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WSD - November 17, 2003 Page 459 The Board of Commissioners of Cabarrus County, as the governing board of the Water and Sewer District of Cabarrus County, met in regular session at the Governmental Center in Concord, North Carolina on Monday, November 17, 2003, at 6:30 p.m. Present - Chairman: Robert M. Freeman Vice Chairman: Richard D. Sug~s Commissioners: Carolyn B. Carpenter Robert W. Carruth Coy C. Privette Also present were John Day, County Manager; Fletcher L. Hartsell, Jr., Attorney; and Frankie F. Bonds, Clerk to the Board. Chairman Freeman called the meeting to order at 7:58 p.m. UPON MOTION of Commissioner Carruth, seconded by Vice Chairman Suggs and unanimously carried, the Board approved the minutes of March 7, 1996 as submitted. Mr. Hartsell presented an overview of the Water and Sewer District of Cabarrus County and the current status of the District. We stated the District was formed by resolution in 1983 pursuant to Chapter 162A of the North Carolina General Statutes and consists of three areas, specifically an area west of the old boundaries of Concord and Kannapolis, an area east of Concord between Concord and Mt. Pleasant and a southern area. Mr. Hartsell highlighted a number of items during his presentation, including the following: (1) Original line construction cost of approximately $12 million funded through a loan from Farmers Home Administration and other grants; (2) 1984 Water Supply Agreement with Concord and the subsequent Issuance of the five-year notice of cancellation of the Agreement by the Concord Board of Light and Water; (3) Controversy concerning the construction of the Coddle Creek Reservoir; (4) ;~nexatlon of additional areas into the District in 1992; (5) Taxing authority for water and sewer capital projects; (6) Formation of the Water and Sewer Authority of Cabarrus County (WSACC) in 1992 with the transfer of wholesale sewer operations to WSACC at that time; and (7) Approximately $3 million in additions to the system during operation of the District. Mr. Hartsell reported the District's assets were transferred to the cities of Concord and }(annapolis in 1995 with the lines south of Highway 73 and into Midland and east of Concord going to Concord and lines in the area north of 73 going to Kannapolls. The purchase price for the assets was the assumption of debt or approximately $4 million for Concord on $13 million in capital assets. Kannapolls assumed the remaining debt of approximately $500,000.00-$600,000.00 along with a pro rata amount for the construction of a park in Kannapolis. According to Mr. Hartsell, the 1995 agreement included a provision for a scheduled process whereby water rates would be dimimished over a period of time. It also included a provision that called for ultimately doing a feasibility study for a countywide wholesale/retail operation of water and sewer. Although the formal feasibility study was never undertaken, Mr. Hartsell stated the Water and Sewer Authority did some study about five years ago. He said it was his understanding that the criteria of feasibility was met, specifically the consolidation of utilities would result in rates no greater than the rates then existing in Concord and Kannapolls. Further, Mr. Hartsell exq~lalned the 1995 agreement expressly provided for the continuation of the 1988 Reciprocal Agreement for water and sewer connections but modifications could be made. However, he said no agreement of modification has taken place so the 1988 Reciprocal Agreement is still in effect. During his presentation, Mr. Wartsell discussed the merits of a consolidated utility system in providing a more efficient operation. He pointed out that the Charlotte-Mecklenburg Utility Department (C~K/D) utility rates are one-third to one-half of those of any municipality or county surrounding Charlotte. In conclusion, he advised that the Water and Sewer District is still in existence and that additional areas may be annexed into the District pursuant to North Carolina General Statute 162A-87. There was lengthy discussion about water and sewer service in Cabarrus County. The discussion centered on the following: (1) Concerns about the City of Concord imposing its development standards in unincorporated areas in exchange for water sea-vice; (2) Proposed assignment of utility connection rights to developers who have met all County requirements but must comply with City ordinances to get water; (3) On-going discussions with municipalities regarding the establishment of transitional zoning areas; (4) Intent to establish a consolidated utility system when the Water and Sewer