York County looking into Carolina Water contract

A decision to end or extend Carolina Water Service’s time in Lake Wylie is coming.

The utility has a franchise agreement with York County through the end of the year. The county can extend it, likely for a decade or more. Or the county could let it expire. An independent appraiser would then put a value on the system, which the county would pay to take control of.

“It’s not a matter of negotiating with Carolina Water Service,” said resident Don Long.

Long, who intervened in a case for a water and sewer rate increase for the utility last year, brought up the expiring contract at a recent Lake Wylie Chamber of Commerce-led panel discussion on incorporation. County manager Bill Shanahan didn’t offer contract specifics but said the county in recent years looked into the cost of acquiring Carolina Water Service infrastructure. However, the company’s valuation was several times higher than the county’s.

Shanahan said he received a hard copy of the agreement Jan. 29 and would spend the weekend looking into options. He expects to have a plan within a month or two, then make a presentation for the York County Council to decide.

“It’s a year out,” Shanahan said of the contract. “Basically what we’re going to do is understand what our options are.”

Some at the meeting said they support letting the contract expire.

“It’s an opportunity for the county to take charge and make a decision that will carry them into the future for one of their fastest growing areas,” said chamber president Susan Bromfield.

Bromfield says work could be done soon, including getting an appraiser “so you know what you’re looking at.” As this franchise agreement and others like it expire, the county could have an opportunity to consolidate into a larger utility.

“As the decades go on, water and sewer is going to be a huge issue,” Bromfield said. “I don’t know why the county wouldn’t want to control it.”

The issue played into the campaign for the District 2 York County Council seat at least as far back as 2008. Each time the utility applies for a rate increase, residents testify to high rates and poor service with calls for the company to leave.

“Water is something they can’t do without, and if people had a choice like they have a choice of where they buy their car, like they have a choice of where they shop, they would not choose to deal with this company,” S.C. Rep. Ralph Norman told regulators at an October rate request hearing in Clover.

Resident Jackie Harrington at a December 2013 hearing in Lake Wylie said, “It seems to us they have done nothing toward that, all these years, and now all of a sudden they keep coming back every year for another raise in the water. They want us to pay for replacing some things they should have planned for. I think they should sell it to us.”

Resident Pam Horack spoke at an August 2011 hearing in Lake Wylie.

“Once this area is no longer profitable for them, they can give up their stronghold on this community and those with local interests can move forward with water solutions that work for Lake Wylie and York County,” she said.

Long, who for years researched the utility for rate increases, is optimistic the contract expiration will bring change.

“I think the county is favorably inclined,” he said.

The utility served River Hills Plantation with water and wastewater service when, in 1992, the state approved an expansion to cover all of the Lake Wylie area. The expanded service included new York County facilities, allowing Carolina Water Service to purchase water and sewer service in bulk from the county.

“Water and sewer are basic necessities,” Bromfield said. “They’re a primary reason for government.”

This story was originally published January 29, 2016 at 4:17 PM with the headline "York County looking into Carolina Water contract."