Economic Development

The Town Olar, located in the southwestern portion of Bamberg County, is approximately three (3) miles south of the Town of Govan along U.S. Highway 321 near its intersection with S.C. Highway 64. U.S. Highway 301 and U.S. Highway 321 intersect approximately four (4) miles southeast of the Town. According to records obtained from the SCDHEC’s annual Sanitary Survey of the system, the Town of Olar water system, designated as System No. 0510004 by the SCDHEC, serves approximately 237 residents through approximately 149 service connections. According the 2000 Census, the Town of Olar had a population of approximately 237. It is believed then that the Town provides water service to all residents within the Town limits or within close proximity to the Town limits.

The Town of Olar owns and operates two (2) groundwater supply wells. One of these wells was drilled in the late 1930’s and has a production rate of approximately 155 GPM. A backup supply well was drilled in the late 1980’s, and it has a capacity of 105 GPM. It is important to note that a distance of less than 200 feet separates the two (2) groundwater supply wells. Similar to the Town of Ehrhardt, simultaneous operation of the Town of Olar’s wells may result in a reduced production due to the potential drawdown effect of the wells on each other. It is suggested that the Town of Olar operate both groundwater wells simultaneously in order to test the current production rates of each groundwater well while operating with full drawdown effects. Tabulated in Table 2.5.2-1, the capacity of the system, known as Water System No. 0510004 by SCDHEC, is rated at approximately 151,200 GPD based on SCDHEC’s SPDWR. The Town of Olar disinfects its raw groundwater with chlorine prior to distribution to its customers, and no other treatment processes are currently employed.

Table 2.5.2-1 Town of Olar-Groundwater Well Production Rates

The Town of Olar has a maximum daily water consumption of approximately 31,960 GPD. According to SCDHEC’s SPDWR, the Town would have a surplus capacity of approximately 119,240 GPD. It is important to note that these totals do not include any unaccounted for account for water within the distribution system. The tabulated values are depicted in Table 2.5.2-2.

Table 2.5.2-2 Town of Olar-Current System Capacity

The approximate locations of the two (2) groundwater supply wells located within the Town of Olar are depicted in Exhibit M.

The Town of Olar owns and operates one (1) elevated storage tank located near the existing water supply wells for its water system. The elevated tank’s capacity, as rated by SCDHEC, is denoted in Table 2.5.3-1, and its location is depicted in Exhibit N.

Table 2.5.3-1 Town of Olar-Storage Facilities

With a hydraulic overflow elevation of approximately 316 feet above mean sea level (MSL), the bottom of the existing tank is approximately 91 feet from the ground surface.

Due to the conditions of the existing water systems in the Town of Govan and the Town of Olar, the Towns had a PER performed in the Fall of 2006 which recommended interconnecting their water systems and it was preliminary accepted by the SCDHEC. The proposed interconnected water system would presumably provide higher quality water service to its customers at reasonable rates. The proposed system should allow the Towns of Govan and Olar to pool their collective resources in the hopes of fostering larger and potentially more useful capital improvements for the Towns. This interconnection is expected to involve the replacement of approximately 24,900 feet of existing distribution mains, the replacement or addition of approximately forty (40) fire hydrants, and the replacement of approximately 181 service connections. Additionally, the major supply and storage facilities would also be shared between the two (2) Towns. It is currently proposed that a new groundwater production well be located in Govan, while the proposed new elevated storage tank would be located in Olar. In conjunction with the interconnection of the two (2) systems, approximately 11,000 linear feet of new water mains will be needed between the two (2) systems. The proposed interconnected water system would provide for the collection of revenues at uniform rates and fees for water usage of each customer. Seventy-five percent (75%) of the revenues collected will be placed into a joint account for operation of the interconnected water system. The revenues placed in the joint account would be intended for operational expenses as well as additional future capital improvements.

The Town of Olar has developed a Rate and Fee Schedule that assesses fees based on customer usage. The Town currently serves approximately 237 customers. The rates have not been differentiated between residential, non-residential, in-town, and out-of-town customers. The number of non-residential customers supplied by the Town of Olar is minimal with respect to residential customers. All customers are charged a flat monthly fee of $10.00 for the first 3,000 gallons of usage and an additional $1.00 per 1,000 gallons of usage thereafter. Under the assumption that an average residential customer’s demand is 5,500 gallons per month and for the purpose of projecting revenues, a customer supplied with water by the Town of Olar would have a monthly water bill reflecting a charge of $12.50.

The Town of Olar has Audited Financial Statements completed annually to assess the financial status of water service offered by the Town and to assess the Town’s ability to make future capital improvements. No Audited Financial Statement was provided by the Town during the course of this study, but financial data was obtained though other sources. Financial data was obtained for four (4) fiscal years and has been compiled and summarized in Table below.

Table 2.5.6-1-Town of Olar-Water Financial Statement

It is important to note that most of the water system maintenance costs incurred by the Town of Olar over this time period were to repair leaks and other service-related problems associated with the age of the system. It should be noted that on average over these four (4) fiscal years, the financial data indicates that about fifty-nine percent (59%) of the total operational expenses were Contract Services presumably related to system operation and maintenance. These Contract Services are most likely associated with repairing aging sections of the distribution system.