The URL can be used to link to this page

Home My WebLink AboutAgenda - 10-18-2011 - 5iORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: October 18, 2011 Action Agenda Item No. S- 1 SUBJECT: Revisions to the Efland Sewer Acreage-based Connection Fee DEPARTMENT: Planning PUBLIC HEARING: (Y/N) 0 ATTACHMENT(S): 1. Excerpt from the Most Recent Version of the Efland Sewer Rules Resolution, as Last Revised on November 4, 2010 with Suggested Change Added 2. City of Mebane Connection Fee Schedule INFORMATION CONTACT: Kevin Lindley, PE, Staff Engineer, 245- 2583 Craig Benedict, Planning Director, 245- 2592 PURPOSE: To consider changing the connection fee charged to new customers who connect to the Efland sewer system (System). BACKGROUND: With the imminent construction of the System extension, there are many potential customers in this previously un-sewered community. All of these customers have asked about the costs of connecting to the System once it is operational and many with large parcels have been surprised by the acreage-based connection fee detailed in the Efland Sewer Resolution. Staff has begun internal review of the acreage fee and believes that, in the case of the Efland Community, acreage is an inefficient and inaccurate basis to gauge the impact caused to the system by each new connection. There are many who are reluctant to agree to connect to the system now specifically because of the acreage fee. Current policy within the Resolution requires the collection of $1,000 per acre at the time of connection. This means someone who has a single family residence on an eight acre parcel would pay an $8,000 acreage fee at the time of connection, whereas someone who has a single family residence on a half-acre parcel would only pay a $500 acreage fee. The impact to the System, i.e. the portion of the System's capacity used by each single family residence, is essentially the same. Both would also pay additional connection fees to Orange County and the Town of Hillsborough, but the end result is that the owner of the larger lot would pay $7,500 more than the owner of the smaller lot for the same impact to the System. Staff recommends changing the System connection fee policy within the Resolution to mirror that of the City of Mebane (see Attachment 1). Orange County is currently in negotiations with Mebane to provide wastewater treatment for the System. Since staff is contemplating a change in the connection fee structure, simply adopting Mebane's connection fee structure would provide a seamless transition if and when negotiations are successful and the wastewater flow 2 is actually sent to Mebane. Currently, Mebane charges three fees to new sewer customers. If there is no tap, Mebane installs a tap and charges a fee for this service. Mebane also charges an assessment fee to all customers in the city limits and to those outside the city limits who petitioned the city for sewer service. Lastly, Mebane charges a connection fee, which goes to cover the incremental capital cost of providing sewer service to that customer. Staff is only suggesting that Orange County adopt Mebane's connection fee schedule at this time (as shown in Attachment 2). In the above example under the current County Resolution provisions, the homeowner with the larger parcel would pay a total Orange County connection fee of $8,600 ($8,000 acreage fee + $600 availability fee) and the owner of the smaller parcel would pay a total Orange County connection fee of $1,100 ($500 acreage fee + $600 availability fee). Mebane currently charges $1,300 for a single family residential sewer connection. If Orange County adopts Mebane's connection fee schedule, eliminating the County's current acreage-based fees and availability connection fees, both homeowners would instead pay a $1,300 Orange County connection fee. As shown in Attachment 2, the connection fees are indexed to the size of the water meter serving the property and the use of the structure being served. FINANCIAL IMPACT: The financial impact due to changing the fee structure is dependent on the lot size, meter size and intended property use of the customers who request connection. Adopting Mebane's connection fee structure will make connection much more affordable for single family residential customers on large lots, while still collecting a fee proportional to the customer's impact on the System. This may result in an increased number of customers, which contributes to the overall health of the System by spreading the operating costs over a larger group. RECOMMENDATION(S): The Manager recommends the Board approve this sewer connection fee policy change incorporating Mebane's connection fee schedule into the Efland Sewer Resolution and deleting the County's current acreage-based and connection fee provisions. III. RATE SCHEDULE AND AVAILABILITY FEES A. Rate Schedule -Based upon monthly water consumption: See Attachment A. B. ~~~~ ~~necho..ri: Fees: Each person, firm, or corporation connecting to the system (hereinafter user ar ,~ users) shall pay a ~~nn nn ..a,. ,.o~;a ,connection fee to the County equal=to the~cpnneGfion fee that would be ehargedby the,Crty o1 Ivleban~'s sanitary sewer system lm adcf~tx~n each-u~r or users srla~u:pay an a~~y ~cznnection fee to the Town of Hillsborough as established and revised from time to time by the Town of Hillsborough. The original 212 potential Efland Area Sewer System customers who have provided Orange County with an application for- sewer service to the Efland Sewer System and who have provided Orange County with a signed and acknowledged Efland Sewer System Sewer Easement and Agreement but have not been connected to the system because their property affected by the Sewer Easement and Agreement is not yet served by the sewer system are, with respect to the property affected by the Agreement, exempt from Orange County a~ ~otu-eetgri~fees, provided they connect to the sewer system and become sewer customers of the sewer system with respect to the property covered by the Sewer Easement and Agreement signed by them within 30 days of notification that connection can be made. ~-~~ty~oxwectxoi~ Fees shall be paid by the user with a completed and signed Efland Sewer System Sewer Easement and Agreement. r+ A ,.,-e~.~o ~~ ... _ , ") ''~ l J z. , ~~- r ~e~~ee~~e~~bec~x-- II /~;L~r""f'~Lst ~, Y Y~ Y J J iT a ~,~ ~ s $e~~~~tien-Eaa~e~a~~ea~Fees- ~ ^" ''° ,,.,;a-~ __ + ,~~-~eemplPted~~sig~d €~~-Se~Fer-£3~ Agreeme~ D. Stub-out Service Line Fee. Each person, firm, or corporation connecting to the system (hereafter user or users} shall pay astub-out service line fee in an amount equal to the administrative and construction cost to Orange County of installing a service line. This fee shall be based on the out-of-pocket cost to Orange County for installing the service Line plus an allocated cost equal to the administration.cost to Orange County of having the installation accomplished. The origina1212 potential Efland Area Sewer System customers who have provided Orange County with an application for sewer service to the Efland Sewer System and who have provided Orange County with a signed and acknowledged Efland Sewer System Sewer Easement and Agreement but have not been connected to the system because their property affected by the Sewer Easement and Agreement is not yet served by the sewer system are, with respect to 3 2 ~+~,,,~..~- a 02224 CITY OF MEBANE POLICY STATEMENT CONTINUED SUBJECT: EFFECTIVE DATE: Page 3 of 4 NO. WATER AND SEWER October 1, 2005 TAPPAGE FEES AND CONNECTION FEES Notes• A. Any item not included in the above schedule shall be referred to the Public Works Director for a specific price determination. B. The City retains ownership of all meters, meter boxes, vaults, etc. C. The City shall install all meters. D. Pressure sewer taps and pressure sewer pumps shall be made by the property owner according to City standards. E. Should road bores or pavement cuts be required fora 3/a" water or 4" sewer tap, add $500.00 to the above tappage fees. F. The above fees are payable at the time of application for service and are for the service to be installed. ~~ Water and Sewer Connection Fees As previously stated, water and sewer connection fees are payable in addition to water and sewer tappage fees. Connection fees are not applicable to those areas where prior impact fees have previously been paid. Connection fees are applicable to property inside and outside the Corporate Limits. The following schedule shows fees charged by the City for Water and Sewer Connection Fees. The fees are subject to change on an annual basis as established by the City Council. The connection fees are based on the type of customer and/or the size of tap. WATER AND SEWER CONNECTION FEE SCHEDULE A. Water and Sewer Connection Fees Item Water Water Connection Sewer Connection No. Customer T e Meter Size Fee Fee 1. Sin a Family Dwell' Unit 3/," $ 1,000.00 $ 1,300.00 2. Sin a Famil Dwellin Unit 1" $ 1,400.00 $ 1,800.00 3. Single Family Dwelling Unit > 1" Use Fee Under Other Zoning Cate cries Use Fee Under Other Zoning Cate cries 4. Multi-Famil Dwellin Unit . N/A $1 000.00 er unit $1,300.00 er unit 5. All Other Zonin Cate cries 3/a" $ 1,200.00 $ 1 600.00 Sa. 1" $ 2,000.00 $ 2,600.00 Sb. 1.5" $ 4,000.00 $ 5,200.00 Sc. 2" $ 7,500.00 $ 10,000.00 Sd. 3" $ 15 500.00 $ 20,000.00 Se. 4" $ 24,000.00 $ 31,000.00 Sf. 6" $ 38,000.00 $ 45,000.00 5g ~, , 8" $ 75,000.00 $ 97,000.00 5h. 10" $117,000.00 $152,000.00 4