HomeMy WebLinkAboutAgenda - 12-03-2018 8-h - Orange County-Orange Alamance Water System (OAWS) Efland Sewer Billing and Hillsborough-County Efland Sewer Treatment Agreement Resolution and Termination Action 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: December 3, 2018
Action Agenda
Item No. 8-h
SUBJECT: Orange County/Orange Alamance Water System (OAWS) Efland Sewer Billing
and Town of Hillsborough/Orange County Efland Sewer Treatment Agreement
Resolution and Termination Action
DEPARTMENT: Planning & Inspections / Attorney's Office
ATTACHMENT(S): INFORMATION CONTACT:
Craig N. Benedict, Planning &
Resolution Regarding Efland Sewer Inspections, 919-245-2592
System James Bryan, Staff Attorney, 919-245-
2319
PURPOSE: To approve a resolution recognizing two entities for collaborating with Orange
County and recommend actions to terminate the 1988 agreement with Orange Alamance Water
System (OAWS) for sewer billing and the 1987 Town of Hillsborough/Orange County agreement
for sewer treatment of the Efland Sewer system since the City of Mebane will be assuming
those roles before the end of 2018.
BACKGROUND: In the mid 1980's Efland area septic systems were beginning to fail,
especially related to the Efland-Cheeks Elementary School. A lengthy effort by the Board of
Commissioners and the community brought public sewer to a limited area by 1988, which
included interlocal agreements with the Town of Hillsborough for sewer treatment, Orange
Water and Sewer Authority (OWASA) for maintenance (Mebane has subsequently taken over
maintenance) and OAWS for billing. OAWS, a quasi-public water utility provider in the area,
assisted with billing and accounting concurrent with its water bills, which is many cases serve as
the basis of the sewer bill (i.e. gallons per day, GPD).
OAWS and the Town of Hillsborough have been great partners for 30+ years in this effort to
provide billing services and sewer treatment for the Efland public sewer area.
The attached resolutions recognize the OAWS and Town of Hillsborough's long term
partnership with Orange County to collaborate with the provision of public services and the
preservation of critical and protected watersheds.
FINANCIAL IMPACT: The resolution has no financial impact, but the transfer of billing
services sewer treatment of the Efland Sewer from the Town of Hillsborough to the City of
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Mebane (which also includes maintenance and billing) will be a comprehensive savings of over
$100,000 a year and a long term moderation of sewer rates for Efland residents.
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 their
dependents.
RECOMMENDATION(S): The Manager recommends that the Board
1. Adopt the resolution and transmit to OAWS and the Town of Hillsborough; and
2. Authorize the Manager to negotiate and execute any documents necessary to terminate
the existing agreements.
RES-2018-081 3
A RESOLUTION BY THE ORANGE COUNTY BOARD OF COMMISSIONERS
REGARDING TERMINATION OF THE ORANGE COUNTY / TOWN OF HILLSBOROUGH
AND ORANGE COUNTY / ORANGE ALAMANCE WATER SYSTEM EFLAND SEWER
AGREEMENTS
WHEREAS, in the 1980's, an unincorporated area in Orange County known as the
Efland-Cheeks community began experiencing failing private septic systems; and
WHEREAS, along with community concerns, the Efland-Cheeks elementary school
was also subject to increasing stress on its septic system; and
WHEREAS, the only available solution was to develop a public sewer system which
would require easements, a funded construction infrastructure program, an entity to treat the
sewage (i.e. Town of Hillsborough), a system operator (i.e. Orange County Engineering), a
maintenance entity (i.e. Orange Water and Sewer Authority (OWASA)), and a billing entity
(i.e. Orange Alamance Water System (OAWS)); and
WHEREAS, to obtain state sewer permits Orange County had to provide interlocal
agreements noting responsible entities for sewer treatment and maintenance which
prompted the draft Efland Sewer Agreement with the Town of Hillsborough in 1984; and
WHEREAS, the agreement noted aspects of sewer treatment including but not limited
to bulk rates and capacity reservation; and
WHEREAS, the agreement was implemented and viable for over 30 years, however
in recent years the treatment rate schedule which is indirectly passed through to customers
became an increasingly disproportionate cost compared to other utilities; and
WHEREAS, the Town of Hillsborough and Orange County agreed that a new sewer
treatment provider (i.e. Mebane) would be better for all parties — the Town of Hillsborough,
Orange County, and the community — because comprehensive sewer services would be
under one entity and more stable rates could be accomplished; and
WHEREAS, Orange County developed a Capital Investment Plan (CIP) program to
redirect flow to the City of Mebane and thereby allow the Town of Hillsborough to recapture
its sewer capacity reservation; and
WHEREAS, the above referenced project is nearing completion and the sewer
treatment agreement can be terminated upon the redirected flow anticipated in December
2018; and
WHEREAS, Orange County would like to recognize the collaboration with OAWS and
the Town of Hillsborough over the many years being an integral partner in the solution of a
community environmental health predicament;
NOW, THEREFORE, BE IT RESOLVED the Orange County Board of County
Commissioners herein expresses appreciation to OAWS and the Town of Hillsborough for
their collaboration in this matter and authorize the Manager to negotiate and execute any
documents necessary to terminate the existing agreements.
Adopted this the 3rd day of December, 2018.
ATTEST: (SEAL)
Donna Baker, Clerk to the Board Chair
Orange County Board of Commissioners