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HomeMy WebLinkAboutAgenda - 11-13-2001-2ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: November 13, 2001 Action Agenda Item No. 2 SUBJECT: Community Development Project for Rogers Road Waterloo Connections DEPARTMENT: County ManagerTousing 8 PUBLIC HEARING: (YIN) No Community Development/Emnomic Development ATTACHMENT(S): INFORMATION CONTACT: Draft Assistance Policy Rod Visser or Paul Thames, eat 2300 Application & Eligibility Cemficatlon Form Tare Fikes, ad 2492 Dianne Reid, eat 2326 TELEPHONE NUMBERS: Hillsborough 732 -8181 Chapel Hill 968-4501 Durham 688 -7331 Mebane 336- 227 -2031 PURPOSE: To review the possible structure of a goa loan program for the funding of connections between eligible properties and the main waterline that is currently being installed by the Orange Water and Sewer Authority in the Rogers Road neighborhood. BACKGROUND: At their work session on October 1, 2001, the County Commissioners reviewed recommendations received from the Solid Waste Advisory Board regarding funding of subsequent elements of the Rogers Road Neighborhood waterline project. The Board of Commissioners had already appropriated in FY 2001 a total of $676,000 in the Solid Waste /Landfill Operations Fund to cover the first phase of the project- the installation of water mains in the Rogers Road community. The Orange Water and Sewer Authority is managing that construction project under an agreement with the County that was approved by the BOCC in April 2000. Construction of the water main is expected to be completed by January 2002. The costs of the remaining elements of this public water supply project are associated with individual residences availing themselves of the water made available to their community as a result of the previously funded water main construction. These costs include OWASA availability fees and water metere, plumbing from the water meter to the house, interior plumbing, and payment of monthly water bills. The BOCC indicated at the October 1 work session their desire to implement a grant program using resources of the County's General Fund that would directly subsidize for eligible applicants the costs associated with installation of laterals, availability fees, and meter fees. The BOCC does not intend that the program address the costs of internal plumbing improvements or monthly OWASA water service charges. The BOCC also expressed interest in considering establishment of s program that would provide low- interest loans for laterals, meters, and availability fees to persons not meeting the means test for grants. c Staff have prepared the accompanying draft 'Assistance Policy for the Rogers Road Waterline Connection Program ". The policy contemplates atwo- phased implementation process — the first would address grants to those requiring the most economic assistance and the second would address potential loans to other applicants. Staff will continue to fine tune the proposed policy, make a brief presentation at the work session about its major aspects, and respond to ROCC questions and comments about the proposed policy.. FINANCIAL IMPACT: As noted above, the BOCC has already appropriated $675,000 to cover the water main construction project. The impact of financing for potential lateral lines, availability fees, and mater fees is outlined below. The County Engineer submitted a report to the Landfill Owners' Group in January 1999 that outlined potential costs to offer community water service benefits to the Rogers Road community. According to data gathered for that report, there are 119 habitable structures located in the community. The total estimated cost to provide individual service lines to all of the identdied properties was $257,000. This amount included availability fees of $85,000 and installation of lateral lines from the meters (including the mat of the meter) to the individual homes of $182,000. Several developments since the January 1999 report have led to the following revisions to those mat estimates: • After discussion of the report the Board of County Commissioners decided not to provide served to parcels 30 and 115 through 119 bringing the total eligible parcels to 113. Ninety - six existing habitable structures located on the eligible parcels would potentially receive water service. • The County Eng ineer based the availability fees (identified above) on 1909 OWASA rates. Since that time, OWASA has implemented new fee schedules that actually decrease the availability fee for homes with 1,300 square feet or less. The fees have decreased from $740 per home to $400 per home, Of the 96 habitable structures outlined above, 78 of them have 1.300 square fee or less. For homes with more than 1, 300 square feet, the availability fees remain the same as those outlined in the January 1999 report - $1,016 per home. • Total estimated costs to install lateral lines (identified above) remain the same. Taking into account the developments outlined above, the current mat projections for the water service benefits are roughly $195,000 - about $62,000 less than the January 1999 estimates. Staff estimates that he majority of residents in the community (about eighty percent) will meet the eligibility requirements for grant funding (outlined in Vie proposed Assistance Policy). In other words, estimates are that about 76 residents would be eligible for grants. Staff recommends that the Board approve funding for the project in two phases: • Phase I would he the implementation of the grant program. An appropriation of the Count's fund balance (in the current fiscal year) would finance this initial phase. Phase II would provide for the loan program and would be incorporated in the Coul 2002 -03 fiscal year budget. 3 Phase I — Grant Program Based on the revised cost projections of $195,000 and the assumption that eighty- percent of the residents will meet eligibility requirements, shelf estimates the cost of Phase I to be approximately $158,000. Since the installation cost of the lateral lines is based on individual property charactenstics, this cost projection may fluctuate slightly over the course of the project. Should that be the case, staff will report to the Board and request additional funds to complete Phase I. The County's Housing and Community Development Offica would administer the grant program. Phase II — Loan Program The potential up -front cost of the loan program would be approximately $39,000. This calculation is based on the assumption that twenty percent of the residents (18 residents) will meet eligibility requirements for the loan program and that all eligible participants apply for loans at the same time. It is important to mention that staff feels that it is not likely that the scenario outlined above will happen, however, the potential does exist. The County's Economic Development Department would administer the loan program. It is more likely that some qualifying individuals will apply for loans as funding for Phase II is available. Over the new few months, staff will gather information and include a funding plan for Phase II in the 2002 -03 fiscal year budget. RECOMMENDATION(S): The Manager recommends that the Board review and discuss the proposed Assistance Policy and provide direction to staff regarding any needed changes or clarifications that should be made before bringing the policy back for formal BOCC adoption. NOVEMBER 2001 DRAFT County of Orange Assistance Policy For the Rogers Road Waterline Connection Program Purpose This program provides funds to connect residents of the Rogers Road community to the main water line installed in the vicinity of Rogers Road by the Orange Water and Sewer Authority (OWASA) under its agreement with Orange County These connections will be provided in the form of laterals from the water main to existing plumbing at each eligible dwelling unit. The associated OWASA availability and /or meter fees will also be included in the costs of connection, The County Commissioners will provide funding for this purpose through appropriations in the County's General Fund. The program will be available for eligible properties for which the pertinent funding application materials are received no later than December 31, 2004. The County Engineer will serve as the technical consultant for this project Current plans are to solicit bids from local plumbing contractors to install the water connections with the oversight of the Engineer. Connections will be completed in groups of 15 to 25 in order to maximize water flow through the new lines. This Assistance Policy describes who is eligible to apply for assistance and what the terms of assistance are for this program. Eligible Applicants Applicants for program funds must prove that they own the property to be served and the property must be currently occupied. Vacant properties and vacant parcels not plaited far development as of January 1, 2002 will not be eligible for this program. • Applicants must not have any overdue loans or loans in default from the County of Orange. • Applicants must have paid all outstanding property taxes. • In the case of rental property, the investor -owner must provide written agreement to participate in the program. Application Procedure Applicants for assistance must complete an application. (A sample form is attached) The Housing and Community Development Office will accept applications, by appointment only, at its Southern Human Services Center office located off of Homestead Road in Chapel Hill. To make an appointment, homeowners /tenants may call (919) 245 -2490. Proof of ownership and family income will be required. Income will be defined as the gross amount received annually from all sources by every person residing in the dwelling, including wages, pension, Social Security, NOVEMBER 2001 DRAFE interest, rent, dividends, etc. Housing and Community Development staff will verify (with a third party) all family income. Applicents eligible for grants will be requiretl to execute a grant agreement Those applicants who are not eligible for the grant program will be referred to the Orange County Economic Development Commission for consideration of their possible participation in the County- sponsored loan program. Tome of Assistance 2001 Income Limits for the County of Orange Hy(Ob�anfdiif xHOUe°xR�° do %pt Metl x�il t .,�� so5ft bledail RS M ril Ime ,i" 90Yr tl " rgi(`uw�U�'}'fir 1 $13900 $2310 $]also 2 $15850 $25,150 $42,000 3 $11,850 $29)50 $47,2511 4 $19,850 $33,050 $52,5011 5 $21400 535,70 $5i 6_ $23500 936,350 £60900 7 $24600 $41000 Si e $26200 543.550 $59,300 Phase I — Grant Program For applicantishenants with household Incomes that fall 80% and below of the area median, assistance to these families will be provided in the forth of a grant. (See chart above.) Applicants in this category could fall in the following configurations. Low Income Homeowner Low Income Tenant - Law Income Landlord Low Income Tenant - Over Income Landlord Over Income Tenant— Low income Landlord All grant recipients will be required to execute a Grant Agreement with the County. This phase of the program will commence with completion of the installation of the main waterline by OWASA and ds contractors. Completion of that project is currently estimated by January 2002. The Countys Housing antl Community Development Office will process grant applications and administer the grant program. Press II - Low - Interest Direct Loans For applicants with household incomes that are above 30% of the area median, assistance to these families will be provided in the form of a low interest amortized NOVEMBER 2001 DRAFT loan. The maximum term of the loan will be five (5) years. The loan will be secured by a deed of trust and promissory note. %cf Media Area Income m 1 Attorney under contract with Ems_ d Ira tBato l,fgligl R .. r I Loan committee >80 %f 3% >9n°6 4% >100% 67, Applicants in this category could fall In the following configurations. Over Income Homeowner Over Income Tenant— Over Income Landlord Loan Processing As outlined above, applicants with incomes above 80 percent of the area median are eligible for a low interest direct loan. Orange Coul Economic Development Commission (EDC) will process and service the loans • Upon receipt of a loan application, a loan review committee composed of the EDC Director, the Housing and Community Development Director, and the Budget Director will review the application and make recommendations to the County Manager. The County Manager will have final decision authority on the loan application. EDC staff will relay the loan decision to the applicants and draft a commitment • letter /rejection letter, as appropriate. Additional loan responsibilities will be handled as follows: Codeine Pre are cloain documents 1 Attorney under contract with Ems_ Coordinate and arrange loan closing 1 Attorney Record cache of trust AHOrney Servicing Pres"MrsoanYOrR for ides EDC staff Prepare month) bills) rocesa a menu EDG staff Prepare status reports for loan committee EDC Staff Prepare annual status reports for Board of County Commissiomas Loan committee NOVEMBER 2001 DRAFT' Collections Consult with borrower on an late payments EDC staff Visit borrower to try to work out payment EDC Staff arrangements Contact attorney for collection EDC stag, with loan cemmiftee authorization _ Confidentiality. All information in applicant files will remain confidential. Access to the information will be provided only to County employees who are directly involved in the program, the Orange County Board of Commissioners, and the County auditors . Summary information will be provided to other cifizens upon request Conflicts of Interest. No officer , employee or other public official of the County, or member of the County Commissioners or entity contracting with the County, who exercises any functions or responsibilities with respect to the Rogers Road Waterline Program shell have any interest, direct or indirect, in any contract or subcontract for work to be performed with program funding, either for themselves or those with whom they have family or business ties, during their tenure or for one year thereafter. Relatives of County employees, Commissioners and others closely identified wte the County, may be approved only upon public disclosure and approval before the County Commissioners. Non - Discrimination. All activities will be conducted in a fair, open and non- discriminatory manner, entirely without regard to race, creed, sex, color or national origin. 4- ❑ No ❑