The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Wednesday, February 28, 1996           TAG: 9602280375
SECTION: LOCAL                    PAGE: B1   EDITION: NORTH CAROLINA 
SOURCE: BY LANE DEGREGORY, STAFF WRITER     
DATELINE: BUXTON                             LENGTH: Long  :  135 lines

BOARD: COUNTY SHOULD BUILD WATER PLANT THROUGH DARE, A REVERSE-OSMOSIS PLANT, AND FEES, WOULD BE CHEAPER, CO-OP'S DIRECTORS SAY.

If Dare County builds a new reverse-osmosis water plant on the southern end of Hatteras Island, water rates for residents of Avon, Buxton, Frisco and Hatteras will nearly double.

If Cape Hatteras Water Association officials build their own reverse-osmosis plant, however, water rates will increase almost threefold in those Outer Banks villages, officials with the cooperative's Board of Directors said Monday night.

``Since 1984, this board has been looking for additional water sources. But after lawsuits and legal actions made Buxton Woods unavailable for new well sites, it became apparent that we had to look to other sources of water production - like R-O plants,'' Cape Hatteras Water Association attorney Bobby Outten said. ``We found that it would be cheaper to build a plant through the county than the water association could do on its own.''

More than 150 people from Hatteras Island's four southern villages turned out Monday night for a question-and-answer session about the future of their water production.

Some members of the uncharacteristically large crowd applauded the water association - and urged fellow residents to let the county take over their water production entirely. Others chastised the utility and county officials, saying such increased costs were unnecessarily inflated and that they were not being treated fairly.

Members of the association have until Friday to cast ballots that will decide whether Dare County should take over their water production plant. If two-thirds of the association's 3,000 members vote ``Yes,'' Dare County commissioners then will have to vote to accept theislanders' utility. If the issue is voted down, water association officials said, they will have to begin making plans to upgrade their existing plant, which was built in 1967, and start building a reverse-osmosis production plant.

Repairs to Cape Hatteras' current plant and water distribution system, which produces about 2 million gallons a day, will cost about $3.5 million. Building a new 1 million gallon reverse-osmosis plant for south Hatteras Island is projected to cost $7.5 million. To meet the projected needs of all 5,000 lot owners in Avon, Buxton, Frisco and Hatteras, Dare County Water Department Supervisor Bob Oreskovich said both the existing plant and a new R-O plant are needed.

Reverse-osmosis plants purify underground water drawn from deep wells by removing 99 percent of the salt, minerals and other contaminants. Residents of Nags Head, Kill Devil Hills, Kitty Hawk and Colington already have access to centrally produced R-O water. Next month, 821 homes and businesses in Rodanthe, Waves and Salvo will get hooked onto the county's newest reverse-osmosis plant on the northern end of Hatteras Island - and will pay $5.66 per 1,000 gallons of water.

Residents of the southern half of Hatteras Island already pay $6.90 per 1,000 gallons. If Dare County takes over the Cape Hatteras Water Association - and builds another reverse-osmosis plant there - water rates will rise to $7.93 per 1,000 gallons next year and to $11.13 by 2015, officials say. If the water association finances and builds its own water production plant, rates will jump to $11.13 next year and $17.63 per 1,000 gallons by 2015.

``The lower villages of Hatteras Island have taken the initiative to pull ourselves up by our own bootstraps and provide our own water. The upper three villages never did that. They just went to the county and asked - and they got their own R-O plant,'' Buxton resident Stewart Couch said. ``You're telling us to finance our own plant now. I don't see how that's fair.''

County manager Terry Wheeler said that if southern villagers had asked for assistance earlier, it might have been possible. But after using all of the water authority's assets to float a water bond for the $6.5 million Rodanthe plant, Wheeler said there just aren't any funds left to underwrite a Cape Hatteras production plant.

Residents of Rodanthe, Waves and Salvo paid $1,500 per parcel to hook onto their new system. Villagers in Avon, Buxton, Frisco and Hatteras would be charged $2,100 per parcel. But instead of assessing a one-time flat fee, officials with the Cape Hatteras Water Association decided to amortize those initial costs in the water rates - thus the need for such inflated costs per gallon.

``You mean we're gonna give Dare County our existing water system - all our pipes, meters, tanks and production stuff - and they're not even gonna help us pay for this new R-O plant?'' an Avon resident asked. ``Excuse me, but I don't think the people of this island are that ignorant.''

Ben Morris of Frisco agreed. ``If we turn our assets over to the county - all $6.5 million worth - what will get for that?'' Morris asked. ``I already got water. And I already had to pay for that and the plant that produces it.''

County Finance Director Dave Clawson said that because Dare County can get tax-exempt funds to pay for a water plant's production and has central purchasing power for chemicals and other necessary materials, it will be cheaper for county officials to build a reverse-osmosis facility than it would be for Cape Hatteras Water Association members to build their own.

In addition to the 3,000 current Cape Hatteras water customers, 750 other land owners in those four southern villages have purchased water impact units - but not yet linked onto the system. If a reverse-osmosis plant is built, and the current water production system is improved, all 5,000 lots on the southern end of the island will be able to be linked onto a central water system. Some residents said such ability is necessary for the economic future of their communities.

Others worried what effect total build-out might have on the isolated Outer Banks island.

``You make it so people can build on all these little pieces of sand and we'll all be drinking recycled septic water,'' a Buxton resident who identified himself only as ``O'Brien'' said. ``The more people and commercial enterprises you put on this island, the more we're cutting our own throats. When is it going to end? We've got to stop this growth and irresponsible building.''

Couch, who owns Hatteras Realty Co., disagreed. ``I think we need to go with the county to protect our economic future here. It's not a question of whether our rates will go up 5 or even 15 percent,'' said Couch. ``I don't think the water association should be the instrument to stop growth. If you want to control development, you need to address those issues in another format.''

Wheeler added, however, that county officials have not yet procured a permit to discharge waste from the proposed reverse-osmosis plant on southern Hatteras Island. ``If we don't get a permit,'' said the county manager, ``you don't get a plant.'' ILLUSTRATION: Graphics

FRIDAY DEADLINE

Members of the Cape Hatteras Water Association have until Friday to

cast their ballots about whether Dare County should take over their

2 million gallon water production plant and build a new 1 million

gallon reverse-osmosis plant. Ballots should be mailed to P.O. Box

578, Buxton, N.C. 27929, or dropped off at the water association

office.

For more information, call 995-5061.

THE COST

THE RATES

[For complete graphic, please see microfilm]

by CNB