The City of Sanford currently profits between $350,000. and $400,000. annually from bulk water sales to neighboring cities and counties. These bulk sales are from surplus water our plant can produce and will at no time effect the availability of water to the citizens of Sanford and Lee County.
*Do we have excess water to sell since we reciently experianced a drought?
Yes, we do. The city currently uses approximately 7 million gallons per day, depending on time of year, etc. There is a constant flow of water in the Cape Fear River of approximately 320 million gallons per day. This is measured down stream at Lillington and regulated by the Army Corps of Engineers at the Jordon Lake Dam discharge.
*Are bulk water sales good for our city?
The revenues help offset cost at the plant. This means that these bulk sales help keep the home owners water bill a little lower.
*How long are the contracts for these sales?
Most are for many years with an annual adjustment or review of pricing. They are all very simular.
*Do we charge less for bulk sales versus what regular rates are inside the city?
The most recient contract the city entered into was with the Town of Goldston. This agreement offered bulk sales at $2.02 per 1000 gallons. Plus a guarentee of purchasing 100,000 gallons per day. Plus a $25,000 annual fee. Goldston will purchase between 100,000 gallons and 250,000 gallons per day. With all the variables considered…….Goldston will pay between $2.27 and $2.76 per 1000 gallons. (This is calculated on 100,000 gallons per day usage = 2.76 250,000 gallons per day usage = 2.27)
The compariable rate for this ammount of usage inside the city is $2.23 per 1000 gallons with no purchase guarentee and no annual fee.
All things considered………..$2.23 City …………… $2.27 to $2.76 Goldston.
*Are there any fees the city will pay for running water lines etc.?
Goldston will run all connecting lines to Sanford. Once inspected and approved……the city will be responsible for the lines in Lee County . Goldston will be responsible for the water lines in Chatham County. All water lines will have to be inspected and meet city specifications.
*Are there any other communities Goldston can purchase water from?
Yes there are several other communities that were considered by Goldston before contracting with Sanford. The bidding on the sale of bulk water is very competitive. Reason being, there are only just so many neighbors you can sell to that need water……… and bulk sales allow you to add to your bottom line. This helps keep the cost of water for the home owner as low as possible.
If you have any questions concerning this issue, please contact hal Hegwer at 919-775-8201 or Vic Zarr at 919-775-8230.