102 Town Hall Drive | Leland, NC 28451 | (910) 371-0148

FOR IMMEDIATE RELEASE: May 16, 2019

Leland Proposes to Build RO Plant, Restore H2GO as Part of Cooperative Plan

Press Contact:
David Hollis, Town Manager
(910) 371-0148 ext. 1112

LELAND, NC – The Town of Leland is proposing a tentative settlement and the framework for a Regional
Compromise Plan today aimed at resolving a long and heated dispute over the construction of a reverse
osmosis (RO) plant and the role of the Sanitary District.
The proposals follow a Brunswick County Superior Court decision on April 22 that the attempted
transfer of the Brunswick Regional Water and Sewer (H2GO) Sanitary District – including millions in cash
and assets – to the Town of Belville in 2017 was illegal. In the midst of debate within the community
about an RO plant and the District’s authority, Belville went too far when it tried to take over the
District.

In light of that recent ruling, Leland officials believe the court has spoken and it is now time to move
forward with the Regional Compromise Plan, which addresses differing opinions in the community.

“While we need to review a finalized plan as a Council, I am appreciative of the spirit of cooperation behind
this plan, and from the Town Council in optimistically supporting it, to move on from an unnecessarily
lengthy and costly dispute,” said Mayor Brenda Bozeman.
The plan – which is subject to finalization, approval by governing boards, and compliance with legally
required process – is outlined below.

First, the RO Plant will be built as soon as possible, and the District’s customers will receive aquifer-
based water. The District and Leland will cooperate to begin work on the Plant immediately. Leland will
build and own the Plant and will obligate itself to provide aquifer-based reverse osmosis water to the
District, thereby addressing both the concerns of those who want the Plant and the concerns of those
who do not want the District to build it.
Second, the RO Plant will involve interlocal cooperation. The District and Leland will enter into an
interlocal agreement requiring satisfaction of the District’s water needs and providing for the District to
get its water from Leland until the RO Plant is paid off.
Third, the District will be contractually entitled to reasonable, wholesale rates that cover the Plant’s
construction, operation, and maintenance (i.e., expenses that the District’s customers would have to
pay anyway). A court-appointed referee will resolve rate disputes, and there will be termination rights if
a court finds a bad faith breach of rate provisions.
 102 Town Hall Drive | Leland, NC 28451 | (910) 371-0148

Fourth, the District will resume its operations, just like before the transfer, under General Statutes
Chapter 130A. The voters’ right to meaningfully choose the District’s leadership will be restored. The
District will keep its existing customers.
Fifth, the District will not impair the expansion by towns within the District into areas in which they want
to provide additional services. The District will agree to convey necessary components to the towns to
further assist with the towns providing expanded services. More generally, the District will not expand
on the outskirts of a town if that town wants to provide expanded services in that area instead.
Sixth, Belville must dismiss its appeal, stop stalling, and return the District’s property. Instead of paying
$1 million or more in attorneys’ fees (which it will owe under G.S. § 6-21.7 after losing all appeals),
Belville will pay $350,000 in 10 annual installments of $35,000. That will provide accountability, but not
bankruptcy. Belville must also de-annex the RO Plant site and renew its annexation agreement with
Leland.
Seventh, Leland also has a right to seek attorneys’ fees from the District for what the previous board did,
and will negotiate those.”

“The Town of Leland looks forward to consideration and acceptance of the proposed plan by the
Sanitary District and the Town of Belville,” said Mayor Brenda Bozeman. “As this Regional Compromise
Plan is now presented, the Town of Belville’s appeal of the court’s decision is possibly one of the biggest
impediments to the community in terms of progress and to those who have supported and advocated
for aquifer-based water.”

If acceptable to the District and Belville, the Regional Compromise Plan will be formalized and presented
to Leland Town Council at an upcoming public meeting for consideration.

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