Havelock board ready to back sewer agreement with New Bern

Havelock commissioners gave tentative approval to a sewer, annexation and service area agreement with New Bern on Friday morning.

While not taking a formal vote, no board members voiced opposition to the latest draft that could be signed in late January or early February.

"We've discussed all of the issues, and I believe everybody is on board," Havelock Mayor Jimmy Sanders said.

Frank Sheffield, Havelock city attorney, went over the 15-page agreement paragraph by paragraph with commissioners in a special work session.

Under the agreement, New Bern would provide up to 500,000 gallons of wastewater treatment to Havelock, which would expand Havelock's daily capacity from 1.9 million gallons to 2.4 million gallons.

Havelock would pay for the construction of a 10-inch pipe that would extend north and west of the city to connect with New Bern's sewer system.

Once the pipe is in place, New Bern would own and maintain the portion of the pipe from Catfish Lake Road west, with Havelock owning and maintaining the portion from Catfish Lake Road to the Havelock city limits.

The two cities also would agree to use Catfish Lake Road as an annexation boundary line in which neither would cross.

Sanders stressed that the document does not imply any future annexations by the city.

Havelock would have to pay New Bern a sewer tap fee of $750,000 within 30 days of New Bern accepting the completed sewer extension upon the completion of the project.

Sheffield said a developer of a proposed subdivision across U.S. 70 from Stately Pines would pay Havelock, and Havelock in return would pay New Bern.

Havelock would also pay a sewer capacity fee of $2.2 million beginning the first day of the sixth year of the agreement by making annual payments of $200,000 for five years, then $100,000 annually per year until the sewer capacity fee is paid in full.

Havelock would have to pay for a minimum of 150,000 gallons per day of wastewater treatment, about $37,500 per month.

Sheffield said the cost would decrease once more people hook onto the system.

Also as part of the agreement, Havelock would agree to pay 10 percent of the capital cost of New Bern's future improvement of its sewer collection infrastructure.

It is understood that the improvement is the replacement of the pipe that carries sewerage across the Neuse River to the New Bern wastewater treatment plant.

The estimated cost of the future improvement is about $10 million, of which Havelock would be expected to pay an estimated $1 million.

The two cities have been working on the agreement for more than a year.

New Bern officials are expected to review the document next.

"We're ready to proceed if they are," Sanders said. "If New Bern doesn't make major changes in it, then we'll be prepared to go forward."

Havelock commissioners may vote formally on the agreement at their Jan. 26 meeting.