By Emily Ford
eford@salisburypost.com
KANNAPOLIS ó The city of Kannapolis took another step Monday night toward building a $19.4 million waterline in partnership with Albemarle and Concord.
The total project cost to Kannapolis is $7,410,024.
Kannapolis City Council agreed to pay $539,560 for Phase I of the Albemarle waterline, which eventually will provide 10 million gallons of water a day to Kannapolis and Concord from the Yadkin River.
“This is a perfect time to do this project,” said Tim Lowder, project manager with civil engineering firm WK Dickson. “Prices are about as good as they’re going to be right now.”
Pipe is cheaper now than it was eight years ago, Lowder said.
The project could come in well under $19.4 million, he said, which is a “very conservative estimate.”
Engineering, permitting and surveying will take about 18 months, said Wilmer Melton, Kannapolis public works director. Money will come from the city’s water-sewer fund balance.
Kannapolis and Concord will share ownership of the new line that will run through Cabarrus County. Albemarle will own the line that runs through Stanly County.
The cities will divide the cost of the project, with Albemarle paying 25 percent and Kannapolis and Concord each paying 37.5 percent.
Construction should begin in May 2012 and end by November 2012.
Other than Phase I, Kannapolis will finance the remainder of the cost, approximately $6.9 million.
However, city leaders said they hope their state congressional delegation will come up with grant money or other funding to help offset the cost of construction.
“All three congressmen are looking hard to find money,” Kannapolis City Manager Mike Legg said.
Still, Legg would not rule out a water rate increase.
“Hopefully growth will pay for part of it, but I’m not going to sit here and say you’re not going to raise rates,” he said.
Kannapolis considered several other ways to get more water, including buying it from Salisbury. But Salisbury’s rate of $4 per 1,000 gallons was almost four times Albemarle’s rate of $1.30 per 1,000 gallons.
Even though Kannapolis agreed Monday to proceed with the Albemarle line, negotiations with Salisbury apparently will continue.
Salisbury City Manager Dave Treme and Salisbury-Rowan Utilities Director Jim Beamer attended the Kannapolis City Council meeting, and leaders from both cities are scheduled to talk today about water.
Treme was tight-lipped Monday night about the Kannapolis discussion and vote, which he called “interesting.”
“I’m taking it in,” he said.
Kannapolis already buys 300,000 gallons per day from Salisbury and would consider buying more if the city comes down on the price, Legg said.
Although Kannapolis and Concord will evenly split ownership and cost of the Albemarle line, Kannapolis will draw only 40 percent of the water.
“That’s something to think about,” Legg said.
That percentage could change over time, he said.
Kannapolis probably will not need the additional water for at least five more years, Melton said.
The closing of Pillowtex helped the city conserve water, and slower development at the N.C. Research Campus due to the economy also decreased the anticipated demand for water, Legg said.Additional demand “depends on how quickly the economy rebounds and houses are built,” he said.
The city needed to find a new water source now because it has reached 90 percent of allowable permitting for future development, Legg said.
“The state said, find another water source,” he said.