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HomeMy WebLinkAboutAgenda - 05-23-1985 - • • ORANGE COUNTY SPECIAL MEETING OF THE BOARD OF COMMISSIONERS ORANGE COUNTY COURTHOUSE • 3:00 P.M., FRIDAY, MAY 23, 1985 AGENDA • 1. Farmer's Home Administration on cancellation versus soaleback and incremental construction of project. 2. Engineering Plan a. Portion within budget b. Remaining Phase I C. Orange Heights 3, Means of producing capital to Finance a. User fees element b. Tap fees plus separate cost for stub out c. Acreage or availability charges d. Futuer grants/loans 4. Modifications requested by Hillsborough to the Wastewater Collection and Purchasing Contract • 17•.7i1 • . • • MODIFICATIONS TO WASTEWATER COLLECTION X-- , . AND PURCHASE CONTRACT Posed by Town of Hillsborough . May 20, 1985 • . ohay 1. Count i would be responsible to construct the sewer line from the Cheeks Township sewer facilities to the Lake Shore Drive point of connection with the existing collection system of the Town of Hillsborough, including the gravity sewer portion through Orange Heights. 2. The Town would have the right to run parallel lines east of the Eno • , Oika-y River and connect into the gravity portion of the County sewer line. -Por /40se. /a/ed A svn 74Ae., t-t--4..A.6,//e.:4,, 3. County would install stub-outs/las-part of project cost for sagl dwellings and buildings to be served in Orange Heights 44.0 14 ar-Putz-,K fi'4tli' • Collrret 71' • 4. County would allow connection of Orange Height's residents to the sewer system with the understanding that: /6). . • a. No tap fee by County or Town would apply for the up to 04 property - owners involved providi these owners signed e-County!s sewer . 6 &wee. agreemsnt TATithin. __film the --,........ signing of the Wastewater Collection and Purchase Contract; b. The residents would pay the County monthly service charge until „ .. V.„.... .a-nne-x-e61 by the Town . J ekiy / 0C 4-4e. year lc.llo...imir 47,...nner-edithi • 5. County would pay the Town a blanket tap fee of $15,000 for up to residents in Efland and up to 24 for Orange Heights, for a total of _ -Ae.54401, 44,4v • ewlidoe , Azi 6. County provide the Town with an i ntification list of the names of owners whose individual tap fees would be waived by the blanket tap fee. • 7. Upon annexation of Orange Heights, the Orange Heights residents would • pay the Town sewer rates. Revenue produced by the rates would be remitted to the County for sewer charges relatable to the Orange Heights . , portion of the County project. . 1, bed v„.70.,,,A0,4,4 . -. . Also upon434 / or .p- annexation the Town would charge the County a reduced treatment rate ../ for that amount of sewage volume generated from Orange Heights. The p , reduced treatment rate would coincide with the bulk rate charged to -to fioce.,/ot,t 0 4., other customers of applicable size within the Town. • CO t .• A i‘, 8. The County would bill for the sewer service to Orange Heights until tAY Ll annexation whereupon the Town would do the billing. 9. County would place the meter at a point near to where the force main connects with the gravity system at Orange Heights. EIMINNIMILUsammory / . .., --ep MODIFICATIONS TO WASTEWATER COLLECTION AND PURCHASE CONTRACT .,. Posed by Town of Hillsborough May 20, 1985 .e>hV 1. Count i would be responsible to construct the sewer line from the Cheeks Township sewer facilities to the Lake Shore Drive point of connection with the existing collection system of the Town of Hillsborough, including the gravity sewer portion through Orange Heights. ofrai/ 2. The Town would have the right to run parallel lines east of the Eno River and connect into the gravity sewer line. worst S iy,7 eve 7i, ,z. 07.4.- 3. County would install stub-out as part of project cost for all dwellings Y /:"C and buildings to be served in Orange Heights 4. County would allow connection of Orange Height's residents to the sewer system with the understanding that a. No tap fee by County or Town would apply for the up to 34 property ,,,, H . 0 chys owners involved providing these owners signed_the-Countx!s sewer ctcler- 714 e- agreemen—tegrame-zof-6-11"-MOnthst„liom-the 5/3 (5) S. 3. C ' signirxg of the Wastewater Collection and Purchase Contract: b. The residents would pay the County monthly service charge until annexed by the Town. - 5. County would pay the Town a blanket tap fee of $15,000 for up to 1,. residents in Efland and up to *4 for Orange Heights, for a total of 245. 41 4-4,_.5,14 /6' zAk .e141 6. County provide the Town with an identification list of the names of owners whose individual tap fees would be waived by the blanket tap fee. 9 • 7. Upon4annexation of Orange Heights, the Orange Heights residents would • pay the Town sewer rates. Revenue produced by the rates would be remitted to the County for sewer charges relatable to the Orange Heights portion of the County project. 0 . Also upon 1,4 i ..i / annexation the Town would charge the County a reduced treatment rate for that amount of sewage volume generated from Orange Heights. The )1e'"- 44C:e reduced treatment rate would coincide with the, bulk rate charged to • . other customers of applicable size within the Town. • 8. The County would bill for the sewer service to Orange Heights until annexation whereupon the Town would do the billing. 9. County would place the meter at a point near to where the force main • connects with the gravity system at Orange Heights. • r MODIFICATIONS TO WASTEWATER COLLECTION AND PURCHASE CONTRACT . Posed by Town of Hillsborough - May 20, 1985 1. County would be responsible to c9nstruct the sewer line from the Cheeks 0 Township sewer facilities to the Lake Shore Drive point of connection with the existing collection system of the Town of Hillsborough, including the gravity sewer portion through Orange Heights. . 2. The Town would have the right to run parallel lines east of the Eno 0/■,2--y. River and connect into the gravity portion of the County sewer line. ,. • for Hose. Md./a/red /V ST4 7qe. 0-46 ,.. „ 1 - c-orrece, 3. County would install stub-outsAas part of project cost for arg=1 dwellings and buildings to be served in Orange Heights • 4. County would allow connection of Orange Height's residents to the sewer - system with the understanding that: _ /6. • a. No tap fee by County or Town would apply for the up to 84 Property . • owners involved providing th:pe owners signed e-County:s sewer agreementwithin . " atIAXtimef feom the - signing of the Wastewater Collection and Purchase Contract; . . b. The residents would pay the County monthly service charge until ... -. annexed by the Town. - 5. County would pay the Town a blanket tap fee of $15,000 for up to l residents in Efland and up to for Orange Heights, for a total of es. Jh 4.11e, 5ciuo/ /4 Aetel • 6. County provide the Town with an identification list of the names of owners whose individual tap fees would be waived by the blanket tap fee. 7. Upon annexation of Orange Heights, the Orange Heights residents would pay the Town sewer rates. Revenue produced by the rates would be • remitted to the County for sewer chargesrelatable tO the Orange Heights , portion of the County project. g ' • . .. • •• r • Also upon41./e / or 4 D 1 . annexation the Town would charge the County a reduced treatment rate 444 e, e- Y 4ed A2°I for that amount of sewage volume generated from Orange Heights. The " - f reduced treatment rate would coincide with the bulk rate charged to $v other customers of applicable size within the Town. • ,. 8. The County would bill for the sewer service to Orange Heights until annexation whereupon the Town would do the billing. - 9. County would place the meter at a point near to where the force main connects with the gravity system at Orange Heights. 11111.16101.1111Mier --:. 6. MODIFICATIONS TO WASTEWATER COLLECTION AND PURCHASE CONTRACT - Posed by Town of Hillsborough May 20, 1985 . . 1. County would be responsible to construct the sewer line from the Cheeks • Township sewer facilities to the Lake Shore Drive point of connection with the existing collection system of the Town of Hillsborough, including the gravity sewer portion through Orange Heights. • 2. The Town would have the right to run parallel lines east of the Eno River and connect into the gravity portion of the County sewer line. 3. County would install stub-outs as part of project cost for all dwellings and buildings to be served in Orange Heights • 4. County would allow connection of Orange Height's residents to the sewer system with the understanding that: a. No tap fee by County or Town would apply for the up to 34 property owners involved providing these owners signedthe-Coun Is sewer agreement within -a registration: timeframe ofC12 months om the signing of the Wastewater Collection and Purchase Contract. b. The residents would pay the County monthly service charge until • . _ annexed by the Town. . . . - 5. County would pay the Town a blanket tap fee of $15,000 for up to 191 residents in Efland and up to 34 for Orange Heights, for a total of 225. ' 6. County provide the Town with an identification list of the names of owners whose individual tap fees would be waived by the blanket tap fee. 7. Upon annexation of Orange Heights, the Orange Heights residents would • pay the Town sewer rates. Revenue produced by the rates would be remitted to the County for sewer charges relatable to the Orange Heights portion of the County project. - - . • Also upon annexation the Town would charge the County a reduced treatment rate • for that amount of sewage volume generated from Orange Heights. The reduced treatment rate would coincide with the, bulk rate charged to • . other customers of applicable size within the Town. 8. The County would bill for the sewer service to Orange Heights until annexation whereupon the Town would do the billing. 9. County would place the meter at a point near to where the force main connects with the gravity system at Orange Heights. DP .. , • • { J., .. il , N r,... = . 1, 1 6." ..i. k.11 n a_ • 3:01 1 m"c ' 0 N rri Z.- *.p. 131 F,-.1 ,, . . . . 4 „,.. . . .• . ,I\ ...I •C ...."- • ♦ r� 'f kik • `. ,d 0 c:, .• , , • -....„ _,_ mil . . _--' 1�' ■'----- . \ ■\,...,. A * 1 i . \ Ad.-.. / L./A1 03 042-E... !'i21 V C. . li ► • ,•y '"s- 4 r ............„.. names..„... . t iri- ii‘ Aft • . ill 1...... i . el .. 1 COMZ'ARISON OF TYPICAL SEWER CFIARGES Municipality Acreage Front Footage or -- Population Fee Availability Assessment Fee Fee Apex 2,952 from $ 750.00 to $2,100.00 None None Fuquay-Varina 3,197 $ 350.00 $2.50 Burlington None 37,560 None $5.50 None Orange Water & Sewer Authority 52,000 $ 300.00 $7.90 $450. for 5/81, & 3/411 increasing to Cary 25,180 $34,500 for 8" meter $ 750.00 _- Holly Springs 800 None {proposed} $ . 450.00 $450 for 5/$1, & 3,4n Based on zoning imm OFFICIAL COPY 1 KxNtn:EAPI_a___yaQym_sL3za MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS SPECIAL MEETING MAY 24, 1985 The Orange County Board of Commissioners met in Special Session on May 24, 1985 at 3:00 p.m. in the Commissioners' Room of the Orange County Courthouse, Hillsborough, North Carolina to discuss several items pertaining to the Efland Sewer Project. COMMISSIONERS PRESENT: Chair Willhoit, and Commissioners Shirley Marshall, Moses Carey and Ben Lloyd. COMMISSIONER ABSENT: Commissioner Norman Walker. ATTORNEY PRESENT: Geoffrey Gledhill. STAFF PRESENT: County Manager Kenneth R. Thompson, Assistant County Managers Albert Kittrell and William Laws, and Clerk to the Board Beverly A. Blythe. IroTO E* OM_ ' PM NI R: ON Don Kordell, Hazen and Sawyer, took the two options for the 191 people in Efland who had signed customer agreements back to FHA and explained the intention of the County to either scale back the original phase one project because of the limitation of funds or cancel the original project and start a new project with construction of the same sewers. FHA is in agreement that the County may scale back the project and suggested that the Board adopt an overall long-range plan, build what can be built at this time and then adopt a loosely defined schedule for construction of the remainder of the sewers. If the project was considered a new one, the present loans and grants would be lost. Kordell suggested adopting the modified plan, scale back the project to build what funds would allow and develop an implementation plan for construction of the remainder of phase one. He further suggested that a fee schedule be designed to generate additional revenue to help finance the growth to the system. 2.4.----REEDELALME_EMINIVPAN BY DON KORDELL Kordell reiterated the portion of the plan that could be built within the budget (Base + A + part of C). He noted the importance of the interceptor at McGowan Creek which would give the County the flexibility needed for servicing future industrial growth in the 1-85 corridor. If the bids come in higher than the amount of money available, the plan would need to be scaled back accordingly. As funds are available, additional sections could be constructed one at a time or in several sections at a time. 1. ORANGE HEIGHTS (See the map in the permanent agenda file.) Kordell presented a map of Orange Heights showing a total of 78 houses. Fourteen (14) or fifteen (15) could readily be served by the lines constructed under the base bid. In order to pick up all 78 houses it would require an additional investment of $130,000. 4. _QPTIONS FOR GENERATING CAPITAL Kordell presented a comparison of rates for several sewer providers in the area. He mentioned five (5) ways of producing capital to finance the system: (a) establishing rates for the users that would generate excess revenue which excess revenue would accumulate until enough money is available to construct a portion of the system, (b) increase the tap fees (c) charge an acreage availability charge, (d) future grants or loans, and (e) future County contributions. It would take approximately $700,000 to build the remainder of phase 1 to serve the 191 people who signed customer agreements. It would take 800 to 1,000 new customers to generate the $700,000 by resident equivalent with the proposed rate structure. One way to reduce the amount of time would be to charge an acreage fee ($300 or $400 an acre) or a front foot fee. This would reduce the amount of new customers needed to raise the money by brie half. 111111Mismommeimemmir t . . 2 Commissioner Marshall asked if in the $750,000 the payback of the loan for phase one was included. Kordell suggested the loan be repaid with the user fee that would be charged the customer. Geoffrey Gledhill explained there is an amount of money that is being borrowed from FmiA that will be paid back by the sale of net debt reduction bonds; the County is lending an additional $136,000 to the project which will be repaid by tap fees. Chair Willhoit suggested that if the fixed amount of the monthly payment set in an amount necessary to repay the bond indebtedness were kept constant, the fixed amount would generate new funds to expand the system. Tap fees could then be used to pay the $136,000 which is the second loan from the County. Attorney Gledhill pointed out that the initial 191 customers would not be subject to the acreage fee or the tap fee. In summary, Chair Willhoit noted the mechanism is available to proceed with the modified plan with a commitment to provide the service to the 191 but the timetable beyond the base area would depend upon revenues and adoption of a fee schedule that would include a monthly charge, a fixed monthly charge for retirement of the debt service and some combination of availability fee, front frontage or acreage fee. The tap fee is more appropriately called "availability fee". . I 4. IsiS _1 E A TE ,TE; • CT_ON , 9 'UCH; E C. . '' (A copy of the original list of modifications and suggested changes is in the permanent agenda file.) After extensive discussion and comments from Mayor Frank Sheffield and Commissioner Lynwood Brown, several changes were made to the modifications presented by the Town of Hillsborough to the Wastewater Collection and Purchase Contract. Mayor Sheffield agreed to take the changes back to the Town Board for their approval. There was a general consensus of the Board on four points: 1. Go with the modified plan. 2. Commit to the 191 to satisfy the agreement, subject to point 3. 3. Adopt a timetable for extension to the 191 customers subject to the availability of revenues. 4. Adopt a fee schedule to generate additional revenues. Motion was made by Commissioner Marshall, seconded by Commissioner Carey . ' to adopt the modified plan presented by Hazen and Sawyer and authorize Hazen and Sawyer to prepare whatever is necessary to submit the base bid plus alternates A and C if money is available. VOTE: UNANIMOUS. ADJOUNMENT Chair Willhoit adjourned the meeting at 4:20 p.m. The next regular meeting will be held on May 28, 1985 at 7:30 p.m. in Superior Courtroom, Hillsborough, NC. Chair Don Willhoit Beverly A. Blythe, Clerk • SPECIAL MEETING NOTICE This is to announce a Special Meeting of the Orange County Board of Commissioners to be held at 1!00 P.M. in the Commissioners' Room, • RTllsbnronel, Nv on May 94, 1985 The sp'ecial meeting is for the-puiposes of: (1) making a decision on revisions to the 'wastewater collection and purchase contract with the Town of willsborough, ciLreckiving information from Farmers Home . a04"-Alle. Administra.tion‘to questa. alled by the County, and (3) receiving any further information from the County Attorney on the status of the sewer agreement with the residents in Efland Township. j„. Don Wi.11hoit, Chair Orange County Board of Commissioners SPECIAL MEETING NOTICE This is to announce a Special Meeting of the Orange County Board of Commissioners to be held at 1!00 P.M. in the Commissioners' Room, • RTllsbnronel, Nv on May 94, 1985 The sp'ecial meeting is for the-puiposes of: (1) making a decision on revisions to the 'wastewater collection and purchase contract with the Town of willsborough, ciLreckiving information from Farmers Home . a04"-Alle. Administra.tion‘to questa. alled by the County, and (3) receiving any further information from the County Attorney on the status of the sewer agreement with the residents in Efland Township. j„. Don Wi.11hoit, Chair Orange County Board of Commissioners