DUANE T. HOLDER Assistant County Manager AMY H. CANNON County Manager MELISSA C. CARDINALI Assistant County Manager TRACY JACKSON Assistant County Manager UMB ERLAN SALLY S. SHUTT COUNTY Assistant County Manager NORTH CAROLINA OFFICE OF THE COUNTY MANAGER June 21, 2019 David Trego, General Manager Public Works Commission PO Box 1089 Fayetteville, NC 28302 Dear David, Thank you for meeting with us multiple times over the past nine months to discuss the Preliminary Engineering Report (PER) and the expansion of water to the Gray?s Creek Water and Sewer District. Our collective goal in these meetings has been the development of a long-term sustainable approach to providing public water in this area. Unfortunately, we have encountered challenges in ?nding an economically sustainable structure for the Public Works Commission (PWC) and the property owners. The following issues have been identi?ed: 0 The projected customer base is low due to a lack of density. 0 Expected low water ?ow will require signi?cant, recurring ?ushing of the lines. PWC anticipates ?ushing of 500,000 gallons per month, which will add over $500,000 annually to operating costs. 0 The development potential of the Phase I area as a result of water expansion is unknown. 0 Without development, customer rates could be very high. 0 Conservatively, the per household connection costs could exceed $92,000 and the consent order threshold of $75,000. Evaluating the desired long-term sustainable approach is predicated upon developing an annual cost structure encompassing the full costs of operating, maintaining, billing and providing for future capacity and replacement of the system. At our last meeting on May 7, 2019, you indicated that based upon the factors identi?ed above, PWC was not able to generate a cost structure that provided the economic bene?t to justify participation in the expansion of water to the Gray?s Creek district. Courthouse 5th Floor Suite 512 P.O. Box 1829 Fayetteville North Carolina 28302-1829 (910) 678-7723 (910) 678-7726 0 Fax: (910) 678-7717 Although we understand concerns, the County continues to be concerned about the absence of a Viable solution to meet the needs of the citizens in the Gray?s Creek community. Members of our state delegation remain interested in the County?s progress in public water expansion and we believe it?s prudent to advise them of the current status. Respectfully, War/1W Amy H. Cannon County Manager cc: Board of County Commissioners Courthouse 5th Floor Suite 512 P.O. Box 1829 Fayetteville North Carolina 28302-1829 (910) 678-7723 (910) 678-7726 Fax: (910) 678-7717