Board of Supervisors / Nelson County Service Authority Joint Meeting : 1.26.10


Tuesday, January 26, 2010

Present: Ms. Connie Brennan, Mr. Joe Dan Johnson, Mr. Allen Hale, Mr. Tommy
Harvey and
Mr. Tommy Bruguiere (Mr. Steve Carter)

Mr. Montie Pritchett, Mr. David Hight, Mr. Rick Sperry and Mr. Ed Gilliam
(Mr. Tim Castillo)

Mr. Carter noted that county has been in discussions with DEQ, who has
offered $1.7 million in Federal stimulus funds to extend the water line from
the intersection of Rt. 151 & Rt. 56 to Roseland to address contamination at
two underground storage sites at Fergusons Store and Roseland Rescue Squad.
He reported that the NCSA staff has indicated that the extension is not
possible due to water supply concerns.

Mr. Castillo introduced Jessica Kwykowski with Bury + Partners who has
developed options for expanding the system. He noted that the expansion of
the system has evolved to include options for water withdrawal from the Tye
with a loop system to discharge into the Tye River. She presented three
options to accomplish the intake/discharge upgrades. One of the options
includes the extended water line to Roseland Rescue Squad to deal with the 8
properties affected by that site. She noted that the proposed lines would
add approximately 110-120 potential new customers.

Mr. Bruguiere asked what the cost would be for the upgrades and the line to
Roseland. Mr. Castillo said it would cost approximately $9.3 million so $7.7
million would have to be found (over the $1.7 million offered by DEQ). He
noted that there is a lot of stimulus money available. Mr. Castillo said
that during the committee meetings with the Supervisors, Mr. Harvey had said
that the county has to find a way to make the project happen so his board
has been working to make it happen. Mr. Bruguiere asked, if the Supervisors
do nothing, what new requirements the NCSA would have to meet. Mr. Castillo
said that NCSA will be required to meet the new metal requirements, which
are based on the size of the stream or river into which they discharge. A
new discharge into the Tye River rather than Black Creek would meet the new
requirements. He noted a cost for that new discharge at $1 to $2 million.
Mr. Castillo reported that EPA will require a second water source for Black
Creek. Mr. Carter clarified that a second water source will only be required
once the NCSA reaches the 80% capacity threshold. Ms. Brennan asked whether
the mandates come with funding from EPA. Mr. Castillo said that he is
hopeful they can find funding through several sources.

Mr. Carter said that the debt service for any of these projects is the real
talking point, noting that the county is as financially challenged as the
Authority is right now. Mr. Bruguiere asked who would be responsible for
dealing with the contamination issue if the county does nothing. Mr.
Castillo said that Roseland Rescue Squad would have to find a water source.
Mr. Carter reported that RRS has submitted a hardship document to DEQ.

Mr. Johnson asked, if the county commits to the project, it commits to the
$7 million regardless of whether it is awarded any funding or not. Mr.
Carter said that that is correct. Mr. Hale said that NCSA gave the board an
overview of needed infrastructure improvements totaling over $24 million. He
said that all of this started because the DEQ said it had some money
available and now it has snowballed with the potential to burden the county
with significant debt service when the county is facing significant
financial issues. Mr. Johnson noted that 110-120 customers at 75% grant
money is $19,000 per customer if all customers connect. Mr. Hale said that
NCSA’s infrastructure needs include at least $20 million in improvements to
the Wintergreen system. He said that it is the board’s responsibility to
look not just at ideal solutions to the problem but to consider what the
county can afford. Ms. Brennan said that the debt service projections are
particularly overwhelming given the funding cuts the county is facing. Mr.
Harvey said that the county has funding opportunities right now that it may
never have again. He said the need is there.

Mr. Gilliam said that NCSA will have to move ahead with the sewer discharge
plan. Mr. Johnson noted that NCSA is facing $2.3 million minimum to deal
with the issues at Black Creek. Mr. Gilliam said that NCSA is going to apply
for full funding and see where it goes. Mr. Carter said that NCSA cannot
substantiate itself with $24 million in improvements coming up.

Meeting adjourned.

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