April 4, 2007

  Volume 5, Number 14

Published in Wake Forest, NC

  Carol Pelosi, Publisher and Editor
 
 
 
 
 
 
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 When lower water rates
an iffy question

            Deputy Town Manager Roe O’Donnell led off a discussion about water conservation measures Tuesday afternoon by taking the town commissioners and mayor through a series of possible problems – times when demand for water and/or sewer exceeds what is available under the merger contract with the City of Raleigh.

            That led to a discussion about the merger and when Town of Wake Forest water customers will see their rates reduced to Raleigh’s.

            “The question I get is: when is my bill going to go down?” Commissioner Frank Drake said.

            Lower water and sewer rates and not having to pay the high cost of a new water source and upgraded water system were the two reasons the commissioners chose merger, which went into effect July 1 of 2005.

            “Our collections have been ahead of schedule,” Mayor Vivian Jones said. When it was signed, the agreement anticipated it would take the town seven years to pay off the merger costs using the difference between the Wake Forest and Raleigh rates and the payments for water tap-ons and other permits.

            The question is what will the town have to repay?

            The agreement was for an estimated $15 million in improvements to the water and sewer systems plus $3 million for an additional 1 million gallons of daily capacity at the Raleigh water plant and $710,000 for 200,000 additional gallons of capacity at the city’s wastewater treatment plant for wastewater in the Richland Creek collection basin.

            The total is $18.8 million, but that does not account for any increased – or decreased – construction costs.

            The largest part of the system improvements – an estimated $3.6 million – was to upgrade the town’s wastewater plant on Smith Creek from 2.4  to 3.2 million gallons a day.

            That is a very complicated process, O’Donnell said. “This re-rating they’re doing is every bit as complicated as the original design.”

            “Within a year we should know” the actual cost? Jones asked.

            “Yes,” O’Donnell said.

            Some of the projects have come in at less cost than anticipated, he said.

            “The big unknown is how fast do we grow and what the costs are going to be. We can predict a little more what the growth is going to be,” O’Donnell said.

            The town board has agreed that growth at about 800 new homes a year will help to pay off the $18.8 million faster.

            O’Donnell said that the town might have to purchase another half-million gallons of water capacity about 2010 and another 50,000 gallons of sewer capacity for the Richland Creek basin in 2009. Raleigh will have to have the design underway to increase the Smith Creek sewer main by 2013.

 
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