PUBLIC HEARING -
BORROWING OF MONEY FORWATER/WASTEWATER PROJECTS
JULY 18, 2007
Mayor Larry Gum called the Public Hearing to order at 7:00 P.M. This hearing
is being held to discuss the water and wastewater facilities and the
borrowing of money to do these projects. Those present from the Town Council
were Mayor Larry Gum, ViceMayor Robert Bryan, Secretary Tim Hodges,
Treasurer Michelle Truitt, council members John Thoroughgood, John (Jack)
Wilkins, Irene Keenan, Town Solicitor Tempe B. Steen, Town Manager Faye L.
Lingo, Administrative Assistant Brenda Morris, Finance Director William
Sauer, Water/Sewer Supervisor Kenny Niblett, Tim Frey of Saul Ewing, LLP/Bond
Council, Lester B. Guthorn of Public Advisory Consultants/Financial Advisor
Mark Downes and Carrie A. DeSimone from CABE Associates, Inc.
Mayor Gum introduced those at the head table and then turned the meeting
over to Mark Downes and Carrie A. DeSimone from CABE Associates, Inc., the
town's engineering firm. Mr. Downes informed those present a number of
circumstances in the past several years have demonstrated the need for major
upgrades to both the water and wastewater systems in order to meet certain
state requirements. A Total Maximum Daily Load (TMDL) program has been set
for the Indian River and Bay that no longer allows nutrients to enter the
waterways by direct discharge. The new TMDL now requires the Town to stop
discharging treated wastewater into the Indian River. Due to and increase in
request to annex or bring land into the Town limits water and sewer system
upgrades must therefore be designed to serve existing users as well as the
increased demands created by future growth. Also, in 2005, groundwater from
Wells No. I and 2 were found to have high levels of trichloroethylene (TCE).
The Town has installed carbon filters to make the water safe for drinking,
but they are not a cost effective, long-term solution. New, deeper wells and
a water treatment plant are needed to replace Wells No. I and 2. The Town
with the assistance from financial advisors, bond council, the Town
attorney, the Town engineer and State and Federal Agencies has developed a
financing package.
The primary purpose of the water system project will be to replace Wells No.
1 and 2. The planned improvements include installing two new deep wells
drilled to groundwater unaffected by the contamination, and constructing a
new water treatment plant. The Town's water system capacity will be
increased to approximately 2.16 million gallons per day (MGD), which will
service the Town for at least the next 15 years. The estimated total cost of
these improvements is approximately $1.9 million.
The primary purpose of the wastewater system project is to eliminate the
current discharge of treated wastewater into the Tiger Branch tributary of
the Indian River. The Council has explored several disposal options which
were found to be infeasible and/or have not been approved by regulatory
agencies. The Town has been left with no choice other than to move forward
with a spray irrigation disposal system. This will require the purchase of a
500 acre tract of land, a transmission line from the treatment plant to the
disposal site, a holding pond and a spray irrigation system. The completed
project will have a capacity of 1.15 MGD, with the capability for future
expansions of up to 3.0 MGD. The estimated total cost for the L 15 MGD
improvements is $40.35 million, which is expected to handle the Town's
projected wastewater flow for 6 to 10 years. The 3.0 MGD capacity will
handle wastewater flow past the year 2028.
Carrie A. DeSimone, CABE Associates Inc., explained the projected financing
plan. The Council has scheduled a new referendum, to be held August 25,
2007, seeking Town approval to borrow up to $36 million to pay for the water
and wastewater improvements. As part of these projects is needed by current
Town residents, and the remainder is for future growth, the town has
directed the Town engineer, CABE Associates, Inc. to develop a debt
repayment plan that will equitably distribute the cost between existing and
future users, and developers. They have recommended adopting a new utility
rate structure beginning in 2008. It is expected that the sewer user fee
will increase from $0.45 per 100 gallons to $0.60 per 100 gallons, and the
water user fee will increase from $0.25 to $0.30 per 100 gallons. The
water/sewer component of the annexation fee will increase from $4,400 per
acre to $7,500 per acre; and the sewer impact fee for new construction will
increase from $2,000 per equivalent dwelling unit (EDU) to $4,500 per EDU.
Both of these fees will be collected from developers.
Mayor Gum asked for comments or questions from the public. Louis Garver
asked why the deep-well injection plan had been abandoned. He was informed
that the soil samples taken were not suitable at the 2500-3000 ft. range and
the town was told they would have to drill deeper, up to a possible 5000 ft.
The cost would have been much higher than what the town was trying to save.
Other concerns were interest rates for loans, reassessment of properties and
who was paying for and overseeing the clean up of the TCE problem. The
public was assured that the state is overseeing the investigation of the TCE
contamination site and the town is being reimbursed the cost of the filters
that have been installed to our water system. Someone asked if the cost of
the 500 acres needed for the spray irrigation was included in the borrowing
amount being asked for. They were told that it is and the town is in
negotiations at this time with the owner of the property.
Mayor Gum closed the Public Hearing at 7:50 P.M. and opened a special
session to set the referendum and appoint the Board of Election for the
special election. The proposed Board of Election for the August 25, 2007
Special Election was presented to Council for approval. Sandi Brigandi and
Reggie Brittingham were proposed for Judges with Brenda Morris for
Inspector. Bryan motioned, Wilkins second to accept and approve the Board of
Election for the August 25, 2007 as Sandi Brigandi, Reggie Brittingham as
Judges and Brenda Morris as Inspector, motion carried.
Thoroughgood motioned, Wilkins second to authorize a resolution for the
issuance of up to $36,000,000 maximum principal amount of general obligation
bonds in order to finance the capital improvement program to be undertaken
by the Town of Millsboro, including various capital projects and
improvements, modifications, upgrades and expansion of the Town of
Millsboro's water and wastewater facilities, lines and systems and to set
the date for a Special Election to either approve or deny the town's
borrowing of up to $36,000,000 for August 25, 2007, 1:00 PM to 7:00 PM, in
Town Council Chambers. Motion carried. Wilkins motioned, Bryan seconded to
adjourn the special meeting at 7:55 P.M.
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For additional information call the
Millsboro Town Hall at 302-934-8171.
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