Professional Documents
Culture Documents
(Outlined at June 19, 2019 Meeting)
This proposal sets out a plan, which if acceptable to the necessary parties, will be included in an
interlocal agreement to be approved and entered into by the Towns of Leland, Belville, and Navassa (the
“Towns”), Brunswick County (the “County”), and Brunswick Regional Water and Sewer H2GO Sanitary
District (the “Sanitary District”). The interlocal agreement would be binding on the signatory entities for
the term of the agreement. It also could be made subject to the outcome of an appeal by any parties to
the litigation which decline to execute an interlocal agreement.
Many objectives of all entities are satisfied in this solution. The intent of the agreement is to have the
Towns empowered to continue to grow through annexation to the extent possible in accordance with
the North Carolina General Statutes and the existing annexation agreements between the Towns, to
enable the Sanitary District to grow as the Towns grow, and to simplify the process whereby the County
can plan for and expand the treatment capacity of its facilities. The Sanitary District will be the
distributor of potable water and the collector of sewer for the region for the individual customer. The
County will provide all wholesale water and sewer treatment along with the major distribution and
transmission infrastructure. With this arrangement, the Towns and Sanitary District are able to grow in
concert with one another instead of competing with one another. The economies of scale for proper
allocation of financial resources and rate setting are realized both with the single retail provider of the
Sanitary District and the single wholesale provider of the County. This arrangement and agreement will
provide clarity and stability to the region in regards to water and sewer, which will promote further
economic development and growth. All citizens within the Sanitary District’s current and future
jurisdiction will have full voting rights.
To accomplish these objectives, the interlocal agreement will include the following terms and
appropriate supporting details and provisions:
The Town of Leland’s conveyance of all of its existing water and sewer lines, pump stations, and
any other water or sewer facilities, exclusive of those in Brunswick Forest, to the Sanitary
District.
The Town of Leland’s and the Sanitary District’s agreement that the Sanitary District will operate
Leland’s remaining water and sewer system in Brunswick Forest.
The Town of Leland’s and the Sanitary District’s agreement that Leland will convey, and the
Sanitary District will accept, all of Leland’s water and sewer assets in Brunswick Forest upon
complete build out of the development.
The Sanitary District’s conveyance of its Wastewater Treatment Plant on Chappell Loop Road to
the County, along with major transmission sewer force mains and pump stations.
The Sanitary District’s and the Towns’ agreement that the Towns shall have the exclusive right
to agree to provide water and sewer services to new developments in unincorporated areas of
1
the County, that the Sanitary District shall allow interconnection of the new developments into
the Sanitary District’s water and sewer systems, and shall be the provider and operator for such
services, and that the implicated Town shall convey and the Sanitary District shall accept the
right to provide water and sewer services to a new development once it has been annexed into
the implicated Town.
The County’s agreement that the Towns, through the exclusive right granted by the Sanitary
District, have the right of first refusal to provide water and sewer to unincorporated areas of the
County within the annexation agreement map consistent with the terms of the interlocal
agreement.
The Towns’ and the Sanitary District’s agreement that the Towns can provide new development
with the right to connect to the Sanitary District’s water and sewer in exchange for voluntary
annexation into the respective Town and Sanitary District, based on an updated annexation
agreement that is consistent with the terms of the interlocal agreement, and which right is
subject to the existing agreements between Leland and Navassa, and between Leland and
Belville, regarding where each Town can annex property.
The Parties’ agreement that they will develop, or will cooperate in the development of, new
annexation agreement(s) that are consistent with the terms of the interlocal agreement.
The new annexation agreement(s)’ identification of any areas that are excluded from being
subject to annexation by the Towns.
The Towns’ and the Sanitary District’s agreement that new developments will be required to
construct the water and sewer infrastructure required to connect to the Sanitary District
systems, then deed and dedicate it to the Sanitary District for operation and maintenance.
The County’s agreement to provide the Sanitary District with reverse osmosis treated water at
the County’s 2019 rate structure, with proper consumer price index adjustments for the
duration of the agreement, with the duration of the agreement being the same as the duration
of the County’s financing for its new plant upgrades.
The Sanitary District’s conveyance of all of the proposed aquifer‐based reverse osmosis plant
infrastructure, including the well sites and the equipment held in storage, to the County.
The Sanitary District’s conveyance, by deed, of the proposed reverse osmosis plant site to
Leland, which conveyance will be subject to a lease in favor of the County, which expressly
grants the County the sole and exclusive right to build a reverse osmosis plant on the site in the
future if it chooses to do so.
The County’s agreement to investigate the aquifer‐based reverse osmosis plant for integration
into its overall water system including the proposed plant’s operations and maintenance costs,
applicable rates, and strategic redundancy and/or resiliency.
2
The agreement of the Parties that, as consideration for the rate concessions it is making and its
agreement to provide reverse osmosis treated water, the County shall have the sole and
exclusive right to build an aquifer‐based reverse osmosis plant, but shall not be obligated to do
so.
The Town of Navassa’s agreement to convey its water and sewer lines, pump stations, and other
facilities to the Sanitary District, and the Sanitary District’s agreement to accept these facilities.
The Sanitary District’s agreement to assume the debt and liabilities related to all Towns’ water
and sewer infrastructure and allocation within the County’s treatment plants.
The Towns’ agreement to transfer their system development fee reserves to the Sanitary
District.
The Parties’ agreement that each of the Towns will reserve, or will have conveyed to them, a
leasehold interest in the water and sewer system facilities owned by the Sanitary District within
their respective town limits and potential annexation areas consistent with this agreement,
which will facilitate a joint venture for economic development and will facilitate new
developments interconnecting into the water and sewer systems and facilities leased by a Town
as part of a voluntary annexation into a Town.
The Towns’ and Sanitary District’s agreement that, in consideration for the concessions being
made by the other parties, they will not acquire, own, operate, or construct any water or sewer
treatment facilities, or contract with or obtain treatment services from any entity or company,
other than the County so long as the County is not declared by a court of competent jurisdiction
to be in breach of the interlocal agreement.
The Towns’ agreement that, in consideration for the concessions being made by the other
parties and except as expressly provided otherwise in the interlocal agreement, they will not
acquire, own, operate, or maintain any water and sewer infrastructure, other than those
expressly excluded in this agreement, or contract for water and sewer services with any entity,
other than the Sanitary District so long as the Sanitary District is not declared by a court of
competent jurisdiction to be in breach of its obligations under the interlocal agreement.
The County’s agreement to provide assistance and support to the Sanitary District and the
Towns in seeking grant money related to the consolidation activities contemplated by the
interlocal agreement.
The County’s and the Sanitary District’s agreement that: (1) they will oppose any legal
proceedings challenging the validity or applicability of any terms of the interlocal agreement and
will seek to intervene in any action, if necessary to make such opposition, or (2) if a Town is
required to oppose such legal proceedings because the County or the Sanitary District is
unwilling or unable to do so, then each entity that is missing (be it the County or the Sanitary
District or both) shall be responsible for paying, as they are incurred, one‐half of the attorneys’
3
fees and litigation expenses of any signatory Town that is required to oppose any such legal
proceedings.
There are other items necessary to resolve the pending litigation involving the Town of Leland, the
Sanitary District, and H2GO (Case No. 17‐cvs‐2243 pending in Brunswick County Superior Court). Those
are:
The Town of Belville’s withdrawal of all pending notices of appeal involving the litigation and its
agreement that it will not seek appellate review of the superior court’s April 22, 2019 order or of
the superior court’s permanent injunction order, via notice of appeal, writ, or otherwise and will
not make any filings or initiate any proceedings seeking relief from the superior court’s orders in
the superior court.
The Town of Belville’s immediate return of the Sanitary District’s assets to the Sanitary District.
The Town of Belville’s and the Sanitary District’s agreement to request that the General
Assembly allow the de‐annexation of the proposed reverse osmosis plant site.
The Town of Belville’s payment of the Town of Leland’s and the Sanitary District’s attorneys’
fees and legal costs arising from the litigation.
If Belville declines to settle the litigation, then the regional solution will not include Belville as a
signatory or an obligated party and will be subject to Leland and/or the Sanitary District prevailing on
appeal.
4