KERR LAKE REGIONAL WATER SYSTEM KLRWS Water Treatment

KERR LAKE REGIONAL WATER SYSTEM (KLRWS) Water Treatment Plant (WTP) Improvements Reed M. Barton, PE Bill Dowbiggin, BCEE, PE Public Meeting JULY 13, 2020

PROJECT BACKGROUND ALTERNATIVES Presentation Outline FUNDING AND FINANCIAL IMPACT SCHEDULE

Project Background KLRWS is a regional water system that currently provides safe drinking water to municipal and county systems in portions of Vance, Granville, Warren and Franklin Counties Owners: City of Henderson (60%), City of Oxford (20%), and Warren County (20%) KLRWS Water Treatment Plant (WTP) is approved by the NC Division of Water Resources to produce up to 13. 97 mgd of drinking water

Project Description Enhanced treatment will remove additional total organic carbon and reduce concentrations of disinfection byproducts (DBPs) in the distribution system New treatment processes will provide a WTP capacity expansion from the original 10 MGD to 20 MGD Project includes rehabilitation, replacement, and expansion of the WTP’s equipment and structures that are beyond their service life and possibly over 40 -years old

Project Purpose and Need for the Project: KLRWS WTP has been in operation since 1975, and numerous equipment and structures at the plant are beyond their service life WTP needs enhanced treatment process for removing Total Organic Carbon (TOC), a precursor to DBP formation KLRWS water demand exceeds 80% of WTP’s original design capacity during the summer months, indicating a need for expansion to continue to provide an adequate, high quality water supply to the growing community Redundant regional transmission main is needed to meet water demand from City of Oxford and their customers Project Purpose: Implement planned rehabilitation, replacement and expansion of necessary equipment at the WTP, which will ultimately allow the WTP to meet water quality regulatory obligations, protect public health through improved treatment reliability and redundancy, and accommodate current population needs and future growth within the KLRWS service area

Alternatives Considered Do Nothing – infeasible due to the aging infrastructure, growing demand water quality performance issues Regionalization/Consolidation – KLRWS already considered a regionalized entity Expansion Using Conventional Treatment – not as cost effective as Superpulsators with activated carbon for DBP reduction and precursor removal Expansion Using Alternative Treatment (Actiflo® Clarifiers) – more expensive than preferred alternative Expansion Using Alternative Treatment (Superpulsator® Clarifiers) – preferred alternative

Preferred Alternative: Expansion Using Alternative Treatment (Superpulsator® Clarifiers)

Funding and Financial Impact Low interest loan/grant through Drinking Water SRF Loan Program § Capital Cost of Project = $39, 893, 000 § Interest Rate = 1. 53% Financial impact Potential Rate Impact for Customers All Customers Residential Customers City of Henderson $7. 01 / 5, 000 gallons 12. 28% change in water/sewer bill $16. 36 / 5, 000 gallons 28. 65% change in water/sewer bill City of Oxford $7. 20 / 5, 000 gallons 7. 62% change in water/sewer bill $19. 80 / 5, 000 gallons 20. 93% change in water/sewer bill Warren County $6. 90 / 5, 000 gallons 7. 85% change in water/sewer bill $11. 16 / 5, 000 gallons 12. 68% change in water/sewer bill Above are ER/EID project specific estimates. See the KLRWS 2020 Rate Study by Stantec for further information.

Interlocal Agreements KLRWS is comprised of the City of Henderson, City of Oxford, and Warren County operating under a formal, legally binding partnership since 1973 Entities have developed a Cost Sharing Agreement dated September 12, 2019 for financing the upgrades and extending their partnership through 2047

Schedule Subcontractor Bids – Summer-2020 Develop GMP and Execute Construction Contract – early December 2020 Start Construction – early 2021

Questions?