HomeMy WebLinkAboutAgenda - 03-03-1999 - 9dORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: March 3, 1999
Action Agenda
Item No. 4, d
SUBJECT: Proposed OWASA Reimbursements to Orange Grove Volunteer Fire Department
DEPARTMENT: County Manager
ATTACHMENT(S):
1/5/99 Letter from OWASA Chair
12/10/98 OWASA Agenda Background
Materials
PUBLIC HEARING: (Y/N)
BUDGET AMENDMENT: (Y/N)
INFORMATION CONTACT:
John Link or Rod Visser, ext 2300
TELEPHONE NUMBERS:
Hillsborough 732 -8181
Chapel Hill 968 -4501
Durham 688 -7331
Mebane 336- 227 -2031
PURPOSE: To consider a request from the Orange Water and Sewer Authority Board of Directors for
input regarding proposed payments from OWASA to the Orange Grove Volunteer Fire Department.
BACKGROUND: In its October 1997 report regarding protection of the Cane Creek water supply, and
in correspondence since then with the Orange Grove VFD, OWASA has indicated its conceptual support
for considering payments to Orange Grove VFD. These payments would help offset losses in fire district
revenues resulting from OWASA ownership of property in the fire district that is, by law, exempt from ad
valorem taxation. OWASA staff have prepared a number of alternative approaches to calculating possible
reimbursement payments to Orange Grove VFD. These were presented in background materials for
OWASA's meeting agenda on December 10, 1998.
OWASA has requested input from the Board of Commissioners on two questions:
1) what are the Commissioners' views about the request and does the Board of Commissioners concur
with OWASA's view that the request is reasonable?
2) does the Board of Commissioners have comments or suggestions regarding the method for calculating
a fair and equitable payment from OWASA to Orange Grove?
With regard to the first question, County staff believes that it is reasonable for OWASA to make
payments to Orange Grove VFD. OWASA Attorney Bob Epting has articulated a logical basis for such
reimbursements in his December 1, 1998 letter to OWASA Executive Director Ed Kerwin, and has stated
his opinion that it is within OWASA's statutory authority to make such payments. Staff offers two further
observations about the proposed payments. First, if OWASA proceeds with such payments, it is
reasonable to expect that other volunteer fire departments may consider approaching other local
government entities about payments for tax- exempt government properties that are protected by those fire
departments. Second, it is reasonable to expect the Orange Grove VFD Board of Directors to factor any
2
payments received from OWASA into their annual budget and their requested tax rate for future fiscal
years.
With regard to the second question, County staff believes that OWASA is best qualified to judge what
would be an appropriate level of reimbursement to Orange Grove VFD, and offers no recommendation as
to what that amount might be.
RECOMMENDATION(S): The Manager recommends that the Board respond favorably to OWASA's
request.
mE y TI'A 4,101
ewiMN7
Own
January 5, 1999
3
ORANGE WATER & SEWER AUTHORITY
Alice Gordon, Chair
Orange County Board of Commissioners
P.O. Box 8181
Hillsborough, NC 27278
Dear Alice:
Quality Service Since 1977
p cC IFad E
JAN 1S;g - 7 D
7
OWASA has been asked by the Orange Grove Volunteer Fire Department ( OGVFD) to consider making
annual payments to help offset loses in fire district tax revenues that might otherwise have been levied on
land owned by OWASA within the fire district. In a November 3, 1998 letter, Dr. Ed Johnson, Vice
President of the OGVFD, proposed an approach for determining the payment. This request, along with
other potential methods of calculating a potential payment as developed by the OWASA staff was
discussed at our December 10, 1998 Board meeting. (Agenda material attached.)
The OWASA Board of Directors has discussed the OGVFD request and believes that an annual payment
to the OGVFD may be a reasonable request. However, prior to our Board taking further action regarding
this matter, we respectfully request your views on the following questions:
1. What are the views of the Orange County Board of Commissioners regarding the request
and do the Commissioners concur with OWASA that an annual payment to the OGVFD
is reasonable?
2. Does the Orange County Board of Commissioners have comments or suggestions
regarding the method for calculating a fair and equitable payment from OWASA to the
OGVFD? .
We look forward to hearing from you soon and please let me know if you need additional information.
Very-truly yours,
Dan VanderMeer
Chairman
Attachment
c: Mayor Michael Nelson, Town of Carrboro (w /attachment )
Mayor Rosemary Waldorf; Town of chapel Hill (w /attachment )
OWASA Board of Directors (w /.attachment)
Ed Kerwin, OWASA Executive Director (w /attachment)
Cal Horton, Chapel Hill Town Manager (w /attachment )
John Link, Orange County Manager (w /attachment) w�
Bob Morgan, Carrboro Town Manager (w /attachment )
Bruce Runberg, IJNC Associate Vice Chancellor for Facilities Management(w /attachment)
Dr. Edward Johnson, Orange Grove Volunteer Fire Department (w /attachment)
John Greene, Ed Holland, Bob Epting (w /o attachments)
400 Jones Ferry Road
PO Box 366
Carrboro, NC 27510 -0366
A4-/ OFFort-9t7 E-Pfoj—
Printed on Regded Paper
voice (919) 968 -4421
FAX (919) 968 -4464
www.owa".ora
N
4
ITEM 17
AGENDA ITEM
• DISCUSSION OF ORANGE GROVE VOLUNTEER FIRE DEPARTMENTS
REQUEST FOR FUNDING
PURPOSE
To consider alternative methods for determining possible compensation to the Orange
Grove Volunteer Fire Department,
BACKGROUND
• In its October 23, 1997 Recommendations for Protecting the Cane Creek Witter Supply,
and in a May 8, 1998 letter to Mr. Linwood Futtrell, OWASA expressed its willingness to
consider possible payments to the Orange Grove Volunteer Fire Department ( OGVFD) to
help offset losses in fire district tax revenues that might otherwise have been levied on
OWASA land in the fire district.
• In a November 3, 1998 letter, Dr. Ed Johnson, Vice President of the OGVFD, proposed
an annual compensation of $4,725 based on the'estimated valuation of OWASA property
in the fire tax district-
Staff has compiled information from the Orange County Tax Assessor's Office that offers
a basis for calculating such compensation that the Board may decide to offer.
• . General Counsel has provided a letter indicating his opinion that a compensation
agreement with OGVFD would be within OWASA's statutory authority.
ACTION NEEDED
• Discuss attachments and provide further direction to staff.
STAFF RECOMMENDATION
• Staff recognizes that compensating the Orange Grove Volunteer Fire Department is a
policy decision of the Board's. If the Board decides to proceed with funding, then staff
recommends that the attached information be used as the basis for determining how much
to provide.
December 10, 1998
17.1
5
OWASA ORANGE WATER & SEWER AUTHORITY
Quality Service Since 1977
MEMORANDUM
TO: Ed Kerwin
FROM: Ed Holland
DATE: November 30, 1998
SUBJECT: Optional Methods for Calculating Payments to the Orange Grove
Volunteer Fire Department
Background
OWASA has expressed its willingness to consider possible payments to the Orange
Grove Volunteer Fire Department ( OGVFD) to help offset losses in fire district tax
revenues that might otherwise have been levied on land owned by OWASA within the
fire district.
A November 3, 1998 letter from Dr. Ed Johnson of the OGVFD proposed that OWASA
Provide annual compensation based on (1) total acreage of OWASA watershed land in
the fire district, (2) estimated tax valuation of that land, and (3) the OGVFD tax rate.
Based on Dr. Johnson's estimates for these parameters, payments would amount to
$4,725 per year.
Additional information, including the amount of land taxed at its use value, rather than
market value, was obtained from the Orange County Tax Assessor's Office to help refine
those calculations. This information is presented in Table 1.
Amount of OWASA Land
Orange County Tax records indicate that OWASA owns 2,927 acres of land within the
OGVFD tax district. Approximately 2,100 acres are within the Cane Creek watershed,
including some 540 acres purchased for the reservoir itself. The remainder of OWASA
property in the fire district is outside of the watershed, either adjacent to the dam and
recreation area, or reserved for biosolids application.
Calculations in Table 1 are based on all 2,927 acres of OWASA property in the tax
district. Alternatively, this can be scaled back to the approximately 2,100 acres within
the watershed.
Tax Valuation
Orange County applies standard methods for assigning value to property for tax
assessment purposes. Land may be taxed at its market value or its use value. That is, a
piece of property currently in agricultural production coul-d be taxed on the basis of what
it might sell for on the open market, or on the basis of its agricultural use.
400 Jones Ferry Road Eqw /Opportunity E-p/oyrr Voice (919) 968 -442 U
PO Box 366 Princed on Reerded Paler FAX (919) 968 -4464 17.2
Can6oro, NC 27510 -0366
Orange. Grove Volunteer Fire Department
November 30, 1998
Page 2
As noted in Table 1, Line 6, Orange County finds that the "base" market valuation of
undeveloped property in the OGVFD tax district is $10,000 per .acre, but this amount is
adjusted by parcel size for tax purposes. For 22 acres, which is the average parcel size of
OWASA properly, Orange County's adjusted market valuation is $3,100 per acre.
The use valuation of undeveloped land in the district is $200 per acre.
Lines 4 and 5 of Table 1 indicate that 54 percent of the property in the OGVFD tax .
district is assesed at the County's estimated market value and 46 percent is assesed at its
use value. Assuming those same proportions (lines 11 -13), the total tax valuation of
OWASA's 2,927 acres is estimated as $5,179,000 by the Orange County Tax Assessor's
Office. Dr. Johnson's proposal was based on an assumed market value of $5,000 per acre
for 2,100 acres, or $10,500,000 total valuation.
Volunteer Fire District Tax Rate
The 1998 fire district tax rate for the OGVFD is 4.4 cents per $100 (Table 1, Line 14).
Estimated Fire District Taxes on OWASA Property
Lines 15 through 17 provide three different valuation bases from which to calculate
possible OWASA payments to OGVFD. As noted above, these amounts could also be
adjusted downward if based only on OWASA's 2,100 acres in the watershed, rather than
on all 2,927 acres in the OGVFD tax district. Alternatively, calculations could be based
on other property valuation methods not examined in this analysis; e.g., 100 percent
market value estimate based on $5,000 per acre.
Staff Recommendations
It is my recommendation that this information be provided to the Board of Directors and
that a decision to compensate the Orange Grove Volunteer Fire Department and the
method for calculating that compensation be determined by the Board.
cc: John Greene
Diane Pelletier
^�. Robert Eptiag
Edward A. Holland, AICP
Director of Planning and Development
.PROVIDE TO M as
OFDME
M 0* 1 98
6
17.3
Table 1: Information Obtained from Orange County Tax
Assessor's Office 11/25/98
1. Total OWASA land owned in OGVF tax district (acres):
2. Total number of OWASA parcels:
3. Average OWASA parcel size (acres):
4. Percent of OGVF tax district under market value assessment
5. Percent of OGVF tax district under use value assessment
6. Base market value of undeveloped property ($ /acre):
7. Adjustment factor for 22 -acre parcels:
8. Adjusted market value of undeveloped property ($ /acre):
9. Estimated market value of OWASA property
in OGVF tax district = 2927 acres @ $3,100 /acre:
10. Use value of undeveloped property in OGVF tax district ($ /acre):
2927
133
22.0
54.1%
45.9%
$10,000
0.31
$3,100
$9,073,700
$200
For estimating potential tax value, apply the district wide proportions of property
under market value (54.1 %) and use value (45.9%) to OWASNs 2927 acres:
11. 54.1% x 2927 acres @ $3100 /acre market value portion: $4,910,686
12. 45.9% x 2927 acres @ $200 1acre = use value portion: $268,582
13. Total estimated tax value of OWASA property in OGVF district: $5,179,268
14. 1998 OGVFD tax rate = $0.044 per $100 valuation:
Estimated fire district tax on OWASA property under three different valuations:
15. 100% market value:
16. 54.1 % market value, 45.9% use value:
1,
17. 100% use value:
$3,992
$2,279
$258
7
17.4
8
HAND DELIVER
TO: Board of Directors
FROM: Ed Kerwin
DATE: November 6, 1998
SUBJECT: Proposal from the Orange Grove Volunteer Fire Department for
Compensation from OWASA
Provided for your information is a copy of the November 3, 1998 letter that I received from Ed
Johnson, Vice President of the Orange Grove Volunteer Fire Department (OGVFD) regarding
their proposal for compensation from OWASA. I have also enclosed previous correspondence
regarding this matter.
Staff will evaluate the OGVFD's proposal for compensation and provide additional information
to the Board in the December 10, 1998 agenda packet. Since this is a, policy matter, we will be
seeking the Board's guidance at that time.
Concerning the OGVFD's request that OWASA make raw water available for emergencies along
Highway 54 from Cane Creek Reservoir to Phils Creek, we are currently in the process of
evaluating the necessary conditions and limitations which may allow us to fulfill their request.
Ed Kerwin
Executive Director
EKrr
c: Rod Visser, Assistant County Manager, Orange County
Bob Epting, Esq.
John Greene
Ed Holland
Doug Terry
Thurman Green
17.5
4
Orange Grove Volunteer Dire Department
6800 ORANGE GROVE ROAD -
HILLSBOROUGH. NORTH CAROLINA 27278
Ed Kerwin, Executive Director
Orange Water and Sewer Authority
PO Box 366
Cacrboro, NC 27510-0366
Dear Ed,
This is a response to your letter of May 8 in which you expressed interest in the proposal that
OWASA should compensate the Fire Company for its extensive ownership of land in Bingham
Township (and the'land's consequent deletion from the tax roll). This compensation would be in
recognition of the fact that we continue to offer fire protection to all of OWASA's facilities in our
district. Additionally, we provide protection against woods and brush fires for OWASA's land
holdings around Cane Creek reservoir and in the wildlife mitigation areas.
In response to your suggestion that we propose an annual amount that OWASA might provide to
the Fire Company, our Board of Directors has authorized me to consider the issue, consult with
you, and suggest an appropriate amount.
It seems to me most reasonable for OWASA simply to make up the fire tax revenue that we
would have received had land now owned by OWASA remained in private hands. We could then
multiply the acreage by a typical large -tract evaluation and multiply the result by the fire tax rate.
Using this principle, we need only three numbers. Fast, the Orange Grove Fire District tax rate is
4.5 cents per $100 evaluation. Second, at the recent Planning Board hearing at our fire station,
David Stancil, a staff member of the Orange County Planning Board, noted that OWASA owned
approximately 2100 acres in Bingham Township. Since virtually all of the Cane Creek watershed
in Bingham Township lies in our tax district, this is by far the easiest and simplest figure to use.
Lastly, for the per -acre valuation, I suggested that we use the amount suggested to OWASA by
the Cadmus Group in its- Cane Creek watershed study (see pages 3 -14). They suggested an
average fee - simple value of $5000 per acre based on sales of 20+ acre parcels in the period 1993-
1996 as compiled by an appraiser.
1
Multiplying 2100 acres by $5000 yields $10.5 million in total evaluation. Multiplying. this value by
the fire tax rate of 4.5 cents per $ 100, one gets $4725. On behalf of the Fire Company, therefore,
17.6
NOV 5
November 3, 1998
Ed Kerwin, Executive Director
Orange Water and Sewer Authority
PO Box 366
Cacrboro, NC 27510-0366
Dear Ed,
This is a response to your letter of May 8 in which you expressed interest in the proposal that
OWASA should compensate the Fire Company for its extensive ownership of land in Bingham
Township (and the'land's consequent deletion from the tax roll). This compensation would be in
recognition of the fact that we continue to offer fire protection to all of OWASA's facilities in our
district. Additionally, we provide protection against woods and brush fires for OWASA's land
holdings around Cane Creek reservoir and in the wildlife mitigation areas.
In response to your suggestion that we propose an annual amount that OWASA might provide to
the Fire Company, our Board of Directors has authorized me to consider the issue, consult with
you, and suggest an appropriate amount.
It seems to me most reasonable for OWASA simply to make up the fire tax revenue that we
would have received had land now owned by OWASA remained in private hands. We could then
multiply the acreage by a typical large -tract evaluation and multiply the result by the fire tax rate.
Using this principle, we need only three numbers. Fast, the Orange Grove Fire District tax rate is
4.5 cents per $100 evaluation. Second, at the recent Planning Board hearing at our fire station,
David Stancil, a staff member of the Orange County Planning Board, noted that OWASA owned
approximately 2100 acres in Bingham Township. Since virtually all of the Cane Creek watershed
in Bingham Township lies in our tax district, this is by far the easiest and simplest figure to use.
Lastly, for the per -acre valuation, I suggested that we use the amount suggested to OWASA by
the Cadmus Group in its- Cane Creek watershed study (see pages 3 -14). They suggested an
average fee - simple value of $5000 per acre based on sales of 20+ acre parcels in the period 1993-
1996 as compiled by an appraiser.
1
Multiplying 2100 acres by $5000 yields $10.5 million in total evaluation. Multiplying. this value by
the fire tax rate of 4.5 cents per $ 100, one gets $4725. On behalf of the Fire Company, therefore,
17.6
10
I propose this as as annual amount that OWASA1)rovide us is return for the fire prootectioa that
we provide. This anrouot would, of course, need to be reviewed from time. to time as the three
numbers that yield this value change.
We look forward to a response from you and the OWASA board on this matter. We think it
appropriate that OWASA provide compensation initially for the cunw t operating year (July 1,
1998 - June 30, 1999) and that OWASA consider an additional lump sum payment in
consideration of un- reimbursed fire protection provided since OWASA's first presence in the fire
district years ago.
I would also like to encourage OWASA to continue to consider how best to make raw water
available at hydrants along highway 54 from the reservoir to Phils Creek. Hydrants located near
the major intersections would certainly boost our fire fighting ability along the 54 corridor since
access to ponds is so limited.
We look forward to hearing from you regarding these proposals.
Sincerely,
C
Edward S. Johnson
Vice President
leded.doc
1
17.7
7ti
OWASA
May 19, 1998
ORANGE WATM & SEWER ALrFHOR rY
Quality Service Since 1977
Mr. Roderick Visse r
Assistant County Manager
County of Orange
Post Office Box 8181
Hillsborough, NC 27278
Subject: Orange Grove Volunteer Fire Company
I have attached a letter to Mr. Linwood Futtrell, President of the Orange Grove Volunteer Fire
Company, for your information.
I will keep you advised of this matter and welcome your input
Very truly yours,
Ed Kerwin
Executive Director
EKjr
enclosure: 1
C., John Umk
Katie Kalb
John Greene
Ed Holland
Doug Terry
.ao Jones "tea V,;m is isus -4421 17.8
PO Box 366 l•.vniartc«.a....+ a -_ --
owasa ORANGE WWTER & SEWER A u TIH(ORTTY
Qtwhi rSar *Ice Smce "77
May S. 1998
Mr. Linwood Futtrell, President
Orange GWVr- Voluateer Fire Company
6800 Orange Grove Road
Ifilhsbor+ough, NC 27278
Dear Mr. Futtrell:
12
Per a recent conversation with Dr. Ed Johnson, I am writing to confirms O WASA's willingness to
consider possible payments to the Orange Grove Volunteer Fire Company to help oti'sct losses in
fire district tax revenues that might otherwise have been levied on land owned by OWASA
within the fire district. Thus is consistent with our Board's intent, as expressed in the package of
Cane Creek watershed recommendations adopted last October. An excerpt entitled "Potential
Town and Country Tradeoffs" is attached for your reference.
After reviewing with O WASA staff any special needs for assistance and emergency services that
might be associated with our Cane Creek facilities and real estate assets. in Bingham Township, I
would like to moat with appropriate z msentatives from your oigan=tioa to discuss
opportunities for collaboration, including possible f Coding based on an objective and
straightforward estimating method.
We look forward to hearing from you.
cc: Board of Directors
Sincerely,
Ed Kerwin
Executive Director
•00 fou¢s rcrry (toad /-'yae/U /y-- ...iarCny� /o�rr Vaai� (.1) 19) 96S -4421 17.9 ��1x ;� 1•r:.a.�l •.n Ita�ricd 1•a�•rr 1 A X (<) 19) 9GS • 4 4l4
uy (.cNa, PAC: 2 7 S 10.01Q's
Final Cane Creek Recorncncndations
October 23,1997 -
Page 9
Figure 1. Existing Zoning
Figure 2 Large Lois
13
Figure 3. Creative Open Space
• 55 -acre parcel
• 5 acres roads &
infrastructure
• 25 two -acre lots
Other Develonment Requirements
• 55 -acre parcel • 55 -acre parcel
• 5 acres roads & • 5 acres roads &
infrastructure infrastructure -
- 5 two -acre lots • 25 one -acre tots
• 8 five -acre lots • 25 acres open space
'preserved
Oilier tend use and development requirements, such as impervious su face limits, permissible
uses, and so forth, would remain as c urrwdy specified in Orange County's Zoning Ordinance
�j - Potential Town and Country Tiradeoffs
It is important that the OWASA Board and elected leaders who influence or implement these'
changes recognize the-long-standing sovereignty issue perceived by many watershed property
owners.
Bingham Township residents consider OWASA's source water protection initiative an additional
burden imposed on the a
rural community by the demands of urban growth in Cantoro and Chapel
WAL Watershed residents, who have no access to OWASA water, will realize-no water quality
benefits from the sacrifices they must make- The OWASA Board recognizes this view and is
sensitive to it We remain open to considering a range of flexible actions that might o1I'set the
perceived loss of rural sovereignty: '
- Payments -in -lieu for unrealized volunteer fire district taxes that would otherwise be
IeVIed on land owned by OWASA in Bingham Township. These are currently estimated
to be in the range of $4,000 to $5,000 per year.
• Use of O WASA's Cane Creek recreational site and former-Stanford house as a
County- operated park and nature interpretive center. OWASA would retain control of
any water -based activities.
17.10
14
Final Cane Crock Recommendations
October 23, L997
Page 10
(Comnrer r. Orange County's Public Recreation Master Plan identifies the need for a
future district pads in Bingham Township. Portions of this prarosal may qualify for state
and federal grant programs. OWASA has made Overtures is this direction in the past,)
Salty trade„ or ftusfer ofuon- watershed land owned by OWAISA. in Bingham Township
to the Orange County Board of Education for use as a new school site if such a
transaction were sought by those with appropriate decision - making authority,
Accelerated or "front-loaded" funding of OWASA's program for purchasing critical land
and conservation easements in the watershed, including the set- ;asise of up to one-third of
budgeted land acquisition funds (S150,000 of 5450,000 in FY 9 -8) for easement
purchases.
Other Recommendations
Seek rezoning of the Alamanee County portion of the watershed, which is currently
designated for 1 acre residential development; to be consistent with Orange County
zoning.
Seek consideration by Carrboro, Chapel Hill, and Orange County, for Transfer of
Development Rights (TDR) Opportunities for Cane Creek property ownexx. With
appropriate enabling legislation, these Jurisdictions could establish higher density
"receiving arras" in which developers could exercise development rights (density
bonuses) purchased directly fiom property owners is the waiersited. * OWAS& and its
Customers would benefit fioom decreased density in the watetshed;.Cane Cre* property
owners would benefit from TDR payments is return for additional[ (voluntary)
development restrictions; add ia4own developers would benefit through density bonuses
ia4esignatod arras. All transactions would remain in the private sector. . .
Recommended OWASA Actions
Large - o zoning and open space development alone will not achieve fixture water quality goals,
but roust be supported by additional open space acquisition by OWASA, as weoll as possible
construction and operation of a tributary s unpoundment (miai4ske) on < ^ ^,,,aterpillar or Tom`s
CrecL The need for such a facility will ,depend in part on future development activities,
specifically the amount of open space development that takes place in coming years, and the
actual size of newly subdivided lots.'
Land Acquisition: OW,4S,s will need to purchase approximately 1,260 acres of land in addition
to the 1, 600 acres already owned in the watershed to meet future water quality goals Based on
current land prices, the total cost would be more than $6 million (M7 dollars).
17.11
IM MACOM
UurAUM L&C=r PAXM
STM uuc=
EPTING AND HACKNEY
ATTOLNM Arras cov MEORS AX LAW
410 Alt"W ROAD
Z a DuwI 1329
CMUTL MU, NOM CUOLT.tVA 27514
December 1, 1998
Mr. Ed Kerwin
Executive Director
Orange Water and Sewer Authority
Carrboro, KC 27510
n
929-0323
FACSUULS 929 -3980
AM CODE 919
Re: Request for Compensation by Orange Grove Fire Department
Dear Mr. Kerwin:
I understand that the OWASA Board plans to consider the Orange
Grove Fire Department's request that OWASA make regular payments to
it to replace the revenues lost on the lands OWASA owns within the
Fire District.
I have considered whether such payments might be made
consistent with the duties and constraints set out-for Water and
Sewer Authorities by the General Statutes,-and I am of the opinion
that such payments are authorized by the statutory language
Authorizing authorities to "make and enter into contracts and
agreements necessary or incidental to the performance of its duities
and the execution of its powers" under -the- law. (G. S. 162A -6(11) .
It is certainly within the Authority's powers to enter into
agreements to assure the provision of adequate emergency services
to protect its property..
The Orange Grove Fire Department provides fire. suppression
services within an area where OWASA owns substantial improved and
unimproved real property. The ability .of the fire - department to
provide emergency services to OWASA property is directly related to
the funds made available to it from tax receipts from land on the
tax rolls in the district.
The Board of Directors might find that OWASA's ownership
removes a substantial. amount of valuable property from the tax
wj rolls, and consequently reduces the funding, and therefore
adversely affects the ability of the orange Grove Department to
provide emergency services to land within the district.
Therefore, the Board of Directors might determine to enter
into an agreement to replace some or all of the funds lost by
17.12
16
M=
reason of OWASA ownership to assure that -the level of fire
protection available in the District is not diminished by OWASA
ownership of land within the District.
I an of the opinion that such an agreement would be within
OWASA's statutory authority.
With kind regards, I remain
t
truly yours,
the Authority
17.13
Alice M. Gordon, Chair
Stephen H. Halkiods, Vice Chair
Margaret W. Brown
Moses Carey, Jr.
Barry Jacobs
Orange County Commissioners
P. O. Box 8181
200 S Cameron Street
Hillsborough, NC 27278
March 29, 1999
Mr. Daniel C. VanderMeer
Chair, Board of Directors
Orange, Water and Sewer Authority
P.O. box 366
Carrboro, North Carolina 27510 -0366
Dear M . - .
Z!° p—"
Nzft
eato%
At the request of the OWASA Board of Directors, the Orange County Board of
Commissioners considered at its regular meeting on March 3, 1999 a proposal regarding
payments from OWASA to the Orange Grove Volunteer Fire Department.
The County Commissioners agreed that it is reasonable for OWASA to make an annual
payment to the Orange Grove VFD. We also indicated that the OWASA Board of
Directors is best qualified to judge what would be the appropriate level of
reimbursement. We feel it should be fair and equitable and fully agreed upon by the
OWASA Board of Directors and the Orange Grove VFD. Furthermore, it is reasonable
to expect the Orange Grove VFD Board of Directors to factor any payments received
from OWASA into their annual budget and requested tax rate for future fiscal years.
Thank you for requesting our views on this matter. If we can provide further assistance
or clarification, please let me know.
Sincerely,
U1.0-
Alice M. Gordon, Chair
Board of Commissioners
You Count In Orange County
AREA CODE (919) 732 -8181: 968 -4501: 688 -7331: 227 -2031: FAX (919) 644 -3004
Ext. 2130
Alice M. Gordon, Chair
Stephen H. HaUdotis, Vice Chair
Margaret W. Brown
Moses Carey, Jr.
Barry Jacobs
Orange County Commissioners
P. O. Box 8181
200 S Cameron Street
Hillsborough, NC 27278
March 29, 1999
Edward S. Johnson, Vice President
Orange Grove Volunteer Fire Department
6800 Orange Grove Road
Hillsborough, North Carolina 27278
e'L
Dear M;-.- e#as :
At the request of the OWASA Board of Directors, the Orange County Board of
Commissioners considered at its regular meeting on March 3, 1999 a proposal regarding
payments from OWASA to the Orange Grove Volunteer Fire Department.
The County Commissioners agreed that it is reasonable for OWASA to make an annual
payment to the Orange Grove VFD. We also indicated that the OWASA Board of
Directors is best qualified to judge what would be the appropriate level of
reimbursement. We feel it should be fair and equitable and fully agreed upon by the
OWASA Board of Directors and the Orange Grove VFD. Furthermore, it is reasonable
to expect the Orange Grove VFD Board of Directors to factor any payments received
from OWASA into their annual budget and requested tax rate for future fiscal years.
If we can provide further assistance or clarification, please let me know.
Sincerely,
U�
Alice M. Gordon, Chair
Board of Commissioners
You Count In Orange County
AREA CODE (919) 732 -8181: 968 -4501: 688 -7331: 227 -2031 : FAX (919) 644 -3004
Ext. 2130
March 11, 1999
Mr. Daniel C. VanderMeer
Chair, Board of Directors
Orange Water and Sewer Authority
P.O. box 366
Carrboro, North Carolina 27510 -0366
Dear Mr. VanderMeer:
The Orange County Board of Commissioners considered at its regular meeting of March
3, 1999 a request from OWASA Board of Directors for input regarding proposed
payments from OWASA to the Orange Grove Volunteer Fire Department.
The County Commissioners agreed that it is reasonable for OWASA to make an annual
payment to Orange Grove VFD. They also indicated that the OWASA Board of
Directors is best qualified to judge what would be the appropriate level of
reimbursement. They feel that it should be fair and equitable and fully agreed upon by
the OWASA Board of Directors and the Orange Grove VFD.
The County Commissioners offers two observations about the proposed payments.
First, if OWASA proceeds with such payments, it is reasonable to expect that other
volunteer fire departments may consider approaching other local government entities
about payments for tax - exempt government properties that are protected by those fire
departments. Second, it is reasonable to expect the Orange Grove VFD Board of
Directors to factor any payments received from OWASA into their annual budget and
their requested tax rate for future fiscal years.
Thank you for requesting our views on this request. If we can provide further assistance
or clarification, please let me know.
Sincerely,
Dr. Alice M. Gordon, Chair
Board of Commissioners
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