1. Board of Commissioners (BOC)

TOWN OF PITTSBORO BOARD OF COMMISSIONERS DECEMBER 13, 2022 SPECIAL MEETING MINUTES PAGE 1 OF 16 TOWN OF PITTSBORO The Pittsboro Board of Commissioners met in Special Session on Tuesday, December 13, 2022, at 7:00pm in the meeting room at the Chatham County Agriculture and Conference Center with Mayor Cindy Perry presiding. The meeting was called to order at 7:02 pm . Mayor Perry requested a moment of silence with the recitation of the Pledge of Allegiance following led by Commissioner Farrell. ELECTED TOWN OFFICIALS PRESENT: Mayor Cindy S. Perry, Mayor Pro Tern Pamela Baldwin, Commissioners Jay Farrell, Kyle Shipp, and James Vose. ELECTED TOWN OFFICIALS ABSENT: Commissioner John Benitz. TOWN STAFF PRESENT: Interim Town Manager Hazen Blodgett, Town Attorney Paul S. Messick, Chief of Police Shorty Johnson, Finance Director Heather Meacham, Public Information Officer/Emergency Management Coordinator Colby Sawyer, Utility Director Adam Pickett, Utilities Service Specialist Joey Thomas, Director of Engineering Kent Jackson, and Town Clerk Carrie Bailey. Mayor Perry called the meeting to order and asked those in the room to introduce themselves. Director of Engineering Kent Jackson, shared background information on possible merger of water and sewer utilities. Jackson shared the feasibility study was presented to the City of Sanford earlier in the day. Commissioner Benitz arrived at 7:05pm . Charles Archer, Freese and Nichols, provided a Pittsboro/Sanford Water and Wastewater Utility Merger Feasibility Study. Please see the attached presentation at end of minutes. Discussion ensued after the presentation between the Board and Freese and Nichols staff. Charles Archer stated the report was based on a ¾" meter for a residential unit and that is a standard specification for residential use and is easier to calculate. Town Attorney Paul Messick questioned the timeline for phase two. Charles Archer stated one they receive notice to proceed, it would be about ninety days. The Board, decided to proceed with Phase two. ADOPTION OF THE AGENDA 1. Budget Amendment for Freese and Nichols ■ Action Recommended: Approve the Budget Amendment for Freese and Nichols 2. Freese and Nichols Utility Merger Feasibility Study Update 1  TOWN OF PITTSBORO BOARD OF COMMISSIONERS DECEMBER 13, 2022 SPECIAL MEETING MINUTES PAGE 2 OF 16 ■ Action Recommended: Determine to proceed with tasks outlined in study Commissioner Shipp made a motion to approve the Regular Agenda, seconded by Commissioner Vose. Vote: Aye-5 Nay-0 Motion carried unanimously. Mayor Pro Tem Baldwin made a motion to approve the Budget Amendment, seconded by Commissioner Bonitz. Vote: Aye-5 Nay-0 Motion carried unanimously. FINAL BOARD COMMENTS Commissioner Shipp wanted to clarify on the memo that it's not only to analyze if it will do five million but to suggest improvements if needed to handle five million. ADJOURNMENT Commissioner Bonitz made a motion to adjourn at 8:09pm, seconded by Commissioner Vose. Vote: Aye-5 Nay-0 Motion passed unanimously. a, C i n ~ , Mayor ~ J. 12 ATTEST: 2 Evaluate the potential merger/regionalization of water/wastewater utility systems in Pittsboro & Sanford with a two-phase approach Phase 1: Develop an "order of magnitude" financial impact on Pittsboro and Sanford (5-Year Forecast) • System Development Fees (SDF) • Utility Rates Phase 2*: • Systems Evaluation - including Operations & Maintenance (O&M) • Ancillary Evaluations • Western Intake Partnership • Reclaimed Water Service • Bulk Water Agreements • System Interconnections • SDF Collection/Authority • Governance Evaluation • Review developer agreements for impacts on financials • Comprehensive Water & Wastewater Financial Plan & Model Development • Multi-year Utility Rates & SDF *If opted Into by the Pittsboro Board of Commissioners and Sanford City Council Pittsboro - 20-Year Water Capital Improvements Plan • 2 3 Engineering Design for Shared Capacity in Oty of Sanford Water Treatment Plant Expansion Engineering Design for Shared Capacity in New Water Transmission Main from Sanford WTP Preliminary Engineering Design -Western Intake Partners Project (Pittsboro's Share- 7.0 MGD) $ $ $ 4 Shared Capacity (3 MGD) in Water Transmission Line from Sanford WTP $ 5 Disinfection Upgrades at Pittsboro WTP (UV- AOP Facilities) $ 6 0.3 MG Chatham Park Elevated Storage Tank $ 7 Water Main Extension to Corbett's Landing $ 8 Water Main Extension to Flynn Farm $ 9 Sanford WTP Expansion (Plttsboro's Share- 3.0 MGD) $ 10 Upsize Existing 10" Water Main Crossing Under US 64 $ 11 Cornwallis Road Upsizing of 2" Water Line to 6" Water Line $ 12 Relocation of the 567 Pressure Zone Boundary $ 13 Separation of the 710 Pressure Zone $ 14 Western Intake Partners- WTP and Transmission Main (Pittsboro Share- 7.0 MGD) $ 15 567 Pressure Zone Pumping Improvements $ 16 710 Pressure Zone Pumping Improvements $ 17 12" Water Line Along US Hwy 64 $ 18 12" Water Line Along NC-87 South $ 19 12" Water Line Along Charlie Brooks Road $ 20 12" Water Line from Old Graham Road to Highway 87 N. $ 21 12" Water Line Along NC Highway 87 North $ 22 12" Water Line $ 23 12" Water Line from US 64 N to Alston Chapel Road $ 24 8" Water Line Along Alston Chapel Road $ 25 12" Water Line from Alston Chapel Road to NC 902 $ 26 12" Water Line Along NC Highway902 $ 27 12" Water Line Crossing Old Sanford Road $ 28 Expansion of the 710 Pressure Zone $ 29 Decommission Chatham Forest Standpipe $ 30 Annual Rehabilitation (Total) $ Total $ Pittsboro - 20-Year Wastewater Capital Improvements Plan • Project# 1 2 Project Name Comprehensive Wastewater Model and Master Plan Update Line Repairs from Targeted CCTV Inspections Oeaning and CCTV Inspection Priority 2 Estimated Cost $ $ $ 325,00C 61,00C 68,00C 3 4 Oeaning and CCTV Inspection Priority 4 $ 124,00C 5 Oeaning and cav Inspection Priority 5 $ 55,00C 6 2 MGD Transfer Lift Station and Force Main to Sanford's Big Buffalo WWTP $ 52,832,00C 7 Upsizing of Gravity Main Receiving Chatham Park North Village Discharge $ 2,042,00C 8 Additional 3.0 MGD Wastewater Treatment Solution $ 75,000,00C 9 Turkey Creek Lift Station and Force Main $ 3,327,00C 10 Turkey Creek Interceptor $ 6,863,00C 11 8-inch Gravity Main Extension to Turkey Creek Gravity Main $ 2,837,00C 12 Upsizlng of 15" Gravity Main Section Along Robeson Creek $ 2,260,00C 13 Upsizing of 12" Gravity Main Along Robeson Creek $ 3,193,00C 14 Upsizing of 10" Gravity Main Along East Side $ 1,292,00C 15 15-inch Gravity Main Extension $ 7,971,00C 16 12-inch Gravity Main Extension from Hill Creek $ 2,163,00C 17 Upsizing of 12" Gravity Main within the Creedle Basin $ 2,745,00C 18 12" Gravity Main Extension from Oakwood Drive $ 3,064,00C 19 10-inch Gravity Main Extension Along Robeson Creek $ 3, 341,00C 20 Russell Chapel Road Lift Station and Force Main $ 2,674,00C 21 8-inch/10-inch Gravity Main Extension to Proposed Russell Chapel Lift Station $ 4,194,00C 22 8-inch Gravity Main Extension $ 2,727,00C 23 18-inch Gravity Main Extension $ 7,754,00C 24 Annual Rehabilitation (Total) $ 2,850,00C Total $ 189,762,00( • 5-Year Look Ahead • Expenses grow at 4% • Revenues grow at 4% Customer Growth • System Development Fees (SDF) • 500 Equivalent Residential Units (ERU) per year • $38,000 per ERU • Fees pay for new debt service within 10-years • 5-Year Capital Improvements Plan= $122M (CIP) • Sanford Force Main project - $SSM • Sanford WTP Expansion Construction Project - $37M • Water Transmission from Sanford Project - $30M • Wastewater Planr.ting - $325,000 Pittsboro 5-Year CIP • TOWN OF PITTSBORO, NC CAPITAL PROGRAM CIP per Pittsboro Approved Budget/FNI Additions Project Name Fundlnc 5 Ye• Project Source FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 Total De-■nt Sanford Forcemaln L s 55 100.000 s . IS . s . IS . s . s . s . s . IS 55 100000 WWTP Sanford WTP Exoanslonl3MGD to Plttsbora/FNll L s 37 000000 s . IS . s . IS . s . s . IS . s . IS 37 000.000 w 3 MGD Caoacltv In Wat.er Transnisslan Main IFNII L s 30 000.000 s . Is . s . Is . s . s . IS . s . IS 30 000000 w WastewalerTreatment L s 325 000 s . s s. . s . s .s . $ . s . Is 325 000 WW Jordan Lake PartnersNP C s 15 000 s 15000 IS 15000 s 15 000 IS 75000 ;S 75000 s 75000 IS 75.000 s 75 000 Is 135 000 W&S Jordan Lake Allocation C s 8 500 s 8 500 s 8500 s 8500 $ 42 500 s 42500 $ 42 500 $ 42 500 $ 42 500 $ 76 500 W&S Western Intake PartnershlD C s 371 7115 s . IS . s . IS . :s . s . IS . s . IS 371 7115 W&S Pumo Station Malnlenance C s 20 000 s 20 000 IS 20000 s 20000 IS 80000 IS 80000 s 80000 IS 80 000 s 80 000 IS 160 000 W&S Ta-ted Robeson Creek RehabUltatfan C s 250 000 s . IS . s . IS . ,S . s . IS . s . Is 250 000 W&S Line Reoa lrsfromTarReted COVlnsNOrtlans C s 55 550 s . IS . s . IS . s . s . IS . s . IS 55 550 W&S Level 5 ln..,_,,.d Manhole A""alr/ReDlacernent C s 75 254 s . IS . s . IS . s . s . IS . s . IS 75 254 W&S Level 4 ln........,.d Manhole Reoalr/ReDlacernent C s 122 638 s . Is . s . IS . s . s . IS . s . IS 122 638 W&S Cleanlnund COVlnSPectlan Prlorltv 2 C s . s 27000 IS . s . IS . s . s . Is . s . Is 27000 W&S Cl ea nl n" and cav lnmecUcn Prlorltv 3 C s . s 74 833 Is . s . IS . s . s . Is . s . Is 74833 W&S Cleanln.,and COVlnmecUan Prlorltv4 C s . s 113 301 IS . s . IS . s . s . IS . s . Is 113 301 W&S Cleaninnnd COVlnsoectlcn Prloritv 5 C s . s . Is 50 224 s . IS . s . s . Is . s . Is 50 224 W&S Cleanlnnnd cav1n...-an C s . s . IS . s 72 653 IS 333 615 IS 333 615 s 333 615 IS 333 615 ·S 333.615 Is 406 268 W&S Manhole Reoair/Reolacement C s . s . IS . s 70103 IS 239 617 s 239 617 s 239 617 IS 239 617 s 239 617 Is 309 7'1JJ W&S Total Loan s 122.c2i:mn Is . IS - Is - IS - $ - s - IS - $ - s I 122 425 0110 Total Cash s 918 647 Is 258 634 IS 93 124 Is 186 256 IS 770732 s 770732 s 770732 IS , 770 732 s 770732 Is 2 227.993 Grand Total $ 123 34ll647 $ 258 634 $ 93 724 ~ 186 256 ~ 770732 ~ 770732 $ 770.732 $ 770 732 $ 770.732 IU24 652.993 Pittsboro Operating Resu Its • Une Description 1 s 4 857 00 s 5 464 139 s 56827(!; s 5 910 013 2 77126 86 756 90 227 93 836 3 148 529 152 577 4 19 000 19 000 5 24 92 4&0 25 15 42& 6 1077 47 1120 753 1165 583 1212 206 1 260 6195 1311122 7 Water Treatment Plant 1563 855 1626 409 1691466 1 759124 1829 489 1902 669 8 819 956 852 754 886864 922 339 959 233 997 602 9 816 960 849 638 883 624 918 969 955 728 993 957 10 nses 4 271418 4449 555 4627 7 41126311 5 005144 5 205 350 11 Revenue Avallablefur Dellt Service 2 285 19 819 SO 19 850 19 88 858 19 916 16 19 951 76 Debt 12 Current Debt 14 704 8 085 13 NewDebt 1617 890 14 Total Debt 14 704 16179775 15 Debt Service Cove 155.4 1.2 16 entFe•AVlllablefllr Dabt Ralrament 17 andRe- 2 271 39 806 567 18 183 000 197 933 205 850 214 084 222 647 19 325 000 58 515 60 855 63 289 65 821 20 918 647 93 724 ' 186 256 770732 21 1426647 3501n 452 961 22 144492 411 13 419 5CIZ 23 Ci 1.97l 24 2 u,cr 2 121 1 1 22 Comparison of Rate Increase Needs Rate Increase Comparison 335.56% 298.49% 288.28% 287.06% 275.60% . - - - - - - -- - - - - I- 1 r:: '1'1Q£ 0.00% 0.00% 2.48% 1.97% FY2023-24 FY2024-25 FY2025-26 FY2026-27 FY2027-28 ■ %Rate Increase w/SDFs ■ %Rate Increase w/o SDFs - - - -- ------- Rate Comparison • CURRENT PITTSBORO/SANFORD RATE COMPARISONS RESIDENTIAL/COMMERICAL CUSTOMERS Desai Ion Pittsboro Sanford Difference Resldentlal - Inside Water 47% Wastewater 51% Combined 49% Residential - Outside Water 109.89 47% Wastewater 121.28 63% Combined 231.17 55% Commercial - Inside Water 170.18 53% Wastewater 200.92 49% Combined 371.10 51% Commercial - Outside Water 55% Wastewater 62% Combined 59% Residential based upon a usage of 3,500 gal/month or4.68 ccf/month. Commercial based upon a usage of 12,000 gal/month or 16.04 ccf/month. • System Development Fee set at $38,000 - 500 ERUs per year, retires first wave of capital investment in 10 years, starting no later than FY 23-24. • Rate payers will be responsible for normal operating costs and not new development costs • Growth in system is being paid for by the development creating the demand on the water/wastewater systems. • Without a merger • Not eligible for $1SM in construction grant funds from DWI, if grant is awarded • $7M wastewater capacity fee is due to Sanford in addition to the construction costs of the WW force main project.  Pittsboro Sanford • System Development Fees a re critica I • Minimum or no impact on rate for the financial model to work payers • Stabilizes needed rate increases on current and future rate payers • Grows economy of scale • Eventual rate parity with Sanford • Provides a "built-in" partner for • Allows needed short-term capital future WW expansion projects to proceed and retire debt • Compliments Sanford's position as within 10 years finished water provider for the • Provides for a long-term . region water/wastewater solution to accommodate future growth  Direction needed from both Pittsboro Board of Commissioners and Sanford City Council to proceed to Phase 2 of the scope of work.