HomeMy WebLinkAboutMinutes - 19840814r
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ORANGE COUNTY BOAR) OF COP•.T•IISSIONERS
PUELIC riEETING - PROPOSED EFLAND SEPdER PROJECT
AUGUST 14, 1984
The Orange County Beard of Commissioners met on August 14, 1984 at 7:30
p.m. in the Superior Courtroom in Hillsborough, North Carolina for the
purpose of holding a public meeting on the proposed Efland Sevrer Project.
~Q°rZt~3SIONERS PRESEt:Tz Chail DOri i~illhoit, and Commissioners Shirley
Marshall, Ben Lloyd, t;orman E~7alker and Richard 6~Thitted.
Chair I~Tillhoit explained the purpose of the public meeting is to
provide answers and to receive comment from the citizens living in the Efland
area that i:s proposed to be served by the sewer line.
John I~icAdams, Consulting Engineer for the proposed project, made
the presentation starting with the history of the progress of the project to
this time. In an effort to find a solution far the failing septic tanks and
to develop a sewer system in the Efland area, t~2cAdams was contracted in
September, 1983 to undertake a study of. the feasibility of running a sewer
line to much of the developed area in Cheeks Township. Phase T of this
report proposed that a sewer line be built along Highway 70 from Hillsborough
to the Efland Cheeks School and Efland Estates area. McP_dams pointed out on
the map the area that would have sewer service. According to records there
are 212 developed properties -mostly residential that would be potential
customers. IicAdams noted the total cost of the project as 51,154,300.
Orange County has sought grants, totaling 5818,000 of the construction cost,
that would not need to be paid back. Grants total 71~ of the project cost.
The 5136,000 remaining would need to be a loan. paid by Orange County. He
outlined the annual costs of 561,885 to be paid by the users through their
monthly sewer bills.
The term of the FHA loan is 38 years. The repayment of the
County's loan would come from future tap fees. PICAdams presented a chart
(copy in the permanent agenda file) showing what the monthly sewer rates
would need to be in order to pay for the operation of the system and pay off
the debt, and indicated how the user fees would generate the money needed for
the total cost of operating the system. FIe explained that the sewer bill
would be added to the water bill.
The County would build the main trunk lines and provide a 4-inch
stub out pipe at each property for tap on; the collection system provided by
the County would not include lines to the houses. FHA will not grant money
to cover this expense. A plumber will need to be paid by the homeowner to
remove the rouse line from the septic tank and connect it on the stub out.
at a cost in the range of 56.50 to 58.50 per foot. Orange County will not
.__ charge a tap on fee to the first 212 customers. Thereafter, a tap on fee
cvill be charged in the range of 5600.00, $400.00 going to the town of
Hillsborough and 5200.00 going to the County to repay the 5136,000 loan.
In some cases, FHA can assist in financing the amount the
homeowner will need to pay the plumber to tap an.
tlcAdams pointed out that in order for these operating costs to be
covered and in order for the loans to be paid back there must be 212
customers. If more peorle tie on, the financial feasibility of the system
becomes stronger and the chance of a rate increase becomes smaller because
as additional customers are added, the debt service remains constant. He
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stated the capacity of the line is 380,000 gallons a day. It is projected
that the 212 customers will use approximately 55,000 gallons a dav.
QUESTIOP7S AND/OR STATEAIEP7TS i^7ERE RECEIVED FROP9 THOSE PEOPLE L9H0 LIVE IN THE
PROPOSED PROJECT AREA.
SIs. Adams was asked what would happen if some of the 212 people
did not tie on.
Chair ti•?illhoit noted he understands the project is only feasible
if all 212 were required to tie on.
' Chair Willhoit requested from Thompson the number of those 212
-_ customers who have failinr, septic systems.
Thompson noted this informatior. will need to be determined.
QUESTIONS AND/OR STATEi•1EPTTS t9ER1; RECEIVED FROM TI30SE 6^IHO LIV$ OU1^SIDE OF THE
PROJECT AREA. ~
i~3r. Fleming spoke on behalf of a client who owns eighteen lots in
the area and plans to begin construction as soon as a positive decision is
made an the sewer line.
Barbara Page asked if a door-to-door survey had been completed
for those on wells and Thompson indicated this would be completed before a
final decision is made on the project. She questioned the requirement for
the 212 to tie on and Commissioner t~7hitted indicated that no decision had
i~een made by the Soard on this issue.
Commissioner t~Thitted asked if depreciation was included in the
cost calculation of $1.03 rate £rom the Tovrn of Hillsborough for treating the
wastewater. Thompson indicatied that depreciation was figured into the rate
structure. 47hitted also questioned the maintenance fee including all
maintenance on all equipment and pump stations and the 5400 tap fee.
Thompson explained this 5#00 would be used to lauild a reserve funs for the
expansion of the Hillsborough Treatment plant. t~ihitted expressed concerns:
(1) the 5200 tap fee would take a long time to pay back the loan and (2) if
the other phases are considered, the County would not have funds to expand,
and (3) with the. minimum monthly cost of 515.00 for sewer and 58.00 for water
as well as paying on the loan, the average homeowner will be paying from
530-550 a month. He stressed that each resident should be aware of e~:actly
what this would cost.
Commissioner I•Iarshall suggested that other users for which
special rate considerations might apply should be considered in calculating
the total income to be receivQd from the system each month.
Glen Everett asked if there were any residential users o£ 8,000
gallons. He questioned the figures as being conservative and asked about
extending the sewer line to Stagecoach Road.
T^!cAdams indicated there were no users of 8,000 gallons and that
they had considered extending the service to Stagecoach but the user cost
- prohibited this. •
• Chair tti*illhoit questioned the repayment of the 5136,000 stating
that the figures presented did not indicate that this amount would be repaid
and also expressed concern about the length of the repayment loan.
Commissioner Marshall asked if Hillsborough was going to approve
all additions to the system.
Thompson indicated that every request would be considered on an
individual basis. The decisior. would be joint approval and vrould depend upon
the type of discharge into the system.
Chair ??illhoit reiterated that a door--to-door survey will be Wade
to dPtermi.ne the number that rlav not desire to tie an and that will ;.provide a
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better cost estir,:ate for each customer`s bill based on the estimated nu,:,ber
of- gallons they would use as well as the cost of building the line to tap on
to the system.
Sharlene Pilkey asked if the full report had ever been accepted
by the Board of Commissioners.
T4i11hoit a:cplained the report had been revised in an effort to
make the project feasible and that it had not been formally accepted.
- Commissioner r,Iarshall explained that while the emphasis has been
on Phase I, the report does include all 7 phases and should be considered.
Barbara Page asked about an environmental impact statement: if a
statement was included as part of the grant application and if it was
included in the report.
Thompson noted that the environmental impact statement was part
of the grant application but was not part of the report.
Chair T•:illhoit noted that as soon as the survey is completed, the
sewer line will be put on the agenda for further discussion..
p~p,TO[TpNm
adjourned.
ThQre being no further comments, the public meeting was
Don Willhoit, Chair
Beverly A. Blythe, Clerk