HomeMy WebLinkAboutAgenda - 06-19-2012 - 7c 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 19, 2012
Action Agenda
Item No. —j— G
SUBJECT: Modification of Mebane Water and Sewer Service Agreement for the Buckhorn-
Mebane — Efland Area
DEPARTMENT: Planning PUBLIC HEARING: (Y/N) NO
ATTACHMENT(S):
1. Modified Mebane Water and Sewer INFORMATION CONTACT:
Service Agreement with: Craig Benedict, Planning Director,
• New Sewer Service Area Map 245-2592
(Exhibit A) Kevin Lindley, PE, Staff Engineer,
• Orange County/City of Mebane 245-2583
Utility Area Service Agreement
(Exhibit B-1)
• Future Land Use Map of the
Orange County Comprehensive
Plan (Exhibit B-2)
PURPOSE: To approve a modified Water and Sewer Service Agreement with the City of
Mebane for provision of water and sewer service in the Buckhorn-Mebane-Efland area.
BACKGROUND: Orange County currently has an agreement with the City of Mebane, signed
in 2004, in which Mebane has agreed to provide water and sewer utility service to a portion
(approximately 800 acres) of the Buckhorn Economic Development (EDD) and land near the
Petro Mart off of Buckhorn Road. However, part of the proposed Buckhorn-Mebane Phase 2
water and sewer infrastructure project (currently in the design/permitting phase) includes a
proposed gravity outfall section north of Bowman Road and west of Mattress Factory Road,
which would make gravity sewer service available to approximately 400 additional acres which
are not covered by the existing water and sewer service agreement. In addition, one of Orange
County's goals for the Efland sewer system is to ultimately send the wastewater from the Efland
system to Mebane for treatment rather than to Hillsborough. This area, approximately 1,200
acres in and around Efland, also includes commercial and industrial land use. The existing
agreement needs to be modified in order for Mebane to provide sewer service to these areas.
The modified agreement has been reviewed and approved by the County Attorney's office and
the County's Financial Services Department and is included in this abstract as Attachment 1.
In addition to increasing the service area, this modification also includes language that would
allocate, or reserve, a certain amount of water and sewer capacity in the Mebane system for
use by future development in the areas served in the agreement. Under the current agreement,
Mebane only agrees to serve new development in the Buckhorn-Mebane area if the City has
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the capacity available to do so when that new development applies for service. If the modified
agreement is signed, Orange County would have a defined allocation from Mebane. Being able
to report to potential developers that Orange County has a defined allocation puts the County in
a stronger position to recruit development to the Buckhorn Economic Development District
(EDD) and Commercial Industrial Transition Activity Node (CITAN) areas. New state
annexation law references are also added for agreement congruity.
FINANCIAL IMPACT: Entering into this agreement would reserve 250,000 gallons per day of
capacity in the Mebane water and sewer system at a cost of $50,000 per year for a period of 10
years. This annual cost would be reduced as the reserved capacity in the Mebane system is
allocated to new customers in the areas served.
RECOMMENDATION(S): The Manager recommends the Board approve this amended
agreement and authorize the Chair to sign on behalf of Orange County.
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STATE OF NORTH CAROLINA
UTILITY SERVICE AGREEMENT AMENDMENT
COUNTY OF ORANGE
THIS AGREEMENT entered into this day of , 2012 by and between
the City of Mebane, a North Carolina Municipal Corporation(hereinafter sometimes
referred to as"the City" or"City") and The County of Orange, a political subdivision of
the State of North Carolina(hereinafter sometimes referred to as"the County" or
"County") amends the Utility Service Agreement originally entered into the 1St Day of
March 2004.
WITNESSETH:
WHEREAS the City of Mebane as an incorporated municipality operates a public water
supply and distribution system and a public waste water collection and treatment system
(sanitary sewer); and
WHEREAS there exists in defined areas of Orange County a need to extend water and
sewer treatment services to unincorporated areas of the County to provide such services to
a proposed public school facility,public recreational facilities, defined areas where
residential uses are permitted,and to a portion of an area designated on the Orange County
Land Use Plan as the I-85Buckhorn Road Economic Development District and
Commercial-Industrial Transition Activity Nodes; and
WHEREAS, the County has secured federal grant funds and appropriated of other funds
necessary for the construction of the water and sewer systems (aka Buckhorn-Mebane
Utilities—Phase I)that were the object of this initial agreement. The 2012 amended
agreement herein enlarges the service area. The County is willing to install the necessary
connections to the Mebane water and sewer systems and to install the outfall lines, water
mains and related facilities including sewer lift stations as required for said services.
WHEREAS, Orange County and the City of Mebane have successfully managed the
installation of Buckhom-Mebane Phase I facilities, and
WHEREAS, Orange County and the City of Mebane have undertaken a collaborative
planning effort known as the Efland-Mebane Small Area Plan (EM/SAP)to plan for the
growth potential of the area and are implementing the various recommendations of the plan
(2006-12) and beyond, and
WHEREAS, a joint meeting was held in September 2010 and 2011 to discuss coordination
and collaboration with Orange County proceeding with a master utility infrastructure plan
to plan for the existing 2004 service district and other adjacent developable areas (i.e. 2012
areas) of the Orange County Land Use Plan that may be best served by the City of
Mebane, and
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4
WHEREAS,this 2012 amendment to the 2004 utility service agreement reflects the joint
interest of continuing this utility partnership to other expanded unincorporated areas in
Orange County along with areas that may at some point become part of incorporated
Mebane City limits within Orange County.
NOW, THEREFORE,the Parties, in consideration of the mutual covenants herein
contained agree as follows:
1. Service area.
a. 2004 Agreement. The area to be served includes areas designated
"Commercial/Industrial node"on the Orange County Land Use Plan
located on the south of I-85/I-40 and a portion of the I-85Buckhorn
Road Economic Development District. Said areas are identified as
"la", "1 b", "2a7, and "3" on the map attached hereto as Exhibit A, said
map being incorporated herein by reference. A portion of the service
area(in proximity to Buckhorn Road and north and south of the
interstate)thus created contains a number of existing residential
structures and one or more churches presently served by well and septic
systems, which will be eligible to be connected to the public water and
sewer systems that were the object of the initial 2004 agreement.
b. 2012 Agreement. The existing and new areas are identified with a new
numbering scheme as shown on the map and associated table on the
revised map as attached hereto as Exhibit B-1 (2012 revision), said map
being incorporated herein by reference and used for implementation of
this new combined area agreement.
c. The Parties will work jointly to identify common land uses in the
Economic Development District, Commercial Industrial Areas and the
Service Area as shown in Exhibit B-2 as may be amended from time to
time.
2. Construction of facilities. Orange County shall, at no expense to the City of
Mebane, be responsible for the construction of necessary water mains,
sewer outfall lines and lift stations necessary to service the areas described
above based upon agreement of the City and County. Connections to the
existing City systems will be made at points mutually agreeable to the
parties. The County shall be responsible for securing the necessary permits,
encroachment agreements, and approvals for the project from any
regulatory agencies as shall be applicable. The City agrees to cooperate and
assist the County as requested in the securing of said permits, approvals,
and encroachment agreements. All such lines and facilities shall be
constructed to existing City of Mebane standards. Plans and specifications
shall be reviewed and approved by the City of Mebane City Engineer prior
to awarding contracts for construction.
3. Ownership and Maintenance. Upon completion of the improvements
described above, County shall by appropriate agreement or instrument
transfer maintenance and ownership of same and any easements or lift
stations sites to the City of Mebane. From and after said transfer,the City
shall be responsible for all upkeep, operation and maintenance of the lines,
lift stations, and related facilities; such upkeep,maintenance and repair or
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5
replacement to be at the sole cost and expense of City. City shall accept
ownership of such lines, lift stations and related facilities not later than one
(1) year after completion. Easements associated with the lines, lift stations
and related facilities shall be fully assignable and shall be assigned to City.
4. Service Standards.
a. 2004 and 2012 Service Area Agreement and Fees. Upon Completion of
said facilities, City agrees that it will provide water and sewer service to
the service area. Said service will be provided utilizing water and sewer
rates uniformly applied within Mebane's service areas to properties
similarly situated. Connected properties may be charged normal hook
up or tapping fees, and connection or impact fees but will not be
charged any assessment or fees in lieu of assessment designed or
intended to recoup construction costs.
b. Existing Buildings (2004 partial area only). The City agrees to waive
hook up/tapping fees and connection/impact fees for the connection of
existing residences and churches located within the 2004 service area,
on and proximate to Buckhorn Road provided that the City incurs no
costs in association with such taps or connections. (See Exhibit B-1
Area 135)
c. Upon completion by County of a sewer transport system, including if
necessary lines, lift stations and related facilities, sufficient to transport
Efland Sewer flows to the Southeast Regional Pump Station, County
shall arrange for redirection of the flow from Hillsborough to City's
system and City agrees to accept such flow and ownership of such
transport system including lines, lift stations and related facilities.
5. New Buildings. Residential and Non-Residential. Individual connections
other than existing residential uses or the public uses described above shall
be subject to the approval of the City of Mebane. Provided, however such
approval shall not be unreasonably withheld and shall be based on the
capacity of the system and the ability of the City's water and sewer system
to provide service within the entire (2004 and 2012) service area of the
City's water and sewer systems, consistent with the resources available to
the City. (See also reservation provisions of Section 10 outlining assigned
allocations to the aforesaid areas.) The City acknowledges that industrial,
office and commercial uses (with limited higher density residential) are
designed for inclusion within the I-85/Buckhorn Road Economic
Development District and Commercial Industrial Activity Nodes and that
such uses, if permitted by the County, will be served subject only to
capacity issues and other aspects outlined herein.
6. Mebane Utility System-wide Regulations. Individual users will be required
to comply with system-wide regulations applicable to City water or sewer
customers unless otherwise specified.
7. Annexation and Service(i.e. includes a provision for voluntary annexation).
Applications for service for property located east of Buckhorn Road within
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v. 5.22.2012
6
the service area shall be required to be accompanied by a voluntary
annexation application to the City for annexation into the corporate limits of
the City. The application may be acted upon by the City of Mebane at their
discretion.
Potential Urban Growth Annexation Areas and Excluded Area
The potential urban growth annexation boundary would include A, B, C,
D.1-5 and E-2. Specific areas (as noted on the attached map labeled Central
Efland Phase 1 and Phase 2 and area E-1) are not intended for annexation at
the time of this amended agreement. These areas would be part of the
utility service area and pay `out of town' rates or as decided by separate
agreement.
I
8. Planning Standards. Each party to this Agreement shall retain such
planning and regulation of development powers and authority within the
service areas as shall now exist or are hereafter expanded or modified by
North Carolina Statutes and agreements made from time to time by the City
and County which agreements are authorized by North Carolina Statutes.
Nothing contained herein shall be construed to limit or to expand any such
regulatory or planning jurisdiction or to limit the power of the City to annex
into its corporate limits properties within the service area.
9. Additional Documentation. The parties agree to and hereby authorize the
County Manager and County Attorney and City Manager and City Attorney
to prepare and to execute all such other and further documentation or
agreements as shall be necessary or desirable in effectuating this
Agreement.
10. Reservation of Capacity
a. Sewer. City shall reserve for the Service Area .25 Million Gallons
per Day of capacity in its Sewer Treatment Plant. County shall pay
City$50,000.00 (hereafter referred to as `Reservation Fee')per year
for ten years from the date first above recorded in this Amended
Agreement to preserve and reserve this capacity. At such time as
County makes the tenth and final payment of$50,000.00 City shall
assume responsibility for determining the appropriate capacity in the
Service Area.
b. Water. City shall provide water service in proportion to the sewer
service provided.
C. Reservation Fees
1. As utility customers connect to the Service Area system
Reservation Fees shall be reduced pro rata.
2. Reservation Fees and capacity reservation may be amended
as needed by written agreement of the Parties.
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v. 5.22.2012
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
this the day and year first above written.
Chair, Orange County Board of Commissioners Mayor, City of Mebane
ATTEST:
Clerk to the Board of Commissioners Town Clerk
This instrument has been pre-audited in the manner required by the Local Government
Budget and Fiscal Control Act.
Orange County Finance Officer
City of Mebane Finance Officer
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v. 5.22.2012
A
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