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HomeMy WebLinkAboutMinutes - 19850516 MINUTES 0 0 0 0 72 ORANGE COUNTY BOARD OF COMMISSIONERS V iJ iJ SPECIAL MEETING MAY 16, 1985 The Orange County Board of Commissioners met in joint session with the Hillsborough Town Board on May 16, 1985 at 6:00 p.m. to discuss the Wastewater Collection and Purchase Contract and other various items pertaining to the Efland Sewer Line project. COMMISSIONERS PRESENT: Vice-Chair Shirley Marshall and Commissioners Ben Lloyd and Moses Carey. COMMISSIONERS ABSENT: Chair Don Willhoit and Commissioner Norman Walker. HILLSBOROUGH TOWN COUNCIL PRESENT: Allen L. Lloyd, Remus Smith, Lynwood Brown and Horace Johnson. HILLSBOROUGH TOWN COUNCIL ABSENT: Dr. Rachel Stevens. ATTORNEY PRESENT: Geoffrey Gledhill STAFF PRESENT: County Manager Kenneth R. Thompson, and Clerk to the Board Beverly A. Blythe. The meeting was called to order by Mayor Frank Sheffield. Commissioner Marshall made opening remarks. She requested that Don Cordell from Hazen and Sawyer present information on the Efland sewer line project, particularly east of the Eno, and then to answer questions. She emphasized that in the next ten days all problems need to be resolved or it may be necessary to revert back to the package plant for the school. Don Cordell reiterated the project and the area that would be covered by the sewer line. Lynwood Brown asked about the 12" gravity line versus 8" as shown on the map for Orange Heights. Cordell stated that the line, as originally proposed, was based on 811 but because of the slope a 12" line would be required. Don Cordell summarized the various components of the project. Hazen and Sawyer recommends the construction of a gravity interceptor down McGowan Creek in place of the force main along US 70. This would provide more flexibility to serve future development. Two options for Orange Heights are available: (1) Hillsborough would assume financial responsibility for construction of a portion of the proposed force main from Cheeks Township or (2) shift the point of acceptance of the wastewater by the Town of Hillsborough to the intersection of US 70 and West Hill Avenue. Discussion was continued on the cost and how to pare down the project. The estimated cost to construct Phase I of the system is in excess of 1 .8 million. Mr. Cordell explained that the base bid would include Efland Estates Subdivision and Efland School and all the force main facilities to connect to the existing collecting system. He further explained alternates A, B, and C. After further discussion with the Board of Commissioners, Cordell would like to proceed with construction of Base plus A, and as much of the remainder of the project as the current funding will allow. The final determination will be made once the bids are received. One of the areas of concern is the proposed location for connection to the Hillsborough system. It could be (1) Lakeshore Drive, or (2) US 70 and West Hill Avenue, or (3) US 70 and East of the Eno River. A pressure force main has implications to future connections with a very limited tie-in capability. The first option is for the Town to accept the wastewater east of the river. If the Town were responsible for the rest of the system, the projected cost of construction would be $130,000. The second option is for the County to 000074 Horace Johnson, in referring to the line and the possibility that Hills- borough would want to tap onto the line, stated he felt there would be no immediate need for the development to extend out that far, and if the development did extend out that far, the Town would need to justify the associated cost for such an extention. A compromise would be for the County to construct the line and in the future give the Town an opportunity to buy that portion of the line. He felt the Town would like to control the line. Commissioner Marshall stated that if the other Commissioners felt it was a good idea, an agreement would need to be worded very specifically to preserve the interest of the County. Lynwood Brown indicated the $15,000 could be paid up front. Kenneth Thompson indicated that according to FmHA, the County would have to fund the cost of construction for the part of the line that the County intends to sell in the future. The loan/grant monies could not be used to finance that portion of the line. Commissioner Marshall indicated the prime responsibility is to serve the 191 customers before any other County money would be put forth or any construction done on a part of the line that would not be covered by loan or grant money. Remus Smith noted that the force line could be put in the same ditch as the water line that comes down for OWASA. He feels it a mistake for people in Orange Heights to pay a county tap fee when in the next year or so they may be annexed into the Town. Lynwood Brown asked if the County would allow the town to tie on if the land is ever developed on the west side of the river since the agreement states no parallel lines. Shirley Marshall asked about the water pressure if a large development is allowed. She sees no problem in permitting the town to run a parallel line. Ken Thompson indicated the Town could tie on off of US 70. The intent in number nine (9) of the Wastewater Collection and Purchase Contract was not that there would be a restriction to expand into Hillsborough's extraterritorial area of the system but rather to restrict lines from going into the Efland area. Horace Johnson proposed that the County use the FmHA money to build the line west of the river and use the County money to build the line to the river east of Hillsborough and then give the Town an opportunity, at some time in the future, to purchase the line east to Hillsborough. The Town could use the money from the tap fees to pay for the line. In this way the Town would buy that portion of the line that the County owns and not the portion that FmHA owns. Ken Thompson indicated that in order for that to happen there would need to be a separation of the two projects and both grant applications would need to be amended. Commissioner Marshall indicated that FmHA would not permit the County to separate the project. Remus Smith noted that this project, as proposed, is for usage of up to 325,000 gallons a day. The expected usage is 42,000 gallons per day. Any new development would not be ten times that amount. Geoffrey Gledhill noted that if the Town were allowed to purchase any portion of the line, the application would need to be amended. Geoffrey Gledhill suggested Hillsborough run a parallel line west of US 70 that would connect east of the meter point. Horace Johnson noted that the Town could run a parallel line up US 70 to Lake Shore Drive but it would put extra stress further down the line. 000073 continue the force main to West Hill Avenue with the Town responsible from that point back to the Town's system. The projected cost of the second option would be $98,000. A third option would be for the County to assume the entire cost with no cost to the Town. Regardless of which option is chosen, a timetable needs to be developed to assure that the facility would be in place by the end of December, 1985. Don Cordell indicated that the prices quoted by him are contract prices. If the Town did the work, the cost would be half or less. Commissioner Lloyd asked about the two pump stations and Cordell indicated on the map the location of each. Mayor Sheffield indicated that two modifications to the Wastewater Collection and Purchase Contract have been requested by the Town. These include (1) the ability of the Town to increase tap fees as necessary and (2) the elimination of the County tap fee charge to users in the Town's extraterritorial area. Commissioner Marshall referred to the agreement and suggested that the Town and the County reserve the right to change their respective tap fees as necessary. In response to the second modification, she noted that the County would need to know where the meter is going to be located. Cordell stated that the Lake Shore Drive option would be the only one available because the cost of the other two options would be prohibitive to the Town. Horace Johnson indicated that the granite rock would interfere with construction of the line for Orange Heights and that the cost of blasting and man-hours involved would need to be considered. Remus Smith asked about the furthest west water line on US 70 and Horace Johnson indicated it was the Eno River. Horace Johnson stated there is not time between now and December to put Town employees on the project even if the cost was not prohibitive. Commissioner Marshall talked about ownership of the line and placement of the meter. Because of the loans and grants received from Farmers Home Admini- stration (FmHA) , the County will need to maintain ownership of the line or put the money up front. Commissioner Carey indicated the Town would own the line if the line was built and paid for by the Town. Frank Sheffield stated that the placement of the meter did not have any- thing to do with ownership, but simply defines the County's service area. Lynwood Brown asked if an agreement could be worked out with the County whereby the County would waive the $15,000 tap fee, plus sewer charges and so many tap-on fees, so the town could own the line. This way the County would be the only one paying the debt for the line but would still receive full payment for the line. Frank Sheffield suggested putting the meter at the Eno River to the extent that it is technically feasible and would not do any harm to the sewage flow from the Efland force main. He stated that the Town should not spend anything for the project because the Town is contributing by providing sewage treatment service. Remus Smith indicated the Town is aware that, although it may be diffi- cult, they can connect onto the line. Commissioner Marshall indicated the importance of preserving the service the County is providing in Efland. It may be necessary to work into the engi- neering agreement a statement to protect the pressure of the line. 000075 Remus Smith asked if the County would consider not charging County tap fees in the area from Lake Shore Drive west to West Hill Avenue to Highway 70 and south to the Eno River and give the Town the privilege of bringing the line down to Lake Shore Drive. Commissioner Marshall noted that the County tap fee is the fee that will be used to repay the money the County put up front to build the line. The only reason Orange Heights was left off the original plan was so that the Town could pick it up. There would be 34 houses without additional pump stations. The mobile home park is not a consideration. She noted the County tap fee could not be waived. The Town would be allowed to build parallel lines. The County must charge tap fees for County-built lines. Lynwood Brown noted that if the Town installed the line in Orange Heights it would cost approximately $65,000. He would like for the Town to take the responsibility for building the line from the Eno River to West Hill Avenue. Kenneth R. Thompson indicated that Don Willhoit's thinking was that it may be possible that the County could allow this area to be served since it would not add to the project cost, and as long as it was done in the same way as the Efland area. This would then allow those individuals in Orange Heights to be covered by the same blanket tap fee as those who signed up to receive the service in the Efland area. Beyond the sign-up period the County would be faced with new costs and how to deal with the tap-on costs. It's feasible to do what Brown proposed with some limitation to a sign-up period. In answer to Frank Sheffield's question, Thompson indicated the rates for Orange Heights would be the same as those for the Efland area. This would not affect the future annexation of this area. Commissioner Marshall indicated that once this area is annexed recipients they would not be subject to the County tap fee but would need to continue paying the same rates. Kenneth Thompson stated that if the Town built the lines, at their cost, up West Hill Avenue to Highway 70 and then run a parallel line into gravity fed lines, it would not affect Efland at all. The Town would need to agree not to go into the force main, and if the Town were to go into the force main, it would agree to upgrade the line. Moses Carey asked if the work could be completed by the Town between now and December. Mayor Frank Sheffield said that the Town is on a priority schedule and it would be virtually impossible to do this project within the required time. Lynwood Brown stated that the Town may need to make a sacrifice to help the people in Orange Heights and Efland. Mayor Sheffield noted there would be no trouble in building the line to Lake Shore Drive, the problem is to make sure the Town can connect other homes onto the line. The only way would be to run parallel lines. Commissioner Marshall indicated that the service area needs to be defined in order to proceed with the project. Frank Sheffield asked that the County allow Orange Heights to tie on and that the rate charged to those in that area be the Town rate after annexation with no County tap-on fee. The monthly cost would be collected by the town and remitted to the County. Kenneth Thompson stated that up until the time Orange Heights is annexed by the Town of Hillsborough, it would be necessary for those customers to pay the debt service element. 0 3 0'7 Frank Sheffield pointed out that as the project stands, the County would not receive any income at all from those in the Orange Heights area. Commissioner Marshall suggested that Ken Thompson, Don Willhoit and Geoffrey Gledhill work with Mayor Frank Sheffield or his designee within the next few days to work out an agreement. She emphasized that the County is willing to work with the Town in any way that will be equitable for the system to meet the approval of FmHA. Remus Smith asked if the County could loan the Town the money to build the line in Orange Heights and was told that the County is in the process of working on the budget and not sure that the money would be available. Moses Carey summarized that the agreement would contain a statement permitting the Town or the County to increase tap fees at the prevailing rate, the meter will be placed east of the river, and that the Town is not in a position to build the line because of money and time constraits. Commissioner Marshall noted that the immediate problems are with Orange Heights, and the determination of the fees that must be charged to the customer. The County must determine how far they can decrease the rates and still be able to meet the debt service obligation. With no further discussion, the meeting was adjourned. Shirley Marshall, Vice-Chair Beverly A. Blythe, Clerk