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HomeMy WebLinkAboutAgenda 03-01-22; 8-g - 2022 Amendment to Interlocal Agmt with Towns Related to the Historic Rogers Rd Area Private Sewer Service Lateral Connection Installations 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: March 1, 2022 Action Agenda Item No. 8-g SUBJECT: 2022 Amendment to Interlocal Agreement with Towns of Chapel Hill and Carrboro Related to the Historic Rogers Road Area Private Sewer Service Lateral Connection Installations for Qualified Low-to-Moderate-Income (LMI) Homeowners — Cost Share DEPARTMENT: Planning & Inspections ATTACHMENTS: INFORMATION CONTACT: 1. Proposed 2022 Amendment to Interlocal Craig Benedict, Planning Director, Agreement for Approval Consideration 919-245-2592 (amendments are highlighted in yellow) Christopher Sandt, Staff Engineer, 919-245-2583 PURPOSE: To consider approval of a proposed 2022 amendment to an existing Interlocal Agreement between Orange County, the Town of Chapel Hill, and the Town of Carrboro to jointly fund the costs of private sewer service lateral connection installations for qualified Low-to- Moderate-Income (LMI) homeowners in the Historic Rogers Road sewer service area. The proposed 2022 amendment primarily relates to adding preamble language to the previously amended 2020 Interlocal Agreement to expand the potential number of Historic Rogers Road Area properties that may be eligible to receive public financial support to cover the capital costs of private sewer lateral connections. BACKGROUND: The recently constructed Historic Rogers Road Area gravity sewer system is a public system owned by Orange County and operated by the Orange Water and Sewer Authority (OWASA). The general contractor for the sewer expansion project installed approximately 108 sewer service stub-outs/clean-outs to lots within the Historic Rogers Road sewer service area. The design and construction of the Historic Rogers Road Area gravity sewer system was initiated based on the recommendations contained within the Historic Rogers Road Neighborhood Task Force Final Report dated September 17, 2013. The 67-page Report is available on-line at https://www.townofchapelhill.org/home/showdocument?id=25341. The costs associated with the design and construction of the gravity sewer system were shared between Orange County, the Town of Chapel Hill, and the Town of Carrboro as specified in an Interlocal Agreement entered into on December 13, 2016. Orange County, in partnership with the Towns of Chapel Hill and Carrboro, will be providing joint funding to cover the costs of private sewer service lateral connection installations, septic tank abandonments and payments of OWASA sewer system development fees for qualified LMI homeowners of existing dwellings located on Heritage Lots within the Historic Rogers Road sewer service area. The costs associated with private sewer service lateral connection installations for qualified LMI homeowners were shared between Orange County, the Town of 2 Chapel Hill, and the Town of Carrboro as specified in a separate Interlocal Agreement entered into on July 1, 2019. The sewer lateral connection installation cost-share Interlocal Agreement was amended in 2020 to incorporate minor revisions based on a joint collaborative review effort by the Rogers Road Staff Working Group. The 2020 amendment to the Interlocal Agreement was entered into on June 4, 2020, subsequent to previous reviews and approvals by the BOCC and the Towns' respective Councils. To date, eight (8) new sewer service lateral connections have been installed for qualified LMI homeowners using the funding mechanism established under the cost-share Interlocal Agreement. Orange County, the Town of Chapel Hill, and the Town of Carrboro intend to continue this initiative by extending the timeline of the current cost-share Interlocal Agreement. The proposed 2022 amendment to the Interlocal Agreement (Attachment 1) will nullify and replace the previously amended 2020 Interlocal Agreement that was executed on June 4, 2020. The overall cost share percentages within the Interlocal Agreement will remain unchanged (i.e. 14% Carrboro, 43% Chapel Hill, 43% Orange County). The proposed 2022 amendment to the Interlocal Agreement is identical to the previously amended 2020 Interlocal Agreement that was executed on June 4, 2020, with the exception of the following items: 1. Additional WHEREAS clauses have been incorporated to accommodate the amendment; 2. A reference to the appropriate Orange County Capital Investment Plan (CIP) account (#10054) has been added; 3. The TERM AND TERMINATION date has been extended from June 30, 2023 to June 30, 2025. The proposed amendments are highlighted in yellow within Attachment 1. Town of Carrboro staff is presenting the 2022 amendment to the Interlocal Agreement for review and approval by Town Council at the March 8, 2022 Town Council Meeting. Town of Chapel Hill staff is presenting the 2022 amendment to the Interlocal Agreement for review and approval by the Town Council at the March 9, 2022 Town Council Meeting. The 2022 amendment to the Interlocal Agreement will be executed by all three parties subsequent to collective approvals by the BOCC, Carrboro Town Council, and Chapel Hill Town Council. SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to this item: • GOAL: ESTABLISH SUSTAINABLE AND EQUITABLE LAND-USE AND ENVIRONMENTAL POLICIES The fair treatment and meaningful involvement of people of all races, cultures, incomes and educational levels with respect to the development and enforcement of environmental laws, regulations, policies, and decisions. Fair treatment means that no group of people should bear a disproportionate share of the negative environmental consequences resulting from industrial, governmental and commercial operations or policies. ENVIRONMENTAL IMPACT: The following Orange County Environmental Responsibility Goal impacts are applicable to this item: 3 • ENERGY EFFICIENCY AND WASTE REDUCTION Initiate policies and programs that: 1) conserve energy; 2) reduce resource consumption; 3) increase the use of recycled and renewable resources; and 4) minimize waste stream impacts on the environment. • RESULTANT IMPACT ON NATURAL RESOURCES AND AIR QUALITY Access and where possible mitigate adverse impacts created to the natural resources of the site and adjoining area. Minimize production of greenhouse gasses. This proposed 2022 amendment to the Interlocal Agreement to jointly fund the costs of private sewer service lateral connection installations for qualified Low-to-Moderate-Income (LMI) homeowners in the Historic Rogers Road sewer service area will encourage homeowners to move forward with connecting to the public sewer system, thereby reducing the use of both failing and functioning private septic systems which could potentially have impacts on the groundwater and other community natural resources. FINANCIAL IMPACT: There is adequate existing Planning & Inspections staff and Housing & Community Development staff to complete the responsibilities enumerated in the proposed 2022 amendment to the Interlocal Agreement (Attachment 1). The installation of private sewer service lateral connections will occur over the next three years (2022, 2023, 2024), commencing upon the adoption of the proposed amendment to the Interlocal Agreement and upon the solicitation of competitive bids from qualified licensed plumbers to complete the private sewer service lateral connection installation work. Orange County has budgeted funds in the associated Capital Investment Plan (CIP #10054) to fund this program, with the expectation of reimbursement by the Towns, as detailed in the Interlocal Agreement. If Planning & Inspections staff determines that the costs of private sewer service lateral connection installations for LMI- qualified Heritage Lot homeowners may exceed the allocated budget, the staff will present a CIP amendment to the BOCC for consideration. RECOMMENDATIONS: The Manager recommends the Board: 1) Review and approve the proposed 2022 amendment to the Interlocal Agreement (Attachment 1) and authorize the County Manager and Finance Director to sign; and 2) Direct staff to move forward with implementation by completing the responsibilities listed in Article 4 of the proposed 2022 amendment to the Interlocal Agreement contained in Attachment 1. Attachment 1 4 NORTH CAROLINA ORANGE COUNTY 2022 REVISED INTERLOCAL AGREEMENT BETWEEN AND AMONG ORANGE COUNTY AND THE TOWNS OF CARRBORO AND CHAPEL HILL REGARDING THE REIMBURSEMENT OF COSTS FOR INSTALLATION OF PRIVATE SEWER SERVICE LATERAL CONNECTIONS FOR LOW-TO-MODERATE INCOME HOMEOWNERS OF HERITAGE LOTS WITH EXISTING DWELLINGS IN THE ROGERS ROAD SEWER PROJECT AREA THIS 2022 REVISED INTERLOCAL AGREEMENT, made and entered into this day of March, 2022 between and among the Towns of Carrboro and Chapel Hill, both North Carolina municipal corporations (hereinafter jointly referred to as the "Towns"), and Orange County, a political subdivision of the State of North Carolina (hereinafter referred to as the "County"), for reimbursement to the County by the Towns for the County's expenditures for the installation of private sewer service lateral connections for low-to-moderate income homeowners of Heritage Lots with existing dwellings in the Rogers Road Sewer Project Area (hereinafter referred to as "LMI Heritage Lot Households"). County and Towns may be referred to collectively as the "Parties". This 2022 Revised Interlocal Agreement supersedes and replaces the Interlocal Agreement between the Parties entered into as of July 1, 2019 and the Revised Interlocal Agreement between the Parties entered into as of June 4, 2020. WITNESSETH WHEREAS, the Parties entered into an Interlocal Agreement on July 1, 2019, hereinafter referred to as the "Original Agreement"; and WHEREAS, the Parties entered into a Revised Interlocal Agreement on June 4, 2020, hereinafter referred to as the "2020 Revised Agreement"; and WHEREAS, the Parties have determined that it is necessary to enter into a 2022 Revised Interlocal Agreement to replace and supersede the Original Agreement and the 2020 Revised Agreement; and WHEREAS, the County and Towns are public bodies, politic and/or corporate, under the laws of the State of North Carolina and are vested with the power and authority by Article 20 of North Carolina General Statute Chapter 160A to enter into this 2022 Revised Interlocal Agreement (hereinafter referred to as the "Agreement"); and WHEREAS, the Historic Rogers Road Neighborhood Task Force Report (dated September 13, 2013) identified 86 parcels in the Rogers Road Sewer Project Area as Heritage Lots, as defined and shown in exhibits therein; and WHEREAS, representatives of the County and Towns have previously agreed in principle that the total number of Heritage Lots in the Rogers Road Sewer Project Area Page 1 of 10 5 has been reduced from 86 Heritage Lots to 84 Heritage Lots, due to lot configuration and engineering feasibility corrections that were completed subsequent to the release of the Historic Rogers Road Neighborhood Task Force Report; and WHEREAS, representatives of the County and Towns have previously agreed in principle that 65 of the 84 Heritage Lots in the Rogers Road Sewer Project Area had existing dwellings located on the respective Heritage Lot parcels concurrent with the release date of the Historic Rogers Road Neighborhood Task Force Report (based on the evaluation of March 2013 aerial imagery), and have identified within Exhibit A herein the 65 "Heritage Lots With Pre-Existing Dwellings"; and WHEREAS, the 65 Heritage Lots in the Rogers Road Sewer Project Area with existing dwelling units may have household income levels at or below 80% of the area median income as defined by U.S. Department of Housing and Urban Development (HUD); and WHEREAS, representatives of the County and Towns have previously agreed in principle to jointly fund the installation of private sewer service lateral connections for the 65 Heritage Lots with existing dwellings and with household income levels at or below 80% of the area median income (LMI Heritage Lot Households) to the public sewer system; and WHEREAS, in 2022, representatives of the County and Towns have previously agreed in principle that there are "Potentially Serviceable Lots" as defined within Exhibit A herein that may have existing dwellings and may have household income levels or below 80% of the area median income as defined by the U.S. Department of Housing and Urban Development (HUD); and WHEREAS, in 2022, representatives of the County and the Towns have previously agreed in principle to jointly fund the installation of private sewer service lateral connections for "Potentially Serviceable Lots" with existing dwellings and with household income levels at or below 80% of the area median income (LMI Heritage Lot Households) to the public sewer system; and WHEREAS, as defined in the following schedule, the timeline for joint funding coverage will begin after the execution of this Agreement by all Parties and upon the County's receipt of a valid dated application from the LMI Heritage Lot Household: Year 1 and Year 2 (100% cost coverage); Year 3 (50% cost coverage); Year 4 and beyond (0% cost coverage); and WHEREAS, representatives of the County and Towns have previously agreed in principle that the County will solicit competitive bids from licensed local plumbing contractors, and will select the lowest responsive and responsible bidder for the installation of private sewer service lateral connections for LMI Heritage Lot Households; and Page 2 of 10 6 WHEREAS, the County has pre-allocated $220,000 as part of the Historic Rogers Road Area Capital Investment Program (CI P) #10054 for the installation of private sewer service lateral connections for LMI Heritage Lot Households wishing to connect, to be reimbursed by the Towns, in part, in accordance with this Agreement; and WHEREAS, the County's expenditures for the installation of private sewer service lateral connections for LMI Heritage Lot Households will include the cost of installation by the lowest responsive and responsible bidder of the private sewer service lateral and associated appurtenances (i.e. from the existing sewer service stub-out at the property line to the household to be served), the cost of disconnecting and abandoning the existing septic system per County standards, the Orange Water and Sewer Authority (OWASA) sewer system development fee, and all other applicable fees; and WHEREAS, the total number of LMI Heritage Lot Households wishing to connect within the specified three-year period for joint funding (i.e. Year 1, Year 2, Year 3) and the exact cost for each LMI Heritage Lot Household wishing to connect are unknown at this time due to the variable sizes of the dwellings to be served, the variable distances between the dwellings and the public sewer service stub-outs, and other specific characteristics of each lot; and WHEREAS, representatives of the County and Towns have previously agreed in principle on an educated estimate of ten (10) LMI Heritage Lot Households wishing to connect within Town of Carrboro jurisdictional areas within the specified three-year period for joint funding (i.e. Year 1, Year 2, Year 3) and on an educated estimate of fifteen (15) LMI Heritage Lot Households wishing to connect within Town of Chapel Hill jurisdictional areas within the specified three-year period for joint funding (i.e. Year 1, Year 2, Year 3); and WHEREAS, representatives of the County and Towns have previously agreed in principle that each LMI Heritage Lot Household wishing to connect within Year 1 and Year 2 following the execution of this Agreement will have an estimated 100% coverage joint funding cost of approximately $8,800 per LMI Heritage Lot Household; and WHEREAS, representatives of the County and Towns have previously agreed in principle that each LMI Heritage Lot Household wishing to connect within Year 3 following the execution of this Agreement will have an estimated 50% coverage joint funding cost of approximately $4,400 per LMI Heritage Lot Household; and WHEREAS, the County and Towns desire to formally establish the terms of the Towns' reimbursements to the County for the installation of private sewer service lateral connections for LMI Heritage Lot Households connections. NOW, THERFORE, in consideration of the foregoing and based on mutual promises and obligations set forth herein, the receipt and sufficiency of which is hereby acknowledged, the County and Towns agree as follows: Page 3 of 10 7 1. TERM AND TERMINATION a. This Agreement shall commence upon execution by all Parties and shall continue until all reimbursements are paid in full with such payment in full occurring no later than June 30, 2025. b. The Original Agreement is hereby superseded and replaced by this Agreement. c. The Town of Carrboro shall provide payment to the County up to 14% of the current total project estimate, or $30,800, whichever is less, plus any financing costs (up to 3 percent annually) incurred by the County for the installation of LMI Heritage Lot Household sewer connections within the Town of Carrboro's jurisdiction unless mutually agreed by both the Town of Carrboro and the County. These payments are for the installation of up to ten (10) LMI Heritage Lot Household sewer connections within the Town of Carrboro's jurisdiction. The Town of Carrboro shall, within thirty (30) days of receipt of a County generated invoice, reimburse the County for the Town of Carrboro's respective share of the total principal and interest associated with the installation of LMI Heritage Lot Household sewer connections within the Town of Carrboro's jurisdiction. d. The Town of Chapel Hill shall provide payment to the County of up to 43% of the current total project estimate, or $94,600, whichever is less, plus any financing costs (up to 3 percent annually) incurred by the County for the installation of LMI Heritage Lot Household sewer connections within the Town of Chapel Hill's jurisdiction unless mutually agreed by both the Town of Chapel Hill and the County. These payments are for the installation of up to fifteen (15) LMI Heritage Lot Household sewer connections within the Town of Chapel Hill's jurisdiction. The Town of Chapel Hill shall, within thirty (30) days of receipt of a County generated invoice, reimburse the County for the Town of Chapel Hill's respective share of the total principal and interest associated with the installation of LMI Heritage Lot Household sewer connections within the Town of Chapel Hill's jurisdiction. e. If overall participation by LMI Heritage Lot Households exceeds the $220,000 pre-allocated by the County, the County will request additional funds and this Agreement will be amended so as to adjust Sections 1-4 accordingly, subject to funding availability and approval by governing boards of the Parties. f. This Agreement may be renewed or amended upon written agreement of the Parties. Page 4 of 10 8 2. TOTAL COSTS Item Carrboro Chapel Hill County Cost Total Cost Cost Cost Carrboro Lots (10 LMI Heritage Lot Household $30,800 $0 $57,200 $88,000 connections within Carrboro jurisdiction) Chapel Hill Lots (15 LMI Heritage Lot Household $0 $94,600 $37,400 $132,000 connections within Chapel Hill jurisdiction TOTALS $30,800 $94,600 $94,600 $220,000 (14% of total) (43% of total) (43% of total) (100°/x) 3. RESPONSIBILITIES OF TOWNS a. As provided in Section 1c above, the Town of Carrboro is responsible for up to 14% of the current total project estimate, or $30,800, whichever is less. The Town of Carrboro shall, within thirty (30) days of receipt of a County generated invoice, reimburse the County for the Town of Carrboro's respective share of the total principal and interest associated with the installation of LMI Heritage Lot Household sewer connections within the Town of Carrboro's jurisdiction. b. As provided in Section 1 d above, the Town of Chapel Hill is responsible for up to 43% of the current total project estimate, or $94,600, whichever is less. The Town of Chapel Hill shall, within thirty (30) days of receipt of a County generated invoice, reimburse the County for the Town of Chapel Hill's respective share of the total principal and interest associated with the installation of LMI Heritage Lot Household sewer connections within the Town of Chapel Hill's jurisdiction. c. The Town of Chapel Hill's funding contribution shall be used for the benefit of low and moderate income residents, as defined by HUD, residing within the Town of Chapel Hill's Extraterritorial Jurisdiction (ETJ). Page 5 of 10 9 d. The Towns shall pay their full agreed upon obligation as set out in this Section 3 within thirty (30) days of receipt of the County's invoice. e. The Towns shall have no further obligation for the cost of maintenance or repair of the private sewer laterals installed with the assistance of their funding, it being agreed by the Parties that the private sewer laterals and all associated work pursuant to this agreement shall upon completion belong to and be the responsibility of the private resident/homeowners. 4. RESPONSIBILITIES OF COUNTY a. The County shall issue an informal request for proposals (RFP) so as to solicit competitive bids from licensed local plumbing contractors for the installation of private sewer service lateral connections for LMI Heritage Lot Households. The County will formally award the private sewer service lateral connection installation work for LMI Heritage Lot Households to the lowest responsive and responsible bidder. b. Contracts for the installation of the private sewer lateral connections and associated work shall clearly state that neither the County nor the Towns shall have any financial responsibility or liability beyond providing the financial assistance and arranging for payment to the contracted plumbers (other than any permitting or inspections responsibilities they may have in their governmental capacities). Said contracts shall provide that the contracting plumbers shall indemnify and hold harmless the Parties for any and all claims arising out of the contracting plumbers' work for the LMI Heritage Lot Households. c. The County is responsible for up to 43% of the current total project estimate as shown in Section 2 above, or $94,600 whichever is less. d. The County shall invoice the Towns for the specified reimbursement amounts and/or percentages as shown in Section 3. This invoice will be in the form of a single invoice upon the conclusion of the services contemplated in Section 1 and Section 2 within the respective jurisdiction of each Town and said invoice shall be accompanied by a written statement indicating those services have concluded. 5. THIRD PARTY RIGHTS Nothing in this Agreement is intended to create, grant, or convey rights in or to any third party. Nothing herein is enforceable by any third party and the rights of the parties hereto to terminate or amend this Agreement are not subject to the consent of any third party. 6. ENTIRE AGREEMENT Page 6 of 10 10 This Agreement constitutes the entire Agreement of the Parties hereto and is effective the date first above recorded. [Signature Page to Follow] Including pre-audit certificates for all Parties. Page 7 of 10 11 2022 REVISED INTERLOCAL AGREEMENT BETWEEN AND AMONG ORANGE COUNTY AND THE TOWNS OF CARRBORO AND CHAPEL HILL REGARDING THE REIMBURSEMENT OF COSTS FOR INSTALLATION OF PRIVATE SEWER SERVICE LATERAL CONNECTIONS FOR LOW-TO-MODERATE INCOME HOMEOWNERS OF HERITAGE LOTS WITH EXISTING DWELLINGS IN THE ROGERS ROAD SEWER PROJECT AREA In witness whereof, the Parties, by and through their authorized agents, have hereunder set their hands and seals as of the day and year first above written. This instrument has been pre-audited in the manner required by the Local Government Budget and Fiscal Control Act. Manager, Orange County Finance Director, Orange County ATTEST By: Clerk Page 8 of 10 12 2022 REVISED INTERLOCAL AGREEMENT BETWEEN AND AMONG ORANGE COUNTY AND THE TOWNS OF CARRBORO AND CHAPEL HILL REGARDING THE REIMBURSEMENT OF COSTS FOR INSTALLATION OF PRIVATE SEWER SERVICE LATERAL CONNECTIONS FOR LOW-TO-MODERATE INCOME HOMEOWNERS OF HERITAGE LOTS WITH EXISTING DWELLINGS IN THE ROGERS ROAD SEWER PROJECT AREA In witness whereof, the Parties, by and through their authorized agents, have hereunder set their hands and seals as of the day and year first above written. This instrument has been pre-audited in the manner required by the Local Government Budget and Fiscal Control Act. Manager, Town of Carrboro Finance Director, Town of Carrboro ATTEST By: Clerk Page 9 of 10 13 2022 REVISED INTERLOCAL AGREEMENT BETWEEN AND AMONG ORANGE COUNTY AND THE TOWNS OF CARRBORO AND CHAPEL HILL REGARDING THE REIMBURSEMENT OF COSTS FOR INSTALLATION OF PRIVATE SEWER SERVICE LATERAL CONNECTIONS FOR LOW-TO-MODERATE INCOME HOMEOWNERS OF HERITAGE LOTS WITH EXISTING DWELLINGS IN THE ROGERS ROAD SEWER PROJECT AREA In witness whereof, the Parties, by and through their authorized agents, have hereunder set their hands and seals as of the day and year first above written. This instrument has been pre-audited in the manner required by the Local Government Budget and Fiscal Control Act. Manager, Town of Chapel Hill Finance Director, Town of Chapel Hill ATTEST By: Clerk Page 10 of 10 14 Historic Rogers Road Sewer Expansion Which Lots Can be Served by the New Public Gravity Sewer Lines? OG - ��BPNKS Rp Q9 SPLIX ST KOUSQ GINKGO O TRL TRL m z m Ni GINKGO c _RL OLDS LARKSPUR y—:WAY j O� 'VqY � I U 2 d' r , 2 O Q� ROAD D s LIZZIE:LN,y �— W w Ua,R' K Q — K V Z V, W � O W = IL pO PUREFOY•DR� c i� �O LN w v 1ti z }yGH RD N �R YYFF„vv Gt Z Z c v rq�ZYF10_TRL_� p W rtt (P RDNARD LL OR �Q S h V F Q O z N aO y INHRMO�` z S CIA CIR 3= w W_G 2 z BU NNPW���, y >> _ 1 Asa -1 ABBO_ TpG p-w SRO New Gravity Sewer Lines �� �OME9(EADnRDQ W 0 Heritage Lots Without Pre-Existing Dwellings �j � o ik0VE O Heritage Lots With Pre-Existing Dwellings i m Hq C)Q'G W 0— N 1 in=800 feet Potentially Serviceable Lots O 14:0 ORANGE Feet 0 Carrboro Jurisdiction In U)_ COUNTY A 0 800 Orange County Planning and Inspections 0 Chapel Hill Jurisdiction BC 11/25/2019