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<br />50 <br /> <br />Company would commit to expend $9,000,000 in Martinsville for additional <br />facilities needed to meet their increased production. After considerable <br />discussion of the matter Council voted to authorize me to prepare, through <br />Wiley & Wilson (the City's consulting engineers), plans for the expansion <br />of the City's Plant from 6 MGD to 8 MGD and to present a plan for <br />financing the improvement at the June 10 meeting of Council. <br /> <br />Immediately thereafter I authorized our consulting engineers to proceed <br />with the plans and specifications in an effort to provide the facilities <br />needed to meet the needs of these industries, paralleling the time frame <br />schedule of their projected treatment needs. <br /> <br />During Council's June 10, 1986, meeting, by memorandum dated June 3, 1986, <br />I presented a proposed plan for financing future wastewater transmission <br />and treatment facilities which was approved by Council. <br /> <br />Current Status--Industrial Expansion <br /> <br />Since the decision by Council to expand the City's Plant we have been <br />advised by letter and through the news media that Pannill Knitting does <br />not plan to expand their dyeing operations in Martinsville or Henry County <br />and have purchased a building in Eden, North Carolina, which will be used <br />to supplement their local dye facilities. We are advised, however, that <br />their water consumption in Martinsville will not diminish and in fact will <br />probably increase slightly through the end of 1986. We have also checked <br />with Tultex and their projected needs will be as previously stated with <br />the possibility of a slight increase. Bassett Walker Knitting's future <br />estimated consumption remains the same as previOusly estimated according <br />to Bob Grant of the PSA. <br /> <br />Re-evaluation of Wastewater Facilities <br />Needs and Capacity <br /> <br />In consideration of Pannill Knitting Company's announcement not to expand <br />their dye plant facilities in Martinsville we have re-evaluated the need <br />for wastewater facilities for the area with specific reference to the <br />question of whether the City's Plant should be expanded from 6 MGO to 8 <br />MGD. <br /> <br />Attached is a revised schedule of projected flows from Tultex, Pannill <br />Knitting Company and Bassett Walker Knitting compared with capacity to be <br />made available by January 1, 1989, under the City/County approved plan for <br />meeting wastewater treatment needs through utilization of the existing <br />plants at their designed capacity, construction of the Marrowbone Plant <br />and the diversion facilities to the Upper Smith River Plant. <br /> <br />As you will note from this revised schedule, there will be a treatment <br />deficiency as of April 1987 of 1.3 MGO and a deficiency of 1.6 MGD by <br />January 1, 1988, assuming a 1.5 MGD diversion to Koehler as planned. <br />These deficiencies could be reduced if 2.8 MGO (maximum flow in Jones <br />Creek line) rather than the 1.5 MGD as now planned could be diverted from <br /> <br />2 <br />