Council approves sewer relocation and abandonment agreement; city to buy parcel for pump station

Newton City Council on Nov. 10 approved a Sewer Relocation and Abandonment Agreement affecting a gravity sewer line beneath a building owned by Carolina Glove Company and authorized related budget actions including a $50,000 property purchase and a $90,000 budget amendment.

City Manager Todd Clark said the sewer line beneath the Carolina Glove Company building at 28 North Caldwell Avenue dates to about 1920 and is suspected to be deteriorating. Staff proposed abandoning that gravity sewer, constructing a pump station, a sewer force main and a replacement gravity sewer in public right-of-way, and purchasing a nearby parcel (Catawba County parcel #374013141114) for the pump station for $50,000.

Under the proposed agreement the city would offer an eight-year limited liability for the abandoned line: the city would cover 50% of actual repair costs per incident for the first four years and 25% for years five through eight, with a total liability cap of $100,000 for the eight-year period; after that period Carolina Glove Company would assume full liability. Clark said the city applied for and received approval for a Clean Water State Revolving Fund loan for $1.9 million with $278,440 of that amount to be forgiven; the loan includes a 2% loan fee the city must pay ($38,000), which cannot be included in the loan proceeds.

Clark recommended council authorize the agreement and adopt a $90,000 budget amendment to cover the property purchase ($50,000), the 2% loan fee ($38,000), surveying costs ($1,000) and closing costs ($1,000). Council approved the Sewer Relocation and Abandonment Agreement and the $90,000 budget amendment by unanimous vote. The agreement places the abandoned sewer under Carolina Glove Company ownership and maintenance after the eight-year limited-liability window ends.