Loading...
HomeMy WebLinkAboutAgenda - 08-23-1994-X-C j ORANGE C O U N T Y BOARD OF COXXISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: August 23, 1994 Action Agenda item # _ C- SUBJECT: Report on the grant funding process for Piney Mountain waste treatment system DEPARTMENT: County Manager PUBLIC HEARING: Yes _x No ATTACHMENT(S) : INFORMATION CONTACT: Letter from DEM County Engineer ext. 2303 Report from the Co. Engineer Correspondence to the EMC and TELEPHONE NUMBERS: Governor Hunt Hillsborough - 732-8181 Durham - 688-7331 Mebane - 227-2031 Chapel Hill - 967-9251/968-4501 PURPOSE: To provide the BOCC with the most current information available regarding potential grant funding for the project to replace the failed community waste treatment system serving the Piney Mountain subdivision BACKGROUND: In early 1994 Orange County became involved in the process to secure grant funding for the project to extend municipal sewer service to replace the failed waste treatment system at Pine Mountain subdivision. The rant i Y Y g process required that Orange County become, at least in name, the owner/operator of the portion of the proposed waste treatment system that was to be funded with grant monies. Meeting these grant conditions required that the County enter into agreements providing for system financing, construction, management, operation, etc. , with OWASA and the Piney Mountain home owners. The agreements were finalized (although not officially signed and executed by the County, OWASA or Homeowners Association boards) ; the grant conditions were complied with; and a complete grant application was submitted as required to the NC Division of Environmental Management (DEM) . On July 14, 1994, the NC Environmental Management Commission (EMC) met to officially designate which applicants, including Orange County, would be awarded high unit costs grants. Although DEM, which serves as staff to the EMC, recommended that the Piney Mountain project be awarded grant funds, the EMC denied the County's grant application. 2 , Once the EMC had denied the County's grant application, both County and OWASA staff assumed that the County' s role in the funding, construction, ownership, management and operation of the Piney Mountain system was at end. County and OWASA staff terminated their efforts to get the system operation/ownership agreements finalized and executed. The Piney Mountain home owners, however, continued discussions with DEM staff and discovered that there still remained some possibility that grant funding could be made available for the Piney Mountain project. The grant eligibility conditions, insofar as system ownership, operation, construction, etc. remained essentially unchanged from those of the original grant. The Piney Mountain home owners have meet with County and OWASA staff to express their hope that the County and OWASA will continue to provide assistance in seeking state grant funding. Home owner representatives have stated their intent to begin construction on the new system as soon as possible. However, they want to proceed in accordance with grant requirements to preserve the potential for construction expenditure reimbursement from grant funds should those funds become available. The home owners have therefore requested that County and OWASA staff explore, with the respective boards, the possibility of the County, OWASA and the Homeowners Association renewing their efforts to meet grant funding conditions, including bidding, ownership and operational requirements. The anticipated limits of the time frame for the renewed grant funding effort are the next meeting of the EMC on September 8th and the end of 1994 calendar year. RECOMMENDATION: The Manager recommends that the Board receive the information contained herein and be advised that the information is subject to modification based on changing conditions related to upcoming actions by the Environmental Management Commission. APM0823.doc State of North Carolina 3 Department of Environment, Health and Natural Resources Division of Environmental Management James B. Hunt,Jr., Governor Jonathan B. Howes, Secretary D E i--�N R A. Preston Howard,Jr., P.E., Director July 28, 1994 }�u 4 1994 Mr. John M. Link, Jr., County Manager County of Orange Managers Post Office Box 181 Hillsborough, North Carolina 27278 SUBJECT: Grant Application Orange County, NC Dear Mr. Link: The application submitted by the county of Orange for a State grant during the January 1 to June 30 review cycle was not funded because of the priority ranking and the limited amount of funds available during this review period. Please be advised that your application will be retained and considered during the next priority review period. It will be considered along with other applications received on or before September 30, 1994. The county may revise or update the application and supporting documents until September 30, 1994, which is the effective date of receipt for the next review period. If we can be of assistance, please contact this office at (919) 733-6900. Sincerely, Don Evans, Supervisor State Revolving Loan & Chant Program DE/tk cc: Paul Thames (County Engineer) Colonial Engineer Raleigh Regional Office P.O.Box 29535,Raleigh.North Carolina 27626-0535 Telephone 919-733-7015 FAX 919-733-2496 An Equal Opportunity Affirmative Action Employer W%recycled/ 10%post-consumer paper r 4 MEMORANDUM TO: County Commissioners FROM: Paul Thames, County Engineer DATE: August 18, 1994 SUBJECT: Report on the grant funding process for the Piney Mountain waste treatment system As you will recall from staff presentations and BOCC discussions earlier this year, the BOCC agreed that Orange County would pursue state "high unit cost" grant funds for replacing the failing community alternative waste treatment system at the Piney Mountain subdivision. Conditions attached to the grant funding process required that the County agree to become - at least in name - the owner/ operator of the grant funded waste treatment facilities (pumping station, force mains and possibly step systems and collection network) . The ownership issue, in turn, required that the County develop agreements with OWASA and the home owners to provide for: a) oversight of system construction, management and operation; b) transfer of system ownership to OWASA as soon as grant requirements allow; and c) home owner financing of the costs of engineering, construction and start-up prior to receipt of grant-funded reimbursements. All of the necessary agreements were developed and grant conditions met, and the grant application was submitted to the Division of Environmental Management (DEM) by the March 1994 application deadline. The NC Division of Environmental Management (DEM) evaluated the grant request and prepared grant funding recommendations for presentation to the Environmental Management Commission (EMC) for its decision on awarding grants. In its July 14th meeting, the EMC reviewed DEM' s funding recommendations, including the recommendation to fund the Piney Mountain project for $331,500, and voted with only one dissension to deny Orange County' s grant request. The EMC' s July 14 decision to deny funding for the Piney Mountain project does completely end all prospect of grant funding. However, only two potential sources of grant funding remain available. The first is through the second stage or phase of the normal "high unit cost" grant funding process. The "high unit cost" grant process consists of a yearly cycle with two stages. The first stage is represented by a March application deadline and a July grant award. The second stage consists of a September 30 application deadline and a December or January grant award. The second stage is generally considered to be less significant because most of � S the available grant funds are awarded in the first stage. Typically, only funds that become available as a result of revolving loan fund repayments are made available for grants awarded in the second stage. All grant applications that are not funded in the first stage become automatically eligible for consideration in the second stage without re-application. An applicant may elect to update project information or submit new information which may cause DEM to re-evaluate a project' s rated funding priority. The second potential grant funding opportunity which may exist for the Piney Mountain project results from a time limited special process created in the 1994 session of the NC General Assembly. The Assembly adopted House Bill 1628, which enables but does not require the EMC to apply a process involving the adoption of temporary rules to evaluate and fund projects addressing failing community waste treatment systems like that of Piney Mountain. The temporary rule process can occur outside of and apart from the normal grant funding cycle. The temporary process is, however, time limited with a December 31, 1994 deadline for submission of both grant applications and grant approval. Under the provisions of HB 1628, funding is available only to water and sewer districts, sewer districts or counties. HB 1628 does not mention by name the ten community systems which were owned and operated by Northstate Utilities, but it is common knowledge that the bill was specifically intended to address the Northstate systems. County and OWASA staff have proceeded under the assumption, as of the July 14th EMC vote, that the potential for grant funding of the Piney Mountain project was essentially non- existent. However, meetings between representatives of the Piney Mountain home owners and DEM staff have led the Piney Mountain home owners to believe that some hope for grant funding still exists. During the week of August 1st, the Piney Mountain home owners approached County and OWASA staff to request that the County continue seeking either high unit cost grant funding or the "temporary process" grant funding. Staff informed the home owners that both the BOCC and the OWASA board had already been notified that the Environmental Management Commission (EMC) had denied the County' s grant funding application; that the grant funding process had been completed; and that the County's role in the funding process was concluded. Staff informed the home owners that the BOCC and the OWASA board would be apprised of the situation and be requested to provide guidance to staff on the renewal of efforts to obtain grant funding. At this time, it is not clear to either County or OWASA staff as to the probability of grant funds being awarded for Piney Mountain should the County elect to continue with the grant funding process. The General Assembly did not directly order the EMC to adopt special rules or fund the Northstate t 6 , systems. At the July 14th meeting, members of the EMC were nearly unanimous in their opposition to funding Piney Mountain, and by extension, the other Northstate systems. The members of the EMC did appear to be somewhat confused about the overall Northstate utility problem, the significant role of at least two state regulatory agencies in that problem, and the effect of EB 1628 on the grant funding process. The eventual direction that the EMC may take in regard to funding Piney Mountain may become more clear by the September 8th meeting of the EMC. A request has been entered into the record for -the EMC to at least begin the temporary rule making process at the September 8th meeting. The nature of the EMC' s response to that request should prove to be at least somewhat enlightening. Regardless of the EMC's actions regarding grant funding issues for the remainder of 1994 or the type of grant funding which may become available for Piney Mountain, the County' s responsibilities should be essentially the same as those the BOCC found acceptable last March. The County would serve as the titular owner of the Piney Mountain treatment system, while delegating all operational and managerial responsibilities as well as eventual ownership to OWASA. If I may provide additional information, please advise. RCC0823.doc i Aug 11 '94 13:01 FROWN BROTHERS PLBG & HTG CO INC P-2/4 , 7 EPTLNG.AND HACKNEY ATTOX LYS AND C.OUN4ELLOAS AT LAW 410 A11VORT SAD R a DX WU 132il CHAPEL HI>,U NORTH CARS UNA 22314 sane emisa ja tlAtnrcr Rttzus�urX,rr Tecerliorte Iff-Aits 1a MUM l++csllrttt•20-4000 �coos ago jomi wum August 10, 1994 Governor James B. Hunt Governor's office 116 West Jones Street Raleigh, NC 27603-800 Re: Prompt Action Needed by-Envir.onmsntai Management Commission to Implement HS 1628 Dear Governor Hunt: Enclosed is a Copy of my letter to Chairman Moreau asking. for the Environmental Management C6=ission's prompt attention] to the. procssis of adopting temporary rules to implement HE 1628, which Representative Riczmaraki the provisions of an others crafted and persuaded the Legialature to adopt, providing for the use of certain grant funds to remedy immediate, imminent public health hazards arising out of the failurex of low pressure pipe sewage syatnos. I hope you will consider the same and auggeslt your support for such action to the members of the Commission. With kindest personal regards, I remain Ver ruly yo , rt 3 1 519 929 3966 ' AUG 11 '7ti i. ;di -KJWN BRGTh-icRS pLBG � riTG CO INC P.„iq 03 8 ' EPTING AND HACKNEY ATTORNEYS AND COUN311-WR3 AT LAW 410 AIRPORT ROAD t O.DRAM 129 CHAPU BILL,NOM CAROLINA 27614 IOMT ZMNG r�urirorn o2�-wa,s toe"u+cr t�,ticrts oso•aodo ALtZJ Jag 1.aMY PA tvciWa AAU 0M m t s August 10, 1994 Dr. David Moreau, Chairman Environmental Management Commission 16 Kendall Drive Chapel Hill, NC 27514 Re: Request for EMC to Adopt Temporary Rules to Allow Prompt Implementation of HB 1628 Dear Mr. Chairman: .since the B.HC's last meeting, the Legislature adopted Representative Kuczmarski'a bill providing for the allocation of grant funds to remedy existing imminent public health hazards arising out of failed low pressure pipe sewer ey>atems, such as the one built (after DEM approval of the design) to serve the ,Piney Mountain subdivision in Orange County. This legislation provides for immediate application for these funds under temporary rules to be adopted by the EMC. As the window for application and award of these grant funds is extremely small (prior to December 31, 1544) , it seems the Commission ought to act promptly to adopt temporary rules so that the applications I know are already prepared and others that are being prepared can receive prompt consideration. I am sure you know that the Legislature authorized. a special expenditure which will come frost the Economic Development Commission in the sum of Two Million Dolla?ex to fund this special, short term program. This appropriation.allays the objections last raised before the Commission that allocating high coat grunt funds *to remedy problems like the Piney Mountain subdivision system failure will diminish the funds available and otherwise' allocable to remedy problematic urban wastewater treatment problems such as those associated with the grant vAda at our last meeting to the City of Jacksonville. In addition, I believe it behooves us at the Commission► to reconsider our previous action (taken on the piney Mountain subdivision application) in light of tha Legit lature's eubasequant action authorizing and approving the use of! the grant fund for these purposes, (albeit within a narrow window of time and circumstance) , and directing the Commission to adopt, temporary rules to accyotaxodate this express legislative directive. I have spoken with DEM staff and understand that they believe they can have temporary rules ready for the Commission's aonsidaration and action at its Septeubetr meeting. Staff is ready AUG 11 '94 13:02 BROWN BROTHERS PLBG & HTG CO INC Q•4i4 9 "Z` to proceed in this effort at your direction. z hope you will; judge it appropriate to give that directive to them. I also hope that one or more other members of the Commission will agrae with ms that . it appears appropriate to reconsider the piney Mountain subdivision . application, either as a reconsideration of the old application or , as expadited consideration anew of that application under the new rules. Y fear that our failure to act expeditiously to ;adopt temporary rules may effectively prevent the Comisslon from having enough time to deliberate upon and allocate these funds in . accordance with the apparent intention of the Legislature that they be used to provide relief to syatemr suffering from failurae like that in the cane of the Piney Mountain system. Knowing that you share this concern for prompt, offeetive. implementation of the program authorized by the Legislature, I look forward to word that you have approved the staff's effort to prepare temporary rules for the corftissionls deliberations at its . September meeting. with kindest personal regards, I re=am very ly yours, R Epting tuber vi.ronmental Management commission cc: Governor James B. Bunt Lt. Governor oennia Wicker Rep. Erin Kucamarski Rep. Joe Hackney John S. Marsh Jr. EMC Members II