March 22, 2006

Published in Wake Forest, NC

            “I don’t think these agreements are any less of a contract” than the written ones with Ammons Development Group for the original Heritage Wake Forest plan and part of Robert Jones’ Jones Dairy Farm subdivision, he said.

            Vernon said that if he was asked to make a legal finding, “I believe I would find we would be bound to honor those agreements.”

            There are 46 active subdivisions of various sizes in the town with water allocations – expressed in building permits – ranging from the standard 50 per year to 100 and even 200 per year. If every subdivision pulled all of its allowed building permits for this year, 1,396 single-family homes and townhouses would be built.

            Along with growth, the town now has a growing number of upscale homes with lawn irrigation systems. Town officials say the use of the sprinklers has skewed the historic pattern of water use, increasing it particularly during hot dry weather when the town’s peak water use occurs. In the agreement by which Raleigh took ownership of the town’s water and sewer systems, Wake Forest has an allocation of 4.91 million gallons based on peak-day use. Last summer the peak use was 3.8 mgd, leaving only 1.1 mgd of capacity until April of 2010 when the allocation increases by 4 percent.

            Planning Director Chip Russell said that at the present rate of residential growth, about 1,000 dwelling units each of the last two years, the 1.1 mgd would be used up in two years. He suggested braking the building rate down to 800 per year.

            The comprehensive planning committee responded in February by suggesting though not agreeing to a 40 percent reduction across the board.

            At a work session earlier this month, the commissioners did not come to a decision about cutting the water allocations although a reduction of 20 percent was suggested. Town staff, led by Town Manager Mark Williams, said the thrust was to cut back the peak use by a combination of techniques, including water conservation and educating people about the value of drinking water. Purchasing additional water was a third option.

            Tuesday morning the comprehensive planning committee seemed to agree on the 20 percent cut along with a re-examination of the pace of building permits in September when they would know the peak use.

            Late Tuesday night Commissioner Margaret Jones Stinnett, saying they needed to do something, made a motion to cut the amount of building permits for each future subdivision by 20 percent “as long as we are in stage two water conservation and honor all previous agreements and contracts.” Moving to stage three water conservation would trigger a re-examination of this policy.

            After a lengthy discussion, the vote was two to three for Stinnett’s motion, with only Commissioner Frank Drake joining her in voting yes. She vowed to repeat the motion next month.

            The water picture has been muddied by a discussion Williams and Deputy Town Manager Roe O’Donnell had on March 14 with Dale Crisp, director of Raleigh’s public utilities, and Ron Horton, who supervises the Wake Forest, Garner and Rolesville systems.

            The Wake Forest commissioners had agreed they want an ordinance to enforce water conservation, but Crisp said Raleigh would not be in favor of the town doing so. Raleigh has a water conservation task force that may recommend the city council levy a progressive water rate, charging more for more use. Crisp said that surcharge, which would be in effect from May through October, could be applied to the Wake Forest rates if both governing boards agree and the merger agreement is changed.

            Wake Forest could probably purchase more water capacity from Raleigh. An additional half-a-million gallons per day would cost about $2.3 million and that would be added to the $19 million the merger agreement specifies. The $19 million is being paid off – optimistically in six to seven years – by water and sewer availability fees assessed on new construction and by the difference between Wake Forest’s rates and Raleigh’s rates. Wake Forest’s rates, which are frozen until the $19 million is repaid, are higher than Raleigh’s.