Water study draft comes back with higher costs than expected

Published 12:10 am Friday, April 24, 2015

By Josh Bergeron

josh.bergeron@salisburypost.com

Rowan County government is beginning to sort out its plans for a county-owned water system near Interstate 85.

County government last week received a draft feasibility study — commissioned in September — for a county-owned water and sewer system. The study focuses on two specific areas on opposite ends of Rowan County. The first is adjacent to I-85 on the Davidson-Rowan line. The second area of land sits east of China Grove and Landis, near the Rowan-Cabarrus border, and includes the Bostian Heights community.

The draft study projects the cost of providing water and sewer to both zones would be $61.09 million. The southern area of land makes up an overwhelming majority — $41.51 million — of the projected price. The north area, which contains homes near Duke Energy’s Buck Steam Station, has total price tag of $19.58 million for water and sewer, according to the draft plan.

The scope of the system, however, is higher than county officials said they desire. A water system built by Rowan County government would likely come at a significantly lower cost, according to commissioners Chairman Greg Edds.

“The water route seemed to be too involved and not just focused on economic development,” Edds said.

Economic development is the primary purpose of the study and a future water route, according to county leaders.

Maps for both the south and north area in the draft study show water and sewer lines crossing through rural neighborhoods, which Commissioner Craig Pierce said wouldn’t be cost effective. However, water and sewer lines could be extended, Pierce said, if a developer seeks to build a large group of homes in one location.

Pierce, who proposed conducting the study in 2014, said he envisions the county’s waterline running along the eastern side of I-85.

“I’m not putting this in to try and be in the residential water business,” Pierce said. “At the same time, the eastern part of the county is notorious for not being able to build because of granite, just like the name Granite Quarry. When you hit granite and there’s no way to put septic systems in, it’s tremendously expensive to drill a well. It has a lot of implications to drive the economy to a positive note, but it’s not going to happen without  the county making that investment. If we, as citizens, don’t reinvest in our county, it’s not going to grow.”

The study shows two, pre-determined sites for industrial development in the north area, near Duke Energy’s Buck Steam Station. The largest site shown in the study is in the southern area, near China Grove. Rowan Works Economic Development Director Robert Van Geons said infrastructure such as water and sewer would make Rowan more competitive when industries are searching for future locations.

“If we are to secure additional companies or new economic development, the more that we can do to make a site ready for them to rapidly build, the more likely we are to be successful in attracting investment,” Van Geons said.

Salisbury-Rowan Utilities, the only major water and sewer provider in Rowan, has expanded its system in previous years to accommodate major industries. When Gildan announced a facility on Heilig Road, Salisbury-Rowan Utilities agreed to a small expansion. Finished in 2010, the last major expansion of Salisbury-Rowan Utilities, according to the agency’s Director Jim Behmer, was a line that was extended south 5 miles to serve three interchanges along I-85. Another extension occurred in the early 2000s, Behmer said, when a waterline was extended south along U.S. 29 to serve China Grove.

Pierce said a county-owned system with a focus on economic development wouldn’t be intended to compete with Salsibury-Rowan Utilities.

In September 2014, as commissioners signed off on starting the feasibility study, they said $50 million to $80 million would be reasonable enough to proceed with the project. No funding mechanism has been determined for a county-owned water system. County Manager Aaron Church said the U.S. Department of Agriculture does fund water and sewer system projects with a combination of financing and grant money. Church said several other outlets also exist for funding.

The latest financial audit shows the county’s combined debt at $105.13 million. With it’s currently projected cost in the draft study, a water and sewer system would increase the county’s debt to more than $150 million. However, Church said the final cost would likely be significantly less. Reducing the total contingency funding in the project, for example, would reduce the cost by about $10 million, Church said. The study’s estimated costs included a 20 percent contingency.

Church said he’s scheduled a follow-up meeting with McGill Associates next week to talk about modifications to the feasibility study.

Contact reporter Josh Bergeron at 704-797-4246.