Case Study

Name: Town of Atlantic Beach, North Carolina Date: 2000 - 2001 Project: Municipal Wastewater System Economic Feasibility and Option Study

Summary: IMG investigated the feasibility of developing a municipal wastewater system for the Town of Atlantic Beach, North Carolina, and determined that despite significant technical challenges, a system could be developed and operated using a public-private structure.

Issue: Failing residential septic systems in the barrier island Town of Atlantic Beach threatened the local environment and economic development. Poorly-treated effluent and overflow runs directly into the sound and estuaries, while high water tables resulted in sewage odor, flooding problems and potential health risks.

Solution: IMG was retained by the Town of Atlantic Beach to analyze the economic feasibility of a municipal wastewater treatment, effluent beneficial re-use, and collection system, as well as to study alternative infrastructure delivery options (such as a Design Build Operate “DBO”) options to develop such a system.  IMG considered wastewater solutions that would be technically, legally, and financially feasible, developing a preliminary financial model capable of determining whether a system could be developed within reasonable Town debt, user rate limits, and public-private partnership options. The debt load to be assumed by the Town to develop the wastewater system was estimated to range between $21.6 and $31.8 million.

Value Created: IMG recommended pricing and ownership options for the development of a wastewater treatment and collection system that would be economically feasible, minimize impacts on local residents, and reduce risk for the Town.