bryan mccabe, pe pcu/psw tyler highfill, pe highfill

Pender County UtilitiesBryan McCabe, PE PCU/PSW

Tyler Highfill, PE Highfill Infrastructure

Reed Barton, PE CDM Smith

ANNUAL BOARD RETREAT

JAN 31, 2018 & FEB 1, 2018

Pender County UtilitiesAGENDA ITEM 1

WATER DISTRIBUTION HISTORY AND CONSTRUCTION

Water and Sewer District Creation

Regulated by NCGS 162A

Public Hearing

BOCC Resolution Creation of District

BOCC Resolution Organization of District

Certified Copies of Resolution

Affidavits Public Notice of Resolutions

District is a Municipal Corporation

Governed by BOCC

Authorizes Certain Powers

Water and Sewer District GO Bonds

Regulated by NCGS 159 (Local Government Finance Act)

15 steps outlined for the process by Bond Counsel

Took approximately 9 months to complete

Required many resolutions, and public hearings

Bonds for Rocky Point Issued 1996

Bonds for SHWSD, CPWSD, MCWSD, and PC WTP approved by

voters 2006

Bonds for CUWSD failed twice, 2006 and 2008.

Future projects will likely require Revenue Bonds

Note: PCU Anticipates Funding Agency Approval March 2018. July Deadline with

Chinquapin must be extended to provide time to complete project.

Maple Hill Agreement for Water

Service with Chinquapin

1988

1992

Maple Hill Water

System Built

USDA Funded

Maple Hill Water &

Sewer District Formed

2006

2012

MHWSD Builds Wastewater Collection,

Treatment, and Disposal

(100% Grant)

MHWSD Notified

Chinquapin Water

Source will terminate

July 2018

2017

MHWSD Submitted Funding

Application to SRF

$685,000 Project

Preliminary Water Supply Agreement

with ONWASA

2018

Pender County Utilities History - MHWSD

Rocky Point/ Topsail

Water and Sewer District Formed

1996

2001 – 2010

RPTWSD Built in 5 Phases

Scotts Hill, Central Pender, Moore’s Creek,

Columbia-Union, (and Maple Hill) Water and

Sewer Districts Formed

2006

2006

GO Bond Passes for SHWSD, CPWSD, MCWSD,

and WTP.

GO Bond Fails in

CUWSD

2006 & 2008

2011

SHWSD Built

PCU WTP Comes On-

Line

New Agreement

with Wallace

2012.

2016-2018

CPWSD and MCWSD

Built

Pender County Utilities History - Distribution RPTWSD, SHWSD,WTP, CPWSD, MCWSD

Pender County UtilitiesAGENDA ITEM 2

WATER SOURCE – WTP OVERVIEW AND SUPPLY HISTORY

Pender

County WTP

• Conventional Water Treatment Process

• Coagulation

• Flocculation

• Sedimentation

• Filtration

• Disinfection

• Advanced Treatment Capabilities

• Granular Activated Carbon

• Taste and Odor Control

• DBP Formation Prevention

• Emerging Contaminants

Pender County Water Demands

Pender County Utility WTP

Pender County Water Treatment Plant constructed to treat 2 MGD

Staff operates plant approximately 10 hr/day to treat 1.2 MGD

2.88 MGD in 24 hours.

Additional supply will require additional run time = additional staff

WTP is readily expandable to 6 MGD with minimal upgrades

Expansion beyond 6 MGD will require construction of New WTP

Raw Water Purchase Agreement from LCWASA = 6 MGD

Purchased 2006 for around $1,000,000 (10 year payment plan)

Waste Rate approximately 10%, 5.4 MGD available to distribution

Wallace Water Purchase

Agreement 200,000 GPD

1999

2001

Wallace Amend #1

500,000 GPD

Wallace Amend #2

800,000 GPD

2005

2006

LCFWASA Raw Water Agreement

6 MGD

Wallace Amend #3 1.2 MGD

2007

2010

Surf City Agreement

100,000 GPD

2 MGD WTP

Comes On Line

2012

2012

New Agreement

with Wallace 375,000 GPD

(Minimum)

Pender County Utilities – Supply

Pender County UtilitiesAGENDA ITEM 3

CAPITAL PROJECTS FOR WATER SYSTEM

Pender County UtilitiesAGENDA ITEM 3A

TIMELINE FOR CAPITAL PROJECTS

TYLER HIGHFILL, PE HIGHFILL INFRASTRUCTURE

Activity Trigger

IBT Certificate on-going

Water System Master

PlanASAP

Hwy 210 Water System

ExpansionASAP

WTP Expansion to

4 MGD

Start: Max

Month = 1.6

MGD

WTP Expansion to

6 MGD

Start: Max

Month = 3.2

MGD

Alternative Water

Supplies - Detailed Study

Start: earlier of

Max Month = 4.3

MGD or 2026

Expand WTP to >6 MGD

or Build on New Source

Finish: by Max

Month = 5.4

MGD

Decision to Purchase

Raw Water Capacity

from Brunswick Co.

By start of WTP

to >6 MGD;

Latest: 2028 +/-

2027 20282018 2019 2020 2021 2022 2023 2024 2025 2026

Key Projects Timeline

DEMAND DRIVEN SCHEDULE

Pender County UtilitiesAGENDA ITEM 3B

DEMAND PROJECTIONS

TYLER HIGHFILL, PE HIGHFILL INFRASTRUCTURE

Water Demand Terminology

Average Day Demand

Total annual water demand divided by 365 days in a year

Used as basis for historical use and future projections

Maximum Month Demand

Highest calendar month demand

Typically July is the Max Month for PCU

June 2nd highest; August 3rd highest

Often expressed as a daily rate (i.e. million gallons per day or MGD)

Maximum Day Demand

Highest daily use in a given year

Size treatment and conveyance systems to MDD

Peak Hour Demand

Highest hour of demand

Rely on storage tanks to meet peak hour demand

Historical Water Demand

Ref: Exhibit 2-2 from EA for the IBT (HIGHFILL & Ch2M, Jan 2017)

Comparison of Demand Forecasts

Comparison of Demand Forecasts

Probabilistic Water Demand Forecast Started with a deterministic projection methodology

Set of assumptions based on unit flow rates, land use plans, historical patterns, etc.

Applied a deterministic forecast model

Probabilistic variables applied to assumptions to capture range of values

Monte Carlo Simulation to determine magnitude and likelihood of demand forecast of the following variables:

Unit consumption

Percent connections

Growth rate

Persons per household

Stakeholder water supply

Non-revenue water

MM:AD peaking factor

Average Daily Finished Water Demand Forecast

Baseline Annual Average Day Finished Water Demand

Includes IBT co-applicants

New Moore’s Creek & Central WSD water lines in service

In addition to PCU’s service area growth,Co-applicant demand starts phasing in

Columbia-Union WSD water lines in service

Surface WTP came online

Ref: Exhibit 15 from EA for the IBT (HIGHFILL & Ch2M, Jan 2017)

Maximum Month Finished Water Demand Forecast

Maximum Month Average Day Finished Water Demand

Includes IBT co-applicants

Ref: Exhibit 16 from EA for the IBT (HIGHFILL & Ch2M, Jan 2017)

15 MGD in 2045 (~25 yr horizon)

Demand Forecast for IBT – including co-applicants

Ref: Exhibit 23 from EA for the IBT (HIGHFILL & Ch2M, Jan 2017)

14.5 MGD in 2045

Overall demand adjusted with water balance for IBT

Maximum Month Average Day Finished Water Demands

Includes IBT co-applicants

Demand Forecast for IBT – PCU Only

Ref: Exhibits 24 from EA for the IBT (HIGHFILL & Ch2M, Jan 2017)

PCU only demand adjusted with water balance for IBT

Maximum Month Average Day Finished Water Demands

11 MGD in 2045

Pender County UtilitiesAGENDA ITEM 3B

WATER SOURCE ALTERNATIVES

REED BARTON, PE CDM SMITH

Kings Bluff Pump Station

Raw Water Pipeline

(Future) Additional Raw Water Pipeline

Cape Fear River

Supply, Treatment, and Regulatory Limitations:

• Allowable withdraw from the Cape Fear River (Safe Yield)• Permit to transfer water out of Cape Fear Basin (IBT)• Infrastructure to pump raw water to the WTP• Water Treatment Capacity • Infrastructure to pump/convey drinking water to customers

When will water demand go beyond PCU’s current Treatment Facility Capacity?

Demand will exceed 6-mgd in approximately 10-years (2028)

Need more than 6-mgd Begin

Construction on Expansion

MMAD Finished Water Demand (includes IBT co-applicants)

What is the Near-Term and Long-Term Plan for Water Supply?

Near-Term: 1.5-mgd to 6-mgd

Water Supply Source: Cape Fear River

Currently, WTP can treat/pump up to 2-mgd

WTP is readily expandable to 6-mgd

No Additional Raw Water infrastructure needed

No major basins/filters, SCADA, electrical

Need additional process equipment, pumps, etc.

Transmission expansions to accommodate 6-mgd

210 Transmission Pipe, and others

What is the Near-Term and Long-Term Plan for Water Supply?

Long-Term: > 6-mgd

How will PCU expand the water system beyond 6-mgd?

Water Supply Source: TBD

Transmission/Distribution: TBD

Possible Water Source Alternatives

Cape Fear River

Purchase additional raw water capacity (pipe/pumps) from LCFWSA // Brunswick County

Expand current WTP to limit of IBT (25+ years)

NE Cape Fear River

Surface water / brackish

Need to evaluate permitting requirements

Need to evaluate water quality and treatment requirements

Groundwater

Need to evaluate feasibility and costs

Freshwater Aquifers vs. Brackish Aquifers

Objectives of Water Supply Master Plan

Updated Growth and Demand Projections

Develop Plan for meeting growth/demand with water supply/distribution

Evaluate and define the near-term water infrastructure investment needs

10-year Capital Improvement Projects plan to support growth from 1.5- to 6-mgd (project definitions, cost estimates)

Evaluate staffing and operational needs

Determine optimal phasing of system expansion

Define triggers: flowrate demand, water age/quality, pressure

Evaluate and define the long-term water infrastructure needs

Long Range Water Supply Planning (Evaluate Source Alternatives)

Comparison of 1 Treatment Facility vs. 2 Treatment Facilities (Cost of Distribution System and Treatment)

Major Capital Projects to support growth beyond 6-mgd

Identify opportunities to reduce risk and increase resiliency

Emergency planning (interconnections)

Source and Transmission Redundancy

Activity Trigger

IBT Certificate on-going

Water System Master

PlanASAP

Hwy 210 Water System

ExpansionASAP

WTP Expansion to

4 MGD

Start: Max

Month = 1.6

MGD

WTP Expansion to

6 MGD

Start: Max

Month = 3.2

MGD

Alternative Water

Supplies - Detailed Study

Start: earlier of

Max Month = 4.3

MGD or 2026

Expand WTP to >6 MGD

or Build on New Source

Finish: by Max

Month = 5.4

MGD

Decision to Purchase

Raw Water Capacity

from Brunswick Co.

By start of WTP

to >6 MGD;

Latest: 2028 +/-

2027 20282018 2019 2020 2021 2022 2023 2024 2025 2026

Key Projects Timeline

DEMAND DRIVEN SCHEDULE

Pender County UtilitiesAGENDA ITEM 3B

NC 210 TRANSMISSION LINE

TYLER HIGHFILL, PE HIGHFILL INFRASTRUCTURE

Highway 210 Water System Improvements Current capacity:

Maximum: 650 GPM = 0.9 MGD

Firm: 450 GPM = 0.6 MGD

Significant concerns about available capacity, but need IBT certificate to expand

Path forward

Co-applicant commitment

Preliminary Engineering Report to determine:

Planning design horizon (commonly 20 years)

Demand projections (50th percentile, 75th percentile, or other)

Alternatives review

Prepare cost opinion

Funding

Average Day Demand Forecast w/Co-apps(from EA for IBT, Jan 2017)

Hwy 210 Water System Improvements

• Waterline: 16” to 20”

• Maybe larger if co-applicants participate

• Booster PS expansion

• Maybe two booster PSs if co-applicants participate

• Project cost:

• $17M - $25M depending demand goals.

Activity

Co-application participation

interest/commitment

Preliminary Engineering

ReportFunding

Design

Permitting

Bid/Award

Construction

1Q 2Q 3Q 4Q3Q 4Q 1Q 2Q 3Q 4Q

2018 2019 2020 2021

1Q 2Q 3Q 4Q 1Q 2Q

Highway 210 Water System Improvements –Preliminary Timeline

IBT Certificate expected

Pender County UtilitiesAGENDA ITEM 4A

RECAP TIMELINE FROM WEDNESDAY

TYLER HIGHFILL, PE HIGHFILL INFRASTRUCTURE

Activity Trigger

IBT Certificate on-going

Water System Master

PlanASAP

Hwy 210 Water System

ExpansionASAP

WTP Expansion to

4 MGD

Start: Max

Month = 1.6

MGD

WTP Expansion to

6 MGD

Start: Max

Month = 3.2

MGD

Alternative Water

Supplies - Detailed Study

Start: earlier of

Max Month = 4.3

MGD or 2026

Expand WTP to >6 MGD

or Build on New Source

Finish: by Max

Month = 5.4

MGD

Decision to Purchase

Raw Water Capacity

from Brunswick Co.

By start of WTP

to >6 MGD;

Latest: 2028 +/-

2027 20282018 2019 2020 2021 2022 2023 2024 2025 2026

Key Projects Timeline

DEMAND DRIVEN SCHEDULE

Pender County UtilitiesAGENDA ITEM 4B

IBT STATUS

TYLER HIGHFILL, PE HIGHFILL INFRASTRUCTURE

Interbasin transfer (IBT) defined:

The withdrawal of surface water from one river basin and discharge of all or any part of the water in a river basin different from the origin.

Transfer = Withdrawal – Return

Net Transfer, Not Gross

IBT Law…

Based on General Statute requirements dating back to 1988.

Significant amendments in 1993, 1998, and 2007; other amendments in 2010, 2013, and 2014.

Threshold: A transfer above 2 MGD requires an IBT certificate.

Statute defines IBT river basins (and sub-basins).

Statute prohibits reselling water to any public water system not listed on the certificate as a co-applicant.

IBT Certification Process § 143-215.22L(w)Requirements for Coastal Counties and USACE Reservoirs

II. Applicant submits draft environmental document (EA) pursuant to State

Environmental Policy Act (SEPA)

I. Applicant submits Notice of Intent to file a petition

NCDEQ issues finding

of no significant impact

(FONSI)

III. Applicant submits petition to EMC

Public notice

of petition

and 30-day

notice of

hearing

Public hearing on

the petition

Comments

accepted for

30 days after

hearing

NCDEQ

prepares

written

response to

comments

EMC issues final determination

IBT Certification Process Path Forward

September 13, 2018 Determination by EMC

March 22, 2018 Public Hearing for Petition (rescheduled from Jan 18th due to weather)

November 2017 Petition submitted for Public Comment

May 2017 EA and FONSI submitted to State Clearinghouse

September 2016 Draft EA submitted to DWR

May 2016 Preparation of EA and use of Cape Fear/Neuse River Hydrologic Model

April/May 2016 NOI Submitted by PCU; Local Water Supply Plan Updates

Pender County UtilitiesAGENDA ITEM 4C

LCFWASA AGREEMENT

BRYAN MCCABE, PE

CHAD MCEWEN

LCFWASA – PROPOSED PIPLINE AND CAPACITY

PROPOSED 54” PARALLEL RAW WATER LINE (POSSIBLY 60”)

PARTNERSHIP BETWEEN LCFWASA, BRUNSWICK, CFPUA, PENDER

54” ESTIMATED CONSTRUCTION COST = $59.8 MILLION

PARTNERS WORKING TOWARDS AGREEMENT TO PROCEED WITH

FINAL DESIGN AND MOVE INTO CONSTRUCTION

%CAPACITY = %PARTICIPATION (COST)

PENDER WOULD HAVE UNTIL APPROXIMATELY 2028 TO COMMITT

ADDITIONAL 5 MDG FROM LCFWASA THROUGH THE PARALLEL

PIPE (12.2% +/- $8.3 MILLION)

LCFWASA – PROPOSED PIPLINE AND CAPACITY

STEPS NECESSARY TO UTILIZE ADDITIONAL CAPACITY

IBT PETITION IS SUCCESSFUL

PURCHASE RAW WATER CAPACITY FROM LCFWASA

UPGRADE WTP (EXISTING FOOTPRINT MAX CAPACITY = 6MGD)

UPGRADE DISTRIBUTION FROM WTP TO US 17

2006 WATER MASTER PLAN IDENTIFIED A 42” PIPELINE ALONG US 421

EXISTING IS 24”

NC 210 PIPELINE – ADDITIONAL UPGRADE

Pender County UtilitiesAGENDA ITEM 4D

INFILL PROJECTS - RPTWSD

BRYAN MCCABE, PE

RPTWSD – INFILL PROJECT

EXISTING SIGN-UPS FOR ORIGINAL SYSTEM

REQUESTS FOR SERVICE EXTENSIONS

PREVIOUSLY EVALUATED APPROXIMATELY 5 DOZEN ROADWAYS

ESTIMATE $4 MILLION

USDA LOAN – ESTIMATED ANNUAL DEBT SERVICE $200,000

MINIMUM CONNECTIONS REQUIRED

WILL HONOR ORIGINAL SIGN-UPS FOR $120

FEASIBILITY AND PRIORITIZATION BASED ON RETURN

CAPACITY FEES FOR ADDITIONAL CONNECTIONS

Pender County UtilitiesAGENDA ITEM 4E

EXPANSION IN MCWSD AND CPWSD

TYLER HIGHFILL, PE HIGHFILL INFRASTRUCTURE

Defining the 2014 Project

Basis for referendum (master plan)

Moore’s Creek WSD

1,027,000 LF of pipe up to 42-in diameter

1 elevated tank

1 booster pump station

$45 M

Central Pender WSD

600,000 LF of pipe up to 16-inch diameter

2 elevated tanks

$27 M

Total: 308 miles of pipe, 3 tanks, and 1 booster station

Determine what is feasible

Identify system for 20-year needs

Consider projected customer density

Consider anticipated customer interest

Determine hydraulic requirements

238 miles of mains; 1 elevated tank

Identify Phase I system for affordable rates

Existing customer density and interest

Size lines to fit 20-year system

75.5 miles of mains; 1 elevated tank

2014 Update –Central District

2014 Update – Moore’s Creek District

Pender County UtilitiesAGENDA ITEM 4F

CUWSD

BRYAN MCCABE, PE

CUWSD

BOND REFERENDUM FAILED TO PASS IN 2006

TRIED AGAIN IN 2008 WITH

THE SAME RESULTS

DEBT REQUIRES PASSING

BOND

ALTERNATIVES FOR ISOLATED

PROJECTS

GRANTS FOR SCHOOLS

(PENDER COUNTY)

GRANTS FOR ECONOMIC

DEVELOPMENT (PENDER

COUNTY)

Pender County UtilitiesAGENDA ITEM 5

RATES

BRYAN MCCABE, PE

TYLER HIGHFILL, PE HIGHFILL INFRASTRUCTURE

RATES

RELATIVELY HIGH RATES

BASE RATE – DEBT SERVICE

USAGE – O&M

MUST FIND OTHER WAYS TO FUND ADDITIONAL PROJECTS

EVALUATE EXISTING WATER USE

AGREEMENTS

CUSTOMER GROWTH – WTP DEBT

Pender County UtilitiesAGENDA ITEM 6

STAFFING

BRYAN MCCABE, PE

Pender County Utilities - Staffing

SIGNIFICANT GROWTH IN RPTWSD

AVG 275 NEW CONNECTION PER YEAR

METER READ AND BILL CYCLE

CUSTOMERS PER CONNECTION

ADDITIONAL DEMAND AT WTP

811 LAW

AVG PRIOR TO LAW, 80 – 100 LOCATES PER MONTH

AVG NOW, 600 – 900 LOCATES PER MONTH

EMERGENCY RESPONSES – ESSENTIAL SERVICES

WATER MAIN BREAKS

EMERGENCY SERVICES

COLLECTION SYSTEM EMERGENCIES

FREEZING EVENT

Pender County Utilities - Staffing

Pender County UtilitiesAGENDA ITEM 7

WASTEWATER

BRYAN MCCABE, PE

Pender County Utilities - WASTEWATER

RPTWSD SYSTEM

CAPACITY

250,000 GPD AVAILABLE

97,906 GPD ALLOCATED

169,556 GPD UNALLOCATED

SYSTEM AVAILABILITY

INDUSTRIAL, COMMERCIAL, INSTITUTIONAL

NO RESIDENTIAL

HAVE RECEIVED REQUESTS

PREVIOUS SURVEY – 3 RESPONSES

EXTENSION TO BURGAW (WALLACE)

$9 MILLION

EXTENSION TO PCP WWTP

$20 MILLION

MKKAES (US 421 WWTP)

500,000 GPD AVAILABLE

90,000 GPD ALLOCATED

SERVICE AREA

COMMERCE PARK ONLY

EXTENSION TO BLUEBERRY

$2-3 MILLION (8” OR 12”)

MH WWTP

GRANT FUNDED FOR EXISTING RESIDENTS

NO GROWTH IN DISTRICT

ROCKY

POINT

SEWER

SCHEMATIC

Maple Hill Wastewater Treatment

Pender County UtilitiesAGENDA ITEM 8

DISCUSSION

BOARD OF COUNTY COMMISSIONERS