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HomeMy WebLinkAboutMinutes - 19890320~l M1NUTEs ORANGE GOUNTY BOARD OF COMMISSIONERS - SPECIAL MEETING -- MARCH 20, 1989 .The Orange County Board of Commissioners met in Special Session with the Town Commissioners of Hillsborough on March 20, 1989 at 7:00 in District Courtroom, new County Courthouse, Hillsborough, North Carolina for the purpose of discussing the proposed reservoir and other items of mutual interest. BOARD MEMBERS PRESENT FROM ORANGE GOUNTY: Chairman Moses Carey, Jr., and Commissioners Stephen Halkiotis, John Hartwell, Shirley E. Marshall and Don Willhoit. BOARD MEMBERS PRESENT FROM THE TOWN OF HILLSBOROUGH• Mayor Fred 5. Cates, Jr., and members Horace H. Johnson, J. Michael Kirby, Bobby P, Riley and Remus Smith. ATTORNEY PRESENTL Geoffrey Gledhill. COUNTY STAFF PRESENT: County Manager John M. Link, Jr., County Engineer Paul Thames, Deputy Clerk to the Board Kathy Baker, Clerk to the Board Beverly Blythe, Director of Recreation and Parks Mary Anne Black, and Planning Director Marvin Collins. 1. INTRODUCTORY STATEMENTS BY CHAIRMAN AND MAYOR Chairman Moses Carey, Jr., stated that the purpose of this meeting is to discuss mutual, issues and to pursue a working relationship between the Town and Orange County. Mayor Fred Cates stated he agreed there is a need to discuss some important issues and to reach a clear understanding on those issues. The main issue and one of the primary objectives of Hillsborough is to seek a raw water supply for the Town. The Town Board has determined twelve alternatives for the supply of water. Most cannot be accurately - addressed until a decision is made about the reservoir. Once that decision is made, the Town feels it can provide water during the interim time the reservoir is developed. -'` 2. AGREEMENT ON TIME LIMIT FOR MEETING It was agreed that the 'meeting will not go beyond 10:00 p.m. 3. REPAYMENT OF THE ONE MILLION DOLLARS TO BUY LAND FOR A RESERVOIR Chairman Carey explained that when th`e County pursued the one million dollar bond issue, it was done on the basis that the money would be repaid by these individuals and businesses who used the water. There were no timeframes attached to this repayment period. This is a policy that cannot be reversed Mayor Cates made reference to the resolution presented to the County Commissioners in April which outlined a proposal for a joint partnership in developing the reservoir at Seven Mile Greek. He stated the town has not received any official response to that resolution from Orange County. Because of the problem of equity he suggested that the County pull out of the reservoir proposal altogether; convey all the land they own in the Seven Mill Creek basin to. the Town of Hillsborough for a reasonable amount and let the Town of Hillsborough be free to proceed, with the cooperation of Orange-Alamance and their 2200 water customers, in building this reservoir. The additional water customers added to the Town's 3440 customers dilutes considerably the individual consumer's financial responsible. In answer to the question of who will pay for what, Cates stated that the only way that anyone can contribute to any expansion or financial expenditure in the water department is through the consumers only, ~~~ zit =J Commissioner Willhoit stated that when the resolution was presented to the Board, he suggested at that time that a partnership be established because the County has a purpose •-~..~, in developing the reservoir. The County already is in the water business, but has no ' customers other than Orange Alamance and the Town of Hillsborough and don't receive any 1;, revenues from water at Lake Orange. The Gounty does have an interest in economic development in the Efland corridor and will need water for that purpose. For a long time the County has recognized that there would be a water shortage. Several working groups were formed to study the issue, identify reservoir sites and move forward to protect those sites. With regard to the repayment of the one million dollar bond issue, the Board has gone on record that this would be repaid by the beneficiaries of the new water supply. In answer to remarks made by Remus Smith referencing Orange Alamance, Chairman Carey stated .that Chase users outside of the watershed should not count on a longterm supply of water from Orange County. Any longterm commitment is adversely affecting the needs of the Orange County citizens and Carey stated opposition to that use. of water. Commissioner Willhoit noted that one alternative supply of water is a proposal that the County's engineering firm made three years ago which was the transfer of water from Mebane, Graham .and Burlington back this way. Commissioner Marshall agreed with the statements made by Commissioners Carey and Willhoit. With reference to the longterm recreation and environmental management for all citizens of Orange County, she stated that if they are not different from those at University Lake and Cane Creek, no special consideration would be needed. Mayor Cates stated that Mebane is presently sending as much water into Orange County as Orange Alamance is sending out of Orange County. They are supplying all the industry around the General Electric Plant. <.:~ Commissioner Willhoit stated that the issue is that Hillsborough has a low flaw and -~ are still exporting water. Water coming from Mebane to GE does not go aver the Cape Fear ridge line. The allocation from the Jordan was mentioned and Horace Johnson stated that an alternative to getting water from Lake Jordan would be to get the water from the Back Creek Reservoir - from Lake Michael. He clarified that the Town's request to convey the land the County owns at Seven Mile Creek would be in return for a reasonable amount of money. Chairman Carey stated that the Commissioners have a responsibility to the citizens both within and outside the town. This responsibility includes growth management, environmental protection and other interests. The only way to protect these interests and maintain our responsibility to the public is to be involved in this type of activity. We are already into the water and sewer business - in the sewer business because we own a line and in the water business because we own a lake. We have spent an inordinate amount of time passing ordinances to protect the water that the people in the Hillsborough system drink, yet do not receive any revenues for this service. The County will remain involved because of these reasons. The County does not want to get into the grater business any more than it already has. However, the County will not rule out any option which is available if the responsibility to the people represented justifies a need to act. Horace Johnson asked what restrictions the County would attach to the conveyance of _ the property at Seven Mile Creek. He asked if it would limit the number of customers the Town could serve or have other restrictions. Chairman Carey answered that a process needs to be worked out to answer this type of question. Mayor Cates stated that if there is going to be a partnership, each partner must financially participate to their portion of the partnership. To loan Hillsborough a million dollars that must be paid back is of no benefit to the partnership. Hillsborough could do better by borrowing the money elsewhere than on the basis the County anticipates. Cates emphasized that if this is the case, it strengthens the position of letting the Town of Hillsborough build its own reservoir. There is not one instance since 1934 that the Town of Hillsborough has violated the County's Land Use Plan. Commissioner Marshall questioned who would pay for the reservoir and Mayor Cates indicated that the users would pay. She questioned why one partner in the partnership would have their loan repaid but that the County should be expected to not be repaid from the users. Commissioner Willhoit noted he has not said that the County should not get into the water business. Chairman Carey emphasized that the County is not interested in conveying their land at Seven Mile Creek to the Town of Hillsborough. Verbal "tongue in cheek" retorts ensued on shutting the gate at Lake Orange and curtailing water service to county offices. Commissioner Halkiotis suggested that the recreational and environmental issues be reviewed. He.asked what long term recreational benefits might be considered for a small reservoir. He expressed concern about marine motor oil, gasoline, drunks, beer cans, and other pollutants. He is a firm believer that a protected reservoir would provide the best possible source of raw water for the Town of Hillsborough. Mayor Cates agreed with Halkiotis. Chairman Carey mentioned joint planning and noted that in order to move ahead with the planning for the reservoir, the County and the Town of Hillsborough need to agree on what types of development will be allowed in certain areas surrounding the reservoir. Mayor Cates responded that the Town has. no choice but to abide by the County's Land Use Plan. Commissioner Marshall explained how joint planning works between the Gounty and the municipalities. Mayor Cates expressed opposition to any control over the town's authority to annex. It was decided that the two Planning Boards would meet in an effort to open lines of communications and talk about joint planning. County Manager John Link suggested that thought be given to how the twenty-year service area will develop and when. This will help in the financial arrangements for the reservoir. The County needs to know exactly what the financial plans will be for the reservoir. Cates responded that a lot of assumptions have to be made but the worse situation is that the Town of Hillsborough builds the reservoir itself on the basis of five and one half million dollars by borrowing that amount of money. Presently, the town of Hillsborough has built into its rate structure one million dollars for the Durham pipe _, .~ line and one million far water. The town could get a grant or a low interest low to finance the balance or join with Orange Alamance and the users would pay for the °~'~~~ reservoir. The earliest time the bonds would come due would be three or four years and at , that point of time the two systems may have 800 or 1000 new customers. If the County puts one million into the reservoir and it must be repaid, it doesn't help the Town. There is no doubt that the Town of Hillsborough can finance this reservoir much easier without the County participation than if the County participates. The county has such a financial position that grant money and low interest loans would not be available to it. Hillsborough, being a small community with limited resources, has afar greater chance of securing grants and loans. It was decided that the managers would meet and discuss the financing of the reservoir. Mayor Cates listed several options to the reservoir. They include the building of ponds on Seven Mile Creek which could be used as sedimentation or emergency ponds, using the rock quarry, Lake Michael, water agreement with Durham, OWASA and Orange Alamance and the Seven Mile Creek Reservoir. He emphasized that the Town needs a decision on the Seven Mile Creek reservoir so they can proceed with the building of that reservoir. He assured the Board that the Town could pay for the reservoir. Chairman Carey reiterated that the County has a broader definition of participation and cooperation between .the Town and Orange County in the reservoir project. A mechanism needs to be put in place with a time frame for developing a process for working together on the reservoir decisions. Progress needs to be shown by both the County and the' Town on entering into a written agreement on mutual respect for each land use plan and cooperation for approval of development inside Hillsborough's ultimate utility service area but outside its current jurisdiction. Chairman Carey emphasized that the Orange County Planning Board needs to be given some policy guidelines before they meet with °'^'; Hillsborough's Planning Board. Horace Johnson pointed out that if development had been controlled around Lake Orange then the Iake possibly could have been raised to meet the water demands of the people of Hillsborough. The capacity of the wastewater treatment plant will need to be discussed. There is the capacity to treat approximately one and a half million gallons a day additional than what is presently being treated. Discussion ensued on the capacity of the wastewater treatment plant and whether or not expansion would be viable at its present location. It was decided that the Planning Boards will meet and discuss land use issues. The managers will meet to discuss financing for the reservoir. Mayor Cates disagreed with planning for land use issues stating that the lack of water is the issue. He asked that the County keep the Town informed on issues of mutual interest and respond to the requests made by the Town (Resolution of last April). Chair Carey emphasized that there are some issues related to development of the new water source for Hillsborough that affect people. outside of Hillsborough and intertwine with some of the land use policies that are in place. Carey noted it is not a reasonable assumption that you can proceed with the building of the reservoir without considering the use of the land around the reservoir. Horace Johnson agreed that there needs to be a land use plan in place so that what happened at Lake Orange will not happen again. The watershed must be protected. Gommissioner Halkiotis stressed that the Gounty and the Town will have to work to build a relationship that will allow them to work together with give and take. _, It was decided that the two Boards would convene again after the Planning Boards met and that the two managers will meet and give direction to their Planning Boards and also meet to discuss other aspects of the proposed reservoir, i.e. funding sources. In response to a concern of Mayor Cates about the County's involvement in the reservoir, Commissioner Hartwell stated that the County is the one that looked in detail at various alternatives. The County is the one that already owns 160 acres. The County is the one that confronted the issue of how to raise the money and has passed a bond issue for the specific purpose of acquiring land. He believes that, independent of any other decisions the Commissioners can reach a decision very quickly -- within the next few weeks -- about where the best location is and then move forward. The County is the one that has the tools -- the money -- to begin acquiring land. The next step is to determine how to pay for the reservoir. This possibly could be done with the cooperation of Hillsborough but possibly that may not work out. If the working relationship between the County and the Town improves, the County may see that.Hillsborough has already done some calculations about how the rest of it will be paid and the County will agree and work out a way to build and finance the reservoir. He emphasized that the relationship with regards to the reservoir depends upon the cooperation between the Town and the County and how much everyone understands about each others plans. This working relationship will take some time to develop but should not stand in the way of reaching a decision on the reservoir site. Chairman Carey stated that although there is apprehension on both Boards, the purpose of this meeting is to start and develop some mutual understanding and move ahead with this relationship. There are many stumbling blocks that need to be worked out. Moses Carey, Jr., Chair Beverly A. Blythe, Clerk