $39.1 million; and

Whereas, the Town of Leland's portion of this capacity would be 0.810301 MGD at a cost of
approximately $12.67 million; and

Whereas, the Town wishes to participate in the expansion of wastewater treatment services for
the benefit of the Town of Leland and other participants in the Northeast System;

Therefore, Be It Resolved:
That the Town of Leland accepts and authorizes the Mayor to sign the Interlocal Agreement for
Funding of the Northeast Wastewater System Expansion Between Brunswick County and the
Town of Leland.

Adopted by Town Council on this 17th day of May, 2018.

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Brenda Bozeman, Mayor Sabrena Reinhardt, Town Clerk

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