Vance County Water District Overview and Update Jordan McMillen Director Vance County Planning and Development Department 156 Church St. Suite 3 Henderson, NC (252)

Presentation Outline History of Project History of Project Water System Details Water System Details Signup Information Signup Information Benefits Benefits Questions? Questions?

History of Project Land Use Plan identified need for water throughout the county Land Use Plan identified need for water throughout the county Vance County Water District formally established (Oct. 4, 2004) Vance County Water District formally established (Oct. 4, 2004) Preliminary Engineering Report Completed (Engineering firm: Hobbs and Upchurch Associates) Preliminary Engineering Report Completed (Engineering firm: Hobbs and Upchurch Associates) Jan – March; 1 st set of public meetings Jan – March; 1 st set of public meetings March – April; Public information meetings March – April; Public information meetings May; Bond Referendum for $27 million passed May; Bond Referendum for $27 million passed October; USDA committed funds to Phase 1A (loan) October; USDA committed funds to Phase 1A (loan) November; USDA granted $1 million grant November; USDA granted $1 million grant December; notified of $1 million grant from NC Rural Center December; notified of $1 million grant from NC Rural Center

History Cont January; VC Water Board approved rules and regulations; Requirement of USDA January; VC Water Board approved rules and regulations; Requirement of USDA January; Authorization for beginning of engineering field work concurrent with sign up campaign January; Authorization for beginning of engineering field work concurrent with sign up campaign July – preliminary design complete; shovel ready July – preliminary design complete; shovel ready October – Kittrell Water Association expressed interest in Phase 1B; Application made to USDA for Phase 2A & 2B funding. Application made to NC Rural Center for $1,000,000 grant for Phase 2A & 2B. October – Kittrell Water Association expressed interest in Phase 1B; Application made to USDA for Phase 2A & 2B funding. Application made to NC Rural Center for $1,000,000 grant for Phase 2A & 2B. November – Sign up campaign officially began with mass mailing and signup meetings (12/1, 12/3, 12/10). November – Sign up campaign officially began with mass mailing and signup meetings (12/1, 12/3, 12/10) March – Made aware of successful funding for Phase 2A and 2B March – Made aware of successful funding for Phase 2A and 2B April – Sign up campaign for Phase 2 with mass mailing and signup meetings April – Sign up campaign for Phase 2 with mass mailing and signup meetings (4/15, 4/19, 4/26) Finalized water purchase agreement with City of Henderson Finalized water purchase agreement with City of Henderson Phase 1A Tank Site Secured; Location off of Warrenton Road Phase 1A Tank Site Secured; Location off of Warrenton Road.

History Cont Secured meter vault site (connection site to City of Henderson); Secured meter vault site (connection site to City of Henderson); Project advertised for bidding; Selected local contractor H.G. Reynolds to complete the construction; Project advertised for bidding; Selected local contractor H.G. Reynolds to complete the construction; Water Tank advertised for bidding; Selected Caldwell Tanks from Kentucky Water Tank advertised for bidding; Selected Caldwell Tanks from Kentucky July 9, 2012 – Official start of Construction for Phase 1A(anticipate 9-12 months of construction); July 9, 2012 – Official start of Construction for Phase 1A(anticipate 9-12 months of construction); Anticipate construction beginning on Phase 2 in Spring Anticipate construction beginning on Phase 2 in Spring 2013.

Phase 1A Phase 1A Total Projected Cost - $7,829,000 Total Projected Cost - $7,829,000 Total Project Miles – approx. 60 miles Total Project Miles – approx. 60 miles PROJECT SIZE REDUCED BASED UPON SIGNUPS PROJECT SIZE REDUCED BASED UPON SIGNUPS Total Signups – approx. 825 of which 580 are located along roads that will be served. Total Signups – approx. 825 of which 580 are located along roads that will be served. Revised total cost – approx. $5.1 million Revised total cost – approx. $5.1 million Revised mileage – approx. 35 miles. Revised mileage – approx. 35 miles. Received $2 million grant (25%) Received $2 million grant (25%) Phase 1B (Kittrell Water Assoc.) Phase 1B (Kittrell Water Assoc.) Total Project Miles – approx. 35 miles Total Project Miles – approx. 35 miles Phase 2A Total Projected Cost - $3,898,400 Total Project Miles – approx. 28 miles Total Signups to date – 363 Received 42% grant – stimulus money Phase 2B Total Projected Cost - $6,034,750 Total Project Miles – approx. 44 miles Total Signups to date – 365 Received 33% grant – stimulus money Water System Details (see map)

Signup Information Connection fee Connection fee Incentive connection fee of $125 vs. $750 during construction vs. $2,000 following construction. Incentive connection fee of $125 vs. $750 during construction vs. $2,000 following construction. Need 12 – 14 houses per mile or 80% signup along a given road segment for service. Need 12 – 14 houses per mile or 80% signup along a given road segment for service. Tap Options (Wet vs. Dry Tap) Tap Options (Wet vs. Dry Tap) Wet Tap: Pay $125 connection fee upfront plus $50 inspection fee for total of $175. Water billed at prevailing rate once operational. Owner responsible for water service line to house. Wet Tap: Pay $125 connection fee upfront plus $50 inspection fee for total of $175. Water billed at prevailing rate once operational. Owner responsible for water service line to house. Dry Tap Option 1: Pay $125 connection fee upfront. Once operational pay minimum fee of $20 per month. Property owner will be responsible for $50 inspection fee when/if service line installed. Owner responsible for water service line to house. Dry Tap Option 1: Pay $125 connection fee upfront. Once operational pay minimum fee of $20 per month. Property owner will be responsible for $50 inspection fee when/if service line installed. Owner responsible for water service line to house. Dry Tap Option 2: Pay one time fee of $800 ( 1” tap) with no intended use of water. This option is not counted in 80% participation requirement. Dry Tap Option 2: Pay one time fee of $800 ( 1” tap) with no intended use of water. This option is not counted in 80% participation requirement. Estimated Monthly Bill Estimated Monthly Bill $35-$45 (5000 gallons/mo); $35-$45 (5000 gallons/mo); Following bid estimate closer to $53 Following bid estimate closer to $53 for 5000 gallons/mo. for 5000 gallons/mo.

Benefits of Water System Safety – secured, regulated, constantly monitored; less likely to contamination than private wells. Safety – secured, regulated, constantly monitored; less likely to contamination than private wells. Reliability – ongoing and sustainable during power outages, drought condition, etc. Reliability – ongoing and sustainable during power outages, drought condition, etc. Quality – wells more subject to contamination; discoloration, noticeable odor or high mineral content in well water common. Quality – wells more subject to contamination; discoloration, noticeable odor or high mineral content in well water common. Drought Resistant Drought Resistant Rural fire protection Rural fire protection Reduced ISO insurance ratings Reduced ISO insurance ratings Reduced up front costs of wells and pumps Reduced up front costs of wells and pumps Economic Development - Ability to encourage and attract new development while enhancing existing development Economic Development - Ability to encourage and attract new development while enhancing existing development Ability to utilize wells for outside uses (washing car, watering flowers, etc.) Ability to utilize wells for outside uses (washing car, watering flowers, etc.) Great investment for Vance County’s future Great investment for Vance County’s future

Questions?