Loading...
HomeMy WebLinkAboutAgenda - 01-24-2013 - 7a1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: January 24, 2013 Action Agenda Item No. 7 -a SUBJECT: Review of the Historic Rogers Road Neighborhood Task Force DEPARTMENT: Solid Waste Management PUBLIC HEARING: (Y /N) No ATTACHMENT(S): 1. December 6, 2012 Assembly of Governments Meeting Agenda Abstract - Review of the Interim Recommendations from the Historic Rogers Road Neighborhood Task Force 2. Excerpt from the Draft Minutes of the December 6, 2012 Assembly of Governments Meeting 3. January 16, 2013 Email with Responses from Former Commissioners INFORMATION CONTACT: Frank Clifton, County Manager, 245 -2300 Gayle Wilson, Solid Waste Management Director, 968 -2885 Michael Talbert, Assistant County Manager, 245- 2308 PURPOSE: To review and discuss the outcomes from the Historic Rogers Road Neighborhood Task Force and the future of the Task Force. BACKGROUND: Beginning in 1972 the landfill was opened by the Town of Chapel Hill and in 1999 Orange County assumed ownership and operation of the Eubanks Road Landfill. The Historic Rogers Road Community has continued to cope with the Landfill for 40 years. The Community is geographically split by the Towns of Chapel Hill and Carrboro. Orange County as the current owner /operator of the Landfill is taking the lead to make remediation improvement to the Historic Rogers Road Community. On May 17, 2011 the Board received a request from the Rogers Eubanks Neighborhood Association (RENA) recommending actions to mitigate the long and short term impacts of Orange County's Landfill and Solid Waste operations on the health, safety and welfare of the Historic Rogers Road — Eubanks Road Community. On January 26, 2012 the Board and the Town Boards discussed the extension of sewer service and a community center for the Historic Rogers Road Community. County and Town Attorneys have concluded that utilization of Solid Waste reserves to extend sewer service to the Historic Rogers Road Community is not consistent with North Carolina General Statutes and could subject the local governments to legal challenges. Therefore, funding for either the extension of 2 sewer services and /or a community center will need to come from the County's and Towns' other general revenue sources. On February 21, 2012 the Orange County Board of Commissioners authorized the Creation of a new Historic Rogers Road Neighborhood Task Force to address sewer service and a community center and approved the Charge. The composition of the Task Force was to include two members appointed by each Town (Chapel Hill and Carrboro); two members appointed from the County; and two members appointed from Rogers Eubanks Neighborhood Association (RENA). Appointed Task Force Members: David Caldwell: Robert Campbell: Valerie Foushee: Pam Hemminger: Michelle Johnson Sammy Slade: Penny Rich: James Ward: RENA RENA Orange County Orange County Carrboro Carrboro Chapel Hill Chapel Hill Charge of the Historic Rogers Road Neighborhood Task Force The Charge for the Historic Rogers Road Neighborhood Task Force is to investigate and make recommendations to the Board of County Commissioners, the Chapel Hill Town Council and the Carrboro Board of Alderman for neighborhood improvements including funding sources and the financial impact to the County & Towns, for the following: 1. Sewer Service to the Historic Rogers Road Neighborhood as defined by the previously approved public water connections in the area. 2. A Neighborhood Community Center. The Task force is also directed to: a. Submit an Interim Report back to the County and the Towns by the end of August, 2012 and; b. Submit a Final Report to the Assembly of Governments on December 6, 2012. On December 6, 2012 the Assembly of Governments received an interim report from the Historic Rogers Road Neighborhood Task Force and held a lengthy discussion on the accomplishments of the Task Force. One of the recommendations from the Task Force was that the Task Force continue to meet for an additional six months to address the Charge with the original composition of the Task Force. Attachment 2 is an excerpt from the Draft Minutes of the December 6, 2012 Assembly of Governments Meeting. Town Board Members and County Commissioners voiced their opinions concerning the continuations of the Task Force and the issues that are still unresolved. Since the meeting was a Work Session, no decisions were made and the future of the Task Force was referred back to the Board of Commissioners. The Chair instructed staff to solicit input from former Commissioners Valerie Foushee and Pam Hemminger regarding the need for the Task Force to continue and their possible willingness to 3 continue to serve as a member of the Task Force. Both former Commissioners Foushee and Hemminger believe that the work of the Task Force is not complete as Charged and would urge the Board of Commissioners to continue the Task Force. Valerie Foushee does not think she could an effective member of the Task Force at this time, but would continue to support the Board in this effort in any way she can. Pam Hemminger indicated a willingness to continue service if asked. Recommendations from the Task Force that have been acted on: 1. On September 6, 2012 Orange County approved the County's intent to moving forward with a new "green" community center, work with RENA and Habitat for Humanity on the design and implementation of the community center. Ask the town to contribute computers, supplies, permitting costs, connection costs and the first 12 months of utilities toward this project. Ask the towns to expedite the permitting process. 2. On September 18, 2012 the Town of Carrboro approved the Town's intention to contribute not more than $900,000 for the Town's portion of the Community Center and cost of the Sewer Project. 3. On October 16, 2013 the Board approved a Capital Project of $500,000 for a one -time capital contribution for the Construction of a Historic Rogers Road Neighborhood Community Center 4. On November 20, 2012 the Board approved a Budget Amendment of $150,000 of additional funding for the Historic Rogers Road Neighborhood Community Center, increasing the total project budget to $650,000. 5. There was consensus at the Assembly of Governments meeting on December 6, 2012 that the governing boards will continue to appropriate funds, as previously budgeted to reimburse the Solid Waste fund for the purchase of the Greene Tract, for both a New Community Center and Sewer Improvements. Funds budgeted in Fiscal 2012/2013 for the Greene Tract are as follows; $90,549 for Orange County, $90,549 for The Town of Chapel Hill and $29,524 for The Town of Carrboro. The governing boards are also encouraged to locate other funding sources for a New Community Center and Sewer Improvements. 6. That the County and Town Managers continue to explore the creation of a County Utility District for all property owners in the Historic Rogers Road Neighborhood that are not currently served by a municipal water and sewer system and would benefit from the installation of sewer infrastructure to serve the Rogers Road Neighborhood. FINANCIAL IMPACT: There is no financial impact associated with discussing the status of the Historic Rogers Road Neighborhood Task Force. RECOMMENDATION(S): The Manager recommends that the Board discuss the outcomes of the Historic Rogers Road Neighborhood Task Force and more recent inputs from the Towns of Chapel Hill and Carrboro provided at the last Assembly of Governments meeting. The Board may need to consider the linked issues and find consensus: 1. Does the Task Force need to continue to function? 2. If so, who should be appointed to serve (several changes within the membership have occurred due to changes in elected positions of the former members)? Note: the Towns will also need to formalize their continued participation and representatives. 0 3. If the Task Force continues, does the Charge need to be modified and /or a definitive time line set for a final report from the Task Force. 4. Based upon recent input from legal Counsel from the Towns, does the Community Center Project move forward as a `County Only' project or does the County await further input from the Towns? ATTACHMENT 1 5 C %' " �� ORANGE COUNTY " "�" ASSEMBLY OF GOVERNMENTS AGENDA ITEM ABSTRACT Meeting Date: O�� I Action Agenda Item No. 2 SUBJECT: Review of the Draft Interim Recommendations from the Historic Rogers Road Neighborhood Task Force DEPARTMENT: Solid Waste Management PUBLIC HEARING: (Y /N) No ATTACHMENT(S): A) Historic Rogers Road Neighborhood Task Force Interim Report B) Draft Recommendations to the Assembly of Governments from the Historic Rogers Road Neighborhood Task Force — November 14, 2012 C) Map of Rogers Road Parcels D) Memorandum from John Roberts, County Attorney — Rogers Road Area Improvement Funding E) Memorandum from Mike Brough, Carrboro Town Attorney — Rogers Road Proposals INFORMATION CONTACT: Frank Clifton, County Manager, 245 -2300 Gayle Wilson, Solid Waste Management Director, 968 -2885 Michael Talbert, Assistant County Manager, 245 -2308 PURPOSE: To review and discuss the draft Interim Recommendations from the Historic Rogers Road Neighborhood Task Force dated November 14, 2012. BACKGROUND: Beginning in 1972 the landfill was opened by the Town of Chapel Hill and in 1999 Orange County assumed ownership and operation of the Eubanks Road Landfill. The Historic Rogers Road Community has continued to cope with the Landfill for 40 years. The Community is geographically split by the Towns of Chapel Hill and Carrboro. Orange County as the current owner /operator of the Landfill is taking the lead to make remediation improvement to the Historic Rogers Road Community. On May 17, 2011 the County Board of Commissioners received a request from RENA recommending actions to mitigate the long and short term impacts of Orange County's Landfill and Solid Waste operations on the health, safety and welfare of the Historic Rogers Road — Eubanks Road Community. R On January 26, 2012 the County Board of Commissioners and the Town Boards discussed the extension of sewer service and a community center for the Historic Rogers Road Community. County and Town Attorneys have concluded that utilization of Solid Waste reserves to extend sewer service to the Historic Rogers Road Community is not consistent with North Carolina General Statutes and could subject the local governments to legal challenges. Therefore, funding for either the extension of sewer services and /or a community center will need to come from the County's and Towns' other general revenue sources. On February 21, 2012 the Orange County Board of Commissioners authorized the Creation of a new Historic Rogers Road Neighborhood Task Force to address sewer service and a community center, and approved the Charge. The composition of the Task Force was to include two members appointed by each Town (Chapel Hill and Carrboro); two members appointed from the County; and two members appointed from Rogers- Eubanks Neighborhood Association (RENA). Appointed Task Force Members: David Caldwell: Robert Campbell: Valerie Foushee: Pam Hemminger: Michelle Johnson Sammy Slade: Penny Rich: James Ward: RENA RENA Orange County Orange County Carrboro Carrboro Chapel Hill Chapel Hill Charge of the Historic Rogers Road Neighborhood Task Force The Charge for the Historic Rogers Road Neighborhood Task Force is to investigate and make recommendations to the Board of County Commissioners, the Chapel Hill Town Council and the Carrboro Board of Alderman for neighborhood improvements including funding sources and the financial impact to the County & Towns, for the following: 1. Sewer Service to the Historic Rogers Road Neighborhood as defined by the previously approved public water connections in the area. 2. A Neighborhood Community Center. The Task force is also directed to: a. Submit an Interim Report back to the County and the Towns by the end of August, 2012 and; b. Submit a Final Report to the Assembly of Governments on December 6, 2012. Attachment A is the Historic Road Neighborhood Task Force Interim Report approved by the Task Force on August 22, 2012. Each governing board received and reviewed the Interim Report during September 2012. The Task Force has continued to meet and has made draft recommendations to the Assembly of Governments - see Attachment B. 7 The Task Force wishes to continue to meet, for an additional 6 months, to address the Charge with the original composition of the Task Force. The composition of the Task Force originally included two members appointed by each Town (Chapel Hill and Carrboro); two members appointed from the County; and two members appointed from Rogers Eubanks Neighborhood Association (RENA). Cost Sharing The Task Force made significant progress to allocate and share the cost of improvements in Historic Rogers Road Neighborhood. Recommendation #1 is that the costs of both a New Community Center and Sewer Improvements be shared by the local governments at the same costs sharing percentages as outlined in the 1972 Landfill Agreement -- 43% for Orange County, 43% for The Town of Chapel Hill and 14% for The Town of Carrboro. Also, the individual governing boards are recommended to continue to appropriate funds, originally budgeted to reimburse the Solid Waste fund for the purchase of the Greene Tract, beyond Fiscal Year 2012/2013 to fund both a New Community Center and Sewer Improvements. Funds budgeted in Fiscal Year 2012/2013 for the Greene Tract are as follows: $90,549 for Orange County, $90,549 for the Town of Chapel Hill and $29,524 for the Town of Carrboro. The governing boards are also encouraged to identify other funding sources for a New Community Center and Sewer Improvements. Neighborhood Community Center The Task Force recommends that the Managers and Attorneys draft a Memorandum of Understanding between Habitat, Orange County, the Town of Carrboro, and the Town of Chapel Hill for the construction of a new Rogers Road Community Center. The budget for the Community Center will not exceed $700,000, and the project will be bid in compliance with North Carolina public bidding requirements. Orange County will finance the construction of the Community Center with reimbursement from the Towns as outlined in the cost sharing recommendation. Agreements for the operations of the Community Center with the County, Habitat, and the Rogers Eubanks Neighborhood Association have not yet been drafted, but the agreements shall provide for the operation & maintenance of a new Rogers Road Neighborhood Community Center including services, programs & activities to be provided in the Center. Sewer Service Sewer Service to the Historic Rogers Road Neighborhood, as defined by the previously approved public water connections in the area, has proven to be an expensive and complicated issue to resolve. Attachment C is an updated map of the Historic Rogers Road Neighborhood, identifying sewer availability, existing sewer customers, and the expressed desire of some homeowners to be connected to sewer. The creation of a County Sewer District for all property owners in the Historic Rogers Road Neighborhood that are not currently served by a municipal sewer system is being investigated. Participation by the Towns in a Sewer District located outside of the Towns jurisdictions presents legal challenges for both the Town of Chapel Hill and Town of Carrboro. The Orange Water and Sewer Authority (OWASA) could be the service provider for the creation of a County Sewer District. Contract terms and policy standards for governmental projects would have to be discussed before a Sewer District could be established. M A County Sewer District could make special assessments against benefited property within the district to cover the costs of constructing, extending or improving sewage disposal system. The basis of any special assessment would be determined at a later date after investigating development potential and the number of possible dwelling units. A special assessment would share the costs of the sewer system with current benefited property (homeowners) and undeveloped land for future development. It is also possible to establish criteria that would enable homeowners that have lived in the Historic Rogers Road Neighborhood before 1972 to connect to the sewer system free of charge and a sliding scale fee structure for homeowners that moved to the Neighborhood between 1972 and 2012. The County and Town Attorneys will be an integral part of any discussion concerning the possible creation of a County Sewer District. The County Attorney met with the attorneys for Chapel Hill and Carrboro on November 6, 2012 to discuss various proposals to extend sanitary sewer lines into, and construction of a community center in, the Rogers Road Neighborhood. Attachments D and E outline legal concerns and funding issues raised by both John Roberts and Mike Brough. FINANCIAL IMPACT: The financial impact of funding improvements recommended by the Historic Rogers Road Neighborhood Task Force is uncertain until its final report to the Assembly of Governments. The Board of County Commissioners approved a capital project of $650,000 for the construction of a Rogers Road Community Center. RECOMMENDATION(S): The County Manager recommends that the Boards discuss these issues, consider reappointing the Task Force to complete the original charge, and provide guidance to staff and the Task Force. Attachment A Historic Rogers Road Neighborhood Task Force Interim Report August 22, 2012 10 TABLE OF CONTENTS Introduction 1 Charge of the Historic Rogers Road Neighborhood Task Force 2 Boundaries of the Historic Rogers Road Neighborhood 3 Sewer Service Assessment of Septic System Service in Rogers Road Neighborhood 4 OWASA Sewer Concept Plan 5 Grant Opportunities for Sewer Infrastructure 8 Neighborhood Community Center Hogan- Rogers House 10 Construction of a New Facility 11 Financial Impact and Funding Options 15 Potential Next Steps 17 APPENDICES A. Report of the Rogers- Eubanks Area Survey Well and Septic System Assessment B. Hogan- Rogers House Preservation Project C. Habitat for Humanity Letter dated May 14, 2012. 11 INTRODUCTION In 1972, the north side of Eubanks Road became the site of a solid waste landfill operated by the Town of Chapel Hill. Orange County assumed operational control of the landfill as the result of an August 17, 1999 agreement between the Towns (Chapel Hill, Carrboro, and Hillsborough) and the County. The Historic Rogers Road Community has lived with this landfill for 40 years. Over many years, residents representing the Rogers Road area have voiced concerns about various operational elements associated with the landfill and the impact on the Rogers Road Neighborhood. The Neighborhood is geographically split by the Town of Chapel Hill Joint Planning Transition Area and Town of Carrboro. Orange County, as the current owner /operator of the landfill, is taking the lead to make remediation improvement to the Historic Rogers Road Community. A number of local government initiatives have been implemented to improve the quality of life in the Rogers Road Community and they are as follows: 1. The Solid Waste Fund paid $650,000 to extend public water service by the Orange Water and Sewer Authority (OWASA) to the Rogers Road area. 2. Solid Waste installed gas flares to reduce odors. 3. The Town of Chapel Hill initiated bus service on Rogers Road. 4. Orange County initiated a no -fault well policy to deal with failing drinking water wells remaining in the adjoining neighborhoods. 5. The Orange County Board of Commissioners approved the appropriation of $750,000 from the Solid Waste Fund Balance in the Fiscal 2011/12 Annual Budget to establish a Rogers Road Remediation Reserve Fund and established a $5.00 tipping fee surcharge per ton as long as the landfill is operational to fund the Rogers Road Remediation Reserve Fund. The surcharge generated $216,462 for Fiscal 2011/12 and is estimated to create $222,500 for Fiscal 2012/13, which will bring the total amount available for the Rogers Road Remediation Reserve Fund to $1,188,962. 6. A partnership with Orange County and the University of North Carolina created a Landfill Gas to Energy Project that commenced operation on January 6, 2012 and will have an immediate and noticeable impact on the odor created by the operation of the landfill. The project will further provide a long -term renewable energy source to UNC, reducing dependence on increasingly expensive fossil fuels, and reduce carbon emissions. 7. On October 4, 2011 the Orange County Board of County Commissioners authorized staff to proceed with a "one- time" effort to clean -up illegal dump sites within three - fourths of one mile of the landfill boundary, at no cost to the individual property owners. At the January 26, 2012 Assembly of Governments meeting, the Orange County Board of Commissioners and the Town Boards discussed the extension of sewer service and a community center for the Rogers Road Community. County and Town Attorneys have concluded that use of Solid Waste reserves to extend sewer service to the Rogers Road Community is not consistent with North Carolina General Statutes and would subject the local governments to legal challenges. Funding for a community center does not have a relationship to Solid Waste and could not be funded from Solid Waste reserves. Therefore, funding for either the extension of sewer services and /or a community center will have to come from the County's and Towns' other general revenue sources. There was also significant discussion on January 26 regarding the creation of a task force to address the issues. On February 21, 2012 the Orange County Board of Commissioners authorized the Creation of a new Historic Rogers Road Neighborhood Task Force to address sewer service and a community center. The composition of the Task Force was to include two members appointed by each Town (Chapel Hill and Carrboro); two members appointed from the County; and two members appointed from Rogers Eubanks Neighborhood Association (RENA). Appointed Task Force Members: David Caldwell: Robert Campbell: Valerie Foushee: Pam Hemminger; Michelle Johnson Sammy Slade: Penny Rich: James Ward: RENA RENA Orange County Orange County Carrboro Carrboro Chapel Hill Chapel Hill Charge of the Historic Rogers Road Neighborhood Task Force: The Charge for the Historic Rogers Road Neighborhood Task Force is to investigate and make recommendations to the Board of County Commissioners, the Chapel Hill Town Council and the Carrboro Board of Aldermen for neighborhood improvements including funding sources and the financial impact to the County & Towns, for the following: 1. Sewer Service to the Historic Rogers Road Neighborhood as defined by the previously approved public water connections in the area. 2. A Neighborhood Community Center. PJ 12 13 The Task force is also directed to: a. Submit an Interim Report back to the County and the Towns by the end of August, 2012 and; b. Submit a Final Report to the Assembly of Governments on December 6, 2012. Approved by the Board of County Commissioners on February 21, 2012 Boundaries of the Historic Rogers Road Neighborhood: The Historic Rogers Road Neighborhood Task Force approved that the Neighborhood be defined as the area identified by the September, 2011 map identifying available water service and approved for water service improvements by the Orange County Board of Commissioners on October 4, 2011. See below, OWASA Water Service in Rogers Road Vicinity as of September, 2011 Map. 3 SEWER SERVICE The first charge of the Historic Rogers Road Neighborhood Task Force is to investigate the possibility of providing sewer service to the Historic Rogers Road Neighborhood as defined by the previously approved public water connections in the area. Assessment of Septic System Service in the Rogers Road Neighborhood: 14 The County completed a survey of the Rogers Road Neighborhood in February, 2010. See Appendix A. The Orange County Health Department, along with RENA, the UNC School of Public Health, and Engineers Without Borders, participated in a survey of wells and septic systems. There were forty -five (45) septic systems included in the survey, and twelve (12) were failing at that time. Of the twelve malfunctioning septic systems, seven (7) were further classified as maintenance - related failures, while five (5) 0 15 were found to be end -of -life failures. Further investigation revealed that for the five end - of -life failures, there was no suitable soil for an on -site repair. The Environmental Health Department revisited the five properties and discovered that two of the properties are vacant, two are seasonal failures, and one has had patchwork done on it, but not a long -term solution. All of the five septic systems identified would benefit from the installation of a public sewer system. In 2011, Orange County received $75,000 in Community Development Block Grant (CDBG) funds for the infrastructure hookups in the Rogers Road Neighborhood. In order to receive connection, the homes had to be close enough to an existing water and /or sewer line so that no extension of service lines would be required for connection. Additionally, homeowners had to meet certain income eligibility requirements. There have been five homes connected to Orange Water and Sewer Authority) OWASA sewer as a result of this grant. OWASA Sewer Concept Plan: OWASA is the water & sewer utility for the area and as such, it investigated the concept of providing sewer service as part of the Town of Chapel Hill's Rogers Road Small Area Plan. On February 8, 2011 OWASA provided an updated concept plan and cost estimate for the Rogers Road Small Area Plan Study Area for $3.4 million. This early concept plan was completed based on the Chapel Hill Small Area Plan which is a geographically different area than the Historic Rogers Road Neighborhood sewer concept. There is also some difference in routing some of the main outfalls. In the current estimate, OWASA needed to avoid the area of contamination coming out from the Carrboro section that required more line with deeper excavation. Most importantly, in the earlier estimates the availabilities fees were not included or the cost of extending a lateral from the main line to the property On May 16, 2012 OWASA staff provided a concept plan, layout, and cost estimate for providing sewer service to the area that was delineated by the Historic Rogers Road Neighborhood Task Force at the April 30, 2012 meeting. The concept plan is the most efficient way to serve the defined Rogers Road Neighborhood and does not consider adjoining neighborhoods. See below, the Historic Rogers Road Area Sewer Concept May, 2012 Map. All the green areas show where sewer service is already available. The dark green areas are parcels that have connected to the OWASA service. The light green areas have not connected. The 86 parcels in yellow are the properties that would be served by the conceptual sewer layout. The concept map also breaks down the sewer service into 8 sub -areas with the number of parcels served and cost per parcel. The 8 red lines represent the possible sub -areas of the sewer infrastructure that could 61 16 be considered, if the entire concept project is not feasible. The sewer infrastructure routing was estimated based on the topography taken from maps rather than from any field work. In order to get to a greater level of detail or certainty on the cost, some field work would be required. There are two brown areas on the map that the County has identified as some subsurface disposal or some suspected contamination. Without any further investigation, the sewer line has been routed no closer than 100 feet of that margin. The total construction and installation cost for the concept level sewer is approximately $5.8 million. See the table below. It would serve 86 additional parcels of land. The concept costs include construction, engineering design, administrative and contingency for possible rock. The topography of the neighborhood is complex and the land falls in several different directions. This concept plan does not include the costs of any property acquisitions or easement acquisitions. The availability hookup charge for each of the parcels is based on an assumed average house size of 2,500 square feet. When a customer connects to the OWASA water and sewer system, there is a one -time fee that is estimated to be $4,300 for the concept plan. Cost estimate Summary: Engineering, Design and Permitting 376,350 Construction Cost 3,763,506 Construction Administration 188,175 Construction Inspection 188,175 20% Contingency 903,241 Sub Total 5,419,447 Service Availability Fees 368,768 Total 5,788,215 17 The concept does not include the cost to actually connect individual homes to the sewer system. Those costs will vary on the configuration of the lot and the distance from the house to the main sewer line. Those costs are typically the costs of the homeowner and are estimated to be about $20 /foot. The connections to an individual house would be provided by a private plumbing contractor. The next step to move the concept plan forward would be to begin the preliminary engineering and design work. Engineers would be hired to take this concept, go out in the field and start the process of data collection and defining the details of the concept. OWASA has estimated the preliminary engineering costs would be $376,350. That is a rough estimate based on what is known of the area so far. A completed preliminary engineering and design will be necessary to complete a Community Development Block Grant application. Sewer Recommendations: The Task Force has discussed all or part of the proposed $5.8 million dollar sewer concept plan, but has not yet recommended moving forward with this concept plan, pending an agreement on a cost sharing plan for sewer improvements. 7 Grant Opportunities for Sewer Infrastructure: IN The Task Force explored several grant opportunities to fund the sewer improvement for the Rogers Road Neighborhood. The Task Force was furnished a list of possible grant opportunities from RENA including the following: Community Development Block Grants Department of Health and Human Services Department of Housing and Urban Development Environmental Protection Agency Federal Highway Funds Clean Water Trust Fund Bernard Allen Fund These are mostly federal grant opportunities which are administered through the State. After reviewing all of the grant opportunities the Task Force was able to identify only two possible grants to fund sewer infrastructure, a Community Development Block Grant or a Clean Water Trust Fund Grant. Community Development Block Grant Orange County has to access Community Development Block Grant (CDBG) dollars through the State of North Carolina. That is a competitive process. Within the CDBG grant program, there is a category known as "Infrastructure Program ". In that category, funding is available up to $1 million to communities that have infrastructure needs. The operative word is "need ". To access those funds, because they are competitive, any application will have to be able to demonstrate need. Another issue is that the State has focused on water projects, which it considers to be a priority over sewer. Where it does fund sewer projects there has to be a demonstrated need for connection to a public sewer system. Someone would have to document that need in the community. The State primarily looks to the local environmental health department to make that assessment. When talking about sewer projects, normally there is some documentation of a major problem such as with failing septic systems. To qualify to compete for CDBG funds, a letter of interest will be due in early February 2013. The letter must include the engineering report and project documentation defining the needs of the community. That letter, along with a list of committed local government funding sources to complete the project, are necessary before submitting the CDBG application. The amount of local government matching funds required varies from county to county. The CDBG process evaluates the local government's perceived ability to pay. A low- wealth county would have a lower ability to pay versus what the state perceives to be a high - wealth county. The county's employment rate and the per E.' 19 capita income are important components in a highly competitive grant process. However, early information from CDBG for the coming grant year is that individual grants of up to $750,000 dollars may be available. Last year, Orange County applied for and received funds for individual residential hookups in the Rogers Road Neighborhood ($75,000). Since that time, some water and sewer connections were completed, but the County was able to do that only because water and sewer infrastructure was already in place. There were a few houses in the community that were adjacent to existing water or sewer lines that were connected, and the occupants were low- income. (They had an income of less than 50% of area median income). It will be difficult for Orange County to compete for these resources, and it depends on who else is applying in a given year and what the pool of funding is going to be. All other things equal, Orange County would have difficulty competing with other areas because the County is considered a wealthy county and is not economically distressed. To qualify today, the families or individuals that live in this area have to meet an income standard which is 50% of the median family income. (For example: the median annual income for a family of four is around $64,000, so to qualify a family in this area would have to have an annual income of no more than $32,000). The County has basically funded most of the individuals that meet that standard, and have already connected them to water and sewer. Finding additional property owners that meet that income cutoff would be difficult. There are not that many home owners in the Rogers Road Neighborhood that are going to meet that income qualification. The Task Force is looking at a total project cost of $5.8 million. A CDBG could cover roughly twelve percent of the total estimated costs. The CDBG of $750,000 will require 5% matching funds of $37,500. In the community development criteria, the areas that CDBG's are willing to fund are water first and sewer second. A CDBG is much more inclined to fund a collaborative effort between units of local government, such as this project. This collaboration would have a higher priority than any one government acting independently. There are some pre -grant application costs that would be incurred on the front end of the process. The Task Force is searching for local funding of $5 million even if the project could qualify for a CDBG. Clean Water Trust Fund Grant: The North Carolina General Assembly has expressed an interest in funding more water and sewer projects, and has designated $17 million for infrastructure projects. The maximum grant amount per project is $750,000. There will likely be some consideration to raising that limit for future years because most projects cost a million dollars or more, although this year it remains at $750,000. The priorities will be for projects that have A 20 the severest need. The State looks at percent of low /moderate income benefit in a project area; with the minimum benefit being 70 %. At least 70% of the residents in any designated area must be low or moderate income. The residents living in the Rogers Road Neighborhood that need public sewer service will not likely meet the income requirements to qualify for this grant. Dedicated Federal Funding: Congressman David Price's office has been contacted about a possible Economic Development Incentive (EDI) grant or a Stag Grant. Orange County utilized such a grant for the Efland sewer project. Several years ago, the County was eligible to apply for $500,000 dollars or more through that type of process. At this time, however, the rules have changed and EDI grants are not allowing for infrastructure projects. These grants can no longer be earmarked for a specific project, which was done for the Efland sewer project. NEIGHBORHOOD COMMUNITY CENTER: The second assignment of the Historic Rogers Road Neighborhood Task Force is to investigate the possibility of providing a Neighborhood Community Center to the Historic Rogers Road Neighborhood. Hogan- Rogers House: The Preservation Society of Chapel Hill compiled a report on the historic Hogan- Rogers House as a potential Neighborhood Community Center for the Historic Rogers Road Neighborhood, see Appendix B. The St. Paul A.M.E. Church has purchased the Hogan- Rogers House and property surrounding it in order to build a new church complex on the site. Plans call for removal and /or demolition of this historic house as early as 2013. The Preservation Society began working with the Rogers- Eubanks Neighborhood Association, St. Paul Church, and Habitat for Humanity to relocate and restore this home that holds over 170 years of history for Chapel Hill's white and black community. Currently, the house is listed on the North Carolina State Historic Preservation survey conducted in 1999. Habitat for Humanity has graciously indicated its support by donating two lots to relocate the home. The historic home would have to renovated and used as a center for neighborhood programs and activities. Habitat's support for the home's relocation and restoration is contingent on a commitment of funding allocated to the Rogers Road Neighborhood to complete the project, see Appendix C. 10 21 Blake Moving Company, Inc. presented an estimate of $740,499 see Estimated presented to Rogers Road Task Force below, for the relocation of the Hogan- Rogers home to Purefoy Drive. Habitat has determined that the first two lots in the Phoenix Place subdivision, which are at the corner of Purefoy Drive and Edgar Street, would be the best location for the relocation of the structure. Blake presented examples of historical structures that the company has successfully moved. Blake's assessment of the historic home is that structure is sound, some repairs need to be made after it is moved, and there will not be any issues with the relocation of the home. An architect /engineer will have to be engaged to design the foundation of the relocated structure and remodeling of the interior of the home. St. Paul A.M.E. Church is completing the permitting and compliance phase of the project and anticipates getting through that process by late fall. The Church will go through the bidding process to select a site work contractor probably in late August /early September. The site work would start the latter part of the year depending on the weather. The phasing for building and construction for the buildings will not start until the first of the next year at the earliest. The Church will work with the Rogers Road Neighborhood to relocate the Hogan - Rogers House. Gloria Shealy, Project Manager has requested a timeline to relocate to the adjacent site. Because the Church is anxious to begin construction as soon as possible, time is of the essence to relocate the Hogan- Rogers House. Construction of a New Facility: If it is not feasible or practicable to move and restore the Hogan- Rogers House, the Historic Rogers Road Neighborhood Task Force is investigating the possibility of constructing a new Community Center on the two lots donated by Habitat for Humanity. Habitat will support the construction of a new facility if the facility is used as a center for neighborhood programs and activities. The donated site could support a facility of up to 3,000 Sq. Ft. with an estimated budget of $500,000. Habitat's support for the community center will be contingent on a commitment of funding allocated to the Rogers Road Neighborhood to complete the project. A proposed community center must meet NC State Building Code and obtain a Building Permit. The Town of Chapel Hill advises consulting an architect /design professional on the cost and specific code requirements. In addition, the site layout must receive zoning approval and meet the Chapel Hill Land Use Management Ordinance requirements regarding site layout and process. 11 Estimate presented to Rogers Road Task Force on 06/06/12 Blake Moving Company, Inc. submits the following estimate for the relocation of the Hogan- Rogers home on Purefoy Drive. This estimate also includes site prep, footing, foundations, remodeling costs and additions. 1. Relocation - Includes all prep work to prepare the dwelling for relocation. Relocation of the home with the home being left in a level position over a footing at basement height. $39,860.00 2. Grading for the route- Includes placement of a 2 foot pipe in a drain ditch. Placing compactable fill over the pipe and adjacent area. Removal of debris from the route and existing site, including back room, trees, and foundation debris. $11,160.00 3. Excavation of topsoils at new site. Furnishing compactable fill to raise the house site up to 2.5 feet. Compacting fill including engineering fees: $21,230.00 4. Footings, foundations, basement slab- Footings — width 2', depth 10" (includes horizontal rebar). Foundations include a 12" reinforced wall on the front and sides. Porch includes foundation from basement depth due to compaction issues and relocation process. Front sidewalks included. French drains and waterproofing. $60,243.00 5. Backfill of topsoil against front and side walls. Side slopes to be tapered. $5,250.00 6. Remove back porch Removal of debris included in 92. Remove vinyl siding, Remove shingle siding. Putty all nail holes, repair lap siding, repair improper framing. $65,000.00 7. Remove vinyl shingle siding, repair nail holes in lap siding, paint outside of dwelling $351000.00 8. Remove roof — re -sheet and install new roof $40,000.00 9. Restructure and rebuild front porch $15,000.00 10. Replace windows $21,250.00 11. New plumbing 3 levels $30,000.00 12. Remove old plaster, install and finish sheet rock $40,000.00 13. Repair and refinish all wood floors $20,000.00 14. Allowance for appliances $30,000.00 15. New cabinets throughout house $120,000.00 16. New doors front and back $7.500.00 17. New addition $80,000.00 18. Mechanical (I IVAC, duct work, etc.) $48,000.00 19. Electrical rewiring $51,000.00 Total $740,499.00 12 22 Neighborhood Community Center Options: On June 27, 2012 the Task Force approved the following recommendations: 23 1. The Task Force recommends that the Hogan- Rogers House be saved to be used for a Community Center in the Historic Rogers Road Neighborhood. 2. That the County be asked to increase the amount of funding that has already been budgeted to relocate the Hogan- Rogers House from $120,000 to $202,743. This amount will fund removing the back porch, grading, excavation of the new site, footings, foundation, and basement slab. See Hogan — Rogers House Minimum Restoration Costs below. On August 22, 2012 the Task Force endorsed investigating the construction of a new Community Center. 1. The Task Force is investigating the possibility of constructing a new Community Center on the two lots donated by Habitat for Humanity. Habitat will support the construction of a new facility if the facility is used as a center for neighborhood programs and activities. The donated site could support a facility of up to 3,000 Sq. Ft. with an estimated budget of up to $500,000. 13 Hogan - Rogers Hosue Minimum Restoration Costs Blake Moving Company, Inc. submits the following estimate for the relocation of the Ilogan-Rogers home on Purefoy Drive. This estimate also includes site prep, footing, foundations, remodeling costs and additions, 1. Relocation- Includes all prep work to prepare the dwelling for relocation. RelteWom of the- basement height. $39,860.00 2. Grading for the route- Includes placement of a 2 foot pipe in a drain ditch. Placing compactable fill over the pipe and adjacent area, Removal of debris from the route and existing site, including back room, trees, and foundation debris. $11,160.00 3. Excavation of topsoils at new site. Furnishing compactable fill to raise the house site up to 2.5 feet, Compacting fill including engineering fees $21,230.00 Total minimum restoration costs $202,743 14 24 FINANCIAL IMPACT AND COSTS SHARING OPTIONS 25 The Task Force has consensus that there are needs in the Rogers Road Neighborhood that should be addressed by the Task Force. The Task Force has investigated two possible solutions in the Rogers Road Community and the estimated costs are as follows: Installing sewer infrastructure for 86 defined parcels in the Rogers Road Neighborhood $ 5,788,215 Relocating and Renovating the Hogan- Rogers House for a Neighborhood Community Center $ 740,499 Total Financial Impact $6,528,714 The Task Force is investigating and evaluating five different cost sharing options for the Rogers Road Neighborhood as outlined below: 1. The first option is based on the Municipal Solid Waste (tonnage) delivered to the Landfill by each municipality during Fiscal 2010/11. 2. The second option is based on the original Landfill Agreement between the Towns and the County dated November 30, 1972. 3. The third possible solution is based on County and Town populations. This is the method the Board of County Commissioners has selected to distribute Sales Tax revenues between the County and the Towns. 4. The fourth options is based on County and Towns Ad Valorem Property Taxes Levied by each municipality for Fiscal 2011/12. This is an alternative method the Board of County Commissioners could consider to distribute Sales Tax revenues between the County and the Towns. 5. The fifth possible solution is based on County and Town populations. This option is not weighted and uses only the rural population of Orange County compared to the Towns. See the Spreadsheet: 15 Rogers Road Neighborhood Task Force Cost Sharing Options 8/22/2012 W. 26 1 Fiscal 2010111 2 1972 MSW Volume Landfill Agreement Annual Tons /Yr. Percent Payment Percent Carrboro 6,650 19% $ 29,524 149/8 Chapel Hill 15,008 42% $ 90,549 43% Hillsborough 3185 9% Orange County 10,497 30% $ 90,549 43% Total 35,340 100% $ 210,622 100% 3 County Population Est. 4 Fiscal 2012/13 Sales Tax Distribution Ad Valorem Property Tax Method Property Population Percent Tax Levy Percent Carrboro 19,665 9% 11,611,958 5% Chapel Hill 54,582 25% 34,116,234 169/8 Special Districts 235,387 01/8 Durham 30 01/8 49,416 01/8 Hillsborough 6,113 3% 4,705,799 2% Mebane 1,801 1% 1,114,495 1% Orange County 134,325 62% 136,382,728 649/8 School District 19,260,309 9% Fire Districts - 3,979,116 2% Total 216,516 100% 211,455,442 100% 5 County Population Est. Fiscal 2012/13 Population Percent Carrboro 19,665 15% Chapel Hill 54,582 41% Durham 30 01/8 Hillsborough 6,113 5% Mebane 1,801 1% Orange County 52,134 39% Total 134,325 100% W. 26 Cost Sharing Recommendations: On August 22, 2012 the Task Force approved the following recommendation: 27 The Task Force recommends that the County and Town Managers collectively discuss and formulate a fair and equitable cost sharing recommendation for the Task Force to consider. Options 2 & 4 are no longer being considered by the Task Force, therefore the recommendation should be based on options 1, 3, and /or 5. The cost sharing recommendation will be reviewed by the Task Force and could be applied to funding Sewer Infrastructure and a Community Center. POTENTIAL NEXT STEPS: Formulate recommendations to the Board of County Commissioners, Chapel Hill Town Council and the Carrboro Board of Aldermen on the following unresolved issues: 1. Providing sewer service to the Rogers Road Neighborhood as defined in the Task Force Charge. a. Determine which grant opportunities are possible and probable and worthy of consideration. b. Agree collectively on costs sharing and possible funding sources. 2. Moving and renovation of the Hogan- Rogers House for a Neighborhood Community Center. a. Define a moving and renovation project team. b. Create a timeline for moving and renovating the house. c. Create and approve a capital and /or operating budgets for the Community Center d. Agree collectively on costs sharing and possible funding sources. 3. Complete investigating is the possibility of constructing a new Community Center on the two lots donated by Habitat for Humanity. a. Create and approve a capital and /or operating budgets a new Community Center b. Create a timeline for constructing a new Community Center. a. Agree collectively on costs sharing and possible funding sources. 4. Agree on a strategy to educate and promote the recommendations of the Historic Rogers Road Neighborhood Task Force to all three local governments. 17 Attachment B DRAFT Recommendations to the Assembly of Governments Historic Rogers Road Neighborhood Task Force November 14, 2012 Recommendations: That the costs of both a New Community Center and Sewer Improvements be shared by the local governments, at the same costs sharing percentages as outlined in the 1972 Landfill Agreement, 43% for Orange County, 43% for The Town of Chapel Hill and 14% for The Town of Carrboro. 2. That the Managers and Attorneys originate a Memorandum of Understanding between Habitat, Orange County, the Town of Carrboro, and the Town of Chapel Hill for the construction of a new Rogers Road Community Center. The budget will not exceed $700,000 and the project will be bid in compliance with North Carolina public bidding requirements. Orange County will finance the project with reimbursement from the Towns as outline in (1) above. 3. That the governing boards continue to appropriate funds, as previously budgeted to reimburse the Solid Waste fund for the purchase of the Greene Tract, for both a New Community Center and Sewer Improvements. Funds budgeted in Fiscal 2012/2013 for the Greene Tract are as follows; $90,549 for Orange County, $90,549 for The Town of Chapel Hill and $29,524 for The Town of Carrboro. The governing boards are also encouraged to locate other funding sources for a New Community Center and Sewer Improvements. 4. That the Hogan- Rogers House no longer be considered as an option for a Neighborhood Community Center. The St Paul's AME Church is working with the Chapel Hill Preservation Society to save the structure. 5. That the Task Force continue to meet, to address the Charge of the Task Force, for an additional 6 months with the original composition of the Task Force. The composition of the Task Force originally included two members appointed by each Town (Chapel Hill and Carrboro); two members appointed from the County; and two members appointed from Rogers Eubanks Neighborhood Association (RENA). W 29 DRAFT Recommendations, yet to be finalized, Target date June 30, 2013: Rogers Road Neighborhood Community Center: That the County create Memorandum of Understanding for the operations of the Community Center with the County, Habitat, and the Rogers Eubanks Neighborhood Association all being a party to the agreement. The agreement shall provide for the operation & maintenance of a new Rogers Road Neighborhood Community Center including services, programs & activities to be provided in the Center. County Sewer District: 1. That the Managers explore the creation of a County Sewer District for all property owners in the Historic Rogers Road Neighborhood that are not currently served by a municipal sewer system and would benefit from the installation of sewer infrastructure to serve the Rogers Road Neighborhood. a. That the towns participate with the possible creation of a County Sewer District, which could overlap town boundaries, by resolution to such inclusion. b. That a County Sewer District would make special assessments against benefited property within the district to cover the costs of constructing, extending or improving sewage disposal system. The basis of any special assessment would be determined at a later date after investigating development potential and the number of possible dwelling units. A special assessment would share the costs of the sewer system with current benefited property (homeowners) and undeveloped land for future development. c. That the Managers work with the Attorneys to create criteria that would enable homeowners, that have lived in the Historic Rogers Road Neighborhood before 1972, to connect from the sewer system free of charge and recommend a sliding scale fee structure for homeowners that move to the Neighborhood between 1972 and 2012. 0 Rogers Road Parcels Attachment 0 0 0 N Legend Parcels Requesting Sewer Potential Sewer Route (Approximate) Sewer Currently Available Existing Sewer Mains Current Sewer Customer Q Historic Rogers Rd Boundary - Sewer Currently Available and Requested = Other parcels R Orange County IT -GIS Department GI Map Prepared by Miriam Coleman 11/26/2012 MXD file: RogersRdParcels _ sewerpar_112612 Office of the County Attorney Attachment D ORANGE COUNTY P.O. BOX 8181 200 S. CAMERON STREET HILLSBOROUGH, NC 27278 To: Bernadette Pelissier, Chair Pam Hemminger, Vice Chair Valerie Foushee Alice M. Gordon Barry Jacobs Earl McKee Steve Yuhasz CC: Frank Clifton, County Manager Donna Baker, Clerk to the Board From: John Roberts Date: November 12, 2012 Re: Rogers Road Area Improvement Funding N:(f eats%i 31 I met with the attorneys for Chapel Hill and Carrboro on November 6t" to discuss various proposals to extend sanitary sewer lines into, and the construction of a community center in, the Rogers Road area (the "Neighborhood "). I will address the various proposals separately. USE OF THE $900,000 LANDFILL RESERVES TO FUND SEWER LINE EXTENSION By law enterprise fund dollars cannot be used for purposes other than the direct and indirect costs of operating and maintaining the landfill. It is highly unlikely landfill operations could be tied to septic system failures in the Neighborhood. It is my understanding the $900,000 was generated through tipping fees rather than reimbursable contributions. Assuming that is the case the $900,000 is a part of the enterprise fund and may not be used for non - landfill operations related purposes. For these reasons the Town attorneys and I are in agreement the $900,000 cannot be used for the extension of sewer lines. CONTRIBUTIONS TO SEWER EXTENSION COSTS BY THE TOWNS OF CARRBORO AND CHAPEL HILL The primary issue for contributions by the Towns to sewer line extension appears to be the limitation of Town expenditures to their own jurisdictions. Both Town attorneys agreed that in order for the Towns to fund some portion of the cost of sewer line extensions the sections of sewer lines funded must be within the Town limits. For this reason annexation of some areas may be necessary. An additional issue is the requirement that if a part of a planned subdivision is to be annexed the entire subdivision must be annexed. Because annexation is not a county issue I will rely on the Town attorneys to further explain other restrictions related to annexation. 32 Once annexation concerns are addressed one source of funds for these extensions could be proceeds from a sale of the Greene tract. Should the decision be made to sell this property proceeds could be used for any statutorily authorized purpose. SUBSIDIZING THE COST OF CONNECTING HOMES TO EXTENDED SEWER LINES The Town attorneys and I are in agreement that the County and Towns have limited statutory authority to pay for or subsidize connection costs. Additionally, without adequate upgrades connecting older home plumbing systems to modern water and sewer systems could result in internal damage to the connected structure. This represents a substantial exposure of liability to the County and Towns. For that reason the Town attorneys and I are in agreement that direct connections to the system should not be provided by the County or Towns. NCGS 153A -376 authorizes counties to engage in health and welfare programs for the benefit of low and moderate income persons. Pursuant to this authority a program could be established whereby grants or loans are issued to persons who meet designated criteria to assist those persons with paying the costs of connecting to a water or sewer system. The qualifying criteria would apply county -wide and could not be limited to residents of the Neighborhood. So if an individual with access to a sewer line in Efland or Mebane met the criteria they also could participate in the program. A program of this nature would not work to connect every home to a sewer system but it would be legally defensible. CONSTRUCTION AND OPERATIONS OF A NEIGHBORHOOD COMMUNITY CENTER The current proposal appears to be that the County and /or Towns pay Habitat for Humanity ( "Habitat ") approximately $650,000 to construct a community center ( "Center ") in the Neighborhood that, once constructed, Habitat would contract with the Rogers Eubanks Neighborhood Association to operate, and the County would help fund through some master lease agreement. The Town attorneys and I concur that this method of funding the Center is not legally defensible. One method the Town attorneys and I are in agreement on is for Habitat to donate the land for the Center or lease the land to the County, the County could then, through the bidding process, bid out construction of the facility and enter into various agreements for the operation of the Center. We also agree there may be several other options for getting the Center constructed and operating. Another method that occurred to me after my meeting with the other attorneys is the possibility of a community development grant or loan. Just as with the sewer connection program discussed above through NCGS 153A -376 counties have authority to issue grants and loans. Those grants and loans may be made for the restoration or preservation of older neighborhoods. Counties may contract with corporations for carrying out this restoration or preservation of older neighborhoods and such contracts may be for the purpose of providing recreation facilities. As it relates to the construction of the facility I believe the NC bidding statutes would still apply. Should this option be given consideration additional research would be needed to fully determine the process whereby it is accomplished. Regardless of the manner in which the Center is funded it must be open to the general public. 33 Attachment E MEMORANDUM Memorandum to: Carrboro Mayor and Board of Aldermen From: Mike Brough Subject: Rogers Road Proposals Date: November 7, 2012 County Attorney John Roberts, Chapel Hill Attorney Ralph Karpinos, and I met November 6t` to discuss the managers' October 16, 2012 recommendations for constructing a Community Center to serve the Rogers Road area and to extend sewer lines into this area. We also discussed Mark Dorosin's October 23, 2012 letter recommending that, not only should sewer lines be extended into this areas, but that homes should be connected to the sewer lines at public expense. We agreed on the conclusions set forth below in paragraphs 1 -5. The thoughts set forth in paragraph 6 did not occur to me until after our meeting, and therefore have not been endorsed by the other attorneys.: 1. Statutory authority exists for the towns and the county to cooperate in operating and funding a community center located in the Rogers Road area, and there are a number of ways in which this could be accomplished. However, as we understand it, the current proposal is that the county and/or the towns would pay Habitat $500,000 to construct the facility, on land provided by Habitat, and then Habitat would lease the center to RENA, who would operate it, presumably in accordance with RENA Neighborhood Center Business Plan (Attachment B to the Agenda Item). The attorneys do not believe it is legally permissible for the county or the towns to expend public funds to fund the construction of a building on land the county does not own, under circumstances where the building would then be leased to a private organization that would use the facility to run programs of its choosing. The county could, of course, construct a community center on land it owned or leased, but it would have to put the project out for bids in accordance with applicable statutes. The operation of a community center would require annual appropriations. The county could provide staffing through its own employees or it could contract with an organization such as RENA to run programs, but these would have to be open to the general public. In short, there are many options for legally accomplishing the objective of providing a community center that would benefit the residents of Rogers Road, but the current proposal is not one of them. 2. Orange County, Carrboro, and Chapel Hill, as owners of the Greene Tract, and the County, as owner of other property used for solid waste disposal, could petition Chapel Hill to annex any properties owned by these governmental entities within the portion of the Rogers Road area that is located in Chapel Hill's ETJ or Joint Planning Area, and Chapel Hill could do so (subject to the possible exception that, if the area to be annexed was not contiguous to the existing town limits, than no lots within a subdivision could be annexed unless the entire subdivision was annexed). However, this would enable Chapel Hill to extend sewer lines only to those areas so annexed. 34 3. The $900,000 that Chapel Hill, Carrboro, and Orange County agreed to pay to the Landfill Fund for the 100+ acres of the Greene Tract that were not conveyed to Orange County cannot be used to pay for either the construction of a community center or the extension of sewer lines to the Rogers Road area. The Green Tract was acquired using landfill funds, and the $900,000 is being paid back to this enterprise fund. Such funds can only be expended to cover the costs associated with the operation and maintenance of the landfill. 4. Proceeds from the sale of the 100+ acre portion of the Greene Tract now owned jointly by OC, CB, and CH can be used in the same manner as other unrestricted general funds. Thus, Carrboro could use these funds to extend sewer lines to unserved areas within Carrboro's corporate limits. 5. The towns and the county could appropriate funds to subsidize the cost of actually connecting homes to a sewer line, once that line has been constructed. In order to be able to point to specific statutory authority to provide such subsidies, it would be preferable to limit the availability of such subsidies to low and moderate income property owners. The attorneys do not recommend that the contractor engaged by the county and/or the towns to extend the lines be directed to construct lines connecting individual properties to the public lines because this work involves actually getting into the plumbing systems within individual homes and poses significant risks of unexpected complications and claims of damages. 6. The managers propose that a "County Sewer District" be created for the Rogers Road area as well as adjoining areas that do not have sewer, and that the district use the special assessment process to recoup some of the costs of extending sewer service to these areas. Presumably, the proposal is referring to a County Water and Sewer District created pursuant to Article 6 of G.S. Chapter 162A. Such a district would be a legally separate municipal corporation, but the governing body of the district would be the Orange County Board of Commissioners. Such a district could issue its own bonds to raise the capital to cover the cost of extending the lines. Assessments could be based on various criteria listed in G.S. 153A -186, including "the area of land served... at an equal rate per unit of area," which would mean that properties with greater development or redevelopment potential would pay more than smaller properties, but the statute does not provide a way to exempt from the assessments specific properties based on criteria not listed in the statute. Thus, if the objective is to extend sewer lines at little or no cost to the longstanding owners of properties in the Rogers Road area, but to recapture some of the cost of extending the lines when properties in this area are developed or redeveloped, the special assessment process appears to be a useful tool. An alternative might be to establish the District and have the District issue its bonds to raise the cost of extending the lines. Carrboro could contract with the District to pay for the cost of extending the lines to serve properties that are within the town. The District would contract with OWASA to operate and maintain the lines and to bill the customers in the same manner as other OWASA customers. (An amendment to the WSMPBA would probably be needed). Then the District could establish a fee — call it a service line extension fee — that would be designed to recoup some of the costs incurred by the District in extending the lines. ( OWASA has an "availability fee" that is designed to recoup the cost of the treatment plant and major outfalls, but 35 this fee does not cover the service lines because those are typically installed at the developer's expense). This fee would be paid at the same time as OWASA's availability fee — when a connection is made. The District's policy could provide that the service line extension fee would be waived for the first connection made to any property existing as of a specified date. 36 Attachment 2 Excerpt from Draft Minutes of December 6, 2012 Assembly of Governments Meeting MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS CHAPEL HILL TOWN COUNCIL HILLSBOROUGH BOARD OF COMMISSIONERS CARRBORO BOARD OF ALDERMEN December 6, 2012 ASSEMBLY OF GOVERNMENTS The Orange County Board of Commissioners met with the Towns of Chapel Hill, Carrboro and Hillsborough for an Assembly of Governments meeting on Thursday, December 6, 2012 at 7:00 p.m. at the Southern Human Services Center in Chapel Hill. N.C. 2) Review of the Draft Interim Recommendations from the Historic Rogers Road Neighborhood Task Force Michael Talbert said that the Historic Rogers Road Neighborhood Task Force last met on November 14th. This was supposed to be the last meeting and this was supposed to be the final report. He reviewed the charge of the task force: - Investigate and make recommendations to the Board of County Commissioners, the Chapel Hill Town Council, and the Carrboro Board of Aldermen for neighborhood improvements, including funding sources, financial impact to the County and the Towns for the following: • Sewer Service to the Historic Rogers Road Neighborhood as defined by the previously approved public water connections in the area • A Neighborhood Community Center - The Task Force is also directed to: • Submit an Interim Report back to the County and the Towns by the end of August 2012; and • Submit a Final Report to the Assembly of Governments on December 6, 2012. Attachment B includes the recommendations in draft form because the Task Force has not seen them or approved them yet. There are five primary recommendations: 1. That the costs of both a New Community Center and Sewer Improvements be shared by the local governments, at the same costs sharing percentages as outlined in the 1972 Landfill Agreement, 43% for Orange County, 43% for the Town of Chapel Hill and 14% for the Town of Carrboro. 2. That the Managers and Attorneys originate a Memorandum of Understanding between Habitat, Orange County, the Town of Carrboro, and the Town of Chapel Hill for the construction of a new Rogers Road Community Center. The budget will not exceed $700,000 and the project will be bid in compliance with North Carolina public bidding requirements. Orange County will finance the project with reimbursement from the Towns as outlined in (1) above. 37 3. That the governing boards continue to appropriate funds, as previously budgeted to reimburse the Solid Waste fund for the purchase of the Greene Tract, for both a New Community Center and Sewer Improvements. Funds budgeted in Fiscal Year 2012/2013 for the Greene Tract are as follows; $90,549 for Orange County, $90,549 for the Town of Chapel Hill and $29,524 for the Town of Carrboro. The governing boards are also encouraged to locate other funding sources for a New Community Center and Sewer Improvements. 4. That the Hogan- Rogers House no longer be considered as an option for a Neighborhood Community Center. The St. Paul's AME Church is working with the Chapel Hill Preservation Society to save the structure. 5. That the Task Force continue to meet to address the Charge of the Task Force, for an additional six months with the original composition of the Task Force. The composition of the Task Force originally included two members appointed by each Town (Chapel Hill and Carrboro); two members appointed from the County; and two members appointed from Rogers Eubanks Neighborhood Association (RENA). There are several recommendations that have not been finalized and that is why the Task Force wants to continue to meet. The first is the community center. There needs to be a memorandum of understanding of how the center is going to operate, who will pay for it, who will construct it, who will occupy it, and what type of interlocal agreement or memorandum of understanding would be between the Towns, Habitat and the Rogers Road Neighborhood Association for the operation and the program /activities to be provided. The second item is the sewer district. The managers suggested that there be a Rogers Road County Sewer District. There are a lot of details to be worked out with that. The recommendation is that the managers continue to work on this issue and participate with the Towns and OWASA to study this idea. The managers could work with the attorneys to create criteria that would enable homeowners that have lived in the Historic Rogers Road Neighborhood before 1972 to connect from the sewer system free of charge and recommend a sliding scale fee structure for homeowners that moved to the neighborhood between 1972 and 2012. Attachments D and E have attorney opinions. There are many legal issues yet to be worked out over multi - jurisdictional lines. Chair of the Task Force Pam Hemminger said that the task force was determined to finish its work as soon as possible. She hopes that the County will approve starting the drafting of the Memorandum of Understanding between the County, the Towns, and Habitat. There are lots of different options still to be considered and lots of information still to be pulled together. This is why the task force wants to continue to meet. Aldermen Gist said that there have been several memos from their attorney in the past couple of weeks. She asked if he would be willing to share about the latest memo. Town of Carrboro Attorney Mike Brough said that, with respect to the community center, the issues that he raised had to do with the role of Habitat. He said that there would have to be a bidding process and it was not clear to him how there would be a bidding process. Habitat is not going to be construction the center and it is his understanding that the County would continue to own the center. He said that there are a lot of details that remain unclear to him. The other issue that he expressed to the Carrboro Board of Aldermen is the ongoing operation and maintenance of the center. He understands that the intent of the County is that whatever funds are distributed are not continued to be ongoing. He suggested that some consideration be given to this. His recommendation is that the board considers whether the planning should be directed solely to the sewer project as opposed to the community center. If all three bodies are operating the community center there are issues about the programs, etc. The memo is shown below: W Memorandum to: Carrboro Mayor and Board of Aldermen From: Mike Brough Subject: Rogers Road Proposals Date: November 7, 2012 "County Attorney John Roberts, Chapel Hill Attorney Ralph Karpinos, and I met November 6th to discuss the managers' October 16, 2012 recommendations for constructing a Community Center to service the Rogers road area and to extend sewer lines into this area. We also discussed Mark Dorosin's October 23, 2012 letter recommending that, not only should sewer lines be extended into this area, but that homes should be connected to the sewer lines at public expense. We agreed on the conclusions set forth below in paragraphs 1 -5. The thoughts set forth in paragraph 6 did not occur to me until after our meeting, and therefore have not been endorsed by the other attorneys: 1. Statutory authority exists for the towns and the county to cooperate in operating funding a community center located in the Rogers Road area, and there are a number of ways in which this could be accomplished. However, as we understand it, the current proposal is that the county and /or the towns would pay Habitat $500,000 to construct the facility, on land provided by habitat, and then Habitat would lease the center to RENA, who would operate it, presumably in accordance with RENA Neighborhood Center Business Plan (Attachment B to the Agenda Item). The attorneys do not believe it is legally permissible for the county or the towns to expend public funds to fund the construction of a building on land the county does not own, under circumstances where the building would then be leased to a private organization that would use the facility to run programs of its choosing. The county could, of course, construct a community center on land it owned or leased, but it would have to put the project out for bids in accordance with applicable statutes. The operation of a community center would require annual appropriations. The county could provide staffing through its own employees or it could contract with an organization such as RENA to run programs, but these would have to be open to the general public. In short, there are many options for legally accomplishing the objective of providing a community center that would benefit the residents of Rogers Road, but the current proposal is not one of them. 2. Orange County, Carrboro, and Chapel Hill, as owners of the Greene Tract, and the County, as owner of other property used for solid waste disposal, could petition Chapel Hill to annex any properties owned by these governmental entities within the portion of the Rogers Road area that is located in Chapel Hill's ETJ of Joint Planning Area, and Chapel Hill could do so (subject to the possible exception that, if the area to be annexed was not contiguous to the existing town limits, than no lots within a subdivision could be annexed unless the entire subdivision was annexed). However, this would enable Chapel Hill to extend sewer lines only to those areas so annexed. 3. The $900,000 that Chapel Hill, Carrboro, and Orange County agreed to pay to the Landfill Fund for the 100+ acres of the Greene Tract that were not conveyed to Orange County cannot be used to pay for either the construction of a community center or the extension of sewer lines to the Rogers Road area. The Greene Tract was acquired using landfill funds, and the $900,000 is being paid back to this enterprise fund. Such funds can only be expended to cover the costs associated with the operation and maintenance of the landfill. 4. Proceeds from the sale of the 100+ acre portion of the Greene Tract now owned jointly by Orange County, CB, and CH can be used in the same manner as other 39 unrestricted general funds. Thus, Carrboro could use these funds to extend sewer lines to unserved areas within Carrboro's corporate limits. 5. The towns and the county could appropriate funds to subsidize the cost of actually connecting homes to a sewer line, once that line has been constructed. In order to be able to point to specific statutory authority to provide such subsidies, it would be preferable to limit the availability of such subsidies to low and moderate income property owners. The attorneys do not recommend that the contractor engaged by the county and /or the towns to extend the lines be directed to construct lines connecting individuals' properties to the public lines because this work involves actually getting into the plumbing systems within individuals homes and poses significant risks of unexpected complications and claims of damages. 6. The managers propose that a "County Sewer District" be created for the Rogers Road area as well as adjoining areas that do not have sewer, and that the district use the special assessment process to recoup some of the costs of extending sewer service to these areas. Presumably, the proposal is referring to a County Water and Sewer District created pursuant to Article 6 of G. S. Chapter 162A. Such a district would be a legally separate municipal corporation, but the governing body of the district would be the Orange County Board of Commissioners. Such a district could issue its own bonds to raise the capital to cover the cost of extending the lines. Assessments could be based on various criteria listed in G.S. 153A -186 including "the area of land served ... at an equal rate per unit of area," which would mean that properties with greater development or redevelopment potential would pay more than small properties, but the statute does not provide a way to exempt from the assessments specific properties based on criteria not listed in the statute. Thus, if the objective is to extend sewer lines at little or no cost to the longstanding owners of properties in the Rogers Road area, but to recapture some of the cost of extending the lines when properties in this area are developed or redeveloped, the special assessment process appears to be a useful tool. An alternative might be to establish the District and have the District issue its bonds to raise the cost of extending the lines. Carrboro could contract with the District to pay for the cost of extending the lines to serve properties that are within the town. The District would contract with OWASA to operate and maintain the lines and to bill the customers in the same manner as other OWASA customers. (An amendment to the WSMPBA would probably be needed). Then the District could establish a fee — call it a service line extension fee — that would be designed to recoup some of the costs incurred by the District in extending the lines. ( OWASA has an "availability fee" that is designed to recoup the cost of the treatment plant and major outfalls, but this fee does not cover the service lines because those are typically installed at the developer's expense). This fee would be paid at the same time as OWASA's availability fee — when a connection is made. The District's policy could provide that the service line extension fee would be waived for the first connection made to any property existing as of a specified date." Aldermen Slade said that the proposal does not mean that they would not be providing their portion of the costs for the community center and the sewer. He said that $900,000 represents 14% of those two costs aggregated. It is more of a way to facilitate technically the management of the two projects. Aldermen Gist said that she appreciated the memo today because it pointed out potential "alligators" that could damage the whole project and the whole effort. She thinks that these are very serious, pragmatic, legal issues that have to be dealt with. She wants to invite the task force to address these issues. Commissioner Rich suggested that the task force hand this over to the managers, attorneys, and planning departments. She thinks that the issues coming up from the attorney are things that managers and attorneys have to make everyone aware of. She thinks that the EN task force has met the charge and has identified the monies. She also thinks that they have identified their commitment to sewer and the community center. She does not want to keep discussing this without making sure that all of the managers have discussed this. She does not want to hold any of this back. Mayor Chilton said that Carrboro elected officials are in an unusual position in that a huge portion of the sewer component and the costs of serving the entire area happens to fall within the town limits of Carrboro. However, the number of homeowners and renters to be served who live in the Carrboro town limits is very small. He said that Carrboro is very happy to participate to the tune of $900,000. He likes what the attorney suggested regarding focusing on the sewer lines. Commissioner McKee thanked the members of the task force. He said that he does not see anything that cannot be worked out. He thinks that the sewer issue and the community center issue be disengaged. He said that one should not depend on the other, nor should any recommendation depend on another recommendation for the community center to move forward. He will continue to push that the community center be moved forward one way or the other. He said that he is determined that the County will build this center. Commissioner Jacobs asked Pam Hemminger to answer the question about Habitat's participation. Pam Hemminger said that Habitat owns the property where the community center is supposed to be located and is dedicating property. There had to be a special use permit process for this to happen. This is one of the reasons that Habitat is involved. Habitat does not want to assume responsibility for long -term care and maintenance of the building. Habitat did offer to be the construction engineer /contractor for this building. This will be a lot less cost. She knows that there are legal issues to be worked out and these can be worked out. Chapel Hill Town Councilmember Ward voiced support for continuation of the task force. He asked that the charge be revised and updated to address the upcoming questions related to the remaining issues. He said that the task force is really good at having representatives of all elected bodies coming to meetings so that as the staff work through the issues, there is a venue where there can be updates, etc. Without the task force in place, it is cumbersome to get the approval information to the three elected boards. Chair Pelissier said that she is struggling with the extension of the task force, especially when it comes to the community center. She does not want to hold things up. She would like to hear from staff about whether these things can be worked out. Commissioner Jacobs said that the County Commissioners have made no explicit vote on whether or not to continue the task force. The Board implicitly agreed with its two representatives that it was worth continuing, but the Board no longer has any representatives on the task force (Pam Hemminger and Valerie Foushee are no longer on the Board). It is on the January 24th agenda for discussion on whether or not to appoint two new people or whether or not the task force has finished its work. Commissioner Dorosin made reference to the sewer issues. He said that these are fundamental policy issues that should be resolved and not by staff. He said that he remains committed to the idea that every resident in the Rogers Road Historic Neighborhood gets connected to the water and sewer at no cost. He said that he would like to decide now or soon that the boards are committed to funding the infrastructure mains and the connections from the mains to the meters at the very least at no cost to existing residents. He is concerned about the language about special assessments, loans, and sliding scales. He said that if they go down any of these paths, then it is a betrayal of the commitment made to this community. Commissioner Price said that she agreed with Commissioner Dorosin and she is committed to seeing the community center through. She thinks that the task force needs to continue to meet. She thinks that the legal issues can be worked out. She agreed with separating the two issues so that the community center can be built as soon as possible. Alderman Johnson said the task force voted at their last meeting to continue the task force for six months. She said that one of the recommendations was for managers to meet and 41 report back to them and they are waiting on that. She said that there are two community members on the task force, and if the task force no longer meets, then the community members are left out of the conversation. Council Member Pease said that they need to disentangle the two issues and say that the task force has finished phase I, whatever that is, and let the attorneys and managers work out the legal issues for the community center. He said that his fear of continuing the task force with its current process is that it is going to be somewhat of a new makeup. He would be afraid that it might be slowed down or there may be other agendas with new members joining it. He suggested getting to the end of the conversation on the community center and then starting a phase 2 with new members and tackling the sewer issues. Council Member Storrow said that none of these ideas are in opposition to each other. He said that it seems like if the task force is stopped, the community center would probably still get built. Regardless of the structure, he thinks that the community center is finished. There are more structural questions than philosophical. He said that there should be some mechanism to continue a conversation. He said that if the task force is totally dismantled then some of the sewer questions may not be answered. Council Member Ward said that if Council Member Pease agreed with Commissioner Rich then now he does also. He said that this task force has been very effective and the membership will be changed, and it is appropriate to rehash. He said that the Board of County Commissioners is in control of setting the agenda for the task force. He said that the community center is now checked off the list and is now in the hands of staff. He feels confident to take the center off the list and then let the task force tackle these other issues and keep the community members on it, whichever form it may take. Alderman Slade said that the task force should be kept intact. He said that the community center is a done deal. He said that there is a lot of work to be done with the sewer. He strongly supports continuing with this effective task force. Commissioner Rich said that at the beginning of the task force for the first two months, they were read the charge. She thinks that the task force has fulfilled the charge and if the task force is asked to continue, the charge must be changed. Commissioner McKee said that the task force should continue with the current members. There are three members whose situations have changed, but the community has not changed. He said that the charge of the task force was not to make sure that any governmental entity came out on the better end of the deal. The charge was to ensure that the community came out on the better end. The members of the task force as it is currently constructed have spent almost a year working on this. He suggested leaving this task force constructed as it is with the current members as they are unless they have other obligations to prevent them from being able to attend. Alderman Gist said that she supported continuing with the task force because it gives the staff and elected bodies someone to talk to about the issues. She would like the task force continue to address the community center issue and the continuing costs of operating the center and other unknowns. Mayor Chilton said that he agreed with Aldermen Gist. He said that this task force was created by the Board of County Commissioners and the reality is that the County Commissioners need to decide how it moves forward. Chair Jacobs said that it has been helpful to hear everything. He said that he has brought up the issue of gentrification several times, but it was not discussed in detail and was not part of the charge of the task force. If the task force goes forward, the charge should be revised. Michael Talbert From: Sent: To: Cc: Subject: BOCC, FYI Attachment 3 Michael Talbert Wednesday, January 16, 2013 3:56 PM Barry Jacobs; Bernadette Pelissier; Alice Gordon (External); Earl McKee; pennyrich.ch @gmail.com; Mark Dorosin; Renee Price Frank Clifton; Greg Wilder, Donna Baker FW: Historic Rogers Road Neighborhood Task Force 42 On Tuesday January 15, 2013, Chair Jacobs asked that I send out an email to Pam Hemminger and Valerie Foushee requesting their comments regarding the possibility of continuing the Historic Rogers Road Neighborhood Task Force and their willingness to continue to serve on the Task Force. Below is my email and their individual comments on the Historic Rogers Road Neighborhood Task Force issue. Good Afternoon, I hope both of you are doing well. The BOCC is considering the reappointment, a possible Charge and a time line for the Historic Rogers Road Neighborhood Task Force. The recommendation from the Task Force was to continue to meet to address the Charge of the Task Force and this issue will be on the BOCC 1/24/13 agenda. Chair Jacobs has asked if either of you could provide insight as to specifically what issues in the Historic Rogers Road Neighborhood have not yet been addressed by Task Force and if appointed would you still be willing to serve on the Task Force for up to an additional 6 months if needed? Thanks you for taking a few minutes help us with this emotionally charged issue. Michael S. Talbert Assistant County Manager Orange County, North Carolina 200 S. Cameron Street Hillsborough, NC 27278 Tel (919) 245 -2308 Fax (919) 644 -3324 From: Rep. Valerie Foushee [ mailto :Valerie.Foushee(abncleg.net] Sent: Wednesday, January 16, 2013 11:25 AM To: Michael Talbert Subject: RE: Historic Rogers Road Task Force Michael, Pam's assessment of the Task Force's work is very accurate. I believe as she, that the work is not completed as charged and would urge a continuation. Chairman Jacobs raised very appropriate questions and suggestions of items to be included in that continuation. I don't think that it is reasonable for me to think that I could be an effective member of the Task Force at this time, but would continue to support the Board in this effort in any way that I can. 43 Best, Valerie Happy New Year to you both as well! The Task Force was still struggling with a time -line, description of what all would be involved with installing sewer and how to proceed with a sewer /water plan for those individuals who wanted sewer /water and what the "qualifiers" would be. The Task Force wanted to hear back from the managers as far as a plan for moving forward with both projects, what funds could be used for connecting individual homes to sewer and the details of how the Community House would be owned /maintained /built. I know you have already been working on these issues, but the Task Force felt that it had not finished up all the outstanding details of both the Community Center and the sewer project. There was much concern about the legal opinions around these issues and if that would stop or slow the projects down. We covered a great deal in the last meeting but the group did not feel confident that it had established a real time -line for implementing the projects and did not want to leave anything unfinished for fear of things not being implemented and just shelved. I would be happy to continue to serve for another 6 months but would not be offended if another direction was chosen. Take care- Pam