MORRIS MILL PROPOSED URBAN SERVICES DISTRICT. Public Hearing October 14, 2013

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1 MORRIS MILL PROPOSED URBAN SERVICES DISTRICT Public Hearing October 14, 2013

2 Wicomico County Code Section 97.4 The Commission shall advise those present at the hearing whether, on the basis of the engineering and financial surveys, it believes the project feasible from both an engineering and financial standpoint.

3 Morris Mill Presentation Review Area of Concern Contamination Statistics Number of Properties and SDAT Value Project Scope and Anticipated Costs Current Status of Funding Impact on Homeowners Cost to County Process to Move Forward

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5 Updates Since September 2013 Sampling 81 total wells have detections: ~30% 45 wells above maximum contaminant level of 5 ppb (previously 43) 16 wells with detections above action level of 2.18 ppb 20 wells with detections below action level of 2.18 ppb (16 in June 2013) 11 wells previously non-detect, now have detections Since November 2012, varying concentrations within each sampling period

6 Updates Continued 38 residences on granular activated carbon (GAC units) EPA funding extended additional six months to 5/2014 Varying O&M depending on concentrations (some pass through occurred in residences with higher concentrations) If public water is not extended, MDE will likely turn the cost of O&M back to homeowners. In that case, the only wells that may be permitted will be doublecased and screened in the confined aquifer.

7 Engineering Review Topics Overview of Project & Planning Study Planning Study Alternative Cost Estimates Alternative Estimated Water Charges Municipal Public Water Service Estimated Water Charges Benefits Project Timeline

8 Project Scope Address public health concern and provide long term solution for a safe drinking water source for residents. Planning Study Completed to evaluate alternatives for a solution. 1. No Action 2. Public Water Supply 3. Individual Point of Use (POU) Water Treatment Systems 4. Community Water Treatment System Develop Urban Service District to manage and maintain.

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10 Alternative Cost & Water Charge Estimates Public Water POU Units 1. Charge includes reserve and delinquency percentage as required per USDA. Total Monthly Cost per 2. Usage is based on Quarterly Rate of 24,000 gallons/quarter or 178 gpd/customer. Community WTP Project Cost $8,000,000 $2,320,000 $8,840,000 Grant(assumed MDE & RD) $6,000,000 $3,000,000 $6,000,000 Loan, 40 years, 2.125% $2,000,000 $0 $2,840,000 Annual O&M $121,212 2 $546,000 $155,506 Monthly Loan Repayment Charge per $27 $0 $38 Customer 1 Monthly Usage/ Operation Charge per Customer Customer $41 + $5 $192 $55 $73 $192 $93

11 Recommended Project Alternative Municipal Public Water Service provide by City of Fruitland, MD Phase 1: Installation of water mains in Morris Mill Area 6-inch, 8-inch and 12-inch mains Phase 2: Installation elevated water tower to provide pressures Interconnection loop between City of Fruitland and Morris Mill Area

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13 Public Water Public Water Impact Fee $0 Connection Charge Budget (absorbed by Urban Service District) $409,500 Monthly Fixed Charges Loan Repayment $27 Repair & Replacement Reserve $5 Quarterly Usage (Variable) Monthly Charge 8,000 gallons (90 gpd) $25 16,000 gallons (180 gpd) $33 24,000 gallons (270 gpd) $41

14 Public Water Charges Example Monthly Water Charge Loan Repayment Repair & Replacemen t Charge Monthly Usage Charge Total Custome r Charge 8,000 gallons (90 gpd) 16,000 gallons (180 gpd) 24,000 gallons (270 gpd) $27 $5 $25 $57 $33 $65 $41 $73

15 Benefits Eliminates TCE public health contamination threat. Home can be sold without special real estate disclosure. House value is increased. Water is available during power outages. Water is available for fire protection to minimize losses. Reduces Homeowner s insurance premiums as municipal water improves protection class ratings. Reduces Homeowner expense for salt and water conditioning units. Reduces Homeowner expense for electricity and maintenance for the well pump, bladder tank and well.

16 Timeline Project Completion Urban Service District Created January 2014 Design, 6 months January June 2014 Bid and Negotiation July October 2014 Construction, 16 months November February 2016

17 Financial Considerations SDAT Value of Associated Properties is $48M County Investment of $2M represents 4.2% of Total Value Annual P & I represents 16.26% of Current Associated Real Property Taxes Loss of Property Value & Marketability

18 Impact on Affected Residents PER Summary Plumbing From Line to Homes Included at $1,500 per Residence Existing Wells Can Be Used for Irrigation Some Private ROW May Be Needed for Water Lines

19 Timeline No Petition September 17- Urban Services Commission meets and is presented information on the project. Preliminary decision is made that this project is feasible and appropriate from an engineering and financial standpoint. Vote to move to public hearing stage. Public hearing must be advertised for 3 weeks. Handbills must be posted and circulated in the proposed district.

20 Public Hearing Week of October 21 st Commission holds a public hearing. Commission informs citizens of the contents of the engineering and financial surveys and the probable cost of providing service in the district, including all fees and expenses. At the public hearing, the Commission shall vote, based on the engineering and financial surveys that the project is feasible from both engineering and financial standpoints and to create the urban services district.

21 Timeline No Petition Continued The citizens in this area have 45 days to petition for a vote. No petition or petition fails. Council proceeds with the legislation to create the urban services district. December 17 th approximate date for introduction of the legislation. 2 weeks of advertising for the public hearing. January 7 th approximate date for the public hearing. Vote on legislation on the 7 th or January 21 st.

22 Timeline - Petition September 17- Urban Services Commission meets and is presented information on the project. Preliminary decision is made that this project is feasible and appropriate from an engineering and financial standpoint. Vote to move to public hearing stage. Public hearing must be advertised for 3 weeks. Handbills must be posted and circulated in the proposed district. Week of October 21 st Commission holds a public hearing. See public hearing slide.

23 The citizens in this area have 45 days to petition for a vote. (ends approximately the first week in December) There is a successful petition. Must be signed by the owners of 20% of the assessed value of the land in the proposed district to succeed. Must have a vote within 30 days. The time, place and hours of balloting must be advertised for 3 weeks and posted within the district. Vote Approximately the first full week in January.

24 Each owner has 1 vote for $500 of assessed valuation of his land. Needs majority to pass. Citizens vote to create the urban services district January 21 st approximate date for introduction of the legislation. 2 weeks of advertising for the public hearing. February 18 th approximate date for the public hearing. Vote on legislation on the 18th or March 4th.

25 Considerations for Residents of Affected Area Point of origin remains unknown Status of release is still unknown and may be continuing Expansion of contamination within the area of concern is possible Marketability of homes within the area of concern is compromised

26 Considerations for Residents of Affected Area Continued Future well permits within the area of concern are unlikely Annual cost of filters exceeds that of public water under the proposed urban service agreement