Background/Purpose of Request:
On September 10, 1980, the City of Southport and Brunswick County entered into a Water Service Contract which was later amended to provide Southport an assignment of 236,800 gallons of storage capacity in the County’s Smithville Water Tank. The original wholesale water service agreement expired on September 10, 2020. The County and City have been in discussions for several months regarding the development of a new agreement that would take effect July 1, 2021.
The North Carolina Department of Environment Quality requires all utilities providing potable water to have at least one half of its average annual daily demand in water storage capacity. The City is desiring to attain an additional 230,000 gallons of water storage capacity to compensate for the growth of development in the area. The agreement states that Brunswick County will assign 351,800 gallons of water storage capacity to the City (an additional 115,000 gallons) and provide an option for 115,000 gallons more of storage that must be exercised by December 31, 2023. If the County and City amend the agreement prior to that date the total allotment will be 466,800. Staff recommends approval of the Wholesale Water Service Agreement with provisions for allocation of elevated storage. |