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HomeMy WebLinkAbout2017-214 Planning - OWASA for operation of a sewer main extension project in the Rogers Road Area VAS �1 NORTH CAROLINA ORANGE COUNTY INTERLOCAL AGREEMENT BETWEEN ORANGE WATER AND SEWER AUTHORITY AND ORANGE COUNTY RELATING TO OPERATION OF A SEWER MAIN EXTENSION PROJECT IN THE ROGERS ROAD AREA This Interlocal Agreement is entered into by and between Orange Water and Sewer Authority (hereinafter"OWASA"), a special purpose entity of local government organized under Chapter 162A, North Carolina General Statutes,and the County of Orange (hereinafter"County"), organized under Chapter 153A of the North Carolina General Statutes. WHEREAS,the County desires OWASA to operate the newly constructed sewer main extension Project("Project")that the County will cause to be constructed and that this sewer main must serve certain properties located in the Rogers Road Service Area(hereinafter"RRSA"),and OWASA has agreed to do so, in accordance with the terms, conditions and provisions contained herein; and WHEREAS,the RRSA, including the properties therein to be served in accordance with this Interlocal Agreement, are shown on Exhibit A, attached, which is hereby incorporated;the original residential lots and parcels to be served by this Project are sometimes referred to herein as the"Legacy Lots." Other lots or parcels which may be served by the Project improvements are also shown thereon. NOW, THEREFORE,the parties agree as follows: 1. Construction of the Project to OWASA standards and specifications and payment of the costs of that system construction are the responsibility of County. OWASA will assist as requested by the County in construction inspection, and shall have the right of final approval for the completed construction, or to require final adjustments to the work, before any discharge is allowed into the existing OWASA collection system. The County represents and warrants that at the time the completed system is turned over to and accepted by OWASA for operation and maintenance, County will have paid, or made Page 2 of 6 provision for financing the payment of,all costs and expenses related to its construction, and County will hold OWASA harmless and indemnify it from any and all claims, demands, liens and judgments, including any costs or expenses incurred by OWASA in defense of any claims arising out of completion of construction of the Project. OWASA will hold County harmless and indemnify it from any and all claims,demands, liens and judgments, including any costs or expenses incurred by County in defense of any claims for damages caused by the negligence of OWASA employees,or any contractors or agents for whom it may be responsible, in OWASA's operation or maintenance of the Project. 2. After OWASA's approval and acceptance of the completed construction Project for operation and maintenance, OWASA agrees to accept wastewater meeting the requirements of its pretreatment standards and generated by customers within the RRSA that will be collected through the Project,and thence transferred by way of interconnects to the existing OWASA Sewer Collection System for conveyance to and treatment at OWASA's wastewater treatment facilities.After OWASA approves and begins to operate the new system, OWASA shall have the right to alter,maintain,and operate the Project Facilities(all sewer infrastructure constructed as part of the Project)in any manner it deems necessary to provide sewer collection service in this area, and in connection with its existing system. And, OWASA shall have the right,without cost to OWASA,to use the Project Facilities as part of its larger sewage collection system, including any extensions thereof to serve areas outside the RRSA. OWASA's design and review rules and processes, including the costs, fees and charges therefor, shall apply to any future development to be served through the Project Facilities. OWASA shall ensure the Project Facilities are not damaged by connection to or operation with the existing OWASA Sewer Collection System. OWASA shall be responsible for the costs of repair or restoration of Project Facilities if damage thereto is caused by connection to or operation with existing OWASA Sewer Collection System. OWASA shall own and be responsible for the wastewater collected through the Project Facilities, and shall have the right to use, re-use,treat, and dispose of that effluent as a part of OWASA's regular wastewater stream, in accordance with applicable laws, and regulation. Page 3 of 6 3. OWASA's regular availability and connection fees must be paid for each lot or parcel within the Project area, and any extensions thereto, before any such lot or parcel is connected and service is initiated. OWASA will permit connection of individual sewer services within the RRSA and permit and provide for continuation of sanitary sewer collection service by way of those individual connections for so long as OWASA's monthly service charges are paid, subject to OWASA's right to disconnect individual service connections upon the same conditions as are applied to OWASA customers throughout OWASA's existing customer service area.The customer accounts created throughout the RRSA shall be deemed regular OWASA customers,and the same service charges applicable to other OWASA customers shall apply to the customers connected in the RRSA. 4. Customers connecting properties located within the RRSA shall be entitled to the residential sanitary sewer collection services and benefits provided to customers in OWASA's existing customer service area. Customers connected within the RRSA shall have the same duties and obligations to obtain and maintain continuing service as are required of customers in OWASA's existing customer service area.No discrimination in rates, charges, or service shall be made with respect to whether OWASA customers are located within the RRSA as opposed to the rest of OWASA's existing customer service area. 5. After OWASA's final approval of the Project as constructed, OWASA will operate, maintain and replace,and be responsible for the costs of operation, including insurance,maintenance, and replacement of all of the components of that system,which costs shall be paid from OWASA's revenues. To the extent any claims may arise against third parties regarding warranty issues, or to the extent any insurance proceeds may become payable to the County for damages to the collection system, such funds shall first be made available to OWASA to be applied to the costs of repair or restoration of Project Facilities within the RRSA. After restoration of Project Facilities is achieved any remaining insurance proceeds shall be used for the sole purpose of paying Project debt. County shall insure the Project Facilities during the construction phase of the Project, and, if necessary as the Owner,thereafter until ownership of the Project Facilities is transferred to OWASA. County shall assign to OWASA all warranties it may acquire Page 4 of 6 arising out of the services and equipment provided as a result of planning, design and construction of the Project Facilities. To the extent any insurance proceeds or disaster relief funds may be payable for damages to the Project Facilities after acceptance for operation by OWASA,those proceeds shall be made available to OWASA, and shall be used by OWASA for expenses incurred in repairing and restoring operation of the Project Facilities. After repair and restoration of Project Facilities is achieved any remaining insurance proceeds shall be used for the sole purpose of paying Project debt. 6. Each party desiring to connect to the Project Facilities, including any further extensions thereof, shall make application to OWASA upon terms and conditions, and fees and charges, and using forms supplied by OWASA,to become a regular OWASA customer. OWASA shall bill and collect for that sewer service treating those connected within the RRSA as regular OWASA customers. Each such customer shall pay OWASA's usual fees and charges for such sewer connection and service, and shall otherwise be afforded the privileges afforded other OWASA customers, subject to the obligations imposed upon OWASA customers within the existing OWASA service area. OWASA shall receive and have the unrestricted use of all such revenues. 7. The foregoing conditions of service shall apply to all the original"Legacy"parcels within the existing residential area of the Rogers Road neighborhood, as shown on Exhibit A. Other fees, charges, and other conditions of service may be applied by Orange County, Chapel Hill,or Carrboro, for extensions which may be permitted to serve parcels other than the Legacy parcels.Nothing in this Agreement shall be construed to limit the authority of those local elected local bodies with respect to further extension of the system being constructed to serve the Legacy Parcels. And, OWASA has agreed that, upon payment to OWASA of its applicable fees,rates and charges, future extensions and connections as may be permitted by Carrboro, Chapel Hill, and Orange County may be made to the Project Facilities so as to provide service to properties beyond the boundaries of the original RRSA described in Exhibit A. Provided, however,that no further extensions shall be made or connected to the Project Facilities except after not less than sixty(60)days written notice to OWASA, and payment to Page 5 of 6 OWASA of all fees,rates and charges due OWASA under its then current schedule of fees, rates and charges. 8. It is presumed that County will finance the costs of construction of the Project, and that County will maintain ownership of the Project Facilities paid for from such financing until that indebtedness is satisfied, not to exceed twenty years. County shall convey the Project Facilities, including all easements, rights,and privileges related thereto,to OWASA when that indebtedness is paid and satisfied, and the Project Facilities shall be owned and continue to be operated as a part of the OWASA Sewer Collection System thereafter. If the County does not finance the cost of the Project Facilities,the County will convey all of its rights,title, and interests therein, including easements for such Project Facilities,to OWASA when OWASA approves and accepts them as constructed, and before OWASA begins to operate the Project Facilities. 9. All amendments to this agreement shall be approved by both parties and must be in writing. The parties have entered into this Interlocal Agreement this /a day of Ji,flk,, 2017. (REMAINDER OF PAGE INTENTIONALLY LEFT BLANK) c Page 6 of 6 ORANGE COUNTY ORANGE WATER AND SEWER AUTHORITY c Mar Dorosin, Ch it John eoung, hair Board o f County ommissioners Boar s Pre-audit Certification by Pre-audit Certification by Coun Fi c Officer OWASA Finance Officer: Approved as to form and legality: 54nge Co Attorney O ASA General Couns