HomeMy WebLinkAboutAgenda - 05-02-2017 - 6-a - Interlocal Agreement with Town of Hillsborough Related to the Construction and Operation of Water and Sewer Facilities in the Hillsborough Area Economic Development Zone 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: May 2, 2017
Action Agenda
Item No. 6-a
SUBJECT: Interlocal Agreement with Town of Hillsborough Related to the Construction and
Operation of Water and Sewer Facilities in the Hillsborough Area Economic
Development Zone
DEPARTMENT: Planning & Inspections
ATTACHMENT(S): INFORMATION CONTACT:
1. Interlocal Agreement Craig N. Benedict, Planning &
a. Hillsborough Area Economic Inspections Director, 919-245-2592
Development District Utility Service John Roberts, Staff Attorney, 919-245-
Boundary 2318
b. Hillsborough Area WASMPBA Travis Myren, Deputy County Manager,
Designations Map 919-245-2308
PURPOSE: To review and approve an interlocal agreement with the Town of Hillsborough that
sets forth conditions of utility installation and operation with associated land use consistency
with prior cooperative planning efforts.
BACKGROUND: Orange County and the Town of Hillsborough have been coordinating
planning efforts around the common interest land fringes of the Town of Hillsborough since
2002. These efforts led to more formalized 2007 acceptance of an area `Strategic Growth Plan'
and the pursuit of an interlocal agreement that proposed additional implementation steps by
both local governments. This included joint land use plans and water and sewer boundary
analysis and amendment.
The majority of the implementation actions have been completed and the September 12, 2016
Quarterly Public Hearing noted some further refinement of the earlier principals of the growth
plan — specifically, to reinforce the preservation of the economic development of areas near the
intersection of 1-40 and Old NC 86 for primarily non-residential land use activities. Interchange
areas are limited and valuable for office, light industrial and retail development. Accordingly
Orange County had designated this area, primarily outside the Town of Hillsborough ETJ areas
but noted on the County land use plan since the 1980's, as economic development.
(Waterstone was once one of these areas).
Being so noted, Orange County sought to bolster the area's potential by facilitating utility
extension and accordingly adding this to the Article 46 Capital Investment Plan (CIP) projects
list. A prerequisite to utility extension is a utility agreement (such as prior agreements with the
City of Mebane (2002) and City of Durham (2010) to set forth conditions where Orange County
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constructs such utilities and other utility entities provide reservation of capacity and treatment,
accept ownership, and maintain facilities thereafter.
The agreement covers a variety of subjects including but not limited to design standards,
infrastructure responsibility and fees and charges. In this case, as we have with other local
governments, we are including a land use plan (modified on September 12, 2016), so the
County infrastructure investment relate to the economic development plan. Uses therein were
further reviewed and approved for modification on November 1, 2016 to promote industrial,
office, and retail uses and restrict the area from lower density residential. The infrastructure
reimbursement program, if any, for this project area will be based on targeted land uses and any
other adopted `development' agreements on a case by case basis.
On April 24 at a Town of Hillsborough work session, the Town of Hillsborough elected officials
and staff in concept agreed to
1. Focus the interlocal agreement on the southwest quadrant only which is earmarked for
non-residential `employment land use', therein excluding multifamily land use; and
2. Setting a capacity reservation of 108,000 gallons per day for 5 years with renewable
provisions.
This enables the pursuit of engineering design to serve this quadrant.
FINANCIAL IMPACT: There is no financial impact associated with the approval of this
agreement. Monies for the Capital Investment Plan (CIP) for the infrastructure expansion using
Article 46 funds are allocated in past years and this year's budget.
SOCIAL JUSTICE IMPACT: The following Orange County Social Justice goal is applicable to
this item:
• 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
dependents.
RECOMMENDATION(S): The Manager recommends the Board review this item and authorize
the Chair to sign the interlocal agreement with County Manager approval for outlined aspects of
the agreement.
The agreement is contingent upon the Town of Hillsborough's approval which occurs after the
County since the County is the `requesting' party.
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INTERLOCALAGREEMENT BETWEEN ORANGE COUNTY AND THE TOWN OF HILLSBOROUGH FOR CONSTRUCTION AND
OPERATION OF WATER AND SEWER FACILITIES IN THE HILLSBOROUGH AREA ECONOMIC DEVELOPMENT DISTRICT OF
ORANGE COUNTY
INTERLOCAL AGREEMENT
BETWEEN ORANGE COUNTY AND THE TOWN OF
HILLSBOROUGH FOR CONSTRUCTION AND OPERATION
OF WATER AND SEWER FACILITIES IN THE
HILLSBOROUGH AREA ECONOMIC DEVELOPMENT
DISTRICT OF ORANGE COUNTY
This agreement is dated, made, and entered into as of the day of ,20 , by
the Town of Hillsborough, a North Carolina municipal corporation ("Hillsborough," "Town" or
"Town of Hillsborough") and Orange County, a North Carolina political subdivision ("County,"
"Orange" or "Orange County").
Purposes.The purposes ofthis agreement are(1) to further the economic development potential of land
identified by Orange County and the Town of Hillsborough in their respective planning documents as
particularly suitable for industrial and business development,as well as to promote the public health and
safety of residents within the area,and(2)to accomplish the design,construction,and operation of water
and sewer facilities within the Hillsborough Area Economic Development District (EDD).
1. Definitions.
Year-July 1-June 30
Zone-The Hillsborough Area Economic Development District located around the
Interstate 40 interchange with Churton Street (Old NC 86), shown in greater detail by the
map titled "Hillsborough Area Economic Development District Utility Service
Boundary" and attached as Exhibit A.
Water and Wastewater Utility Agreement- an agreement between at least two
parties setting forth conditions, including but not limited to utility service, construction,
ownership and operation.
2. Engineering Design and Firm Selection. Orange County will solicit and receive proposals for
the design of water and/or sewer infrastructure to serve the District. A representative from the
Town of Hillsborough will be part of the selection team. Before awarding contracts for such
design, Orange County will provide the Town of Hillsborough with the proposals and other
responses to the request for proposals so that the Town of Hillsborough may review and
comment to Orange County regarding the selection of the designer(s). Orange County will
then proceed to negotiate the professional fees with the designer(s). Orange County will not
select any designer to which the Town of Hillsborough objects based on the qualifications
and/or professional fees. If the Town of Hillsborough does not object within a reasonable time
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INTERLOCALAGREEMENT BETWEEN ORANGE COUNTY AND THE TOWN OF HILLSBOROUGH FOR CONSTRUCTION AND
OPERATION OF WATER AND SEWER FACILITIES IN THE HILLSBOROUGH AREA ECONOMIC DEVELOPMENT DISTRICT OF
ORANGE COUNTY
(10 days after Town of Hillsborough's receipt of a proposal and/or other response to Orange
County's request for proposals) to a designer and its proposed fee structure, Orange County
may award a contract to the designer for such design in which the proposed fee structure
applies.
3. Construction. Orange County will solicit bids for the construction of the water and sewer
infrastructure. Orange County will share the proposals with the Town of Hillsborough before
awarding any bid or contract for construction of the infrastructure. The Town of Hillsborough
will pay the cost of construction and pro-rata share of the related engineering and construction
engineering & inspection services for those sections of the water and/or sewer infrastructure
lying outside the county economic development zone. If the Town of Hillsborough does not
choose to extend and pay for the aforesaid sections of the infrastructure and acceptable design
alternatives exist,the remaining aspects of the project can continue and terminate at the EDD
land use line with the infrastructure improvements solely financed by Orange County. By
authorizing their respective managers to sign this agreement,the parties' governing bodies also
authorize them to agree to suspend or abandon the process if the managers jointly determine it
is prudent to do so. If the managers do not jointly agree it is prudent to suspend or abandon the
process, it is agreed that suspension or abandonment will not be affected unless the parties'
governing bodies jointly agree to suspend or abandon the process. Except as otherwise
provided herein, should either party unilaterally suspend or abandon the process, such party
shall be responsible for the costs obligated by this Agreement pro-rated to the time of
suspension or abandonment, as contractually obligated.
4. New Development and Buildings. Non-Residential development shall be consistent with the
joint land use plan and county zoning. Individual or commercial water and sewer connections
and other public uses shall be subject to the utility approval of the Town of Hillsborough even
though the development site(s) may not be annexed. Provided, however, such approval shall
not be unreasonably withheld and shall be based on the availability of capacity in the Town's
water and sanitary sewer systems and the ability of the Town's water and sewer systems to
provide service within the Town's entire service area. All water and sewer connection
approvals shall comply with the resources available to the Town of Hillsborough and shall be
consistent with the Water and Sewer Management Planning and Boundary Agreement
Map(WASMPBA, see Exhibit B). A reservation of gallons 108,000 per day (GPD) sewer
capacity and 108,000 GPD water capacity will be made available to subject properties The
Town of Hillsborough acknowledges that industrial, office, and commercial uses are intended
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INTERLOCALAGREEMENT BETWEEN ORANGE COUNTY AND THE TOWN OF HILLSBOROUGH FOR CONSTRUCTION AND
OPERATION OF WATER AND SEWER FACILITIES IN THE HILLSBOROUGH AREA ECONOMIC DEVELOPMENT DISTRICT OF
ORANGE COUNTY
within the Hillsborough Area Economic Development District and that such uses, if permitted
by Orange County (for those projects not slated for immediate and/or delayed annexation),
will be served subject only to available capacity and other aspects outlined herein.
The reservation is made for a period of 5 years and is renewable for an additional 5 years
upon request and approval. If a Town of Hillsborough utility agreement uses part of this
reservation then the reservation amount is reduced unless otherwise requested and approved.
This agreement is not intended to mandate annexation nor exclude the potential for the project
to remain in the County's planning jurisdiction. If the project remains in the County's planning
jurisdiction, the water and sewer service utility agreement between the developer and the
Town of Hillsborough will be accompanied by a voluntary annexation agreement to be acted
upon when Orange County and the Town of Hillsborough agree to the timing of such
annexation. This would include the preparation and review of an annexation report prepared
for and submitted to the Town of Hillsborough by a developer.
When development occurs in the jurisdiction as noted in Exhibit A, the land use parameters
noted within the Orange County/Town of Hillsborough joint land use plan will act as guidance
to zoning.
5. Construction Standards. In all respects, except to the extent otherwise stated in this agreement,
the construction will be done in accordance with (i) Hillsborough utility standards,
requirements, specifications, and procedures, including approvals of plans and permits,
conducting inspections, requiring tests and certifications, and requiring record (as-built)
drawings, and (ii) any applicable federal and state standards. Notwithstanding any other part
or provision of this agreement should any such approvals or permits be withheld or
unobtainable, this agreement may be terminated by Orange County, at no cost and with no
further liability or obligation to Orange County, upon written notice to the Town of
Hillsborough.
6. Ownership of and Responsibility for Infrastructure. The Town of Hillsborough will be the
owner of and responsible for the operation and maintenance of the infrastructure constructed
under the construction contracts. All construction contracts shall provide for the
indemnification and defense by the contractors of both Orange County and the Town of
Hillsborough.
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INTERLOCALAGREEMENT BETWEEN ORANGE COUNTY AND THE TOWN OF HILLSBOROUGH FOR CONSTRUCTION AND
OPERATION OF WATER AND SEWER FACILITIES IN THE HILLSBOROUGH AREA ECONOMIC DEVELOPMENT DISTRICT OF
ORANGE COUNTY
7. Fees and Charges. As long as a particular property is located outside the Town of
Hillsborough's corporate limits, the Town of Hillsborough will impose, process, and collect
all fees and charges with respect to that particular property, including acreage fees,
connection charges, frontage charges, capacity charges, and utility rates. These fees and
charges shall be in accordance with the Town of Hillsborough's charges on other locations
outside the Town's corporate limits. Except to the extent specified otherwise, Orange
County will have no right to any of those fees and charges, and nothing in this agreement will
affect the use or disposition of those fees and charges unless defined in a reimbursement
clause in this agreement or by supplemental agreement.
8. Reimbursement to Orange County. The acreage fees and/or frontage charges collected by the
Town of Hillsborough, if any, from the EDD will be used to reimburse Orange County for
the design and construction of infrastructure in the EDD. Collectively, these fees collected
from development inside the EDD will be termed "Dedicated Receipts". Such utility
infrastructure reimbursement fees, if employed in this specific area, will be jointly developed
and be implemented within respective development ordinances. No other fees or charges
collected by Hillsborough, such as capacity and connection charges, will be used for that
purpose. Hillsborough represents that it has legal authority to impose acreage fees and/or
frontage charges. If at any time Hillsborough's acreage and/or frontage fees are held to be
unlawful or unauthorized, Hillsborough agrees to indemnify Orange County from and against
any and all claims related to acreage fee payments made to Orange County by Hillsborough.
This indemnification requirement shall survive any termination of this Agreement.
9. Nondiscriminatory Policies. The Town of Hillsborough will not establish policies that impose
a level of water and sewer service in the District that is inferior to that provided to similarly
situated users of Hillsborough water and sewer services.
10. Annexation. The Town of Hillsborough may enter into agreements with developers and
property owners that comply with Town of Hillsborough requirements related to annexation,
including, but not limited to, that they will not seek annexation by any municipality other than
the Town of Hillsborough; that they will petition for annexation when requested by the Town
of Hillsborough; the Town of Hillsborough can delay annexation; and that they will be subject
to remedies for violating the annexation-related provisions.
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INTERLOCALAGREEMENT BETWEEN ORANGE COUNTY AND THE TOWN OF HILLSBOROUGH FOR CONSTRUCTION AND
OPERATION OF WATER AND SEWER FACILITIES IN THE HILLSBOROUGH AREA ECONOMIC DEVELOPMENT DISTRICT OF
ORANGE COUNTY
11. Regulations. The Town of Hillsborough shall have the authority to protect and regulate the
water and sewer systems and its users in the District, including water use restrictions and
regulations regarding discharges into the wastewater system.
12. Duration. This Agreement shall be perpetual, unless terminated earlier by mutual agreement.
On such termination, all obligations that are still executory on both sides are discharged but any
right based on prior breach or performance survives. The governing body of each party hereto
has determined the duration provided in this paragraph to be reasonable.
13. Appointment of Personnel. The Town Manager shall designate persons to carry out the
Town of Hillsborough's obligations under this agreement. The County Manager shall
designate persons to carry out Orange County obligations under this Agreement
14. Amendment and Termination. This Agreement may be amended or terminated by agreement
of the parties. An amendment is not valid unless signed by both parties and wholly in
accordance with requirements of the law. An amendment is not enforceable against the
Town of Hillsborough unless it is signed by its Town Manager, or a deputy or assistant Town
Manager and/or Mayor. An amendment is not enforceable against Orange County unless signed
by the County Manager or Deputy County Manager and/or Chair of the Board of County
Commissioners.
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INTERLOCALAGREEMENT BETWEEN ORANGE COUNTY AND THE TOWN OF HILLSBOROUGH FOR CONSTRUCTION AND
OPERATION OF WATER AND SEWER FACILITIES IN THE HILLSBOROUGH AREA ECONOMIC DEVELOPMENT DISTRICT OF
ORANGE COUNTY
15. Notice.
a) All notices and other communications required or permitted by this agreement shall be
in writing and shall be given either by personal delivery, UPS, Federal Express, or
certified United States mail, return receipt requested, addressed as follows. The parties
are requested to send a copy by email.
To Town of Hillsborough:
Eric Peterson
Town Manager
Town of Hillsborough
101 E. Orange St.
Hillsborough,NC 27278
Email: eric.peterson @hillsboroughnc.govTo Orange County:
Bonnie B. Hammersley
Orange County M anager
200 S. Cameron Street
P.O. Box 8181
Hillsborough, NC 27278
Email: bhammersley @co.orange.nc.us
b) A change of address, fax number, or person to receive notice may be made by either
party by notice given to the other party. Any notice or other communication under this
agreement shall be deemed given and sent at the time of actual delivery, if it is
personally delivered. If the notice or other communication is sent by United States mail,
it shall be deemed received upon the third calendar day following the day on which such
notice or other communication is deposited with the United States Postal Service or
upon actual delivery, whichever first occurs.
16. No Third Party Rights Created. This agreement is intended for the benefit of the two parties
and not any other person and no rights or benefits are created for or granted to any third
party by this agreement.
This instrument has been pre-audited in the manner required by the Local Government Budget
and Fiscal Control Act.
Hillsborough Finance Director Orange Financial Services Director
INTERLOCALAGREEMENT BETWEEN ORANGE COUNTY AND THE TOWN OF HILLSBOROUGH FOR CONSTRUCTION AND 9
OPERATION OF WATER AND SEWER FACILITIES IN THE HILLSBOROUGH AREA ECONOMIC DEVELOPMENT DISTRICT OF
ORANGE COUNTY
ATTEST: TOWN OF HILLSBOROUGH
Town Clerk By:Tom Stevens
Mayor of Hillsborough
ATTEST: COUNTY OF ORANGE
County Clerk By: Mark Dorosin
Chair Board of Orange County
Commissioners
ORANGE COUNTY, NORTH CAROLINA
ACKNOWLEDGMENT OF TOWN OF HILLSBOROUGH
I,a Notary Public in and for the aforesaid County and State certify that
personally appeared before me this day,and acknowledged that he or she is the Town Clerk of the Town of
Hillsborough, a municipal corporation,and that by authority duly given and as the act of the Town,the foregoing
agreement with Orange County was signed in its corporate name by its Town Manager,sealed with its corporate
seal,and attested by its said Town Clerk or Deputy Town Clerk. This the day of
20
Notary Public:
My commission expires:
ORANGE COUNTY, NORTH CAROLINA
ACKNOWLEDGMENT OF ORANGE COUNTY
I,a Notary Public in and for the aforesaid County and State certify that
personally appeared before me this day,and acknowledged that he or she is the County Clerk of Orange County,a
political subdivision,and that by authority duly given and as the act of the County,the foregoing agreement with the
Town ofHillsborough was signed in its name by its County Manager,sealed with its county seal,and attested by its
said County Clerk or Deputy County Clerk. This the day of , 20
Notary Public:
My commission expires:
Approved as to form and legal sufficiency.
County Attorney
Exhibit A 10
Hillsborough Area Economic Development District Utility Service Boundary
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t Hillsborough Area Economic U
=Development District Utility
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Neighborhood Mixed Use 1111, 1 in=1,000 feet
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1. Permanent Open Space The Urban Service Boundary indicates the limits of Hillsborough water and sewer service consistent with an
Inter-local Agreement with Orange County, OWASA, Chapel Hill, Carrboro,and Hillsborough. Future Land Uses
1 Retail Services would be used by Hillsborough and Orange County as the basis for approving zoning designations on colored
Rural Living parcels and those within the boundary, consistent with the Inter-local Agreement between Orange County and
Hillsborough.
Small Lot Residential
Areas outside the Urban Services Boundary with a Future Land Use designation are due to the boundary
- Suburban Office crossing a parcel. Areas outside the Urban Services Boundary with current utility service from the Town of
- Working Farm Hillsborough will retain service.
Approved by Hillsborough 3-11-13
` Parcels } Approved by the BOCC 11-5-13
Amended by the BOCC and Hillsborough 9-12-16
Exhibit B
Hillsborough Area Water and Sewer Management, Planning, and
Boundary Agreement (WASMPBA) Designations
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Hillsborough Long-Term Interest Area (‘ / .•
Hillsborough Primary Service Area
OWASA Long-Term Interest Area �u' N tin=5,400 feet
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Orange County Long-Term Interest Area Orange County Planning and Inspections
Brian Carson(4/3/2017)
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