November 30, 2006

 

 

The Handy Sanitary District is in the process of designing and implementing a regional sewer system to serve the communities around Badin Lake.  As a result of this project, a number of questions have arisen and Handy Sanitary District, in an effort to provide complete information and respond to such questions, has formulated the attached question and answer sheet.

 

This “fact sheet” is intended to address the questions which Handy has been asked with regard to this project and provide factual answers thereto.  In addition, questions regarding financial aid for connection fees have been raised and this mailing also includes applications for financial aid consideration to address those concerns.

 

Finally, some residents have raised the question of “What if I do not qualify for financial aid but still find the cost of connection to be a burden, what can I do?”  If you believe this project presents a financial hardship and that you do not qualify for financial aid in the manner attached hereto, please contact Handy Sanitary District individually for a case-by-case determination of how your needs can be addressed.  Please direct individual questions regarding financial aid to Mrs. Lisa Hedrick, Office Manager at (336) 859-2553, by January 15, 2007.

 

We sincerely appreciate your interest in this project and look forward to implementing this much needed improvement to our region of Montgomeryand Davidson Counties.  If you have additional questions beyond those addressed in the enclosed mailing, we have provided a point of contact for your further information as Mr. Fred M. Hobbs, P.E. with Hobbs, Upchurch & Associates, P.A., (910) 692-5616, f.hobbs@hobbsupchurch.com.

 

 

 

 

Tim Loflin

Chairman, Handy Sanitary District Board of Directors

 

 

 

 

 

 

1.                  What is Handy Sanitary District?

Handy Sanitary District (HSD) was incorporated on May 22, 1974 and operates under NC Public Health Law NC General Statues 130-123 through 130-156.5. The District is a political subdivision of the state (local government) governed by a District board elected by registered voters within the District. HSD is authorized to provide water and sewer within and without the District boundaries, located in southern Davidson and northwestern Montgomery Counties as indicated on the attached map.

 

2.                  Who do they answer to?

HSD must answer to the residents within the District. Much like a county or municipality, all financial and regulatory requirements must be fulfilled by HSD in order to maintain compliance with state and federal laws.  The HSD Board of Commissioners holds an official Board meeting on the second Thursday of every month at 7:00 pm and allows public comments at each Board meeting.

 

3.                  How are Board members selected?

Board members are elected by a general election held every two years. Each member on the HSD Board serves a term of four years.  Elections are staggered so that no more than three seats are up for election.

 

4.                  Can I vote for them?

Any registered voter within the boundaries of the District can vote for candidates of the HSD Board of Commissioners.

 

5.                  How do I register to vote?

Any resident living within the boundaries of the HSD can register with the Montgomery/Davidson County Board of Elections office to be able to vote for candidates of the HSD Board of Commissioners.

 

6.                  Can I serve on the Board?

Any registered voter living within the boundaries of the HSD can run for election to the Board of Commissioners.

 

7.                  Why was Handy Sanitary District formed?

HSD was formed to preserve and promote the public health of the residents in southern Davidson and northwestern Montgomery Countythrough the provision of public water/sewer services.

 

8.                  Why was the sewer project begun?

Nearly 10 years ago, the concept of providing public sewer to Badin Lakewas initiated at the request of residents in the Badin Lakecommunities.  These residents asked HSD to investigate the feasibility of providing public sewer to the existing developments at Badin Lake.  The reason for their request was the need to eliminate failing septic systems and to provide sewer collection for areas that would not tolerate septic disposal fields. The proposed solution is the construction of a sanitary sewer collection system capable of removing wastewater from approximately 1,100 on-site septic systems around Badin Lake.  Additionally, the sewer project will eliminate two aging wastewater treatment facilities that have spray irrigation fields within one-half mile of the lakeshore. The Badin Lake Regional Sewer Project has the potential to treat wastewater generated from a total of 2,200 homes: 1,100 homes around Badin Lakewith septic tanks, approximately 800 homes in Badin Shores, and approximately 300 homes in Uwharrie Point.

 

9.                 Why does the project begin in the Badin Lake area when we get our water from High Rock Lake?

Residents in the Badin Lakecommunities made the initial request for public sewer service.  Therefore, HSD has investigated the feasibility of sewer service in this specific area of the District’s jurisdiction.  This does not eliminate the potential for HSD to consider public sewer service in the District’s jurisdiction around High Rock Lake.  In the future, HSD can pursue additional sewer projects at High Rock Lakeif public interest and critical health needs warrant a feasibility assessment.

 

10.       Where and how has concern been reported about Badin Lake water quality? Is it possible the polluted water could be coming from upstream and not the Badin Lake area?

Badin Lake was identified as having notable water quality impacts in the North Carolina Department of Environment and Natural Resources (NCDENR) - Division of Water Quality’s “2003 Yadkin-Pee Dee River Basinwide Water Quality Plan.”  The following excerpts from this plan discuss the current situation with respect to water quality in Badin Lake:

 

Badin Lake has been monitored 13 times by DWQ since 1981. Nutrient enrichment, particularly in the arms, has been an ongoing concern. Potential sources of nutrient loading to Badin Lake include development in the immediate watershed and inflow of nutrient-rich water from High Rock Lake upstream. The Fayetteville Regional Office of DWQ received public complaints regarding fish kills and poor water quality conditions in Badin Lake in 2000 and 2001. Fish kills have involved striped bass, sunfish and catfish.”

 

“The Intensive Survey Unit and Fayetteville Regional Office of DWQ conducted an intensive water quality survey of Badin Lakein 2002 to better document water quality conditions. Data indicates that fish kills reported in 2000 and 2001 appear to have been the culmination of stress due to an inadequate food supply (threadfin shad), along with elevated water temperatures and dissolved oxygen concentrations.  Elevated nutrient and supersaturated dissolved oxygen concentrations were again observed in 2002; however, no fish kills were observed or reported. Percent dissolved oxygen saturation ranged from 118.5 to 138.5 in the Yadkin Riverarm of the lake.  These concentrations indicate impairment of these waters (NCDENR DWQ, November 8, 2002).”

 

11.          Describe the history of the sewer project.

The concept of providing public sewer to Badin Lakehas been in the planning stages for nearly 10 years.  This project was begun as a grassroots effort to bring public sewer service to Badin Lake as a means to improve the quality of the lake water and stimulate the local economy.  In the beginning, this project evolved slowly as public comments were heard concerning the alternative methods for sewer treatment and the location of any potential sewer discharge.  Over time, HSD and Troyhave responded to public input and developed a plan to use the existing sewer treatment capabilities in Troy for this project.  As a result, an agreement between HSD and Troy was adopted onMarch 8, 2005 to allow HSD the ability to transfer wastewater from Badin Lake to the Town of Troyfor treatment and discharge.  The surrounding local governments of Davidson County and Montgomery County have passed resolutions in support of this project.

 

12.          Why is Handy proposing the service as opposed to Montgomery County?

HSD provides public water service to 2,200 residences at Badin Lake from Uwharrie Point to Shamrock development.  These water customers are located within the jurisdiction of HSD and are part of the resident freeholders in the District. Primary responsibility for provision of utility service within the jurisdiction of HSD is the responsibility of HSD.

 

13.             Wouldn’t it have been cheaper for the county to run sewer up around the lake, since we already pay taxes to them for that purpose?

No.  The jurisdictional boundary of the HSD overlaps portions of Davidson and Montgomery Counties, and this boundary establishes the utility service area of HSD.  Ad valorem taxes paid to Montgomery County or Davidson County do not provide revenue for County utility systems. These revenues are paid by customers of the respective utility system.

 

14.             If there are concerns about discharge of sewage into the lake, why doesn’t the County HealthDirector investigate and do something about it?

The Montgomery County Health Department regulates the issuance of septic system permits, repair permits, and permit denials through field inspection of all proposed septic system locations.  As part of the justification for this project, the Montgomery County Health Department has investigated their records of septic tank permit repairs and denials in the Badin Lake vicinity dating back to 1989.  County records indicate that 32 septic repair permits and 89 permit denials were filed since 1989.

 

15.               What type of sewer system is proposed?

A “low-pressure” wastewater collection system is proposed for the Badin Lake Regional Sewer Project. Many of the homes are below the road elevation and the severely sloping topography around the lake eliminates the cost-effectiveness of a conventional gravity collection system. 

 

16.               How does it work?

Low-pressure sewer systems utilize collection tanks at individual residences for wastewater collection.  A grinder pump located in this tank pumps wastewater away from the home, up any intermediate hills to discharge at a centralized collection pump station.  These pump stations will transfer wastewater to Troy for treatment and disposal.

 

17.               What is the estimated cost of the project and the source of the cost estimates?

The estimated cost of the Badin Lake Regional Sewer Project is $13.8 million.  This cost estimate is based on the engineer’s estimate of total probable project costs.

 

18.               How is the project proposed to be financed?

The following provides a summary of the financing components: $3.0 million from Clean Water Management Trust Fund (CWMTF), $7.0 million from NCDENR-Construction Grants & Loans, $2.2 million from customer tap-on fees, and $1.6 million from private market financing.

 

 

 

19.               Who will be served by the project?

Existing HSD water customers in the communities at Badin Lakewill be served in Phase 1 of the Badin Lake Regional Sewer Project.  Phase 1 is defined as the following unsewered developments, from west to east:  Lake Forest,Pinehaven, Rollingview, Shoreline Drive, Lakeshore Drive,Lakemont, Whippoorwill, Dixie Shores, and Shamrock.  Also, Phase 1 of this project will serve the sewered communities of Uwharrie Point and Badin Shores because the existing wastewater treatment facilities at these developments will be abandoned.

 

Woodland Estates and Heron Bay do not have public water service from HSD or any other provider; therefore, they are not included in Phase 1 of this project.  Woodland Estates and Heron Bayare proposed in future phases of the Badin Lake Regional Sewer Project as customer interest and financial feasibility permits at that time.

 

20.               How were these customers selected?

Customers at Badin Lake were selected because of their request for public sewer service, location within the jurisdiction of HSD, and their connection to the HSD water system.

 

21.               Why is mandatory connection required?

Mandatory connection is required to make this project financially feasible for customers located in the areas designated for public sewer service.  In addition, the CWMTF grant requires mandatory connection to the new sewer system in order to assure the maximum environmental benefit from the construction of this project.

 

22.               What impact does the N.C. General Assembly’s legislation have on mandatory connection?

In the North Carolina General Assembly’s 2005 session, Senate Bill 1594 was passed to clarify the authority of Sanitary Districts to require connections to water and sewer systems.  This bill was recommended by the Environmental Review Commission and grants Sanitary Districts the same powers to enforce mandatory connection as a municipality, county, water/sewer authority, and metropolitan sewerage district. This bill became effective September 1, 2006 and reads as follows:

 

A BILL TO BE ENTITLED

AN ACT TO Amend the authority of SANITARY DISTRICTS to require connections to water and sewer systems, as recommended by the environmental review commission.

 

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 130A‑55 reads as rewritten:

§ 130A-55.  Corporate Powers.

“A sanitary district board shall be a body politic and corporate and may sue and be sued in matters relating to the sanitary district. Notwithstanding any limitation in the petition under G.S. 130A‑48, but subject to the provisions of G.S. 130A‑55(17)e, each sanitary district may exercise all of the powers granted to sanitary districts by this Article. In addition, the sanitary district board shall have the following powers:

(16)     To adopt rules for the promotion and protection of the public health and for these purposes to possess the following powers:

To require the owners of developed property on which there are situated one or more residential dwelling units or commercial establishments located within the jurisdiction of the district and within a reasonable distance of any waterline or sewer collection line owned, leased as lessee, or operated by the district to connect the property with the waterline, sewer connection line, or both and fix charges for the connections. The power granted by this subdivision may be exercised by a district only to the extent that the service, whether water, sewer, or a combination thereof, to be provided by the district is not then being provided to the improved property by any other political subdivision or by a public utility regulated by the North Carolina Utilities Commission pursuant to Chapter 62 of the General Statutes. In the case of improved property that would qualify for the issuance of a building permit for the construction of one or more residential dwelling units or commercial establishments and where the district has installed water or sewer lines or a combination thereof directly available to the property, the district may require payment of a periodic availability charge, not to exceed the minimum periodic service charge for properties that are connected.

 

23.               Who is required to connect?

All existing HSD water customers in the communities at Badin Lake will be required to connect during Phase 1 of the Badin Lake Regional Sewer Project.  Phase 1 is defined as the following developments, from west to east:  Lake Forest, Pinehaven, Rollingview, Shoreline Drive,Lakeshore Drive, Lakemont, Whippoorwill, Dixie Shores, and Shamrock.  In the event that future communities are served in future phases of this project, mandatory connection to the sewer system will be required at that time.

 

24.               What is the source of the 1,000-feet limit for mandatory connection to apply?

The designation of a 1,000-feet limitation to the mandatory connection policy is established to reflect the general policy adopted by other municipalities, counties, water/sewer authorities, and metropolitan sewerage districts.

 

25.               If I own multiple lots at Badin Lake, will I be charged multiple tap fees?  What if I own multiple homes at Badin Lake?

Only one sewer tap fee will be charged per residence at Badin Lake.  Residences located on more than one lot will be charged one sewer tap fee.

 

26.               Describe the tap-on fee costs and their history.

In the initial sign-up period offered by HSD, tap-on fee was $1,500 including the pump, payable in two installments of $750 each. This offer of $1,500, including the pump, continued until November 1, 2001. From then until July 29, 2005, the tap-on fee increased to $1,500 plus $1,000 for the pump. On July 30, 2005, the tap-on fee increased to $2,500 plus $1,000 for the pump. After construction begins, the tap on fee will increase to $3,000 plus $4,500 for the pump. The $1000 pump fee is an incentive price, offered as an encouragement to sign up before construction begins.

 

 

27.               What is the estimated monthly cost of sewer service and how is it calculated? 

The monthly sewer bill is estimated to be $50 to $54 for customers that use approximately 3,000 to 4,000 gallons of water monthly. The monthly sewer bill estimate is calculated by the following rates: $30.00 flat rate plus $6.35 per 1,000 gallons of metered water consumption.  The monthly sewer charge is billed at 100% of the metered water consumption.  Final rates will be dependent upon final project costs.

 

28.               What role does the County Board Commissioners have in this project?

The County BOC’s have no active role in the Badin Lake Regional Sewer Project.  However, the Montgomery County BOC and the Davidson County BOC have passed resolutions in support of the Badin Lake Regional Sewer Project as it benefits the residents within their respective county.

 

29.               Can the County Board Commissioners change the tap fees?

No.  HSD has the authority to establish tap-on fees.

 

30.               Can the County Board Commissioners change the monthly service costs?

No.  HSD has the authority to establish monthly service fees.

 

31.             What can I do if I cannot afford the new sewer tap-on fees?

Financial aid will be available for those residents who qualify under federal guidelines for “low to moderate income status.” Attached to this fact sheet are forms to apply for financial aid and tables that specify household income thresholds for financial aid qualifications.  To apply for financial aid, the attached forms must be completed, signed, and returned to the HSD headquarter office in Denton.  Subsequently, applicants will be contacted and informed of additional procedures necessary to obtain financial aid through the available programs.

 

32.             Why is my sewer bill going to cost more than the sewer bill of someone who lives in Troy?

Troyhas developed their current sewer system over many years and was able to utilize previous state and federal grant funding programs that no longer exist.  Typically, these programs contributed a higher percentage of grant monies to infrastructure projects due to the large funding resources available to applicants.

 

33.               What costs should a homeowner expect in addition to tap-on and monthly usage fees?       

The homeowner will have to hire a plumber to connect the household plumbing to the new collection tank.  The homeowner will have to hire an electrician to connect the pump control panel to the household breaker panel.  These actions will be regulated respectively by the Montgomery County and Davidson County Building Inspections Departments.  To the extent possible, the location of the sewer collection tank will be in concurrence with the homeowner’s wishes.  Depending upon the capacity of the existing electrical breaker panel, upgrades to household electrical services may be required. Homeowners should consult with their electrician for an assessment of their electrical system and the cost of any necessary upgrades.

 

 

 

34.               What will I be required to do with my current septic tank?  Can I continue to use my septic tank even after I tap on?  If so, how long?

This project will require all homes in the Phase 1 sewer service area to connect to the new sewer system. HSD will require a Certificate of Sewer Separation from the plumber that makes the connection between household plumbing and the collection tank. No HSD customers will be allowed to maintain use of their existing septic systems after construction of the project is completed. However, although Montgomery County Environmental Health does recommend it, they do not require the filling of abandoned septic systems.

 

35.               Why did the Clean Water Management Trust Fund contribute to this project?

The goals and objectives of the Clean Water Management Trust Fund (CWMTF) are to fund projects that promote and enhance the quality of the surface waters of the State.  In their independent evaluation of this project, the CWMTF staff and Board determined that the Badin Lake Regional Sewer Project met the goals and objectives of the CWMTF.

 

36.               Please outline the CWMTF grant process?

A CWMTF grant application is subjected to a competitive review at the staff and board level where recommendations are made for project selection and funding.  The Clean Water Management Trust Fund is comprised of a 21-member, independent, Board of Trustees that has full responsibility over the allocation of moneys from the Fund.  The CWMTF is funded by direct appropriations from the N.C. General Assembly through the biennial budget process.

 

37.               Was the CWMTF misled by pictures taken around the lake?

No. At the request of CWMTF, a series of pictures was taken around the northern shoreline of Badin Lake noting the variety of discharges into the lake.  The intention of these pictures was to provide CWMTF staff a point of reference for the variety of discharges into the surface waters of Badin Lake.

 

38.           Is Handy Sanitary District making a profit from this project?

No.  The sewer fees established by Handy Sanitary District are intended to fund Phase 1 of the Badin Lake Regional Sewer Project.  These fees will cover the costs to construct, operate and maintain the new sewer system.  Annual sewer treatment costs, operation and maintenance costs, and capital reserve funds are attributed to the established sewer fees.  Annual financial statements/audits are reviewed by the North Carolina Local Government Commission.

 

39.           Will the residents along Blaine Road and NC-109 be required to connect?

No.  The Phase 1 design includes pressurized force mains along Blaine Road and NC-109  whichcannot be connected to individual household sewer services. The location of centralized collection pump stations may enable segments of Blaine Road and NC-109 to connect to the sewer system in the future.

 

40.           What is the current status of the project and its funding?

All funding sources, consisting of the CWMTF, NCDENR-Construction Grants & Loans, and private placement funding, were fully investigated and the availability of these funds verified prior to initiating project design.  Currently, the process consists of the acquisition of these funds whose status is summarized as follows:

 

The CWMTF awarded HSD with a $3.0 million grant in October of 2005.  The application package for the $7.0 million loan from NCDENR-Construction Grants & Loans will be submitted in late 2006.  The review and approval process for this loan will take approximately 90-120 days. The collection of customer tap-on fees is ongoing. The remaining funds will be private market loan and will be obtained before construction begins. 

 

 The design phase of this project is complete and has been submitted for permitting by the appropriate reviewing agencies.  Environmental and technical review by the lead review agency will be completed in late 2006 to early 2007.

 

41.           When and how will the system be constructed?

It is anticipated that a minimum of four or more contracts will be awarded for the following components in Phase 1 of the Badin Lake Regional Sewer Project: primary sewer forcemain, low-pressure collection system, collection pump stations, and individual pumps/collection tanks. 

 

Once this project has received all applicable permits from the reviewing agencies (+/- March 2007), the projects will be advertised, competitive bids received, and contracts awarded.  Construction is anticipated to take 18-20 months with implementation of service projected to be late 2008 to mid 2009.

 

42.           Who will maintain the system and pumps after installation?

Handy Sanitary District will maintain all appurtenances related to the sewer system after construction is completed and the project is in operation. This policy will apply to normal usage of the system. Negligence by the homeowner may result in additional charges.  

 

43.           If I currently use a well for water service and I am located within the jurisdictional boundary of Handy Sanitary District, can I connect to the new sewer system and continue to use my well?

Yes.  If you connect to the new sewer system, a meter must be installed on the homeowner’s well to provide flow information for sewer billing purposes.  The meter installation will be charged to the homeowner at HSD’sprevailing rate for a new water meter installation. Sewer customers using private wells will not be charged for water consumption, only sewer usage.

 

44.           If I use my well for irrigation, can I continue to use my well for this purpose?

Yes.  Irrigation wells will be allowed to continue service. 

 

45.           Who do I call if I have questions that aren’t addressed on this fact sheet?

If you have questions that aren’t addressed on this fact sheet, you can contact Mr. Fred Hobbs, P.E., President of Hobbs, Upchurch & Associates, P.A. at (910) 692-5616 or by email at f.hobbs@hobbsupchurch.com   

 

PRE-APPLICATION FORM FOR FINANCIAL ASSISTANCE

HANDY SANITARY DISTRICT

BADIN LAKE REGIONAL SEWER PROJECT

This form is intended to collect information from “property owners” who believe they are eligible for sewer connection financial assistance because their income status is at or below low to moderate income levels as determined by the Federal Department of Housing and Urban Development. This form should be completed by “property owners” only, and returned to the following address, by January 15, 2007:

Handy Sanitary District

Attn: Lisa Hedrick, Office Manager

P.O. Box 987

Denton, NC 27239

In order to qualify as low to moderate income, you must have a Gross Annual Household Income less than

or equal tothe following federally-established income levels:

Number of Members Residing in Household

1

2

3

4

5

6

7

8

Gross Annual Household Income

$31,450

$35,900

$40,400

$44,900

$48,500

$52,100

$55,700

$59,250

 

Please complete the following information for all residents in your household:

Name of Household Member

Gross Annual Income

Social Security Number

Source of Income

Age

Sex

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I, as the owner of this property, certify that the information provided in this pre-application form is accurate and correct to the best of my knowledge.  I acknowledge that any deliberate misrepresentation of the information provided in this form may disqualify my pre-application from being considered for assistance under this program.  Please ensure that all persons residing in this household are listed on the application and that all requested gross incomes have been reflected. Please note that all information contained in this pre-application will remain confidential.  Also, please note that all incomes and information reflected will need to be verified if your pre-application is selected for the sewer connection financial aid program through Handy Sanitary District.

 

                                                                               

Signature of Property Owner

 

                                                                               

Printed Name of Property Owner

 

                                                                                                               

Mailing Address

 

                                                                                                               

Physical Address (if different than mailing address)

 

                                                                                                               

Phone Number to contact regarding this application