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HomeMy WebLinkAboutAgenda - 10-17-2013 - 4ORANGE COUNTY BOARD OF COMMISSIONERS CARRBORO BOARD OF ALDERMEN JOINT MEETING AGENDA ITEM ABSTRACT Meeting Date: October 17, 2013 Action Agenda Item No. 4 SUBJECT: Update on Roberson Street/Main Street Sewer Line Replacement Proiect DEPARTMENT: Economic Development PUBLIC HEARING: (Y /N) No ATTACHMENT(S): A) Original MOA Between Orange County and Town of Carrboro for Repairs to the Main Street Sewer Line - October 22, 2012 B) State of North Carolina CDBG Award Letter to Town of Carrboro - June 25, 2012 C) Letter from Carrboro Town Manager to Orange County Manager - April 17, 2012 D) Letter from Orange County Manager to Carrboro Town Manager —April 26, 2012 E) E -mail from Town of Carrboro's Economic Development Staff to Orange County Economic Development - August 27, 2013 F) Summary of Joint Annual Meeting Between Orange County & Town of Carrboro - October 1, 2012 INFORMATION CONTACT: Steve Brantley, Economic Development, Director, (919) 245 -2325 Michael Talbert, Interim County Manager, (919) 245 -2300 PURPOSE: To update the Boards on the Roberson Street /Main Street sewer line replacement project. BACKGROUND: In April 2012 the Town of Carrboro contacted the County about a privately owned sewer line located in the downtown business district. The sewer line, which initially failed on August 26, 2011, serves 22 businesses with 140 total employees. Anticipating another eventual failure to this sewer line, and the resulting disruption to one of Carrboro's key business areas, the Town approached the County for financial assistance to help fund the repair cost through use of the County's one - quarter (1/4) cent sales tax for infrastructure improvements. Based on an initial $258,500 total project repair cost estimate that Carrboro had received, a joint funding arrangement was established wherein the Town would apply to the State of North Carolina for a "Community Development Block Grant" (CDBG) to receive 70% funding ($183,500), and the Town and County would contribute a 50/50 co -share for the required 30% 1 local match ($75,000). The BOCC authorized the County Manager to proceed with a Memorandum of Agreement (MOA) with the Town of Carrboro, which was subsequently drafted. At that time, the County's co -share of the estimated sewer line repair cost was thought to be approximately $37,500 and would not exceed $40,000. The MOA stated the County would reimburse the Town once the sewer line repair work was completed. Orange Water and Sewer Authority (OWASA) had already approved the work. On June 25, 2012 the North Carolina Department of Commerce awarded the Town of Carrboro a $171,700 Community Development Block Grant to cover 70% of the repair cost, with the Town and County providing the remaining funds through the required 30% co -pay. Orange County Economic Development assisted the Town in its successful CDBG application by making a direct petition to the Secretary of the N.C. Department of Commerce and the Community Development Division. On October 22, 2012 the Memorandum of Agreement (MOA) between Orange County and the Town of Carrboro was signed. As the project moved forward, Carrboro received new contractor bids on the actual repair of the sewer line, and the revised repair estimate indicated an unexpected shortfall of at least $56,000 compared to initial repair estimates. Considering a 25% contingency and added administrative consulting costs to re -bid the project, the Town anticipated facing an increase of $80,000 in overall repair costs. The Town requested that Orange County increase its financial participation in the Roberson Street /Main Street sewer line repair due to higher than expected repair bids being received from contractors. Based on the Board's previous authorization for the Manager to proceed, and also on the Manager's signature authority, the Interim Manager recently signed an amended MOA agreeing to reimburse Carrboro for 50% of the additional costs, up to an additional $40,000. County funds would come from "Article 46" 1/4 cent sales tax economic development funds (for infrastructure improvements) to pay one half of the actual local match necessary to complete the project. The Town of Carrboro would pay the remaining costs. FINANCIAL IMPACT: The County's "Article 46" 1/4 cent sales tax for economic development, specifically for utility infrastructure development, will be used to fund the County's portion, or, one -half of the actual local match for the project. The County's portion includes the original estimate ranging from $37,500 to $40,000 (as outlined in the October 22, 2012 MOA), plus the additional increase of up to an additional $40,000 to cover the increased repair estimate. RECOMMENDATION(S): The Interim County Manager recommends that the Boards receive the update, discuss as necessary, and provide any comments and /or direction. K Attachment A MEMORANDUM OF AGREEMENT BETWEEN ORANGE COUNTY, NORTH CAROLINA AND THE TOWN OF CARRBORO, NORTH CAROLINA For REPAIRS TO THE MAIN STREET SEWERLINE This Memorandum of Agreement ( "Agreement ") is hereby made and entered into this the `,day of(��tb_er, 2012, by and between ORANGE COUNTY, hereinafter referred to as ( "County "), and the TOWN OF CARRBORO, hereinafter referred to as ( "Town ") pursuant to N.C. Gen. Statute 160A -460 et seq., 158 -7.1 and other applicable laws. WHEREAS, County and Town desire to support local businesses and to further economic development within Orange County and within the Town of Carrboro; and WHEREAS, County and Town desire to repair and upgrade the sewerline serving the businesses located on East Main Street, Carrboro, North Carolina (hereinafter referred to as the "Main Street Sewerline "); and WHEREAS, the Town has received a the Community Development Block Grant awarded by the North Carolina Department of Commerce to fund the repairs to the Main Street Sewerline; and WHEREAS, the parties desire to enter into this Agreement to supplement the grant and providing additional funding necessary for completing the construction and repairs to the Main Street Sewerline; NOW THEREFORE, the following Agreement is hereby entered into by the County and the Town. Funding. The North Carolina Department of Commerce has awarded the Town a Community Development Block Grant (hereinafter the "Grant ") in the amount One Hundred and Seventy One Thousand and Seven Hundred Dollars ($171,700) to fund the repairs to the Main Street Sewerline. The Grant is expected to cover 70% of the estimated costs of repair to the Main Street Sewerline. Town and the County shall each provide one -half of the funding for the remaining 30% of the estimated costs of repair. County shall reimburse the Town after construction of the sewerline has been completed and the work has been approved by the Orange Water and Sewer Authority (OWASA). County's share of the estimated costs of repair shall not exceed Forty Thousand Dollars ($40,000) and shall be paid out of the quarter cent sales tax proceeds for FY 2012 -13. 2. Construction and Repairs. Town shall be responsible for the construction of the sewerline including but not limited to the engineering, bidding, permitting, construction supervision, and for the providing the necessary connections to the businesses served by the Main Street Sewerline. The County agrees to cooperate with the Town, as requested to secure the necessary permits and approvals to complete the repairs. All repairs shall be constructed to the applicable state and local engineering standards. n 3. Term. The term of this Agreement shall commence the year and date first above recorded and shall continue for the life of the grant. 4. Maintenance. Upon completion of the construction and repairs described above, the Town shall transfer the utilities to OWASA for upkeep, operation and maintenance of the sewerlines and associated infrastructure. Such upkeep, maintenance and repair or replacement shall be at the sole cost and expense of OWASA. 5. Sewer Connections. New and existing individual connections to the Main Street Sewerline shall be subject to the approval of the Town. The Town shall install stub -outs for the each property owner requesting a connection to the Main Street Sewerline during construction. The individual property owners shall be responsible for installing the laterals and all costs associated with connecting their businesses to the Main Street Sewerline. All future connections to the Main Street Sewerline after project completion shall be the sole responsibility of the individual property owners. 6. Additional Documentation. The parties agree to and hereby authorize the County Manager, County Attorney and Town Manager and Town Attorney to prepare and execute all such other and further documentation or agreements as shall be necessary or desirable in effectuating this agreement. This Agreement contains the entire understanding of the parties and shall not be altered, amended or modified, except in writing executed by both parties. IN WITNESS WHEREOF, the parties hereto have caused this Interlocal Agreement to be executed as of the day and year first written above. FOR AND ON BEHALF OF: FOR AND ON BEHALF OF: ORANGE COUNTY, NC TOWN OF CARRBORO, NC 6_0� C4,A� By: By: Frank Tifton, C Manager Town Manager This Agreement has been approved as to form and legal sufficiency. County Atto y's Office Date This instrument has been pre - audited in the manner required by the Local Government Budget and Fiscal Control Act. Orange County Finance Director Date This Agreement has bee approv as to form and legal sufficiency. Town Attorney's O ce Date 2 This instrument has been pre- audited in the manner required by the Local Government Budget and Fispaontrol lAAct. Town of Carrboro Finance Director Date Attachment B v I •� � North Carolina Department of Commerce Community Investment and Assistance Beverly Eaves Perdue, Governor J. Keith Cosco, Secretary June 25, 2012 The Honorable Mark Chilton, Mayor Town of Carrboro 301 W. Main Street Carrboro, NC 27510 Dear Mayor Chilton: Henry C. McKoy, Assistant Secretary Viclde L. Miller, Director It is my pleasure to notify you officially that the Town of Carrboro has been awarded a $171,700 Community Development Block Grant (CDBG) of 2011 Small Business and Entrepreneurial Assistance funds. We are happy to support small business expansion and entrepreneurial advancement efforts for the citizens in your community. A staff member of Community Investment and Assistance (CI), which administers the CDBG Program, will contact you about certain grant conditions that must be met before funds may be obligated. We look forward to working with you and other officials. If you have any questions regarding this grant, please contact Vickie L. Miller, Director, Community Investment and Assistance, at (919) 571.4900. Sincerely, Henry C. McKoy CC: J. Keith Crisco Dale Carroll Annette Stone Vickie Miller 100 East Six Forks Road, Suite 200.4313 Mail Service Center • Raleigh, North Carolina 27699 -4313 Tel: (919) 571 -4900 • Fax: (919) 5714951 An Equal Opportunity/Affirmative Action Employer 7 Frank Clifton, Manager Orange County 200 S. Cameron St. Hillsborough, NC 27278 TOWN OF CARRBORO Attachment C NORTH CAROLINA W W W.TOWNOFCARRBORO.ORG SENT VIA ELECTRONIC MAIL Re: Request for Local Match Assistance from Orange County Mr. Clifton, In conversations with Steve Brantley, Town staff has been asked to sketch out an overview of the proposed CDBG Small Business Entrepreneurial Grant Assistance request the Town of Carrboro is making to the State for CDBG funding. This grant request is related to an August 26, 2011 sewer failure that occurred at the 100 block of Main Street in Downtown Carrboro. It was at that time that the volatile nature of the existing shared private sewer line that serves this block of businesses was revealed. After a great deal of discussion and thought among local town officials, county health department staff and the property owners, it was determined that the most feasible long term solution for this important block of businesses was to extend a public sewer line from Maple Street over to Roberson Street in order to serve these businesses and prevent future closure. This block of buildings includes 22 businesses, 140 employees, and is a critical element to the total synergy that is Downtown Carrboro. In addition to securing the future of the existing businesses and job retention of 140 employees, access to sewer in this location will make re- development of the rear of these properties feasible and create opportunities for a whole new line of storefronts on Roberson Street. The total anticipated project cost is $258,500, including $3,500 for project administration and a requirement that $5,000 of the grant funds be used to "create /nurture an entrepreneurial environment ". We are working on an innovative series of workshops for "fourth sector" enterprises to accomplish this portion of the grant requirements. The Town is proposing a project funded 70% from CDBG funding ($183,500) and 30% :from a local match of $75,000. The Town is requesting that Orange County partner with the Town of Carrboro to assist in this economic redevelopment investment and split the local match with the County and the Town both participating at $37,500 each. Please let me know if you need additional information. Sincerely, Z", "14,� David Andrews Town Manager CC: Carrboro Board of Aldermen Annette Stone, Carrboro Economic & Community Development Director 9ez David L. Andrews Town Manager Town of Carrboro 301 W. Main Street Carrboro, NC 27510 Attachment D ORAT,-TGE COUN r HILLSBOROUGH NORTH CAROLINA April 26, 2012 Re: Orange County Participation with the Town of Carrboro Regarding CDBG Small Business Entrepreneurial Grant Assistance Mr. Andrews: n.&ZK. eol'17.i2 I am pleased to report that on April 17, 2012, the Orange County Board of Commissioners approved a joint participation with the Town of Carrboro to cost share the local portion match of the CDBG application. This State application seeks funding for infrastructure upgrades to one of Carrboro's vital business districts. Our Board is extremely pleased to partner with Carrboro in your CDBG application with the North Carolina Department of Commerce's Community Investment and Assistance Division, and has approved funding our portion of the 50/50 share of the 30% local match being proposed. Orange County desires to cap our estimated split at half the local share, up to $40,000 to allow some flexibility. We will jointly develop an M.O.U. to formalize this commitment. With the overall goal to repair a critical sewer line that is failing along the 100 E. Main Street area of downtown Carrboro, and thereby retain the vital employment of 140 employees and the 22 businesses located there, Orange County is enthusiastic to assist the Town of Carrboro in this funding partnership. Our Board understands that without these grant dollars for public sewer to this vital area of your downtown, these business may have to close and the existing jobs lost, given the uncertainty of this failing sewer line's continued service. As the Town of Carrboro's CDBG Small Business Entrepreneurial Grant Assistance application moves forward with the State review, I offer any assistance from our Orange County Economic Development department, and its director, Steve Brantley. In conclusion, Orange County looks forward to working closely with you and your staff to seek a favorable funding resolution to this sewer line issue. Best wishes, Frank . Clifton, Jr. Oran e County Manager AREA CODE (919) 245 -2300 0 688.7331 - FAX (919) 644 -3004 Ext. 2300 n Attachment E "In dreams begins responsibilities — U2." From: Steve Brantley [mailto :harley- davidson@nc.rr.com] Sent: Tuesday, August 27, 2013 12:18 AM To: Frank Clifton Cc: John Roberts Subject: Fwd: Cost Overruns on Roberson Street Sewer Extension Carrboro's economic developer called last week and now just sent a written summary of their failing sewer line on Roberson Street. You will recall the County agreed last year to a 50/50 cost share on the required 25% co -pay for the CDBG grant our office helped Carrboro receive from Commerce. I think the contract at that time limited our payment to no more than approx $37,000. The County would pay our share from Article 46 funds. Carrboro now reports that their initial estimate to repair the failing sewer line was inaccurate and the new cost estimate is much higher, as outlined below in Annette Stone's email. Carrboro is now asking the County to step up with additional assistance. Steve Brantley Orange County Economic Development Begin forwarded message: From: Annette Stone <astone@townofcarrboro.org> Date: August 26, 2013, 3:42:58 PM EDT To: "Steve Brantley (harley- davidson@nc.mcom)" <harley- davidson @nc.rr.com> Subject: Cost Overruns on Roberson Street Sewer Extension Dear Steve, Per our conversation on Thursday, I am writing you to request that the Orange County Board of Commissioners consider assisting the Town of Carrboro with additional local economic development funds to complete the Roberson Street Sewer Project. The Town of Carrboro received bids for the Roberson Street Sewer Project in July with only 2 contractors submitting a bid. In addition, the low bid was $56,000 over budget for this project. The Public Works Director has been working closely with the Town's Engineer and the Engineers at OWASA to determine why the estimates were too low. The Town has decided to reject these bids and will re -bid the project in September with Board approval, in hopes of improving our position and reducing cost. For the immediate budgeting purposes based on the most recent bids received, we are projecting a $56,000 shortfall plus 25% contingency and the added administrative consulting cost to re -bid the project. We are anticipating an additional $80,000 in expenses, so therefore, we may need as much as $40,000 in additional funds. However, ultimately the Town would only ask for reimbursement for % of the actual local match necessary to complete this project. We would appreciate Orange County Board of 10 Commissioners consideration in assisting the Town with completing this important project. Thanks for your help Steve. Please let me know if you need any additional information. Annette Town of Carrboro, NC Website - hiip: / /www.townofcarrboro.org E-mail correspondence to and from this address may be subject to the forth Carolina Public Records Law and may be disclosed to third parties. 11 Attachment F SUMMARY OF JOINT ECONOMIC DEVELOPMENT ACTIVITIES: OCTOBER 2011— OCTOBER 2012 ORANGE COUNTY & TOWN OF CARRBORO Prepared by Orange County Economic Development October 1, 2012 INFRASTRUCTURE SUPPORT FOR BUSINESS RETENTION Interlocal Agreement to Fund Repair of the Main Street Sewer Line: On June 25, 2012 the North Carolina Department of Commerce responded to a Community Development Block Grant (CDBG) application by awarding Carrboro a $171,700 CDBG grant to fund necessary repairs to the Town's failing Main Street sewer line. As this privately owned sewer line is failing, it jeopardizes the various downtown businesses and employees that could be impacted in the event of a shutdown. Earlier in the year, Orange County Economic Development assisted the Town with the CDBG grant application process, and the Orange County Board of County Commissioners authorized a Memorandum of Understanding proposing a 50/50 co -share of the local match requirement. The CDBG grant award is expected to cover 70% of the estimated costs of repair to the sewer line, with Carrboro and the County each agreeing to provide one -half of the funding for the remaining 30% local match of the estimated costs of repair. The County shall reimburse the Town after construction of the sewer line has been completed, and the work has been approved by OWASA. The County's share of the estimated costs of repair shall not exceed $40,000 and will be paid out of the quarter cent sales tax proceeds for FY 2012 -13. Carrboro is responsible for the construction of the sewer line including, but not limited to the engineering, bidding, permitting, construction supervision, and for the providing the necessary connections to the businesses served by the Main Street sewer line. The County agrees to cooperate with the Town, as requested, to secure the necessary permits and approvals to complete the repairs. MARKETING SUPPORT Marketing & Sponsorship — Joint Support: The Orange County Economic Development office has participated in both direct sponsorship (banners) and marketing support (Carrboro Citizen Newspaper ad) for two recent Carrboro cultural events, as follows: • Carrboro Music Festival • Carrboro Film Festival