Economic Development

The Town of Ehrhardt provides drinking water to customers within the incorporated area of the Town and a number of customers within close proximity to the Town limits. The lack of sufficient density of potential customers makes it uneconomical for service to be provided too far outside of the Town limits. The Town of Ehrhardt water system, designated as System No. 0510003 by the SCDHEC, services a population of approximately 600 residents through a total of 280 service connections within the areas of their active water distribution system.

The Town of Ehrhardt owns a total of four (4) groundwater wells. One (1) of these wells was drilled in the early 1920’s and is no longer in service. Another of these wells is of relatively modern construction but is reportedly contaminated with iron bacteria and is also no longer in service. The two (2) active wells were both drilled in 1975 and, according to records maintained by the South Carolina Department of Natural Resources (SCDNR), are located within approximately 200 feet of each other. The locations of these two (2) wells are illustrated in Exhibit J. Groundwater records from the SCDNR indicate that if the two (2) wells are both operating simultaneously, the drawdown associated with the wells’ dual production in close proximity of each other affects their production rates. It should be noted that the effects associated with drawdown in an underground aquifer are difficult to predict and model. The precise evaluation of the effects of drawdown on these groundwater wells operating in close proximity to each other is beyond the scope of this study. The capacity of the system rated by the SCDHEC’s SPWDR is tabulated in Table 2.3.2-1.

Table 2.3.2-1 Town of Ehrhardt-Groundwater Well Production Rate

It is important to note that the above tabulated capacity of the public water supply system in the Town of Ehrhardt does not account for the effects of drawdown between the two (2) wells. The SCDHEC’s production rate for the groundwater wells would be rated at the worst possible operational scenario. Based on current usage rates, the Town has approximately 193,060 GPD of surplus production capacity available to the residents and for economic development beyond current daily usage rates. This data is tabulated in Table 2.3.2-2.

Table 2.3.2-2 Town of Ehrhardt-Current System Capacity

In the Town of Ehrhardt, the water treatment facility is located on the same site as the two (2) active wells. These water treatment facilities provide for chlorine disinfection of the raw groundwater in accordance with the SPDWR. The vast majority of the Town of Ehrhardt’s water mains consist of Cast Iron (CI), Galvanized Steel (GS), and Asbestos Cement (AC) pipes. Raw groundwater is also treated with an injection of a Polyphosphate Blend into the water for corrosion control, iron sequestering, and scale removal in the CI and GS pipes. The active distribution system within the Town of Ehrhardt has pipes ranging in diameter from 3/4-inch to 8-inches and totaling approximately 49,900 linear feet in length. Only fifty-seven percent (57%) of the existing system piping meets the minimum standard size of 6-inch diameter to properly supply active or potential fire hydrant locations and provide fire protection for future economic growth and development.

Between April 2002 and April 2003, the average daily water demand in the Town of Ehrhardt ranged from a minimum of approximately 71,700 GPD in March to a maximum of 91,000 GPD in December. These figures represent volumes of water actually sold to customers. The Average Annual Demand (AAD) during this period was approximately 81,700 GPD. According to the 2005 SCDHEC Water Usage Report for the Town of Ehrhardt, average water usage was approximately 97,000 GPD, with a maximum daily demand of 115,000 GPD. Additionally, according to the Sanitary Survey conducted in 2006, the combined average daily production of the systems wells was approximately 115,100 GPD, and the maximum daily production was approximately 161,800 GPD. Additionally, the five (5) largest water customers based on average monthly usage between July 2006 and June 2007 are tabulated in Table 2.3.2-3.

Table 2.3.2-3 Town of Ehrhardt-Five Largest Water Customers

The Sanitary Survey also noted that during July 2006, almost seventy-nine percent (79%) of the water produced by the groundwater wells was lost, or unaccounted for, within the distribution system. Furthermore, a Preliminary Engineering Report (PER) prepared in 2006 for the Town of Ehrhardt compared the production rates of groundwater wells versus metered water usage from March 2002 to April 2006. The unaccounted for water within the distribution system ranged from an estimated thirty percent (30%) to eighty-nine percent (89%) over a four (4) year period. It is also important to note that the volume of unaccounted for water within the distribution system has been steadily increasing over the last fifty (50) months prior to April 2006. On average, nearly fifty-seven percent (57%) of the water produced from groundwater wells was unaccounted for during this period. In recent years, the Town of Ehrhardt has not gained many additional customers and/or new demands. It is apparent that corrective actions are needed to reduce such significant volumes of unaccounted for water.

The Town of Ehrhardt operates one (1) elevated storage tank located adjacent to the site of the two (2) active wells. The capacity of the tank is shown in Table 2.3.3-1 and the location is depicted in Exhibit K.

Table 2.3.3-1 Town of Ehrhardt-Storage Facilities

During the course of this study, copies of these two (2) PER’s performed in 2003 and 2006 for the Town of Ehrhardt were acquired and reviewed. Each of the PER’s recommended that the existing 75,000-gallon tank be replaced with a new 100,000-gallon tank in order to improved fire protection for the Town in case of an emergency. The elevated storage tank located within the Town of Ehrhardt’s water system has been assessed to ensure property fire protection and maintain adequate water pressure and the results of that assessment are tabulated in Table 2.3.3-2.

Table 2.3.3-2 Town of Ehrhardt-Elevated Storage Assessment

The surplus capacity should also allow for the Town to have the potential for economic growth as well as improved fire protection capacities throughout the Town limits. The existing tank was repainted in 2001, and the contractor reported at that time that the tank was “very marginal” in condition and that it could likely not be painted again in another attempt to extend its useful life. Additionally, the last several Sanitary Surveys conducted by the SCDHEC noted structural defects in the elevated water tank. The locations of existing groundwater production wells and associated facilities currently in operation are depicted in a photographical presentation in Appendix B.

A meeting was conducted with Ehrhardt Mayor William C. Stanley and Town Administrator Scott Neely concerning this study. Alliance Consulting Engineers, Inc. was informed that the Town Of Ehrhardt was seeking funding to replace their entire distribution system, construct a new 100,000-gallon elevated storage tank, replace sixty-five (65) fire hydrants, and replace all existing service connection meters as recommended in the PER performed in 2006. The Town recently received approval of a United States Department of Agriculture-Rural Development (USDA-RD) grant and loan in the amount of $2,280,900. Additionally, the Town has received approval for a grant in the amount of $789,000 from the South Carolina Department of Commerce (SCDOC). A recent article in The Times and Democrat regarding this funding is presented in Appendix L.

The Town of Ehrhardt has developed a Rate and Fee Schedule that imposes water service fees based on the type of customer. The Town currently serves approximately 272 customers. The rates, however, have not been differentiated between residential, non-residential, in-town, and out-of-town customers. Out of the 272 customers, the Town has approximately 222 residential customers and 50 non-residential customers, so approximately eighty-two percent (82%) of their customers are residential. Table 2.3.5-1 depicts a summarized version of the Rate and Fee Schedule which indicates the charges that customers incur based on their usage. Customers are charged a base service fee of $14.70 per month and an additional $3.00 per 1,000 gallons of usage regardless of the customer’s total usage or the customer’s location with respect to Town limits.

Table 2.3.5-1 Town of Ehrhardt-Water Rate and Fee Schedule

Based on an average residential customer using 5,500 gallons per month and for the purpose of projecting revenues, the average monthly water bill for a residential customer served by the Town of Ehrhardt would be $31.20.

The Town of Ehrhardt has Audited Financial Statements completed annually to assess the financial status of the public services offered by the Town. The Audited Financial Statement completed for the Town of Ehrhardt for the fiscal year ending June 2006 is included in Appendix F, and a summarized version is shown in Table 2.3.6-1. The Financial Statement prepared for the Town of Ehrhardt does not disaggregate the revenues and expenses between the water and wastewater systems. Accordingly, Table 2.3.6-1 includes financial information from both public water and wastewater utilities.

Table 2.3.6-1 Town of Ehrhardt-Water/Wastewater Financial Statement

It is important to note that most of the Non-Operational Revenues are in the form of grants to assist with the costs associated with the new and recently constructed wastewater treatment plant. Additionally, without the Non-Operational Revenues, the combined financial status of the Town of Ehrhardt’s water and wastewater systems would reflect a net loss of approximately $28,737.