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ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: April 15, 2014
Action Agenda
Item No. 5-d
SUBJECT: Orange County Community Development Block Grant (CDBG) Program — FY
2014 Infrastructure Program - $3,000,000
DEPARTMENT: Housing, Human Rights, and PUBLIC HEARING: (Y/N) Yes
Community Development
ATTACHMENT(S): INFORMATION CONTACT:
Resolution James E. Davis, Jr., 919-245-2490
Application Summary
PURPOSE: To receive public comments regarding a proposed FY 2014 Community
Development Block Grant (CDBG) Infrastructure Program Application, approve a resolution
authorizing the submission of the formal application document due by May 1, 2014 and
authorize the Chair to sign the application and corresponding attachments on behalf of the
Board.
BACKGROUND: The County was recently notified by the N.C. Department of Environment and
Natural Resources (DENR) of the availability of $26 million in CDBG funds for infrastructure
activities. Eligible municipalities may apply for up to $3 million to install, construct or otherwise
improve public water or sewer infrastructure to mitigate public and environmental health
problems in areas where at least 51 percent of the community residents are low to moderate
income persons. Applications for the second (and final) round of funding are due by May 1,
2014.
For several years, the Board of Commissioners and the Town Boards have discussed the
extension of sewer service for the Historic Rogers Road Community. It has been determined
that the funding for the extension of sewer services will need to come from the County's and
Towns' general revenue sources and not from Solid Waste reserves. The estimated cost of
extending sewer services to the Historic Rogers Road Community is $5,800,000.
Since February 21, 2012 the Historic Rogers Road Neighborhood Task Force has met to
discuss, among other things, investigating and making recommendations to the Board of
County Commissioners, the Chapel Hill Town Council and the Carrboro Board of Aldermen for
neighborhood improvements to include sewer service to the Historic Rogers Road
neighborhood. The Task Force has also discussed options for funding the extension of sewer
service to this area and the financial impact it will have on the County and Towns. This
proposed application, if successful, would lessen the financial impact to the local governments
for the provision of sewer service to this community.
In order to receive this funding, the County must conduct two public hearings. The first hearing
was held on October 15, 2013 and provided an opportunity for the public to comment on the
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CDBG needs in Orange County. In accordance with the application guidelines, a second
hearing is necessary to afford residents the opportunity to comment on the proposed funding
application to extend sewer services to the Historic Rogers Road Neighborhood.
FINANCIAL IMPACT: Application for these funds may result in an additional $3,000,000
available for extending sewer service to the Historic Rogers Road Community.
RECOMMENDATION(S): The Manager recommends that the Board:
1) Open the public hearing to receive public comments on the CDBG Infrastructure Program
for the extension of sewer service to the Historic Rogers Road Community;
2) Close the public hearing;
3) Approve and authorize the Chair to sign the resolution authorizing the submission of the
formal application document by May 1, 2014; and
4) Authorize the Chair to sign the application and corresponding documents on behalf of the
Board.
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RES-2014-020
RESOLUTION
AUTHORIZING AN APPLICATION FOR CDBG INFRASTRUCTURE FUNDING TO EXTEND SEWER
SERVICE TO THE HISTORIC ROGERS ROAD COMMUNITY
WHEREAS, Title I of the Federal Housing and Community Development Act of 1974, as
amended, has established the U.S. Housing and Urban Development (HUD) Community
Development Block Grant (CDBG) Program, and has authorized the making of grants to aid eligible
units of government in funding the cost of construction, replacement, or rehabilitation of water and
wastewater infrastructure, and that the North Carolina Department of Environment & Natural
Resources (NCDENR) Division of Water Infrastructure (DWI) was delegated the authority by the
state legislature to administer the water and wastewater infrastructure portion of the state grant
monies received from the U.S. HUD CDBG program by Session Law 2013-360, Section 15.15(a) as
amended by Section 5.3 of Session Law 2013-363,and
WHEREAS, Orange County has need for and intends to construct a wastewater collection
system described as the Historic Rogers Road Community,and
WHEREAS,Orange County intends to request state grant assistance for the project,
NOW,THEREFORE BE IT RESOLVED,BY THE ORANGE COUNTY BOARD OF COMMISSIONERS:
That ORANGE COUNTY will adopt and place into effect on or before completion of the
project a schedule of fees and charges and other available funds which will provide adequate funds
for proper operation,maintenance,and administration of the system.
That ORANGE COUNTY will provide for efficient operation and maintenance of the project
on completion of construction thereof.
That the Chair of the Board and successors so titled, is hereby authorized to execute and
file an application on behalf of the Orange County with the State of North Carolina for a grant to aid
in the construction of the project described above.
That the Chair of the Board and successors so titled, is hereby authorized and directed to
furnish such information as the appropriate State agency may request in connection with such
application or the project; to make the assurances as contained above; and to execute such other
documents as may be required in connection with the application.
That ORANGE COUNTY has substantially complied or will substantially comply with all
Federal, State, and local laws, rules, regulations, and ordinances applicable to the project and to
Federal and State grants and loans pertaining thereto.
Adopted this the 15th day of April,2014 at Chapel Hill,North Carolina.
(Signature of Chief Executive Officer)
(Title)
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Application Summary
FY2014 Orange County Historic Rogers Road CDBG Infrastructure Program Application
Background
The General Assembly allocated $26 million in federal CDBG funds to the infrastructure
program, and transferred the funds to the North Carolina Department of Environment and
Natural Resources (NCDENR) to administer. Orange County received notice from NCDENR
that eligible municipalities may apply to receive up to $3 million dollars over a three (3) year
period to construct public water and/or sewer infrastructure in areas where the percentage of
low to moderate income persons is at least 51 percent. The purpose of this program is to
mitigate public and environmental health problems in these lower income areas. Orange
County will apply for the maximum award of $3 million dollars to install sewer service in the
Historic Rogers Road area.
Application Highlights
Eligibility Criteria
1. Property owners must have incomes below 80% of the published HUD Area
Median Income.
2. All area properties must connect to the public sewer system once the system is
installed.
Terms of Assistance
All CDBG financial assistance will be in the form of a grant that is proportionally forgiven over
the applicable term of recapture.
Target Population
This program will extend public sewer service to the 86 identified parcels in the Historic Rogers
Road Community as shown on the attached map.
Project Costs
The budget for the proposed application is estimated to be approximately$5.8 million dollars to
cover the cost of system design, system construction, septic system abandonments and
individual house connection costs.
The application requests $3 million dollars in CDBG funds over three years with the remainder
of the project costs covered by local funds.
NC DENR - CDBG Infrastructure Program EO,PNK5
Historic Rogers Road i
May 2014
Legend
—4 Existing Sewer Ma in
• Existing Man hole
e10* Potential Sewer Route
• Potential Sewer Not Included in CDBG
Funding Request
• Potential Manhole Loce bons
Histodc Rogers Road Boundary
NC DENR - CDBG Infrast —lure Service
O Lot Included b' CDBG Funding
Not Included in CDBG Funding Request
Neville Tract
(Orange Cou nty) Greene Tract
(Orange County)
Greene Tract
(Joint Own ershlp)
Church of the Advocate
Development
A ob 4Z-
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Sewer Installed
January 2014
250 500 1,000 1,500
feet
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