HomeMy WebLinkAboutAgenda - 12-13-2016 - 6-l - Approval of an Interlocal Agreement between Orange County and the Towns of Carrboro and Chapel Hill to Share Costs Related to Sewer Main Extension in the Rogers Road Area 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: December 13, 2016
Action Agenda
Item No. 6-I
SUBJECT: Approval of an Interlocal Agreement between Orange County and the Towns of
Carrboro and Chapel Hill to Share Costs Related to the Construction of a Sewer
Main Extension in the Rogers Road Area and Other Investments
DEPARTMENT: County Manager's Office and
Planning and Inspections
ATTACHMENT(S): INFORMATION CONTACT:
Draft Interlocal Agreement Travis Myren, 919-245-2308
Craig Benedict, 919-245-2592
PURPOSE: To approve an Interlocal agreement between Orange County and the Towns of
Carrboro and Chapel Hill to share costs related to constructing a sewer main extension in the
Rogers Road neighborhood and to reimburse prior investments made in the community
including the construction of a Community Center and community planning activities. Under the
agreement, Chapel Hill will reimburse the County for forty-three percent (43%) of the total costs,
Carrboro will reimburse the County for fourteen (14%) of total costs, and Orange County will be
responsible for the remaining forty-three percent (43%). The Town of Chapel Hill approved the
Interlocal Agreement on December 5, 2016, and the Town of Carrboro is scheduled to approve
the Agreement on December 13, 2016.
BACKGROUND: Orange County has been working with the Towns of Carrboro and Chapel Hill
to make investments in the Rogers Road neighborhood. These investments have been
premised on a cost sharing arrangement between the jurisdictions where forty-three percent
(43%) of the costs are allocated to Orange County, forty-three percent (43%) are allocated to
Chapel Hill, and fourteen percent (14%) are allocated to Carrboro. This Interlocal agreement
codifies the cost share arrangement.
The Interlocal agreement includes all costs incurred to date and estimates all future costs
related to the construction of sewer mains in the neighborhood. Prior projects have included the
community center ($650,000), the community first planning effort ($47,800), sewer system
engineering and design ($618,850), and community outreach ($50,000) and sewer
implementation outreach ($42,100). The sewer system design is now completed, and the
parties are prepared to move into the construction phase of the project. This phase will include
easement acquisition, construction administration, permit fees, and project management totaling
approximately $5.88 million. Based on the current schedule, an installation contract would be
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awarded in May of 2017, construction would commence in June of 2017, and the project would
be completed in the summer of 2018.
The County, acting as the fiscal agent for the project, has budgeted for the total cost of the
project in the Capital Investment Plan. The project would be debt financed. Under the terms of
the Interlocal agreement, the Towns would pay their share of the debt service over time
including both principal and interest. The payments will continue until the County's debt
obligations have been satisfied.
FINANCIAL IMPACT: The Interlocal Agreement provides for the reimbursement of costs
related to investments in the Rogers Road neighborhood. This is consistent with the Adopted
Capital Investment Plan.
SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to
this agenda item:
• GOAL: ESTABLISH SUSTAINABLE AND EQUITABLE LAND-USE AND
ENVIRONMENTAL POLICIES
The fair treatment and meaningful involvement of people of all races, cultures, incomes
and educational levels with respect to the development and enforcement of
environmental laws, regulations, policies, and decisions. Fair treatment means that no
group of people should bear a disproportionate share of the negative environmental
consequences resulting from industrial, governmental and commercial operations or
policies.
• GOAL: ENSURE ECONOMIC SELF-SUFFICIENCY
The creation and preservation of infrastructure, policies, programs and funding necessary
for residents to provide shelter, food, clothing and medical care for themselves and their
dependents.
RECOMMENDATION(S): The Manager recommends that the Board approve and authorize the
County Manager to execute an Interlocal agreement between Orange County and the Towns of
Carrboro and Chapel Hill for the reimbursement of costs related to investments in the Rogers
Road Neighborhood upon final review by the County Attorney.
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NORTH CAROLINA
ORANGE COUNTY
INTERLOCAL AGREEMENT BETWEEN ORANGE COUNTY AND THE TOWNS OF
CARRBORO AND CHAPEL HILL REGARDING THE REIMBURSEMENT OF COSTS
FOR ENGINEERING, DESIGN SERVICES, AND INSTALLATION OF SEWER,
CONSTRUCTION OF THE COMMUNITY CENTER, AND COMMUNITY OUTREACH
IN THE ROGERS ROAD SEWER PROJECT AREA
THIS AGREEMENT, made and entered into this day of , 2016
between Towns of Carrboro and Chapel Hill, both North Carolina municipal corporations
(hereinafter jointly as the "Towns"), and Orange County, a political subdivision of the
State of North Carolina (hereinafter referred to as the "County"), for reimbursement to
the County by the Towns for the County's expenditures pursuant to the County's
interlocal agreement with Orange Water and Sewer Authority ("OWASA") for
engineering dated June 10, 2014 and for design dated May 19, 2015, and the County's
community outreach agreement with the Marian Cheek Jackson Center for Saving and
Making History, a North Carolina Nonprofit Corporation (hereinafter referred to as
"Jackson Center") dated June 17, 2014 and the County's Outreach Work Plan for sewer
outreach and Community-First Planning dated June 27, 2015 as well as for the
construction of the Rogers Road Community Center building at 101 Edgar Street.
(County and Town may be referred to collectively as the "Parties".) This agreement also
covers reimbursement to the County by the Towns for the County's expenditures
pursuant to the County's interlocal agreement with Orange Water and Sewer Authority
(OWASA) for construction of the sewer to be signed.
WITNESSETH
WHEREAS, the County and Towns are public bodies, politic and/or corporate, under
the laws of the State of North Carolina and are vested with the power and authority by
Article 20 of North Carolina General Statute Chapter 160A to enter into this Interlocal
Agreement (hereinafter referred to as the "Agreement"); and
WHEREAS, representatives of the County and Towns have previously agreed in
principle to jointly fund preliminary engineering, design services, and installation of
sewer lines performed by OWASA for the purpose of serving the Historic Rogers Road
Area and Community outreach and planning in that area with the Orange County paying
forty-three percent (43%), Town of Chapel Hill paying forty-three percent (43%), and
Town of Carrboro paying fourteen percent (14%) of the total cost; and
WHEREAS, on February 10, 2014, the Town of Chapel Hill approved a resolution
authorizing the Town Manager to prepare agreements and take appropriate budget
action to initiate preliminary engineering and outreach efforts for the Rogers Road
sewer project; and on March 4, 2014 the Town of Carrboro approved a resolution
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authorizing the Town of Carrboro to share in the costs of preliminary engineering and
community outreach; and
WHEREAS, representatives of the County and Towns also agreed in principle that
the County would work directly with OWASA (Agreement attached as Exhibit 1) and
the Jackson Center (Agreement attached as Exhibit 2), and that the County would
be reimbursed for the designated percentages of the engineering, design, and
community outreach and planning costs; and
WHEREAS, the County and Towns desire to formally establish the terms of the Towns'
reimbursements to the County.
NOW, THEREFORE, in consideration of the foregoing and based on mutual
promises and obligations set forth herein, the receipt and sufficiency of which is
hereby acknowledged, the County and Towns agree as follows:
1. TERM AND TERMINATION
a. This Agreement shall commence upon execution and shall continue until
all reimbursements are paid in full with such payment in full occurring no later
than June 30, 2036.
b. For a period of up to 20 years (or sooner if the Town of Carrboro's payments
equal 14% of the total project cost as shown in paragraph 2 below sooner),
the Town of Carrboro shall provide payment to the County of$51,023 by
June 30 of each year plus any financing costs (up to 3 percent annually)
incurred by the County until reimbursements are paid in full. Total payments
shall equal 14 percent of the current total project estimate as shown in
paragraph 2 below, or $1,020,445, whichever is less, plus financing costs
incurred by the County unless amended by both parties.
c. The Town of Chapel Hill shall provide payment to the County of a minimum of
$156,712 by June 30 of each year plus any financing costs incurred by the
County until reimbursements are paid in full. Total payments shall equal 43
per cent of the current total project estimate or $3,134,223, whichever is less,
plus any financing costs incurred by the County unless amended by both
parties. All payments, designated as community development funding,
provided by the Town shall be for cost incurred exclusively within the Town's
corporate limits or within the Town's Extraterritorial Jurisdiction (ETJ).
d. This Agreement may be renewed or amended upon written agreement of
the Parties.
2. TOTAL COSTS
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Carrboro Cost Chapel Hill
Project Entity (based on 14% Cost (based on Project Total
of system 43% of system Cost
costs) costs)
Project 2A
Community Center Perkins + Will
(Design/Construction/ Architects Riggs- $91,000 $279,500 $650,000
Oversight) Harrod Builders
Project 2B
Sewer Preliminary URS (AECOM) $18,200 $55,900 $130,000
Engineering Phase 1
RENA Community Marian Cheek
Outreach Jackson Center $7,000 $21,500 $50,000
(MCJC)
Sewer System
Engineering Design AECOM $68,439 $210,206 $488,850
Phase 2
RENA Sewer
Implementation MCJC $5,894 $18,103 $42,100
Outreach
RENA Community MCJC $6,692 $20,554 $47,800
First Planning
SUBTOTAL $197,225 $605,763 $1,408,750
Project 3 (costs are preliminary/estimated)
Easement Estimated
Acquisitions Acquisition Costs $29,680 $91,160 $212,000
Sewer Construction Estimated $661,517 $2,031,802 $4,725,121
Construction Costs
Construction
Administration, Estimated $66,152 $203,181 $472,513
Inspection, and Construction Costs
Bidding Assistance
Permit Fees Estimated Permit $7,972 $24,484 $56,940
Fees
OWASA Project
Management Estimated Costs $5,600 $17,200 $40,000
Expenses
Construction changes Estimated $30,800 $94,600 $220,000
for Duke Substation Construction Costs
Alternate Rogers Rd Estimated
Construction Costs $8,400 $25,800 $60,000
Alternative Purefoy Rd Estimated
Construction Costs $1,540 $4,730 $11,000
Alternative Sandberg Estimated
Lane Construction Costs $5,600 $17,200 $40,000
Remaining Estimated
Contingency Construction Costs $5,959 $18,303 $42,566
SUBTOTAL $823,220 $2,528,460 $5,880,140
TOTAL $1,020,445 $3,134,223 $7,288,890
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3. RESPONSIBILITIES OF TOWNS
a. As provided in Section 1 b. above, the Town of Carrboro is responsible for
fourteen percent (14%) of the total project cost or $1,020,445, whichever is
less, plus any financing costs incurred by the County unless mutually agreed
by both the Town and the County. The Town of Carrboro shall, within thirty
(30) days of receipt of a County generated invoice, pay to County the Town's
respective annual percentage of the total principal and interest associated
with the project.
b. The Town of Chapel Hill is responsible for forty-three percent (43%) of the
total cost reflected in Section 2 or $3,134,223, whichever is less, plus any
financing costs incurred by the County unless agreed mutually by both the
Town and the County. The Town of Chapel Hill shall, upon receipt of a
County generated invoice, pay to the County the Town's respective annual
percentage of the total principal and interest costs associated with the project.
c. The Town of Chapel Hill's funding contribution is for the benefit of low and
moderate income residents, as defined by US Housing and Urban
Development (HUD), residing within the Town's Extraterritorial Jurisdiction
(ETJ).
d. The Towns shall pay its full or agreed upon annual obligation as set out in
this Section 3 within thirty (30) days of receipt of the County's invoice.
4. RESPONSIBILITIES OF COUNTY
a. The County shall work directly with OWASA to secure engineering and design
services, and construction the Jackson Center to secure community outreach
and planning services.
b. The County is responsible for forty-three percent (43%) of the total cost
reflected in Section 2 above.
c. The County shall invoice the Towns for the specified reimbursement amounts
and/or percentages as shown in Section 3. This invoice will be in the form of a
single invoice upon the conclusion of the services contemplated in Section 1
and Section 2 and said invoice shall be accompanied by a written statement
indicating those services have concluded.
5. ENTIRE AGREEMENT
This agreement constitutes the entire Agreement of the Parties hereto and is effective
the date first above recorded.
[Signature Page to Follow]
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In witness whereof, the Parties, by and through their authorized agents, have hereunder
set their hands and seals as of the day and year first above written.
This instrument has been pre-audited in the
manner required by the Local Government
Budget and Fiscal Control Act.
Manager, Orange County Finance Director, Orange County
ATTEST [SEAL]
By:
Clerk
This instrument has been pre-audited in the
manner required by the Local Government
Budget and Fiscal Control Act.
Manager, Town of Carrboro Finance Director, Town of Carrboro
ATTEST [SEAL]
By:
Clerk
This instrument has been pre-audited in the
manner required by the Local Government
Budget and Fiscal Control Act.
Manager, Town of Chapel Hill Finance Director, Town of Chapel Hill
ATTEST [SEAL]
By:
Clerk