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HomeMy WebLinkAboutAgenda - 05-20-2003-10aORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: May 20, 2003 Action Agenda Item No. 10 - a SUBJECT: Status Report for Rogers Road Waterline Connections DEPARTMENT: County Engineer /Housing PUBLIC HEARING: (Y /N) No and Community Development ATTACHMENT(S): INFORMATION CONTACT: County of Orange Assistance Policy Tara L. Fikes, ext 2490 Connected Properties Map Paul Thames, ext. 2303 OWASA Policies TELEPHONE NUMBERS: Hillsborough 732 -8181 Chapel Hill 968 -4501 Durham 688 -7331 Mebane 336- 227 -2031 PURPOSE: To receive a status report on the Rogers Road waterline connections project. BACKGROUND: The Rogers Road water main construction project evolved after governing boards from all member governments of the Landfill Owners' Group (LOG) approved a series of benefits to be provided to neighborhoods in the vicinity of the existing landfill on Eubanks Road. In early 1999, a sub - committee of the LOG met and issued recommendations regarding the extension of water lines to serve various properties in and around the historic Rogers Road neighborhood. In accordance with the1999 interlocal agreement governing the organization and structure of solid waste management in Orange County, it became the responsibility of the County to implement the remaining landfill community benefit commitments. The Board of Commissioners appropriated in FY 2000 -01 a total of $675,000 from the Solid Waste /Landfill Operations Fund to finance the installation of water mains in the Rogers Road community. The Orange Water and Sewer Authority managed the construction project under an agreement with the County and construction was completed in during winter 2002. The County has expended roughly $620,000 for water distribution system construction costs (including engineering, easement acquisition, etc, and approximately $20,000 to provide water service to the landfill) and OWASA overhead and administrative costs. On February 5, 2002, the BOCC approved a County- funded program that would provide grants to property owners in the Rogers Road waterline project target area. Grants cover the costs associated with connecting individual residences to newly constructed water mains. These costs include OWASA availability fees and water meters, and the installation of lateral lines from the water meter to the house. Assistance is available for eligible properties for which the pertinent application materials are received no later than December 31, 2004. The Board 2 appropriated $156,000 in fund balance from the County's General Fund to underwrite the anticipated costs of the grant program. Financial Update In addition to the original major construction project of a water distribution system which can serve the entire Rogers Road community, the grant program itself to date has provided potable water service to 25 existing low income homes /families and will provide potable water service in the next few weeks to two additional low income families, a church and the church parsonage. The grant program costs to date may be broken down as follows: OWASA meter and connection /availability fees $28,002 (for 29 units) Plumbing connection costs $24,250 (for 25 units) Pending plumbing connection costs $ 3,880 (for 4 units) Total estimated cost for 29 customer units thus far $ 56,132 Technical Issues There have been a few technical glitches involved in installing the services for individual customers. The most significant have involved requirements of the NC Plumbing Code. Specifically, the Code requires that all new waterline services include: 1. A thermal expansion pressure release (to insure that hot water heaters do not cause an internal plumbing pressure that exceeds the pressure capacity of a building's plumbing); 2. A shutoff valve located inside (or in crawlspace) or outside of the building near where the outside waterline goes under or into the building (to isolate the building from the water distribution network in the event of a plumbing leak); and 3. A pressure- reducing valve that can adjust the water pressure coming to or into a building (to insure that system pressure is not so great as to overcome the pressure capacity of an existing and potentially non -code internal plumbing system). Because the County's grant program does not include costs for improvements of any building's internal plumbing system, there was a need to determine how to meet the Code requirements without major improvements to the internal plumbing system. In the end, the thermal expansion pressure release situation was overcome in each building by replacing an existing ball cock valve in the water closet portion of one toilet in each with a ball cock valve having an integral thermal expansion release (at a cost of approximately $50 and thirty minutes each). The shutoff valve and pressure- reducing valve were both installed in a shallow vault (covered water meter box) located at the point where the existing well water line goes under each building and where the new water service was connected to the existing plumbing system. The cost of the materials and installation of the box, shutoff valve and pressure - reducing valve was about $250 per building. In no case was the internal plumbing system of any building modified. The plumbing contractor was not required to go into the crawlspace of any home to make service connections. The average plumbing costs associated with connecting buildings to the water system has been approximately $970. As of this date, Orange County has connected twenty -five (25) buildings to the water system. Four (4) more buildings (including one church and one parsonage) are pending, although meter and accessibility /connection fees have already been paid to OWASA. These buildings will be connected to the system within the next two weeks. Experience has proven that it is most economical to make connections in groups of four or more. Grant Assistance Program The approved Assistance Policy (reference copy attached) for the Rogers Road Waterline Connection Program offers grants for waterline connections for households with incomes below 80% of the area median income. The income limits are based on the HUD published FY 2003 Median Income of $71,300 for family of four in the Raleigh- Durham - Chapel Hill Metropolitan Statistical Area. The current income limits are provided in the chart below. 2003 Income Limits for the County of Orange Number in 30 °� 6f 50 o of Median 80% of Median -House-h- Id Median `Very Low ( "Low Inc ©me ") Income" 1 $14,950 $24,950 $38,100 2 $17,100 $28,500 $43,500 3 $19,250 $32,100 $48,950 4 $21,400 $35,650 $54,400 5 $23,100 $38,500 $58,750 6 $24,800 $41,350 $63,100 7 $26,500 $44,200 $67,450 8 $28,250 $47,050 $71,800 At program inception, staff estimated that the majority of property owners (about 80 %) would meet the eligibility requirements for the grant program. The Housing and Community Development Department began taking applications for the grant program after February 5, 2002 by appointment only. A special Application Day was held in the community at Faith Tabernacle Church on Saturday, May 18, 2002 in an effort to make it easier for residents to apply for the program. The following summarizes the implementation of this program to date. Application Intake Total Applications Received: 45* * Represents approximately 47% of the total number of habitable structures. Parcels that have been connected to OWASA water service are highlighted on the attached project area map. 4 Eligibility Analysis Eligible applicants (73 %) 33 Ineligible applicants (27 %) 12 Total applicants 45 Additional Information Staff is aware of five (5) property owners who have chosen to pay the connection fees directly to OWASA. Only one of these property owners has applied for the County grant program. Additionally, there are ten (10) property owners with family incomes that exceed 80% of the median income and are therefore ineligible for the grant program. Although some of them have paid the fees and associated plumbing costs themselves, concern has been raised by a couple of owners about finance fees that OWASA charges to those that choose to utilize their payment plan. The concern on the part of these residents is that not only do they have to pay the availability and meter fees without assistance, but also they are required to pay an additional fee for paying in installments. A copy of pertinent OWASA policies is attached for reference purposes. FINANCIAL IMPACT: There is no financial impact associated with receiving this report. A portion of the $156,000 appropriated in FY 2001 -02 to cover grant program costs for water line connections (which reverted to General Fund fund balance on June 30, 2002) will need to be reappropriated through a budget amendment before the end of June 2003 to cover actual expenditures during FY 2002 -03. Grant funds remaining as of June 30, 2003 will need to be carried forward to the FY 2003 -04 budget to cover grants to eligible applicants who may apply between July 1, 2003 and June 30, 2004. RECOMMENDATION(S): The Manager recommends that the Board receive the report as information, and provide direction to staff on any additional information needed or possible changes to the grant program parameters. 5 County of Orange Assistance Policy For the Rogers Road Waterline Connection Program Purpose APPROVED February 5, 2002 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. The Rogers Road area is delineated on a map attached to this policy as Exhibit A. 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. Both the grant and loan programs will be available for eligible properties for which the pertinent 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. In order to achieve economies of scale in plumbing costs, connections will be completed in groups of at least 15 to 25 where possible. 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. Non- profit organizations with properties in the Rogers Road area will be eligible to apply for funding under this program. Parcels not plated for 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.) Applications will be accepted at the Housing and Community Development Office at the Southern Human Services Center in Chapel Hill and at the Whitted Human Services Building in Hillsborough by appointment only. 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, interest, rent, dividends, etc. A third party must verify,all family income. Applicants eligible for grants will be required to execute a grant agreement. Terms of Assistance 2001 Income Limits for the County of Orange Number in Household 1 30% of Me $13,900 edian (' 1- Low in, -me" $23,150 % ff Median { "LQw Income'} $36,750 2 $15,850 $26,750 $42,000 3 $17,850 $29,750 $47,250 4 $19,850 $33,050 $52,500 5 $21,400 $35,700 $56,700 6 $23,000 $38,350 $60,900 7 $24,600 $41,000 $65,100 8 $26,200 $43,650 $69,300 *The income limits are based on the HUD published FY 2001 Median Income of $66,100 for a family of four in the Raleigh- Durham - Chapel Hill Metropolitan Statistical Area. Median income is established once yearly, subsequently the income limits for this program will be adjusted annually in accordance with the published median income. Phase I — Grant Program For applicants /tenants with household incomes that fall 80% and below of the area median, assistance to these families will be provided in the form of a grant. (See chart above.) Applicants in this category could fall in the following configurations. a. Low Income Homeowner b. Low Income Tenant - Low Income Landlord C. Low Income Tenant - Over Income Landlord d. Over Income Tenant — Low Income Landlord All landlords participating in this program will be required to agree to a rental rate agreement that allows a rent increase of no more than 10% in any given year and no more than a cumulative increase of 30% for a period of five (5) years after connection to the OWASA water system. All grant recipients will be required to execute a Grant Agreement with the County. 2 m Phase II - Low - Interest Direct Loans Pending future consideration. Loan Processing Pending future consideration. Confidentiality. To the extent permitted by law, 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 citizens upon request. Conflict 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 shall 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 with 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. 3 I Q 11 RESOLUTION TO ADOPT POLICY FOR MONTHLY INSTALLMENT PAYMENT PLANS FOR AVAILABILITY FEES AND ACREAGE CHARGES WHEREAS, the Board of Directors heard petitions from property owners, living in existing residential units not connected to Orange Water and Sewer Authority's water and/or wastewater system, requesting they be allowed to pay availability fees and acreage charges in installments; and WHEREAS, the Board of Directors understands that these fees and charges equal an amount that some property owners cannot afford to pay in one lump sum prior to connecting to Orange Water and Sewer Authority's water and/or wastewater systems; and WHEREAS, the Board of Directors desires to assist property owners, who occupy existing residential units not currently attached to Orange Water and Sewer Authority's water and/or wastewater system, and to provide an incentive for them to connect to public water and/or wastewater service as this is in keeping with OWASA's public health mandate by abandoning tocontaminated wells and/or failing septic systems. NOW, THEREFORE, BE IT RESOLVED: 1. That the Orange Water and Sewer Authority Board of Directors adopts the Policy for Monthly Installments Payment Plans for Availability Fees and Acreage Charges and directs the staff to follow the procedures outlined in the policy. This the l Oth day of October, t 996. 5oalk Hall, ce Chairman Attest: . dith M. Cox, Secretary -T easurer �1 E ORANGE WATER AND SEWER AUTHORITY 0 PURPOSE: The purpose of this policy is to establish a monthly installment payment plan option for payment of availability fees and acreage charges to serve as an incentive to connect owner occupied properties located within Orange Water and Sewer Authority's service area but not currently connected to Orange Water and Sewer Authority's water and/or wastewater system. BACKGROUND: Orange Water and Sewer Authority's water and sewer extension policies describe the conditions for extending service to applicants, while the approved schedule of rates and fees define and list those charges to be paid by the applicant prior to connection to a water and/or sewer main. Prior to this policy, approval of requests for applicants to be allowed to pay availability fees and acreage charges using an installment payment plan has been limited to property owners, living is special assessment project neighborhoods, who connected to the public water and/or sewer system within sixty (60) days of completion of the assessment project. POLICY: Property owners living in residences not attached to OWASA's water and/or wastewater system may arrange to pay up to eighty percent (80 %) of availability fees and acreage charges by monthly installments over a period not to exceed five years. In order for a property owner to set -up an installment plan, the following shall apply: a) The property owner must occupy the residence. b) A fee schedule approved for service by OWASA's Engineering Department shall be prepared listing the availability fees and acreage charges due for the property. c) The property owner must make a down payment of 20% of the availability fees and acreage charges calculated for the property and request that an installment payment plan be established. Once the request for an installment payment plan is received, an installment payment plan will be set -up and include the following: a) Principal equal to up to eighty percent (80 %) of the availability fees and acreage charges for the property; b) Interest at a rate comparable to that currently being charged by area lending institutions, and c) An administrative or handling charge to cover those costs associated with billing and collecting the installment payments, and recording and release of liens. The installment payment of availability fees and acreage charges shall become a part of the monthly billing for service, and nonpayment shall be subject to the same policies and penalties that apply to delinquency in the payment of monthly charges for water and sewer services provided by OWASA. 0 • Policy for Monthly Installment Payment Plans for Availability Fees and Acreage Charges Page 2 Tile balance of the installment payment plan, including availability fees and acreage charges, interest and the administrative charge, shall be secured by a lien against the benefited property and personal security to satisfy any outstanding balance upon sale of the property shall be required. in addition, payment of the unpaid balance of the installment payment plan shall become due upon transfer of the property. • Reviewed by General Counsel: 1 "V ON Dat Adopted by Board: 6 Date Rogers Road Parcels IA With Water Connections N 0 Unconnected Parcels w E ® Connected: County paid fees