MORRIS MILL PROPOSED URBAN SERVICES DISTRICT

Presentation to County Council

September 17, 2013

Wicomico County CodeSection 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.”

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

Water Sample Results

Updates Since November 2012 Sampling

• 77 total wells have detections: 28%• 45 wells above maximum contaminant level of

5 ppb (previously 43)• 16 wells with detections above action level of

2.18 ppb• 16 wells with detections below action level of

2.18 ppb• 7 wells previously non-detect, now have

detections Since November 2012, concentrations have increased in 30 wells; slight decreases in 10

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)

• MDE will likely turn the O&M of GAC units back to homeowners if public water is not extended

• New wells may not be permitted

Project ScopeAddress public health concern and provide long term solution for a safe drinking water source for residents.

• Planning study completed to evaluate alternatives for 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.

Anticipated Cost

- 2.125% Interest, 40-yr Loan- County Subsidy is estimated and ultimately dependent on County Council approval.

Alternative Project Cost Grant County Subsidy

Loan Monthly Rate/ User

$4,500,000 Grant

1. Public Water $7,956,201 $4,500,000 -- $3,456,201 $82.25

2. POU Units $2,319,570 $4,500,000 -- -- $192.92

3. Community WTP $8,834,150 $4,500,000 -- $4,334,150 $111.69

$6,000,000 Grant

1. Public Water $7,956,201 $6,000,000 -- $1,956,201 $62.61

2. POU Units $2,319,570 $6,000,000 -- -- $192.92

3. Community WTP $8,834,150 $6,000,000 -- $2,834,150 $92.05

$6,000,000 Grant; County Subsidy

1. Public Water $7,956,201 $6,000,000 1,956,201 -- $37.00

2. POU Units $2,319,570 $3,000,000 -- -- $192.92

3. Community WTP $8,834,150 $6,000,000 2,834,150 -- $70.56

Recommended Project AlternativePublic Water Service provide by

City of Fruitland, MD

• Phase 1:• Installation 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

Anticipated Cost- Public Water

- 2.125% Interest, 40-yr Loan- County Subsidy is estimated and ultimately dependent on County Council approval.

Alternative Project Cost

Grant County Subsidy

Loan Monthly Rate/ User

$4,500,000 Grant

Public Water $7,956,201$ 4,500,000

$ 0 $3,456,201 $82.25

$ 1,500,000 $1,956,201 $62.61

$ 500,000 $2,956,201 $75.75

$6,000,000 Grant

Public Water $7,956,201$ 6,000,000

$ 0 $1,956,201 $62.61

$ 500,000 $1,456,201 $56.06

$ 1,956,201 $0 $37.00

Timeline Project Completion

• Urban Service District Created January 2014• Design, 6 months January 2014- June 2014• Advertise / Bid July 2014• Construction , 18 months August 2014- February 2016

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

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

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.

Public Hearing

• Week of October 21st – 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.

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 17th approximate date for introduction of the legislation.

• 2 weeks of advertising for the public hearing.

• January 7th approximate date for the public hearing. Vote on legislation on the 7th or January 21st.

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 21st – Commission holds a public hearing. See public hearing slide.

• 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.

• 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 21st approximate date for introduction of the legislation.

• 2 weeks of advertising for the public hearing.

• February 18th approximate date for the public hearing. Vote on legislation on the 18th or March 4th.