HomeMy WebLinkAboutAgenda - 10-01-2003-9eORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: October 1, 2003
Action Agenda
Item No. ~ r~
SUBJECT: A Resolution Initiating the Project to Expand the 1997 Efland Sewer Bond Area
System and to Extend Water and Sewer Utilities to Serve the Buckhorn EDD
Area and Community
DEPARTMENT: County Manager PUBLIC HEARING: (Y/N)
ATTACHMENT(S):
Resolution with Attachment A
Outline of Issues (Siting of Orange County
Middle School #3)
INFORMATION CONTACT:
Rod Visser, Asst. County Manager
Paul Thames, Co. Engineer, ext 2300
Craig Benedict, Planning Director
Dianne Reid, Economic Dev. Director
TELEPHONE NUMBERS:
Hillsborough 732-8181
Chapel Hill 968-4501
Durham 688-7331
Mebane 336-227-2031
PURPOSE: To provide for BOCC approval, a resolution authorizing staff to:
1. officially begin the RFP process for expanding the remaining part of the 1997 Efland Sewer
Bond and Buckhorn Economic Development District (EDD) utility systems, and
2. begin the negotiation process with the City of Mebane to become the water & sewer system
utility for the Buckhorn EDD.
BACKGROUND:
A. Introduction:
The Efland Cheeks and Buckhorn areas are small, unincorporated villages and neighborhoods
located within the I-85/I-40 between the Town of Hillsborough and the City of Mebane. This
area under Orange County's planning jurisdiction has been the subject of various infrastructure,
small area plans and economic development district plans, at different times, since 1984.
These various studies have produced to a certain degree a mixture of goals that could be
integrated better to improve the comprehensive and orderly development and upgrading of
services in the area.
What follows is a topical background of the various facets of study in the past and upcoming
activities to plan for the future.
B. Sewer Service History G. Land Use and Potential Annexation Issues
C. EDD H. Sewer Service Implementation
D. 1997 Efland Sewer Bond I.
E. 2002 EPA Grant
F. Sewer Service and Grant Challenges
1. Funding System
2. Orange County Middle School #3
3. Timing
4. Sewer Service Alternatives
and Efland Sewer Operations
Conclusion
B. Sewer Service History
Orange County has historically planned for specific areas of the US 70/ Efland/I-85/40 corridor
to be provided with wastewater collection service to address both public health and economic
development concerns. To that end, in the County contracted with a consulting engineer to
develop a master plan -which was completed in 1984 - for a wastewater collection system to
serve the area. This master plan, which outlined a phased development wastewater collection
system serving almost the entire area along Hwy 70 from the Eno River to Buckhorn Road
(including areas between I-85 and Norfolk-Southern Railroad and the Perry Hills subdivision)
was never accepted or adopted by the BOCC. However the Board did contract with a second
consulting engineer to modify a portion of the master plan which was limited to the area along
Hwy 70 bounded on the east by Lloyd Dairy Road (SR 1327) and on the west by Redmon Road
(SR 1311). Ultimately the second engineering firm was retained to develop construction plans,
bid a wastewater collection system construction project and oversee actual construction for a
core collection system that served roughly the area along US 70 from Redman Road (SR
1311) to Efland/Cedar Grove Road (SR 1004). The area between Eland Cedar Grove Road
and Lloyd Dairy Road was not constructed due to an insufficiency in available funding. That
system that was constructed has by now provided reliable wastewater collection service to the
community for some 15 years. During the last several years, the system has been expanded
slightly at the expense of the respective developers (Richmond Hills and Ashwick subdivisions)
to ultimately provide service to approximately 100 additional households.
C. Economic Development District
In 1994 and 1996, the BOCC approved the creation of the Buckhorn Road Economic
Development District to its current configuration, approximately 900 acres along the north and
south sides of I-85/40 east of Buckhorn Road. This area was also designated as suitable for
water and wastewater utility service. The area has not yet been served with either water
distribution or wastewater collection. Soon after the creation of the Buckhorn Road EDD, the
City of Mebane began a process of annexing the property at the southwest quadrant of the
Buckhorn Road/I-85/40 interchange, approving the development of the property as a PetroMart
truckstop facility and allowing the extension of water and wastewater utilities to serve the site.
During the same time period, residents along Buckhorn Road began formed a "neighborhood
association", the People for Progress, to lobby both the City of Mebane and Orange County to
extend wastewater collection services to the areas on Buckhorn Road on both sides of I-85/40
and to extend municipal water service to the area along Buckhorn Road on the south side of 1-
85/40.
D. 1997 Efland Sewer Bond
In 1997, the BOCC adopted the recommendations of the Capital Needs Advisory Task Force
which included a component addressing the failing septic tank/public health situation in central
Efland. The Board approved a bond order providing for a referendum on a proposal fora $1.2
million bond that would fund the expansion of the existing/core Efland wastewater collection
system to serve that portion of Efland (the area along US 70 between Efland/Cedar Grove Road
and Lloyd Dairy Road) that was included in the BOCC approved master plan but which could
not be built in 1987-88. The Efland Sewer Bond was approved by the voters of Orange
County, but the actual project to be funded by the bond has not yet received BOCC approval.
E. 2002 EPA Grant
In 2002, County Commissioners worked with Congressman David Price to secure an EPA grant
to address the wastewater collection needs of the Buckhorn Community and to create the
nucleus (a main pumping station and force main) of a system that would ultimately provide
wastewater collection for the Buckhorn EDD. Approximately $900,000 in EPA funding was
awarded to the County to address these needs in early 2003.
Subsequent to the award of the EPA grant, County Planning and Engineering staff began
working with the Orange County School system to identify potential school sites in the Efland
area that could be served with public utilities. The County Manager's and Planning Department
staff were also working with City of Mebane staff to determine the feasibility of using the EPA
grant to fund the development of a Buckhorn Road community and EDD utility service area
connected to the City's wastewater collection and water distribution systems at and near the
Buckhorn Road PetroMart site. These discussions led to the conclusions that it was possible to
connect the Buckhorn community and EDD are to Mebane's utilities, pending the successful
outcome of formal negotiations between the County and the City on utility extension and
annexation agreements.
An opportunity now exists to coordinate the use of funds from the 1997 Efland Bond with the
EPA wastewater grant to develop a relatively large wastewater utility project for Efland. This
project can provide for: a) the long awaited extension of wastewater collection service for
central Efland: b) the extension of utility service to the Buckhorn EDD (without which the EDD
may not become a viable entity).
F. Sewer Service and Grant Challenges
There are a number of challenges that must be met before these opportunities can come to
fruition. The EPA grant is a matching fund grant (55% EPA/45% local) which means that the
County must: 1) tie the Efland Sewer Bond project to the Buckhorn project so that the bond
funds serve as the grant match; 2) not tie the projects together, but come up with another
source of funds to match the grant; or 3) decline the grant funding. Tying the Bond and Grant
funding together means that simultaneous design and bidding of both projects will be required
although actual construction may be accomplished in two phases. Furthermore, if the County
accepts the EPA grant, it must adhere to all EPA guidelines dealing with selecting consultants,
bidding, contract administration, etc. for both phases of the contract.
Orange County Middle School #3
The Orange County School District, with approval from the Board of County Commissioners on
June 27, 2003, has pursued an option on 102 acres within the Buckhorn EDD. Feasibility of a
school site include as priority the investigation of utilities. The school board may be able to
purchase a site at relatively low costs in the portion of the EDD where the core portion (initial
developed phase) of the overall utility system would be built. Other public uses in conjunction
with the school as determined by the county could also share in the expanded utility system.
Timing is a fairly serious issue insofar as developing a school in the EDD is concerned. The
Orange County School Board hopes to open a new middle school in the fall of 2006. In the
interim, it must secure the site, the have the site and school designed, approved and
constructed. If the Buckhorn site does not prove to be suitable for any number of reasons,
including the unavailability of utility service, a new site must be secured (and the school
designed, approved and constructed). Insofar as the Efland/Buckhorn utility project is
concerned, the time frame required for consultant selection, surveying, design, bidding,
construction, etc., is approximately 30 months from the time that the BOCC gives staff the go
ahead to proceed with consultant selection. Assuming that BOCC authorization comes in mid-
September 2003, the soonest utilities will be available adjacent to the Buckhorn EDD school
site is mid-March 2006.
G. Land Use and Potential Annexation Issues
In addition to its interests in securing utility service for the Buckhorn community and EDD, the
County has an overarching interest in ensuring that the EDD and adjacent land develop in
accordance with the County's Land Use Plan and EDD development standards. The City of
Mebane has an interest in tying utility service extension and annexation issues together
(municipal utilities typically require that the owners of all properties that are to receive municipal
utility services sign a voluntary annexation agreement as a condition of receiving those
services). Furthermore, the City will want to assume ownership of the utility extensions
(insuring the continuity of system design, operation and maintenance standards and simplifying
billing/rate issues). Accordingly, the County and the City must be able to reach accord on the
coordination of land use, development standards, utility extension and annexation issues.
H. Sewer Service Implementation
It is possible for wastewater collection service to be extended to the Buckhorn EDD through a
connection to the existing Efland sewer system. It is unlikely that the Buckhorn community can
be served by connection to the existing Efland system, at least in the near term or with the
funds available through the EPA grant. In any event, connecting the Buckhorn EDD and
community to the Efland system would be much more expensive to the County in terms of costs
for constructing, operating and maintaining the system. Other costs that must be considered
relative to the extension of sewer service from Mebane or Efland is the cost of the County's
ongoing subsidization of Efland sewer rates. Currently the County is subsidizing as much as
75% of the actual operational costs for the Efland system (that is, the sewer rates would have to
quadruple for the system to be financed through the rate structure). Adding the sewer service
for the Buckhorn EDD and community to that situation only exacerbates that problem.
In comparison to the necessity of developing interlocal agreements with Mebane for the
Buckhorn EDD and community, the situation in central Efland is very simple. The central Efland
area has long been master planned; the BOCC has approved the service area delineation; and
no other local government is involved. The complexities facing the central Efland portion of the
project involve construction activities adjacent to and amid developed small lot properties,
occupied homes and existing transportation and utility (water, power, telephone, etc.) networks.
However, utility construction in such conditions is not unusual and the residents of the proposed
construction area have a generally positive outlook on the project.
I. Conclusion
The choreography of events between the County Engineer, Planning Director, Economic
Development Director, Consultants, Utility Providers and/or local governments and the school
district make this proposal a complex project. Notwithstanding this complexity and timing
sensitivity, the proposal does bring forth the comprehensive nature of planning in the area. This
proposed work will exhibit the county's strong commitment to public service provision, economic
development, community needs, environmental and public health issues and coordinated
school district/county school site planning.
The Resolution attached formulates the history and action steps necessary to accomplish
aforementioned goals.
FINANCIAL IMPACT: Initially the RFP will identify a consultant who will design the systems.
After which the project will be bid. The project will entail $2.2 million in costs; approximately
$1.3 million from 1997 Efland Sewer Bond and $.9 million from EPA grant.
RECOMMENDATION(S): The Manager recommends that the Board adopt the proposed
resolution and direct staff to proceed accordingly.
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ORANGE COUNTY BOARD OF COMMISSIONERS
A Resolution
Initiating the Project to Expand the Efland Sewer System into the Area
Defined by the 1997 Efland Sewer Bond and to
Extend Water and Sewer Utilities to Serve the Buckhorn Road EDD
and Community
WHEREAS, Orange County has a central role in protecting public health within the
entire County and providing for economic development opportunities in
the unincorporated portions of the County; and
has developed and continues to own and operate the Efland sewer
system which was created to address failing septic tank/public health
issues in Efland; and
2. recognizes that there still remain unaddressed failing septic tank/public
health issues affecting the citizens of central Efland; and
3. has historically committed to addressing the failing septic tank/public
health issues in central Efland; and
4. the Orange County voters approved a $1.2 million bond issue in 1997 to
help finance an extension of the existing Efland sewer system to address
the failing septic tank/public health issues in central Efland; and
WHEREAS, Orange County has a role in helping locate schools on appropriate sites
having desirable characteristics such as compatability with County land
use planning and having readily available water and sewer utility services;
and
1. County elected officials and staff have worked with the County's School
Boards to identify desirable characteristics of school sites and have
developed a collaborative process for identifying and evaluating school
sites; and
2. the Orange County School Board has identified the Efland community as
the area where an new middle school would best meet the needs of the
school population in the district; and
3. the Orange County School Board staff has worked with County Planning
and Land Records/GIS Departments to narrow the site search for Orange
County Middle School #3 to an area outside of Efland but within the
Orange County Service Area of the Water and Sewer Management
Planning and Boundary Agreement and Map; and
4. the Orange County School Board has identified a potential school site
within the I-85/Buckhorn Road Economic Development District (hereafter
"the EDD") and adjacent to the core elements of a proposed wastewater
collection system intended to serve the EDD; and
5. the BOCC has approved the Orange County School Board's request for
funds to secure options on property for a potential Efland middle school
site in the EDD and the School Board has in fact acquired these options;
and
6. the projected Fall 2006 opening for a new Orange County Schools middle
school puts time constraints on school site acquisition, school design,
school construction activities and whatever utility construction is required
to ensure that water and wastewater utilities are available to the site; and
WHEREAS, Orange County has long been involved in the processes of dealing with
public health and economic development issues in the Efland-Cheeks
community; and
the County recognizes that there are failing septic tank/public health
issues affecting the citizens residing in the community along Buckhorn
Road (hereafter "the Buckhorn Road community"); and
2. the County has agreed to help address the water supply and failing septic
tank/public health issues in the Buckhorn Road community; and
3. the County, having recognized the need to diversify its tax base and
enhance employment opportunities for its citizens, has created three
economic development zones or districts, including the EDD, zoned them
for appropriate non-residential uses, and created development standards
for each; and
4. the Buckhorn EDD contains approximately 900 acres along the north and
south sides of Interstate 85/40 east of the Buckhorn Road interchange;
and
5. the zoning and land use aspects of the EDD are consistent with the
availability of water distribution and wastewater collection utilities; and
6. the County recognizes that providing at least the core elements of water
and sewer infrastructure to the EDD will help promote non-residential
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development in the Buckhorn EDD, which will in turn help to stabilize and
make permanent zoning of the Buckhorn EDD; and
7. the County has secured a $900,000 Environmental Protection Agency
(EPA) grant for the construction of portions of a wastewater collection
system that could provide the core of wastewater utilities for the EDD and
could also provide wastewater collection for the Buckhorn Road
community and for the proposed middle school site; and
8. the County's EPA grant is a matching fund grant which the County will
match with proceeds from the 1997 Efland Sewer Bond; and
9. the use of the Bond funds as the match for the EPA grant requires that
both the bond funded project and the grant funded project be configured
such that system design and construction activities be carried out as two
sections or phases of a single project and adhere to the rules and
requirements of EPA funded utility projects; and
10. Orange County and the City of Mebane have previously cooperated to
provide municipal utility service to economic development areas to the
mutual benefit of both the City and County; and
11. County officials and staff have held discussions with City of Mebane
officials and staff about the engineering feasibility of, and the City's
willingness to allow, the extension of City water distribution and
wastewater collection utilities to the Buckhorn Road community and the
EDD; and
12. City of Mebane and Orange County officials and staff have determined
that extending City water distribution and wastewater collection utilities to
the Buckhorn Road community and the EDD is feasible and offers
significant benefits to the County, the City and the community; and
13. the County wishes to ensure that its adopted development standards for
the EDD and the integrity of the County Land Use Plan for the area
surrounding the Buckhorn Road community and the EDD remain intact
regardless of the availability or ownership of water and wastewater
utilities, and:
14. the County wishes to insure that the integrity of the Efland Community is
not compromised and that it remain distinct from the EDD and the
Buckhorn Road community; and
15. the City of Mebane desires to secure the right of annexation to property to
which it provides municipal utility service and needs to control by virtue of
ownership the use, operation, maintenance, rate and fee structure, etc., of
the utility infrastructure and service it provides; and
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16. accordingly, if the City is to provide water and wastewater service to the
EDD and The Buckhorn Road community, it will assume ownership of the
completed infrastructure and provide the operation and maintenance of
the systems.
NOW, THEREFORE, the Orange County Board of Commissioners, does hereby
resolve to:
1. Approve the scope of utility planning, development and design work as generally
outlined in ATTACHMENT "A"; and
2. Direct County staff to move forward with the process of soliciting proposals for utility
design consultants and selecting a design consultant on the basis of those
proposals; and
3. Direct County staff to move forward with the process of developing, negotiating and
submitting for Board approval the necessary interlocal utility extension and
annexation agreements with the City of Mebane; and
4. Direct the County staff to move forward with developing financing strategies such as
utility assessments or acquiring additional grant funding for utility extension costs
not addressed by funds available from the EPA grant or Efland Sewer Bond; and
5. Direct the County staff to undertake a public education campaign to advise citizens
and property owners who will benefit from the availability of the expansion of utility
service in the Efland-Cheeks community about what costs of that expansion that
they may be required to bear.
This, the 1st day of October, 2003.
Margaret Brown, Chair
Orange County Board of Commissioners
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ATTACHMENT "A"
General Scope of Work for Engineering Design/Planning Consultant
• Preparing Environmental Assessment Reports necessary to meet EPA grant
requirements
• Providing necessary design and easement surveying
• Preparing construction documentation for the Efland Bond area sewer extension
• Preparing construction documentation for the Buckhorn Road EDD and Community
water and sewer extension
• Preparing awater/sewer utility master plan for the Buckhorn EDD
• Revising the existing (unapproved) sewer master plan for Efland as necessary to
conform to the County's Land Use Plans
• Preparing technical documentation necessary to seek additional water/sewer
construction grants
• Preparing technical documentation necessary to support water utility extension
assessment process for Buckhorn EDD
• Providing necessary project construction administration and oversight; and
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Outline of Issues
Siting of Orange County Middle School #3
Buckhorn Economic Development District
Sewer Service to "Downtown" Efland
I. For land use planning purposes, Efland is distinct,
discreet and not related to the Buckhorn EDD. Any
development of the Efland area different than present Land
Use Plan and zoning requirements should/would follow an
update of the Efland Area Small Area Plan.
II. Both "Downtown" Efland and the Buckhorn EDD are planned to
be served by public water and sewer. Efland would be served
by the County's sewer system and by Orange Alamance water.
The Buckhorn EDD would be served public water and sewer by
Mebane.
III. Providing sewer to "Downtown" Efland and providing the
basic water and sewer infrastructure for service to the
Buckhorn EDD can be done as one master project, the
construction of which can be phased. That will enable the
use of County bond funds designated for the central
business area of Efland and federal grant funds designated
for economic development to be efficiently used to build
these public utility systems.
IV. Providing water and sewer infrastructure to the Buckhorn
EDD may jump-start non-residential development in the
Buckhorn EDD. This should help to stabilize and make
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permanent zoning of the Buckhorn EDD. Presently the
Buckhorn EDD is all "Primary," which allows no residential
use. It is desirable to maintain that zoning to avoid the
Buckhorn EDD "bleeding" into Efland and avoid providing an
opportunity for a residential project (e.g. Meadowmont)
locating in a place that it is not intended. Providing
sewer infrastructure to solve septic system issues in the
area represented by the People for Progress may also be
accomplished.
V. Provides an opportunity to continue the positive dialogue
between Orange County and Mebane concerning mutual concerns
and interests and sets the stage for an interlocal
agreement between Orange County and Mebane relating to
water and sewer planning, annexation boundaries and land
use planning.
VI. Locating an Orange County middle school (and other schools)
in the Buckhorn EDD is consistent with the County Land Use
Plan, the Water and Sewer Planning and Boundary Agreement
and Map and is directed to the area of the Orange County
School District where the most residential development
pressure presently exists. This EDD is already within a
planned public utility service boundary. The only Orange
County regulatory change necessary to accommodate an
elementary, middle or high school in the Buckhorn EDD is a
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text amendment to the EDD zoning regulations allowing
schools in this EDD. Vocational schools are already
permitted in the Buckhorn EDD.
lsg:orangecounty\Outline of Issues.doc