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HomeMy WebLinkAboutAgenda - 03-03-2011 - 4gORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: March 3, 2011 Action Agenda Item No. 4 - a SUBJECT: Central Efland/North Buckhorn Sewer Extension Project -State Revolving F~ Intl I nan RPSnluti~n DEPARTMENT: Planning, Financial Services PUBLIC HEARING: (YIN) C~ ATTACHMENT(S): 1. Resolution Accepting the Terms of the State Revolving Fund Loan Program 2. Maps of Project Areas INFORMATION CONTACT: Craig Benedict, Planning, 245-2592 Kevin Lindley, Planning, 245-2583 Clarence Grier, Financial Services, 245-2453 Michael Talbert, Financial Services, 245-2153 PURPOSE: To approve a Resolution regarding the Clean Water State Revolving Fund Loan application. BACKGROUND: For the past several years, Orange County has been designing and permitting a sewer extension to the Efland sewer system to serve the eastern portion of the Efland community. Concurrently, Orange County has been designing and permitting an extension to the City of Mebane's sewer infrastructure to serve residents in the Northern Buckhorn area. The Efland sewer extension is designed to install approximately 20,000 linear feet of 8" gravity sewer line, a new 250 gallon per minute pump station and 2,640 linear feet of 6" force main to serve the remainder of the area originally conceived of as Phase I and to serve the area conceived of as Phase Two of the Efland sewer system. A map of the area to be served as part of this Efland sewer extension is provided at Attachment 2. The area to be served by this extension is roughly bounded by McGowan Creek to the north, the railroad to the south, Efland-Cedar Grove Road to the west and Lloyd Dairy Road to the east. The estimated construction cost of the Efland sewer extension is approximately $4,100,000. A map of the area to be served by the extension of the City of Mebane's sewer system into the Northern Buckhorn community is also provided at Attachment 2. This extension consists of approximately 5,400 linear feet of 8 gravity sewer line. The area to be served by this extension is roughly described as the section of Industrial Drive between the General Electric plant and Buckhorn Road, the portion of Buckhorn Road between Interstate 85/40 and the railroad, and a portion of Washington Street east of Buckhorn Road. The estimated construction cost of the Northern Buckhorn sewer extension is approximately $600,000. The total estimated construction cost for these two projects is approximately $4,700,000. 2 On October 20, 2009, the BOCC approved applying for a Clean Water State Revolving Fund (SRF) loan in the amount of $3.5 million to pay for a portion of the Central Efland and Northern Buckhorn sewer extension projects. This loan will provide matching funds for two Environmental Protection Agency (EPA) Special Appropriations grants totaling approximately $1.4 million that were awarded in December 2010 for these projects. The remainder of the loan funds will pay for the construction costs not covered by the EPA grants. The resolution provided at Attachment 1 is a required part of the application packet. Before approving the loan, the State Construction Grants and Loans Division and the Local Government Commission require that the BOCC, as the governing body of Orange County, resolve to repay the loan and maintain the asset that the loan is meant to construct. The loan application, which would include the approved resolution, will be submitted to the Local Government Commission which will approve or deny the County's application. If Orange County's application for SRF loan funds is approved, the State's Construction Grants and Loans personnel will draft a Loan Offer document. This Loan Offer document will be brought back to the BOCC for final approval by resolution and signature. Currently, the interest rate on this type of loan is 2.2%. This interest rate will be in effect until March 31, 2011, at which point it will adjust to current market conditions. The interest rate is based upon one-half of the 20-year bond buyer index. As a point of reference, the current 20- year bond buyer index is 5.25% (as of 2/2/2011). If the SRF loan rate were reset now, the new rate would be 2.625%. The maximum term of the loan is 20 years and the Local Government Commission sets the term length as part of their review of our application. There will be a 2.0% closing fee (approximately $70,000) invoiced when bids for the construction of the projects are approved by the Construction Grants and Loans department. Other than this closing fee, there are no payments due until the project is completed. Repayment of the loan will begin 6 months from the completion date estimate (which is based on data provided by Orange County) shown on the State's Notice to Proceed. The estimated annual debt service payment for this loan would be approximately $225,000. This is based on a loan principal amount of $3,500,000, a loan term of 20 years and an interest rate of 2.625%. FINANCIAL IMPACT: If Orange County is approved for this loan, there would be a 2% loan closing fee of approximately $70,000 due in September 2011. This will need to be budgeted for FY 2011-12. Upon completion of the construction project, likely mid-2013, the annual payments would begin in 6 months and be budgeted for the Fiscal Year 2013-14 and beyond. The payment amounts are estimated at approximately $225,000 per year. RECOMMENDATION(S): The Manager recommends the Board: 1. Approve the attached resolution stating that Orange County will repay the loan per the given terms; and 2. Authorize the County Manager to sign the loan application as Chief Executive Officer. R ~ ~ r ~ ~ (~ , ~ l ~ Attachment 1 3 RESOLUTION BY THE ORANGE COUNTY BOARD OF COMMISSIONERS WHEREAS, The Federal Clean Water Act Amendments of 1987 and the North Carolina Water Infrastructure Act of 2005 (NCGS 159G) have authorized the making of loans and grants to aid eligible units of government in fmancing the cost of construction of a wastewater collection system, and WHEREAS, Orange County has need for and intends to construct a wastewater collection system project described as the Phase I -East and Phase II extension of the existing Efland wastewater collection system and an extension of the City of Mebane's wastewater collection system into the northern Buckhorn community, and WHEREAS, Orange County intends to request state loan assistance for the project, NOW THEREFORE BE IT RESOLVED, BY THE BOARD OF COMIVIISSIONERS OF ORANGE COUNTY: That Orange County, the Applicant, will arrange fmancing for all remaining costs of the project, if approved for a State loan award. That the Applicant will adopt and place into effect on or before completion of the project a schedule of fees and charges and other available funds which will provide adequate funds for proper operation, maintenance, and administration of the system and the repayment of all principal and interest on the debt. That the governing body of the Applicant agrees to include in the loan agreement a provision authorizing the State Treasurer, upon failure of Orange County to make scheduled repayment of the loan, to withhold from Orange County any State funds that would otherwise be distributed to the local government unit in an amount sufficient to pay all sums then due and payable to the State as a repayment of the loan. That the Applicant will provide for efficient operation and maintenance of the project on completion of construction thereof. That Bernadette Pelissier, Chair of the Board of County Commissioners, the Authorized Official, and successors so titled, is hereby authorized to execute and file an application on behalf of the Applicant with the State of North Carolina for a loan to aid in the construction of the project described above. 'That the Authorized Official, and successors so titled, is hereby authorized and directed to furnish such information as the appropriate State agency may request in connection with such application or the project; to make the assurances as contained above; and to execute such other documents as may be required in connection with the application. That the Applicant has substantially complied or will substantially comply with all Federal, State, and local laws,. rules, regulations, and ordinances applicable to the project and to Federal and State grants and loans pertaining thereto. Adopted this the day of North Carolina. (Signature of Chief Executive Officer) 2011, at Hillsborough, (Title) 5 CERTIFICATION BY RECORDING OFFICER The undersigned duly qualified and acting Clerk to the Board of County Commissioners of Orange County does hereby certify: That the above/attached resolution is a true and correct copy of the resolution authorizing the filing of an application with the State of North Carolina, as regularly adopted at a legally convened meeting of the Board of County Commissioners duly held on the day of , 2011; and, further, that such resolution has been fully recorded in the journal of proceedings and records in my office. IN WITNESS WHEREOF, I have hereunto set my hand this day of , 2011. (Signature of Recording Officer) (Title of Recording Officer) Efland Sanitary Sewer Improvements - 2007 ,. ,- • ~ T ~ D003~D001~D013 • ~~ D002 • r . D005 Z ~ ^ ~. * D004 D014 D ~D006 ~tA D041 D007 D042 70 ~~ . 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The sewer lines and manholes as shown 9' on this map are meant to show generally where they ~ Proposed sewer lines ~ Expanded Service Potential N Orange County Planning and Inspections Department will be installed. For more detailed information please ©proposed pump stations - guikJing footprints ~ Original Signature - No Service GIS Map Prepared by Miriam Coleman, June 17, 2010 visit the Orange County Planning Office, located at 131 W. Margaret Ln., to view the aaual proposed -Expansion potential with houses Projection: North Carolina State Plane (feet) COnStruCtion dfaWingS. ~ Proposed manholes Datum: North American 1983 Northern Buckhorn Sewer Extension Project #15 ~#01 ~#02 Iasslaow 185N140~ 9834295681 9834298882 9~8~~3/4/2~9/5428 ICT'9834298424 1 / ~ 6 / 9834295388 ~~~`~/~j 963az9637t /~ #16 #17 E WASWAS-N ST 9834398472 //~/ 9834397134 ,/~( 9834395473 / //V/ 9834493127 / ~ / ~ / 1 9834284928 / 963439902 # 9834367749 9834288117 / ~~~ ~+ 9834481931 9834385767%9834388851 9834384788- 9834283783 I / ~ /' 9834388883 9834481752 / 9834288117 - 9834287573 9834380583 9834381529 / 9834387508 9834285800 9834288420 / ~~ 4 9834380408 j }98~3428940 ~~ ~ 9834386482 /V ~~, 9834288229 9834380480 98344804 9834287311 9834289348 9834388314 9834381324 913 ~ 983488229 / ~ 9834289283 / 9834287311 ~~ / ! 9834389870 9834286104 ~ V 40 ~ \~o F'~ S 7P~s ,9s342759n ~ ~ #02 #03 185S140W 185S140W 185N140E 157 Legend '°° 200 300 400 ~° 600 Disclaimer. The sewer lines and manholes as shown Fe~J on this map are meant to show generally where they will be installed. For more detailed information please Orange County Planning and Inspections Department visit the Orange County Planning 0lfice, located at ~ Manholes ~ North Buckhorn parcels DIS Map Prepared by Miriam Coleman, February 11, zo„ 131 W. Margaret Ln., to view the actual proposed COn3tfUCtion dfBWing3. ~ ~ Projection: North Carolina State Plane (feet) Sewer lines Service Connections (stubouts) Mum: North American 1983