Carroll County PSA warned of large cost jump for Exit 1 wastewater project; tomato plant raises supply questions

Carroll County Public Service Authority members were told Nov. 3 that the Exit 1 regional wastewater projectnow carries a much higher estimated cost and that funding and capacity decisions may be required to move forward.

"First item I have on here is the Exit 1 regional wastewater project," PSA staff member Watson said, reporting that, after talking with the funding agency, "the estimated cost to Carroll would be 6 point almost 6.6." Watson said the increase reflects partner changes and inflation from earlier estimates that had assumed three partners and a lower total cost.

Watson said the funding agency will perform a credit review and affordability analysis and that the PSA must provide current audits for the authority and the county. "They don't wanna loan you the money if you can't pay for it," Watson said. He said the agency will issue recommendations and that, depending on that review, there "might be some commitments from either rate increases from the PSA or some additional support from the county" to secure the financing.

Watson warned the board that the external funding could disappear if the project is not started within the current fiscal window. He also said the Exit 1 plant remains under a consent order that has not been released, though operations are generally "running pretty decent" with occasional "hiccups." Staff noted the North Carolina Department of Transportation is still involved with the project.

Board members voted earlier in the meeting to approve the consent agenda (items a, b and c) by roll call. The vote was recorded as yes from Mister Slate, Mister Jessup, Mister Dixon, Mister Collins and Mister Bryant; the chair also recorded a yes vote. The consent-agenda motion and vote were part of the meeting record.

The board also heard multiple operational updates: Pine Grove line-extension work is expected to start shortly after the contractor rented a trencher; Spring Willow has been completed; and the PSA will receive no-cost technical assistance beginning Nov. 5 to produce an asset inventory that staff said could help prioritize capital improvements and strengthen future grant applications.

Members spent significant time discussing local water-supply capacity because a new tomato processing facility near Exit 1 includes a large water storage tank that was referred to in the meeting as a "million-gallon" tank; the transcript did not state an exact figure beyond references to "million" gallons. Board members said concerns center on filling the tank initially and whether existing system capacity and allocations can accommodate that demand.

Watson provided system figures: current PSA use is about 891,000 gallons per day (0.891 in the packet report), and recent upgrades increased the PSAservice capacity by about 400,000 gallons per day. He said the authority can provide roughly 400,000 gallons per day to a large user but not necessarily as a continuous 24/7 reservation without operational changes. Watson said about 2,000,000 gallons remain allocated for emergency use under intermunicipal arrangements and that he is discussing longer-term purchase options with nearby towns (including Hillsville and Wytheville) to secure additional capacity.

The board also discussed enterprise-zone incentives that apply to the tomato plant. Watson said the property is in a combined enterprise zone and that local incentives include water and sewer rate credits and faster permit turnaround. He gave an example schedule discussed in the meeting in which a qualifying project with 25 or more employees could receive a 50% discount on water and sewer rates in year one, 25% in years two and three, and 10% in years four and five; Watson stressed the state also offers separate, pooled grant programs that applicant projects may pursue, but the amount a given project receives depends on statewide competition and reporting of prior-year expenses.

Public comment at the start of the meeting included a request from Michael Webb, who said he lives at 1590 Freeze Road on the CarrollGalax line and that his household has failing well water. "We have well water that's in real bad shape. We'd like to be able to hook up to county water if any way possible," Webb said. Staff and board members asked about the site, elevation and whether the line extension would require coordination with Grayson authorities; staff said they had opened a ticket and would follow up to provide a cost estimate and coordinate with Grayson where needed. The chair said the request would be taken "under advisement" and staff would reach back out to Webb.

No formal motions on the Exit 1 project, the tomato plant or capacity purchases were made at the Nov. 3 meeting; staff described next steps as seeking the funding-agency credit review, supplying audits, and returning to the board with recommendations and cost estimates. The meeting concluded after routine member comments and a unanimous vote to adjourn.

Closing details: the PSA will receive an asset-inventory assessment starting Nov. 5 at no cost to the authority, staff expect Pine Grove construction to begin soon, and staff will follow up with the resident on Freeze Road and continue discussions about supply arrangements for large users.