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HomeMy WebLinkAboutAgenda - 02-15-2005-7bORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: February 15, 2005 Action Age ~a Item No. SUBJECT: OWASA Presentation on its Mitigation Lands and Utility Extension Reimbursement Policy DEPARTMENT: County Manager PUBLIC HEARING: (Y/N) No ATTACHMENT(S): 12/20/04 Letter to County OWASA INFORMATION CONTACT: Representatives Paul Thames, ext 2303 OWASA Abstract, 6/10!04 -Chapel Hill Request to Implement TELEPHONE NUMBERS: Reimbursement Policy Hillsborough 732-8181 OWASA Abstract, Proposal to Allow Chapel Hill 968-4501 Hunting on OWASA's 500-acre Durham 688-7331 "Wildlife Mitigation" Tract Mebane 336-227-2031 PURPOSE: To provide the BOCC with information and opportunity for discussion on issues - use of Orange Water and Sewer Authority (OWASA) wildlife mitigation lands and OWASA utility extension reimbursement policy -raised by the Board by means of a letter from the Chair to OWASA. BACKGROUND: In a December 20, 2004 letter to Mark Marcoplos and Bernadette Pelissier, Orange County s representatives on the OWASA Board of Directors, Chair Moses Carey requested that the County representatives make a report on OWASA activities and issues at one of the BOCC's February 2005 meetings. Commissioner Carey specifically asked that Mr. Marcoplos and Ms. Pelissier be prepared to discuss "a reconsideration of OWASA's policy for reimbursement of public entities that pay to extend water and sewer lines, as has been requested by Chapel Hill" and "possible alternatives for managing OWASA's mitigation lands in Bingham Township". Reimbursement Policy - OWASA, until 1999, had a reimbursement policy that essentially provided for a reimbursement over aten-year period to an applicant/developerfnr the incremental costs of upsizing water and sewer lines (to a size larger that the industry standard 8" line) necessary to provide for additional and orderly development of the utility systems. The source of funding for these reimbursements was front footage (fronting on the utility line[s]) and acreage assessment fees applied to other utility customers who connected to the utility systems extended and financed by the applicant /developer. This policy did not allow the applicant/developer to recover any costs for the minimally sized 8" water or sewer line extensions. In 1999, OWASA stopped calculating assessment fees based on acreage and front footage and began basing its fees on home size (square footage) or water meter size (non-residential use). 2 This fee calculation process was based on findings that larger water meters and larger homes represented greater water use and wastewater generation than that of smaller meters and homes and thus represented a correspondingly greater portion of the demand on and capacity of the infrastructure, During approximately the same period, OWASA found that there was a relatively low demand for reimbursements under its then current reimbursement policy, As the primary tool for generating reimbursement funds was eliminated with the adoption of the meter and home size based fee policy, OWASA also eliminated its reimbursement policy. Mitigation Lands - A condition of the permitting process (US Corps of Engineers 404 permit was the overarching permit) for the construction of OWASA's Cane Greek dam and impounding the reservoir was that OWASA purchase 500 acres of land to mitigate the loss of wildlife habitat that would be inundated by the reservoir. Accordingly, OWASA purchased an approximately 500 acre tract in the portion of the Cane Creek watershed lying within Bingham Township. The 404 permit required that OWASA allow the reservoir property -but not the mitigation property - to be open to the public for hunting, Over the last several years, there have been a number of ongoing discussions involving OWASA, the Intergovernmental Parks Wark Group (IPWG) and the NC Wildlife Resources Commission (WRC) about the use of this mitigation land far passive park uses (hiking, etc.) and for hunting as well as potential management alternatives, To date, OWASA has declined to allow the mitigation land to be used, developed or managed to provide for any formal passive recreational program. OWASA has held discussions with the WRC about opening the mitigation lands for a permit controlled hunting program that would be administered and enforced by the WRC. In exchange far implementing this program, the requirement to open the reservoir for hunting would be dropped, FINANCIAL IMPACT: Reimbursement Policy- Implementing a reimbursement policy could represent in excess of $200,000 in savings for sewer extension costs relative to upcoming Twin Creeks park and school projects if additional development were to occur along the sewer extension route within aten-year reimbursement period, Mitigation Lands - It is not possible to calculate at this time the financial impact to the County of allowing OWASA's mitigation land to be open for inactive recreational activities, unless such a action were to be compared to the cost of purchasing another 500 acre tract in Bingham Township for use as a passive recreational park area, RECOMMENDATION(S): The Manager recommends that the Board receive the OWASA presentation and provide any comments, questions, or additional feedback to staff, MOSES CAREY, /R., CHAIR ORANGE GOUN'TY BOARD OF COMMISSIONERS BARRY JAGOBS. VICE CHAIR POST OFFICE BOX 8181 VALERIE P. FOUBHEE A/JGE M. CORDON 200 SOUTH CAMERON STREET STEPHEN H. HAfXIOTIS HILLSBOROUGH, hIORTH CAROLINA 27278 December 20, 2004 Mr, Mazk Mazcoplos 7207 Southern Trail Road Chapel Hill, North Carolina 27156 Ms, Bernadette Pelissier 4516 Mystic Lane Hillsborough, North Carolina 27278 Dear Mazk and Bernadette, Both of you, and the Boazd of County Commissioners have discussed the desirability of having our appointed OWASA representatives report to the Board on an annual basis,. We invite you to attend one of the Commissioners' meetings in February, either February 15` or' February 15~', to make such a report on any matters that you deem important. However, there aze two particulaz items currently of interest to our Boazd, We would like to discuss a re-consideration of OWASA's policy for reimbursement of public entities that pay to extend water and sewer lines, as has been requested by Chapel Hill, We would also like to discuss possible alternatives for managing OWASA's mitigation lands in Bingham Township. If you have any questions, please contact either me at 933-8494 (until 12/31104), and then you can reach me at 929-8513, or Vice Chair Barry Jacobs at 732-4941. Sincerely, Moses Cazey, Jr Chair, Boazd of CC: Ed Kerwin, Executive Director, OWASA Boazd of County Commissioners W WIA! GO.ORANGE. NC. US PROTECT/NGANO PRESERVING-PEOPLE, RESOURCES CJUALITY OFL/FE ORANGE COUNTY, NORTH CAROLINA -YOU COUNT.I (91.9) 245-2130 • FAX (9 7 91 644024 6 ITEM 11 O AGENDA ITEM REVIEW RE.QUESZ FROM TOWN OF CHAPEL HILL. TO CONSIDER IMPLEMENTATION OF REIIv1BURSEMENT POLICY PURPOSE To discuss a request from the Town of Chapel Hill to consider implementation of a developer reimbursement policy BACKGROUND • OWASA previously had a policy that provided for the reimbursement of a portion of the construction costs where an applicant/developer had extended water and sewer mains of a size in excess of 8-inches in diameter and which supported the orderly development of the water and sewer systems. • Reimbursements were derived and paid from the footage charge levied against property served directly by the connection and from the acreage component of the availability fees levied against property developed simultaneously or subsequent to the installation of the water and/or sewer mains. When the reimbursement practice was discontinued in 1999 upon the restructuring of service availability fees, the front footage and acreage component of the availability fees were eliminated. The front footage and acreage fees were previously used to fund and pay reimbursements, The current fee structure does not include a provision for applying and collecting front footage or acreage fees. • A request has been received from the Town of Chapel Hill to consider implementing a policy to allow recovery of'sorne of the costs of water and sewer infrastructure when installed with capacity in excess of the applicant's need to support future development. ACTION NEEDED • Discussion Only STAFF RECOMMENDATIONS • Discussion by the Board to provide feedback to staff regazding the Town's request. )une 10, 2004 5 MEMORANDUM TO: Board of Directors THROUGFI: Ed Kerwin FROM: John Greene DATE: June 3, 2004 SUBJECT: Reimbursement Policy At the request of the Chapel Hill Town Council, we received a March 17, 2004 letter from Cal Horton, Town Manager, asking that OWASA consider implementing a policy that would allow recovery of some of the water and sewer infrastructure cost by those who install mains with capacity in excess of the applicant's own development need (Attachment 1).. OWASA's current Water and Sewer Extension Policies (Attachments 2 & 3), adopted in .January 1990, require that water and sewer main extensions "be made in a manner to appropriately serve individual customers and to allow for future orderly development of the water/sewer system to serve other customers". The policies further state that the applicant, whether as the benefiting party or acting as the developer of a subdivision, commercial or industrial property be responsible for: 1) The cost of installing all water/sewer system components within or by their property. 2) The cost of connecting water/sewer mains between their properties and the existing water distribution sewer collections system and/or improvements of existing mains, booster stations and appurtenances. 3) The initial financing of service extensions both inside and outside the property of the applicant with reimbursement to the applicant for costs in excess of their proportionate share as provided by reimbursement policies of the Authority. 4) Providing easements and right-of--way, sufficient for the construction, operation, repair and expansion of the water/sewer systems, including sufficient isolation from adjoining facilities within or without the boundaries of such easement or right-of--way. OWASA requires that water and sewer extensions constructed by third party developers be designed, ]ocated and constructed so that the facilities can provide service to the developer's project as well as adjacent properties and support future development within the service area (orderly development). This requirement sometimes results in the developer being required to construct, at his/her cost, water and sewer mains of a size in excess of the minimum required size, Water and sewer mains constructed within the system that are in excess of 8-inches in diameter are generally considered to be sized in excess of a development's needs. These installations could ultimately support future growth and development beyond those of the applicant. Currently there is no mechanism by which an applicant/developer can seek reimbursement for installing water or sewer mains that are sized beyond the needs of their development. Prior to the elimination of reimbursements in 1999, OWASA had a policy (Attachment 4) that provided for the reimbursement of funds to an applicantldeveloper where they had constructed and extended water and sewer mains of a size in excess of'their own development's need. Memorandum Reimbttrsement Policy June .3, 2004 Page 2 ~O Under the previous policy reimbursements were made to the applicanUdevelopers over a 10 year period. Reimbursements were derived and paid from the footage and acreage charges levied against properties or customers connecting to the oversized water and/or sewer mains, An original Reimbursement Policy was adopted by the Board in 1977 and subsequently revised in 1992. Since 1980 there has been approximately $190,000 reimbursed to developers under the two reimbursement policies. OWASA's current fee structure does not include a provision for applying and collecting front footage or acreage fees as these fees were eliminated, due to the administrative effort and minimal benefit of the reimbursement policy, when the connection fee structure was modified in the 1999 to implement a tiered availability fee structure.. Staff believes there are several alternatives to address the request for reimbursement on water and sewer mains sized in excess of the applicant's needs to provide for the orderly development of the system,. These options include: 1) No reimbursements (current policy) -The full cost of extending water and sewer mains including any excess capacity to support the orderly development of the system is borne by the applicant. PROS: - Easy to administer and requires no tracking by staff - No impact on OWASA budget - Growth pays for growth CONS: - First applicant in area beazs the full cost of'the extension that others can then utilize for their development 2) Reimbursement to the applicant over a period of time (previous policy)- Under this option the applicant would be reimbursed a portion of the water and sewer extension cost based on the construction cost difference between an 8" main extension and the oversized main that supports future growth of the system, Reimbursement would be paid over a 10 year period from funds received as customers connect to the oversized water and/or sewer mains, Since there is no mechanism within the current OWASA Rates & Fees Schedule to fund reimbursements, our existing availability fee structure would need to be modified to insure full recovery of costs associated with this program, PROS: - Limited impact on OWASA budget (assuming front footage and acreage fees are reinstituted) - Growth pays for growth CONS: - Difficult to administer and requires considerable staff time to track - First applicant in area bears the full cost of the extensions - No guarantee that applicant will receive any or all of the cost incurred with the extension - Reimbursements to private developers could result in a bonus to the developer as the cost for' the oversized extension has already been accounted for in the land price or sale price to others - Can result in high water and/or sewer connection fees for small lots with minimal system demand Memorandum "7 Reimbursement Policy June 3, 2004 Page .3 3) Upfront payment by OWASA to the applicant -Under this option OWASA would enter into an agreement with the applicant to pay a portion of the oversized water and/or sewer main cost upon completion of the extension and dedication to OWASA. As with the previous alternative our existing availability fee structure would need to be modified to insure full recovery of costs associated with this program. PROS: - Easy to administer., - Applicant receives payment for the oversized mains upon completion of the extension,. - Excess water and/or sewer main extension cost is not added to the land or sales price to others CONS: - Potential impact on OWASA budget depending on the rate of development - Current OWASA customer base pays for a portion of growth - May result in "leap-frogging" of development - Requires tracking by OWASA staff - Can result in high connection fees for small lots with minimal system demand. Staff has reviewed the current long range plans to determine areas within the current service boundary where oversized water and sewer mains will be required. Based upon this review, OWASA's exposure for potential future reimbursement to provide over sizing of water and sewer infrastructure would be in the range of $750,000 to $1,000,000. With the changes made to the availability fees in 1999 there is currently no process or arrangement in place to provide for funding reimbursement payments. Staff' has also reviewed the water and sewer main extensions being required of the Town in the development of their new Public Works Facility. Currently the Town is to extend approximately 3,700 feet of 16-inch water main along Eubanks Road from NC 86 (Airport Road) to Millhouse Road,. Under the previous reimbursement policy the Town could have received 50% of the estimated $555,000 construction cost for the 16-inch water main extension along Eubanks Road (assuming an 8" water service was needed for their purposes). There would have been no reimbursement for any sewer main extension because current development plans indicate that all sewer mains to serve the Town's new facility are to be 8-inches in diameter. Based on the undeveloped properties that could benefit or receive service from the 16-inch water main extension and using the previous front footage and acreage fees from 1998 adjusted to 200.3, the Town could receive approximately $185,000 in reimbursement if all of the undeveloped property was fully developed within the next 10 years. OWASA's experience is that most developers never recover the full construction cost differential through reimbursements.. Since 1980 there have been 20 reimbursement agreements totaling approximately $928,000 of which only $191,034 has been dispersed. At present, of the 20 reimbursement agreements since 1980 all but four (4) agreements have expired their 10 year term. Under Alternative 3 (upfront payment) the Town could receive reimbursement for a percentage of the approximate $185,000 cost differential between the 16-inch and 8-inch water main construction cost (estimated $555,000 for 16-inch main construction and $370,000 for 8-inch main consuuction) upon completion of construction and dedication of the system to OWASA.. If the Board chose to implement this alternative a decision would have to be reached on what percentage (0-100%) of the construction cost differential was reimbursable. This information is provided to the Board for review and discussion. Prior to the development of a Memorandum Reimbursement Policy June .3, 2004 Page 4 8 recommendation staff seeks direction and guidance from the Board, Staff will be available at the meeting to review the previous reimbursement policy and to provide any additional detail needed by the Board on the alternatives presented in this memorandum. John W. Greene, P.E. General Manager of Operations Attachments. ~~ /~~f r T ~'f ~~ T~ O `Z RTk CAACV TOWN OF CHAPEL HILL March 17, 2004 Mr, Ed Kerwin Executive Director orange Water and Sewer Authority P.O, Box 366 Carrboro, NC 27510-0366 Dear Mr. Kerwin: A-1TACHMENT 1 O I am writing at the request of the Town Council to ask that OWASA consider instituting a policy that wotrld allow recovery of some of the casts of installed water and wastewater infrastructure by those who install the infrastructure from those who later make use of that infrastructure. I believe that OWASA once had a similaz policy and ask that you consider either reinstituting the old policy or creating a new one, The question azose during discussion of the Town's upcoming Town Operations Center project on Millhouse Road. As you know, the Town, as developer, will install water lines, sewer lines and a pump station to serve the facility, Both the water lines and the sewerage facilities will be designed so as to allow future development in the azea to use them, Whiie we agree that this is good planning for the community's eventual health and safety, the capital investment to effect this infrastructure will fall entirely on the Town as the 1"irst developer in the area. We believe it would be logical and equitable for future developers to pay some allocated share of the cost of the lines and pump station as a reasonable cost of their respective development projects. We would welcome the opportunity to discuss this idea with you further. Please contact me at your convenience and thank you for your consideration of this request. Sin erely, ~nn QQ S~-~~~ W, Calvin Horton Town Manager cc: Mayor and Council 306 N. Columbia Street, Chapel Hill, NC 27516-2113 (919) 968-274.3 FAX (919) 967-8406 11.6 .....m.. _.m,,r. ~.,.,e~~,:n ..... io ORANGE WATER AND SEWER AUIRORITY POLICY ON THE EXTENSION OF SEWER SERVICE PURPOSE: The sewer extension policy sets forth principles and guidelines for extension of sewer service and for attachment to the sewer mains and facilities of the Orange Water and Sewer Authority. BACKGROUND: An integral part of the operation of [he Orange Water and Sever Authority is extension of sever service from existing facilities or construction of new facilities. This extension of service may consist of f) construction of new col- lectors, interceptors, mains, pump stations and other appurte- nances necessary to serve a property or 2~ connection of a pri- vate sewer lateral to the main sever lines of the Authority. POLICY: The extension of sewer service from the system of the Orange Water and Sewer Authority shall: ~, Be in accordance with the Authority Sewer Extension Regula- tions, Authority Specifications and the Authority Schedule of Rates and Fees. 2. Reflect the principles and policies of the land use plans of respective local governmental. unit. d, Be made in a manner to appropriately serve individual dis- chargers and to allow for fuevre orderly development of the sewer system co serve ocher dischargers in accordance with policies of the Orange Water and Sewer Authority. 4. Be in accordance with other policies of the Board of Direc- tors such as policies on extending water and sewer lines or service into University Lake watershed. The Authority shall be responsible for maintenance, operation, and control of all sewerage facilities dedicated and accepted by Che Authority and may from time to time contract to pzovide maintenance or operation of sewerage facilities owned by others. The Authority shall set standards Eor design, location, materials and construction for sever system components to 6e served or be a part of the wastewater utility system. Applicants, whether as [he beneficing party or acting as the developer of a subdivision, commercial or industrial property shall be responsible for: Orange Gater and Sewer Authority Sewer Extension Service Policy Page 2 1, The cost of installing all sewer system components within or to a point which is adjacent to their property. 2. The costs of connecting sewer mains between their properties and the existing wastewater collection system and/or improvement of existing mains, pump stations and appurtenances. 3. The initial financing of service extensions both inside and outside the property of the applic~an[ with reimbursement to the applicant fot costs in excess of itheir'proportionate share as provided by reimbursement policies of the Authority. 4. Providing easements and rights-of-way sufficient for the con- struction, operation, repair and expansion of the sewer system, including sufficient isolation from adjoining facilities within or without the boundaries of such easement or right-of-way. AIITHORIZATION The Executive Airector is authorized and empow- ered to direct on behalf of the Orange Water and Sewer Authority extension of sewer service as provided under this policy, to establish regulations for the implementation of this policy and without further authorization by tfie Board of Directors to take administrative actions for the security and control of the system of Orange Water and Sewer Authority. The Executive Director is authorized to wi.[hhold or terminate sewer service for noncompliance by the party with the policies and regulations of the Authority, ilhere unusual circumstances exist, the Executive Director may request that the Board of Directors make the determination on extension of sever service or extension of the sewer system. Reviewed by General Counsel Adopted by the Board: ~/~/90 Date 1/25/90 Date ORANGE WATER AND SEWER A(1iHORITY I a SEWER SERVICE EXTENSION REGQLATIONS I II PQRPOSE The purpose of this regulation is Co se[ forth the condiCions and standards for the extension of sewer service and the attachment to the mains and facilities of Che Orange Water and Sewer Authority as provided under the Policy for Extension of Sewer Service adopted by the OWASA Board of Directors on January 25, 1990. GENERAL PRINCIPLES A. the extension of sewer service from the system of the Authority shall be in accordance with the policies, standards and fees established by the Orange Water and Sewer Authority. B. Extension of service consists of: 1. construction of new sewer collectors, intercep- tors, mains, pump stations and appurtenances [o serve the property. 2. the connection of a private sewer lateral to the main sewer line. III. GLOSSARY SEWER LATERAL. The sewer lateral is the pipe which connects the building to the collector sewer located in the street. It is usually four inches i,n diameter. In the OWASA system, the sewer lateral is owned and main- tained by Che property owner. SEWER COLLECTOR. The sewer collector is the pipe which receives wastewater from one or more sewer laterals. The minimum diameter of the collector sewer is eight C8) inches. The collector sewer is owned and maintained by the Authority. SEWER MAINS. The sewer main is the pipe which receives wastewater from one or more collector sewers. The term is herein used to mean interceptors, mains and collector sewers. SEWER INTERCEPTOR. The interceptor sewer is the pipe which receives wastewater from the sewer mains and collectors and conveys it Co the wastewater treatment Orange Water and Sewer Authority Sever Service Extension Regulations Page 2 ~3 plant. The interceptor sewer is owned and maintained by the Authority. PUMP STAfiION. The pump station also called Lift sta- tion) is the sewer appurtenance which pumps the waste- water from a sewer main of. lower elevation to a sewer main of higher elevation, Tp, E%TENSIOP OF SEWER t1AIP5 Extension of sewer mains shall meet the following requirements: A. Approval By Local Government b Agencies Prior to installation of any cant for service shall pzov'ide to cation and/or documentation tfiat co be served has been approved by ical subdivision and/or regul: review authority. , B. Review By The Authority facilities the appli- the Authority certifi- the proposed property the appropriate polit- ~tory agencies having A11 installations shall meet minimum specifications set by the Authority. The' specifications shall include the size of all lines, their location, grade, materials used, manner of installation and such other specifica- tions deemed necessary by the Authority. C. Approval by Regulatory Agencies Prior to approval. by the Authority the construction drawings and specifications for the extension of sewer service must be submitted to and reviewed by the appro- priate regulatory agencies;. These agencies may include but are not limited to theiDepartment of Transportation, the Division of Environmental Management, the Division of Health Services, the Division of Land Resources and the U.S. Army Corps of Engineers. D. Approval by the Authority Construction shall not commence until approval has been given in writing by the Authority to specifications shown on detailed construction drawings prepared for the applicant by an engineer; registered in the State of Orange Water and Sever Authority Sewer Service Extension Regulations Page 3 i~ Nozth Carolina. This approval wilt be granted by the Authority after is has received notification of approval by the various regulatory agencies. E. Construction The public main shall not be less than eight (S) inches in diameter, must be laid to line and grade, with manholes at any change of line and grade of the sever and in no case more than 400' apart, and in all other respects meet the specifications used by the Authority for construction of sewer lines. Any addition to the system must extend to the appli- cant's property with adequate provisions including easements, rights-oE-way, etc. for laterals or exten- sions as required to support future development and extension of the system. Extension of sewer mains shall be performed by as independent contractor under contract to the Authority or to the applicant complying with the Authority's Standards and Specifications for Water Distributions and Wastewater Collections Systems with all work subject to inspection and approval by the Chief Engineer or his authorized agent. If in the judgment of the Chief Engineer there is demonstrated lack of competent supervision of a contrac- tor, the Chief Engineer may, upon approval. of the Execu- tive Director (1) halt work until approved supervision is obtained and the work. performed in accordance with approved specifications, or (2) provide constant con- struction observation by Authority personnel at the expense of the applicant. The applicant is solely responsible for the design and construction of the project. The applicant may be required to modify, rearrange or redo any work to bring it in conformity with the Authori.ty's Standards and Specifications. Construction observation by the Author- ity does not imply supervision and/or acceptance of the work. F. Rights-Of-Way Sewer mains will be installed only in dedicated streets, roadways, or rights-of-way secured by encroach- ments or recorded easements or license. Applicant for Orange Water and Sever Authority 15 Sewer Service Extension Regulations Page 4 service i,s responsible for providing or securing the necessary encroachments and easements requited for the project. Easements necessary to serve the project and allow for the orderly development and expansion of the sewer system shall be dedicated in behalf of the Author- ity. G. ownership and Contcol All sewer mains constructed and connected to the facilities of the Authority under the policies stipulat- ed herein shall be conveyed to and become the property of the Authority upon completion and acceptance. Con- nection to the system and acceptance by the Authority shall constitute dedication of a sewer main extension by the applicant but the applicant may be required to furnish to the Authority documentation of specific conveyance. The Authority shall have exclusive control of all such lines and shall be responsible for their mainte- nance, repair and operation. H. Warranty The conveyor of an extension to the system shall guarantee the entire project against defective material and workmanship and con`sequen[ial damages resulting therefrom for a period ofytwelve months from the date of completion and acceptance~of the project, including such incidental damages as ma,y arise from such claims. At the completion of the construction and prior to accept- ance of any fees for connection of service, the conveyor must supply to the Auttiori[y a letter of credit in behalf of the Authority !in an amount equal to SZ of the total extension construction cost or such other amount as the Authority may require. I. System Expansion Requirements herein~do not preclude the use and extension of mains by the Authority 'for the expansion and orderly development 'of the sewer system. The Au- thority shall have the tight to make, or allow to be made, additional extensions of a sewer main beyond or laterally from the extension. ((n Orange Water and Sewer Authority Sewer Service Extension Regulations Page 5 V. SERVICE CONNECTIONS A. Service Each lot or parcel to be served shall have a public sewer extended on or immediately adjacent to such property at a location secured by a utility easement or franchise in behalf of the Authority in such a manner that the private Lateral serving the property may be tied directly into the public sewer. B. Installation Installation of the line from Che house to the main sewer line, including furnishing and setting cleanouts, will be the responsibility of the property owner. The normal location for the first cleanout in the private lateral upstream of the main will be at the curb, property line or edge of right'of-way. Taps into the sewer mains in service will be made only by Authority personnel. C. Stub Out and Subsequent Connection To avoid future cutting of street surface where sewer service is not immediately desired, the service line may be stubbed out to the property. D. Codes All private laterals shall be installed in accordance with applicable North Carolina or Local plumbing codes and regulations. VI. FEES A. General Fees and charges shall be made in accordance with the current schedule of rates and fees adopted by the Authority Board of Directors. B. Availability Fees i. Purpose i ~i Orange Water and Sewer Authority Sewer Service Extension Regulations Page b The purpose of this cha~,rge is to recover a portion of the cost associated vith~ providing wastewater system facility capacity. This charge is applicable to each connection to a sever line regardless of who may have paid for the installation of the line to which the connection is made. 2. Applicability Availability charges are composed of two factors: the size of the property and the demand on the system as represented by eater meterlsize. All Lands not requir- ing sewer service and dedicated to public use such as for streets, highways, alleys, parks, playgrounds and recreation areas associated with public schools shall be excluded from the total. acreage against which the fees apply as long as the properties continue in such exempt uses. Unusual and unique circumstances with minimal. impact on the sewer facilities may be eligible for a variance based upon an evaluation by the Chief Engineer and approval by the Executive Director. The owner of any large tract or parcel of land exceeding three acres in size and on which there is but one residential dwelling unit may, upon the approval of the Authority, by recorded plat designate a lot contain- ing the dwelling of not less than three acres in area against which the acreage fee will apply. C. Footage Charge Purpose The purpose of this charge - is to defray, in part, the cost of installing sewer mains, manholes, etc. which are necessary to provide sewer service to abutting properties and which have been provided at the expense of the Authority or persons, firms or corporations other than Lhe applicant. 2. Applicability A Footage Charge for eaca separate connection Co an existing sewer main shall~be paid by each applicant who wishes to secure service ;therefrom, which charge shall be paid prior to the approval of the application for a Orange Water and Sever Authority Sewer Service Extension Regulations Page 7 i~ service connection; provided, however, Chat in any instance where satisfactory evidence shows that an applicant Eor a connection has paid Che cost of instal- lation of the main to which the connection is to be made, either by installing the main at his expense and then conveying same to the Authority Cor its predeces- sors) or by reimbursing the Authority (or its predeces- sors) for the cost of such main, the Footage Charge shall be waived. 3. Computation 1. The Eootage charge shall be computed on the basis of the footage of the property abutting the line. On lots abutting two or more streets in which lines are installed, Che footage shall be based upon the longest side. 2. The minimum frontage for each connection shall be that for property with 50 feet frontage, regardless of actual frontage. 3. When a line passes thcough a tract which may be served to either side from the line, the front footage and acreage fees shall apply separately to each side. D. Private Lateral Tap Charge 1. Purpose The purpose of this charge is to recover costs of making the tap into the sever main or mains and provid- ing a connection point for the Lateral connection. Where properties have been provided a stub out to the property line, edge of easement or right of way no cap fee will apply. Charges will be made for the cutting of a tap into an existing sewer main or manhole. These charges include all labor and materials to complete the physical tap, but do not include cost for excavating, backfilling or pavement repairs necessary to expose the main or manhole. Obtaining and paying for the street cut permit from units of local government or obtaining encroachment approval from the Department of Transportation are the responsibility of the applicant. i~ Orange Water and Sewer Authority Sewer Service Extension ReguLaCions Page 6 2. Applicability The applicable charges shall apply as se[ forth in the Schedule of Rates and Fees adopted by the Authori-- ty's Board of Directors. VII, PAYHENTS All fees and payments due the Authority shall. be made at the following address: Orange Water and Sewer Authority Customer Relations Department 400 Jones Ferry Road P.0. Box 366 Carrboro, N.C. 27510 VIII. INTERPRETATION AND REIIISIONS These regulations are pursuant to the Sewet System Extension Policy adopted b;y the Orange Water and Sewer AuChority's Board of Dir)ecCOrs and incorporated by reference as a part hereof. Implementation and interpretation of the Sewer System Extension Regulations are the responsibility of the Executive Director and the adminisCrative staff. The Executive Director is authori2ed to establish and imple- ment regulations for the extension of [fie sewer system. Such regulations are to Abe uniformly and equitably implemented but deviations,may be approved by the Execu- tive Director for unusual eechnical situations. IX. APPEALS The appeal of decisions or ~i.nterpretations of [he Execu- tive Director regarding the implementation of the Sewer System Extension Policy may be made in writing to the Board of Directors of the Orange Water and Sewer Author- ity. The appeal should state clearly and specifically the relief sought and reasons therefore. as Orange Water and Sewer AuthoriCy Sewer Service Extension Service AgreemenC Page 9 X. REFERENCES A. OWASA Schedule of Rates and Fees B. OWASA Standard Specifications for Water Distribution and Wastewater Collection Systems C. Procedure for Approval 'of Water and/or Sewer Exten- sion Projects D. OWASA Policy on Reimburstment for costs of Contrib- uted Capital Facilities E. OWASA Policy on Assessment of Costs al ORANGE WATER AND SEWER AUTRORITY POL.iCY ON THE EXTENSION OF SEWER SERVICE PURPOSE: The sewer extension policy sets forth principles and guidelines for extension of sewer service and for attachment to the sewer mains and facilities of the Orange Water and Sewer Authority. BACKGROUND: An integral part of the operation of the Orange Water and Sewec Authority is extension of sewer service from existing facilities or construction of new facilities. This extension of service may consist of 1) construction of new col- lectors, interceptors, mains, pump stations and other appurte- nances necessary to serve a property or G) connection of a pri- vate sewer lateral to the main sewer lines of the Authority. POLICY: The extension of sewer service from the system of the Orange Water and Sewer Authority shall: ~, Be in accordance with the Authority Sewer Extension Regula- tions, Authority Specifications and the Authority Schedule of Rates and Fees. 2, Reflect the principles and policies of the land use plans of respective local governmental unit. 3, Be made in a manner to appropriately serve individual dis- chargers and to allow for future orderly development of the sewer system to serve other dischargers in accordance with policies of the Orange Water and Sewer Authority. 4. Be in accordance with other policies of the Board of Direc- tors such as policies on extending water and sewer lines or service into University Lake watershed. The Authority shall be responsible for maintenance, operation, and control of all sewerage facilities dedicated and accepted by the Authority and may from time to time contract to provide maintenance or operation of sewerage facilities owned by others. The Authority shall set standards for design, location, materials and construction for sewer system components to 6e served or be a part of the wastewater utility system. Applicants, whether as the benefiting party or acting as the developer of a subdivision, commercial or industrial property shall be responsible for: as Orange Water and Sever Extension Page 2 Sewer Authority Service Policy i. The cost of installing all sewer system components within or to a point vhich is adjacent to [heir property. 2. The costs of connecting sewer mains between their properties and Che existing wastewater collection system and/or improvement of existing mains, pump stations and appurtenances, 3. The ini[ial financing of service extensions both inside and outside the property of the applic~anC with reimbursement to the applicant for costs in excess of itheir"proportionate share as provided by reimbursement policies of the Authority. 4. Providing easements and rights-of-way sufficient for the con- struction, operation, repair and expansion of the sewer system, including sufficient isolation from adjoining facilities within or without the boundaries of such easement or right-of-way. AUTAORZZATZON The Executive Director is authorized and empow- ered to direct on behalf of the Orange Water and Sewer Authority ex[ension of sewer service as provided under this policy, to establish regulations for the implementation of this policy and without further authorization by the Board of Director's to Cake administrative actions for the security and control of the system of Orange Water and Sewer Authority. The Executive Director is authorized to withhold or Germinate sewer service for noncompliance by [he party with the policies and regulations of the Authority. Where unusual circumstances exist, the Executive Director may request that the Board of Directors make the determination on extension of sever service or extension of the sewer system. Reviewed by General Counsel: 3~~~~0 Date Adopted by the Board: 1/25/90 _ Dace ORANGE WATER AND SEWER AUTHORITY a SEWER SERVICE EATENSION REGULATIONS I, PQRPOSE The purpose of this regulation i,s to set forCh the conditions and standards for the extension of sewer service and the attachment to the mains and Facilities of the Orange Water and Sewer Authority as provided under the Policy for Extension of Sewer Service adopted by the OWASA Board of Directors on January 25, 1990. II. GENERAL PRINCIPLES A. The extension of sewer service from the system of the Authority shall be in accordance with the policies, standards and fees established by the Orange Water and Sewer Authority. B. Extension of service consists of: i. construction of new sewer collectors, intercep- tors, mains, pump stations and appurtenances to serve the property. 2. the connection of a private sewer Lateral to the main sewer Line. III, GLOSSARY SEWER LATERAL. The sewer lateral is the pipe which connects the building to the coll.ec[or sewer located in the street. It is usually four inches in diameter. In the OWASA system, the sewer lateral is owned and main- tained by the property owner. SEWER COLLECTOR. The sewer collector is the pipe which receives wastewater from one or more sewer laterals. The minimum diameter of the collector sewer is eight (8) inches. The collector sewer is owned and maintained by the Authority. SEWER MAINS. The sewer main is the pipe which receives wastewater from one or more collector sewers. The term is herein used [o mean interceptors, mains and collector sewers. SEWER INTERCEPTOR. The interceptor sewer is the pipe which receives wastewater from the sewer mains and collectors and conveys it to the wastewater treatment Orange Water and Sewer Authority Sewer Service Extension Regulations Page 2 ~~ plant. The interceptor sever is owned and maintained by the Authority. PUMP STATION. The pump station (also called lift sta- tion) is the sewer appurtenance which pumps the waste- water Erom a sewer main of. lower elevation to a sewer main of higher elevation. I~, ExTENSIOR OF SEWER HAIRS Extension of sewer mains shall meet the following requirements= A. Approval By Local Government S Agencies Prior to installation of any cant for service shall provide to cation and/or documentation that to be served has been approved by ical subdivision and/or regul: review authority. , B. Review By The Authority facilities the appli- the Authority certifi- the proposed property the appropriate polit- itory agencies having AL1 installations shall meet minimum specifications set by the Authority. The' specifications shall include the size of all lines, their location, grade, materia'l,s used, manner of ins[allati;on and such other speciEica- tions deemed necessary by the Authority. C. Approval by Regulatory Agencies Prior to approval by the Authority the construction drawings and specifications for the extension of sewer service must be submitted to and reviewed by the appro- priate regulatory agencies;. These agencies may include but are not limited to the~Department of Transportation, the Division of Environmental Management, the Division of Health Services, the Division of Land Resources and the U.S. Army Corps of Engineers. D. Approval 6y the Authority Construction shall not commence until approval has been given in writing by the Authority to specifications shown on detailed construction drawings prepared for the applicant by an engineer; registered in the State of Orange Water and Sewer Authority Sewer Service Extension Regulations Page 3 a~ North Carolina. This approval will be granted by the Authority after it has received notification of approval by the various regulatory agencies. E, Construction The public main shall not be less than eight (8) inches in diameter, must be laid to line and grade, vith manholes at any change of line and grade of the sewer and in no case more than 400' apart, and in all. other respects meet the specifications used by the Authority for construction of sewer lines. Any addition to the system must extend to the appli- cant's property with adequate provisions including easements, rights-of-way, etc. for laterals or exten- sions as required to support future development and extension of the system. Extension of sewer mains shall. be performed by an independent contractor under contract to the Authority or to the applicant complying with the Authority's Standards and Specifications for Water Distributions and Wastewater Collections Systems with all work subject to inspection and approval by the Chief Engineer or his authorized agent. If in the judgment of the Chief Engineer there is demonstrated lack of competent supervision of a contrac- tor, the Chief Engineer may, upon approval. of the Execu- tive Director (1) halt work until approved supervision is obtained and the work. performed in accordance with approved specifications, or C2) provide constant con- struction observation by Authority personnel at the expense of the applicant. The applicant is solely responsible for the design and construction of the project. The applicant may be required to modify, rearrange or redo any work to bring it in conformity with the Authority's Standards and Specifications. Construction observation by the Author- ity does not imply supervision and/or acceptance of the work. F. Rights-Of-Way Sewer mains will be installed only in dedicated streets, roadways, or rights-of-way secured 6y encroach- ments or recorded easements or License. Applicant for Orange Water and Sever Authority Sewer Service Extension Regulations Page 4 a~ service is responsible for providing or securing the necessary encroachments and easements required for the project. Easements necessary Co serve the project and allow for the orderly dev~elopmen[ and expansion of the sewer system shall be dedicated in behalf of [he Author- 1Cy. G. Ownership and Control All sewer mains constructed and connected to the facilities of the Authority under the policies stipulat- ed herein shall be conveyed to and become the property of the Authority upon completion and acceptance. Con- nection to the system and acceptance by the Authority shall constitute dedication of a sewer main extension by the applicant but the applicant may be required to furnish to the Authority documentation of specific conveyance. ' The Authority shall Have exclusive control of all such lines and shall be responsible for their mainte- nance, repair and operation. H. Warranty The conveyor of an extension to the system shall. guarantee the entire project against defective material and workmanship and consequential damages resulting therefrom for a period ofstwelve months from [he date of completion and acceptance;of the project, including such incidental damages as may arise from such claims. At the completion of the construction and prior to accept- ance of any fees for connection of service, the conveyoc must supply to the Authority a letter of credit in behalf of the Authority !in an amount equal to Sz of [he total extension construction cost or such other amount as the Authority may require. I. System Expansion Requirements herein~do not preclude the use and extension of mains by the Authority 'for the expansion and orderly development 'of the sewer system. The Au- thority shall have the light [o make, or allow to be made, additional extensions of a sewer main beyond or laterally from the extension. a~ Ocange Water and Sewer Authority Sewer Service Extension Regulations Page 5 V. SERVICE CONNECTIONS A. Service Each lot or parcel. to be served shall have a public sewer extended on or immediately adjacent to such property at a location secured by a utility easement or franchise in behalf of the Authority in such a manner that the private Lateral serving the property may be tied directly into the public sewec. B. Installation Installation of the line from the house to the main sewer line, including furnishing and setting cleanouts, will be the responsibility of the property owner. The normal location for the first cleanout in the private lateral upstream of the main will be at the curb, property line or edge of right-of-way. Taps into the sewer mains in service will be made only by Authority personnel. C. Stub Out and Subsequent Connection To avoid future cutting of street surface where sewer service is not immediately desired, the service line may be stubbed out to the property. D. Codes AL1 private laterals shall. be installed in accordance with applicable North Carolina or Local plumbing codes and regulations. VI. FEES A. General Fees and charges shall be made in accordance with the current schedule of rates and fees adopted by the Authority Board of Directors. B. Availability Fees I. Purpose Orange Water and Sewer Authority Sewer Service Extension Regulations Page b a~ The purpose of this charge is to recover a porCion of the cosC associated with providing wastewater system facility capacity. This charge is applicable co each connection to a sewer line regardless of who may have paid for the installation of the line to which the connection is made.. 2. Applicability Availability charges are composed of two factors: the size of the properly and the demand on the system as represented by water meter ;size. All lands not requir- ing sewer service and dedicated to public use such as for streets, highways, alleys, parks, playgrounds and recreation areas associated with public schools shall be excluded from the total ac}reage against which the fees apply as long as the properties continue in such exempt uses. Unusual and unique circumstances with minimal impact on the sewer facit~ities may be eligible for a variance based upon an evaluation by the Chief Engineer and approval by the ExecuCi!.ve Director. The owner of any large tract or parcel of land exceeding three acres in size and on which there is but one residential duelling unit may, upon the approval of the Authority, by recorded;`plat designate a lo[ contain- ing the dwelling of not less than three acres in area against which the acreage fee will apply. C. Footage Charge 1. Purpose The purpose of this charge is to defray, in part, the cost of installing sewer mains, manholes, etc. which are necessary to provide sewer service to abutting properties and which have been provided at the expense of the Authority or persons, firms or corporations other than the applicant. 2. Applicability A Footage Charge for ea~:it separate connection to an existing sewer main shall~be paid by each applicant who wishes to secure service ;therefrom, which charge shall be paid prior to the approval of the application for a a~ Orange Water and Sever Authority Sewer Service Extension Regulations Page 7 service connection; provided, however, that in any instance where satisfactory evidence shows that an applicant Eor a connection has paid the cost of instal- lation of the main to which the connection is to be made, either by installing the main at his expense and then conveying same to the Authority Cor its predeces- sors) or by reimbursing the Authority for its predeces- sors) for the cost of such main, the Footage Charge shall be waived. 3. Computation i, The Eootage charge shall be computed on the basis of the footage of the property abutting the line. On lots abutting two or more streets in which lines are installed, the footage shall be based upon the longest side. 2. The minimum frontage for each connection shall be that For property with 50 feet frontage, regardless of actual frontage. 3. When a line passes through a tract which may be served to either side from the line, the front footage and acreage fees shall apply separately to each side. D. Private Lateral Tap Charge Purpose The purpose of this charge is to recover costs of making the tap into the sewer main or mains and provid- ing a connection point for the lateral connection. Where properties have been provided a stub out to the property line, edge of easement or right of way no tap fee will apply. Charges will 6e made for the cutting of a tap into an existing sewez main or manhole. These charges include all labor and materials to complete the physical tap, but do not include cost for excavating, backfilling or pavement repairs necessary to expose the main or manhole. Obtaining and paying for the street cut permit from units of local government or obtaining encroachment approval from the Department of Transportation are the responsibility of the applicant. 30 Orange Water and Sewer Authority Sewer Service Extension Regulations Page 8 2. Applicability The applicable charges shall apply as set forth in the Schedule of Rates and Fees adopted by the Auchori• ty's Board of Directors. VII. PAYMENTS All fees and payments due the Authority shall be made at the following address: Orange Water and Sewer Authority Customer Relations Department 400 Jones Ferry Road P.O. Box 366 Carrboro, N.C. 27510 VIII. INTERPRETATION AND REVISIONS These regulations are pursuant to the Sewer System Extension Policy adopted b;y Che Orange Water and Sewer AttthoriCy's Board of Directors and incorporated by reference as a part hereof, Implementation and interpretation of [he Sewer System Extension Regulations are the responsibility of the Executive Director and the administrative staff. The Executive Director is authorized to establish and impt.e- ment regulations for the extension of the sewer system. Such regulations are to be uniformly and equitably implemented but deviations,may be approved by the Execu- tive Director for unusual. technical situations. IX. APPEALS The appeal of decisions orsinterpretations of the Execu- tive Director regarding [he implementation of the Sewer System Extension Policy may be made in writing to the Board of Directors of the Orange Water and Sewer Author- ity. The appeal should state clearly and specifically the relief sought and reasons therefore. 3- Orange Water and Sewer AuthoriCy Sewer Service Ex[ension Service Agreemen[ Page 9 K. REFERENCES A. OWASA Schedule of Rates and Fees B. OWASA Standard Specifications for Water Distribution and Wastewater Collection Systems C. Procedure for Approval 'of Water and/or Sewer Exten- sion Projects D. OWASA Policy on Reimburstment for costs of Contrib- uted Capital Facilities E. OWASA Policy on Assessment of Costs RESOLUTION AAOPTIN6 POLICY ON REIMBURSEMENTS `~~ PAR RATER AND SEWER EXTENSIONS WHEREAS, it is desirable to institute a policy for the reimbursement of funds to individuals who extend the OwASA dis- tribution and call,ection system where such extensions provide capacity beyond the needs of the individual's development; and WHEREAS, the Authority adopted a reimbursement policy on water and sewer extensions in February 19'77 and due to the out- dated items contained in that policy, adopted a revised policy on April il, 1990; and WHEREAS, i.t is desirable to revise the April ii, 1990 policy to allow for a reimbursements of the total off-site water and/or sewer extension cost. NOW, THEREFORE, BE IT RESOLVED: 1. That the Orange Water and Sewer Authority adopts the attached policy statement for reimbursements on water and sewer extension projects. 2. That the policy sha1,1 be effective upon adoption and be retroactive to include water and sewer projects meeting the requirements of this policy and completed after April 11, 1990. 3. That the Executive Director be, and hereby is, author- ized and directed to administer, implement, and enforce the adopted policy and regulations in determining reimbursements due on water and sewer main extensions within the OWASA distribution and collections systems. Adopted this 9th day of July, 1992. Lois Herring, Chair n ATTEST: Riley Wi on Secretary-Treasurer ORANGE WATER AND SEWER AUTHORITY POLICY ON REIMBURSEMENTS 3 3 FOR WATER AND SEWER EXTENSIONS PURPOSE: The reimbursement policy sets forth principles and guidelines for reimbursement of funds to applicants/developers who, at their cost, installed water and sewer facilities with capacity in excess of their project's needs and which will sup- port future development, and which have been dedicated to and accepted by the Orange Water and Sewer Authority. BACKGROUND: An integral part of the operation of Orange Water and Sewer Authority is the extension of water and sewer facili- ties by parties other than the Authority. These extensions of service may consist of: construction of new mains, service lines, pump stations and other appurtenances necessary to serve a property. In many cases, such facilities are of a size in excess of the development's needs. When utilizable excess capac- ity is installed, it is appropriate to provide for reimbursement of a portion of the cost. POLICY: The reimbursement of funds for water and sewer exten- sions by the Orange Water and Sewer Authority shall: 1. Be in accordance with the Authority Reimbursement Regula- tion, the Authority Water Extension Regulations, the Authority Sewer Extension Regulation, Authority Specifications and the Au- thority Schedule of Rates and Fees. 2. Be made only where the facil.iti.es will serve individual customers outside of the applicant's project and allow for future orderly development of the water and sewer system to serve other customers in accordance with policies of the Orange Water and Sewer Authority. 3. Be available only to the original developer and limited to that portion of the on-site cost of the water and sewer system components which are in excess of the minimum line size construc- tion cost and to the off-site cost where water and sewer compo- nents are of a size and so located as to serve other properties. 4. Be for a period of ten years from the date the reimbursement agreement is executed by the Authority, but in no instance beyond eleven years from the date the water and/or sewer system was accepted by the Authority. 5. Be paid from the footage charge levied against property served directly by the connection and from the acreage component of the availability fees levied against property developed simul- taneously or subsequent to the installation of the water and/or sewer mains. Orange jQater and Sewer Authority Policy on Reimbursement Page 2 ~~ 6. Be consistent with other policies of the Board of Directors such as policies on extending water and sewer lines or service into University Lake watershed, or policies and standards for construction of such facilities. The Authority shall be responsible for maintenance, operation, and control of all water distribution and sewer collection facil- ities dedicated to and accepted by the Authority. The Authority shall set standards for design, location, materials and construction for water and sewer system components to be served or be a part of the water and sewer utility system. Applicants, whether as the benefiting party or acting as the developer of a subdivision, commercial or industrial property shall be responsible for: 1. The cost of installing all water and sewer system components within and by their property of a size determined by the Authori- ty. 2. The costs of extending and connecting water and sewer mains between their properties and the existing water distribution and sewer collection system and/or improvement of existing mains, booster stations and appurtenances. 3. The initial financing of service extensions both inside and outside the property of the applicant with reimbursement to the applicant for costs in excess of their proportionate share as provided in the reimbursement regulations of the Authority. 4. Providing easements and rights-of-way sufficient for the con- struction, operation, repair and expansion of the water and sewer system, including sufficient isolation from adjoining facilities within or without the boundaries of sucn easement or right-of- way. 5. Provide to the Authority the necessary reimbursement agree- ment document, contractor invoices and lien waivers required to initiate and finalize the reimbursement agreement within one year after formal notice is given in writing by the Authority that the project i.s eligible for reimbursement. 35 Orange Water and Sewer Authority Policy on Reimbursement Page 3 AUTHORIZATION The Executive Director is authorized and empow- ered to direct on behalf of the Orange Water and Sewer Authority the reimbursement of funds as provided under this policy, to establish regulations for the implementation of this policy and without further authorization by the Board of Directors to take administrative actions for the security and control of the system pf Orange Water and Sewer Authority. The Executive Director is authorized to withhold or terminate the reimbursement agreement for noncompliance by the party with the policies and regulations of the Authority. L9here unusual circum- stances exist, the Executive Director may request that the Board of Directors make the determination on the applicability of a water and/or sewer reimbursement. Revised July 9, 1992 Reviewed by General Counsel: ~`~~~'~"" Date Adopted by the Board: ate ORANGE WATER AND SEWER AUTHORITY REIMBURSEMENT REGULATION A. Purpose: 3~ The purpose of this regulation is to set forth for orange Water and Sewer Authority (the Authority), conditions regulating the reimbursement of funds to applicants/developers who have extended water and sewer facilities of a size in excess of the needs of their development, where those facilities have been dedicated to and accepted by the Authority. B. Eliaibility_, Reimbursement may be made to an applicant/developer for expenses incurred in providing facilities which are subsequently utilized by the Authority to serve other customers. No allowance will be made for any lines which are not designed to serve lands outside the applicant/developer's project. Application for reimbursement must be received by the Authority within the one year warranty period which commences upon initial acceptance of the facilities by the Authority. 1. Offsite Extensions: Lines or other system components subject to reimbursement shall be those between a facility of the Authority and a subdivision or project and are so sized as to serve other properties. The reimbursable amount will be determined from the total installation cost associated with installing the respective sizes. Reimbursement is to be made from footage charges levied against property served directly by the connection and from the acreage component of the availability fees levied against any property developed simultaneously or subsequent to the installation of the water and/or sewer mains. 2. Onsite Extensions: Lines or other system components subject to reimbursement shall be lines within a subdivision or project which are of a size in excess of the need of the project itself and are so located to serve other properties. In this case the cost subject to reimbursement shall be the extra cost incurred by installing lines larger than needed to serve the subdivision or project itself. The reimbursable amount will be determined by applying a percent of reimbursement from Section D to the reasonable installation cost associated with installing the respective sizes. Orange Water and Sewer Authority Water and Sewer Reimbursement Regulation Page 2 3~ Reimbursement is to be made from the acreage component of the availability fees levied against any property developed simultaneously or subsequent to the installation of the water and/or sewer mains. 3. Reimbursements apply only to water and/or sewer mains that are of a size in excess of the minimum required and that provide excess system capacity. Connections to the system from the applicant/developer's own development or future phases of the same development are not utilized in providing reimbursement. C. Reimbursement Agreement: The Authority may execute a reimbursement agreement with any applicant/developer who finances an extension subject to reim- bursement under these policies. An application for reimbursement shall be prepared by the applicant/developer and submitted to the Authority for approval. The application shall be on forms provid- ed by the Authority. The terms and amounts which the applicant/developer may receive as reimbursement will be included and upon approval the agreement shall be signed by both parties. D. Basis for' Payment:_ Reimbursement to an original applicant/developer for on-site construction will be limited to that portion of the cost of water and/or sewer system components which is in excess of the minimum line size construction cost. Reimbursement for off-site con- struction will be based on the total. construction cost of that portion of the off-site extension of water and sewer facilities that can provide service to other properties or customers. All reimbursement is to be obtained from footage charges and the acreage component of the availability fees levied against proper- ty developed simultaneously or subsequent to the water and/or sewer main installation. The reimbursement period for each applicant/developer will expire ten years following the day of completed execution of the agree- ment but in no instances beyond eleven years from date of accept- ance of the lines for service by the Authority, whichever is earlier. No interest an cost pending reimbursement shall be allowed. Any developer making a subsequent connection to a main that was installed under a reimbursement agreement will be eligible to receive reimbursement from fees and charges only after the claim of the first developer is satisfied in full. Likewise a third developer and any subsequent developers connecting to a line having a reimbursement agreement shall receive reimbursement in orange Water and Sewer Authority Water and Sewer Reimbursement Regulation Page 3 3~ accordance with the sequence of the effective dates of the reim- bursement agreements. Reimbursement shall be based upon a schedule established to reflect variation in cost of installation of lines of respective sizes. Unit rates shall be applied to the developed length of the installed lines to determine amount to be reimbursed. No additional allowances are to be made. The following shall be used to compute the amount to be reim- bursed for on-site construction. PERCENT WATER REIMBURSEMENT INSTALLED SZZE P R R E O Q 8 'r J U E I 12" C R T E 16" M E 24" N T P R O J E C T R E Q U I R E M E N T B" 12" 16" 24" 0 33 50 67 p 0 25 50 p 0 0 33 0 0 0 0 PERCENT SEWER REIMBURSEMENT INSTALLED SIZE 8" 10" 12" 16" 18" 21" 24" 0 20 30 36 41 45 48 0 0 13 20 28 33 38 0 0 0 8 15 22 26 0 0 0 0 7 14 19 0 0 0 0 0 7 13 0 0 0 0 0 0 6 0 0 0 0 0 0 0 Bu 10" 12" 16" 18" 21" 24" Orange Water and Sewer Authority Water and Sewer Reimbursement Regulation Page 4 ~9 For projects not competitively bid the cost basis for reimburse- ment shall not exceed the average unit cost for comparable work based upon the previous six months average of cost quoted in the Bid Reporter. Eligibility of all costs are to be approved by the Chief Engi-° peer. E. Documentation of Expenses: In order to process the applicant/developer's application for reimbursement the following items must be submitted to the Au- thority: 1) Copies of bids from at least three (3} contractors for the work reimbursement is requested on 2) Copies of all contractor's invoices paid by the applicant/developer which indicate the cost associated with the line extensions. 3) A waiver certifying that all payments to suppliers and con- tractors have been made and that there are no liens on the water and sewer system. 4) Applicable documents associated with the acceptance of the water and/or sewer system by the Authority as detailed in the Procedure for Approval of Water and/or Sewer Extension Projects. F. Notification of Eligibility: The Authority shall advise the developer whether a project is eligible for reimbursement. It shall be the responsibility of the applicant, developer, etc. to initiate and pursue the final- izing of the reimbursement agreement within one year after completion of the project. Reimbursements due a developer will be paid by the Authority quarterly unless such amount is less than $5D0 in which the amount will be carried forward to the next quarter. If no con- nection fees are collected for attachments to the applicant/developer's .lines during the reimbursement period, there will be no payment. Orange Water and Sewer Authority ~ D Water and Sewer Reimbursement Regulation Page 5 G. Interpretations and Revisions: These regulations are pursuant to the Water and Sewer Reimburse- ment Policy adopted by the orange Water and Sewer Authority's Board Of Directors, which policy is hereby incorporated by refer- ence as a part hereof. Implementation and interpretation of the Water and Sewer Reim- bursement Policy is the responsibility of the Executive Director or his designee. The Executive Director is authorized to imple- ment the policy and establish and implement the regulations for water and sewer reimbursements. Such regulations are to be uniformly and equitably implemented but deviations from the regulations may be approved by the Executive Director for unusual technical situations. H. Ap~eals• Appeal of decisions or interpretations of the Executive Director regarding the implementation of the Water and Sewer Reimbursement Policy may be made in writing to the Board of Directors of the Orange Water and Sewer Authority. The appeal should state clear- ly and specifically the relief sought and reasons therefore. I. References A. OWASA Schedule of Rates and Fees B. OWASA Standard Specifications for Wastewater Collection Systems C. Procedure f'or Approval of Water Projects p. Ot4ASA Water Extension Policy E. OWASA Sewer Extension Policy Revised: July 9, 1992 Water Distribution and and/or Sewer Extension ws/reimrev AGENDA ITEM ITEM 8 ~'~ PROPOSAL TO ALLOW STATE-CONTROLLED HUNTING ON OWASA'S 500- ACRE "MITIGATION TRACT" PURPOSE To receive information about a proposed hunting program on OWASA-owned property in the Cane Creek watershed. BACKGROUND OWASA's 500-acre "Mitigation Tract" was purchased in 1980 to offset the loss of wildlife habitat that would be caused by impounding the Cane Creek Reservoir, Correspondence at that time implied that this properly would be open to the public for hunting, but the actua1404 Pernvt issued to OWASA for construction of the reservoir did not include this requirement, The permit did, however, stipulate that the reservoir itself be open for fishing and hunting, Cane Creek Reservoir has been open to the public for boating and fishing, but hunting is prohibited on all OWASA-owned property, Nevertheless, the Mitigation Tract has been subject to a significant amount ofunmanaged hunting, littering, and trespassing, including off-road vehicle use, which OWASA field staff have been unable to controh Staff of the North Cazolina Wildlife Resources Commission (WRC) has proposed a limited permit-controlled hunting program on the Mitigation Tract that would be administered and operated by the WRC, As part of the State's gamelands program, the Mitigation Tract would be posted and patrolled by WRC game wardens, who have significantly more enforcement authority than OWASA field staff. In exchange for pernrission from OWASA to implement this program, the official requirement to provide hunting on the Cane Creek Reservoir would be dropped. WRC staff will be present at the September 23, 2004 Board meeting to provide additional information and answer questions. ACTION NEEDED Discussion only, No action is requested at this time,. STAFF RECOMMENDATION Staff recommends that the Boazd receive the report and seek any additional information that maybe needed to support a decision on the permit hunting proposal. We recommend that the Board consider action at a later meeting,. September 2.3, 2004 ~-a MEMORANDUM TO: Board of Directors THROUGH: Ed Kerwin FROM: Ed Holland DATE: September 15, 2004 SUBJECT: Proposal to Allow State-Controlled Hunting on OWASA's 500-acre "Mitigation Tract" BackLround Permission to build the Cane Creek Reservoir was obtained from the United States Army Corps of Engineers (Corps) through a "Section 404" Permit issued to OWASA in 1981, The 404 Permit contained a number of provisions and requirements governing the reservoir's construction and operation, .Among these was the condition that OWASA obtain and set aside 500 acres of land to mitigate the loss of wildlife habitat that the reservoir's impoundment would cause, The so-called "Mitigation Tract" (please see the attached map) was obtained for that purpose, Regulatory responsibility for this portion of the permit was administered through the U.S, Fish and Wildlife Service and the North Carolina Wildlife Resources Commission (WRC). Although written correspondence with the WRC in 1980 implied that the Mitigation Tract would be open for public hunting, this condition was not included in the actual 404 Permit issued by the Corps, The permit did, however, require that the Cane Creek Reservoir itself be open to the public for fishing and hunting. OWASA has always provided public boating and fishing opportunities at the reservoir, but has enforced a no- huntingpolicy at Cane Creek and all other OWASA-owned land, including the Mitigation Tract, Recent Activities Despite this prohibition and the posting of all boundazies, the Mitigation Tract has been subject to a significant amount of unmanaged hunting, littering, and trespassing, including off-road vehicle use, which OWASA field staff have been unable to control with any consistency. Correspondence in 2003 from the Corps of Engineers and WRC suggested that OWASA was not meeting the requirement to provide for public hunting and fishing at the reservoir, Proposal for State Controlled Hunting ~' -J September 15, 2004 Page 2 of 3 Discussions with WRC Staff As noted in the attached letter of August 19, 2004, recent discussions with WRC staff have identified an opportunity to resolve several outstanding issues at one time through the creation of aWRC-managed permit hunting program on the 500-acre Mitigation Tract. WRC staff have indicated that if such a program were acceptable to OWASA and the program was established, then the Corps of Engineers would likely relieve OWASA of the obligation to open the reservoir for hunting. An additional benefit of the permit- controlled hunting program is that the Mitigation Tract would be posted and patrolled by WRC game wazdens, who have significantly more enforcement authority than OWASA field staff; A general description of such a program is provided in the attached letter. A permit- controlled deer hunting program would limit the number of hunters on the property at any one time to a maximum of five, probably for three days a week during the deer season; hunting would be permitted with bows and arrows, muzzle loaders, or shotguns only - not with high-powered rifles; and the entire process of permitting, registration, and enforcement would be managed by the NCWRC. In addition to concurrence by the OWASA Board of Directors, establishment of a pemvt hunting program on the Mitigation Tract would require formal approval by the NC Wildlife Resources Commission after duly conducted public hearings on this and other proposed WRC programs, Next Steps It is our understanding that WRC staff level work is proceeding with this proposal, but we have advised WRC staff that the OWASA Board of Directors must first approve the concept of a permit hunting program on the Mitigation Tract before it appeazs on the WRC's official list of proposals. WRC staff will be present at the Board's September 23, 2004 meeting to provide additional information and answer questions, but no Boazd action will be sought at this time. Staff Recommendation Staff recommends that the Board receive this report and seek any additional information that maybe needed to support a decision on the permit hunting proposal. We recommend that the Board consider action at a later meeting. I~' ,'ALL--~' Edward A. Holland, AICP Planning Director Attachments ®ASA ®Pr~teeted Pr~aper~y 44 Dear bane Creek Resew®ii° ~ ... ~~ %' ~ r• c 6 .~ ~ ~, 1 ?i'~ Q {- T. .~ - r .. "~ -;;.1. e, ~, :° ` ~'~ 4 ~E ~RD a p ,e o a !NFn~ i ~, ,~~~ y "$ ~ - N July 3004 [~ 1/Z Mile Critical Area _ _! Pre - 1998 Acquisitions - 1637 Acres ~+' s [~~';w` 1998 - 2004 Acquisitions - S29 Acres • Homesites s ~ s.uou iaoou r~~i OWASA August 19, 2004 ORANGE WATER AND SEWER ALiTHORITY Quality Service Since 1977 Mr. Wib Owen, Section Manager NC Wildlife Resources Commission Division of Wildlife Management 1722 Mail Service Center Raleigh, NC 27217 Dear Mr. Owen: ~- 5 To follow up recent discussions between OWASA staff and NC Wildlife Resources Commission (NCWRC) staff; we propose to clarify OWASA's Cane Creek Reservoir 404 Permit obligation regarding public hunting by instituting a NCWRC-managed permit hunting program on OWASA's 500-acre "Mitigation Tract" (Orange County PIN 9832-36-7089) in lieu of waterfowl hunting on the Reservoir itself: In addition to providing hunting opportunities, apermit-controlled program on the Mitigation Tract would help resolve some of the ongoing management and patrol problems on that property and would avoid a new set of managerial and water quality issues that would azise by opening the Reservoir to waterfowl hunters at a time of the year when it is otherwise closed to the public. It is our understanding that apermit-controlled deer hunting program on the Mitigation Tract would limit the number of hunters on the property at any one time to a maximum of five, probably for three days a week during the deer season. Hunting would be pernutted with bows and azrows, muzzle loaders, or shotguns, but not with high-powered rifles. The entire process of permitting, registration, and enforcement would be managed by the NCWRC. Because the property would be pazt of the state gamelands program, NCWRC staff would be permanently responsible for pasting and patrolling the property for trespassers, off~road vehicle use, and so forth, We recognize that precise details of the program would be developed during the coming year and that the property might be opened for hunting in the fall of 2005. We understand that our staff level expression of interest at this time will enable the NCWRC to begin outlining a permit program and to initiate discussions with the Corps of Engineers about modifications to the 404 Permit. It is important to note, however, that our' staff recommendation is subject to approval by the OWASA Board of Directors, with whom we look forwazd to discussing this in the neaz future. We would appreciate your assistance in further explaining the program to the Board at that time, 400 Jones Ferry Road Equal Opportuni[y Employer Voice (919) 968-4421 PO Box 366 Printed on Rerycled Paper FAX (919) 968-4464 Carrboro, NC 27510-0366 Harm orvasoarg ~~ Mr.. Wib Owen August 19, 2004 Page 2 of 2 We appreciate the opportunity to resolve the outstanding questions about hunting opportunities associated with the Cane Creek Reservoir. It is our expectation that apermit-controlled hunting program on OWASA's Mitigation Tract would in fact satisfy all hunting and fishing activity requirements expressed or implied as a condition of the Cane Creek Reservoir 404 Permit. Sincerely, Ed Kerwin Executive Director c: Mr. Hazlan T. Hall, NCWRC OWASA Board of Directors Robert Epting, Esq.