HomeMy WebLinkAboutAgenda - 09-26-2005-2ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: September 26, 2005
Action Agenda
Item No. 2
SUBJECT: County/OCS Matter- Middle School #3 Infrastructure Issues
DEPARTMENT: Manager/OCS
PUBLIC HEARING: (Y/N) No
ATTACHMENT(S):
9/21/05 OCS Superintendent Letter
9/23/05 County Engineer Memo
INFORMATION CONTACT:
John Link or Rod Visser, 245-2300;
Site Map - Powerline Alternatives Paul Thames, 245-2303
9/15/05 Duke Power Manager E-Mail Shirley Carraway, 732-8126
PURPOSE: To discuss matters related to infrastructure construction for the third middle
school in the OCS district,
BACKGROUND: Construction of the third middle school in the Orange County Schools
system, as discussed elsewhere during this work session, is proceeding well towards a
targeted opening in Augtast 2006. Several matters requiring discussion and decisions have
arisen regarding utility infrastn~cture to the school, most urgently as relates to electrical stapply
to the school site, The issues are outlined in detail in the accompanying correspondence
prepared by the Superintendent, the County Engineer, and Duke Power's Triangle Area
Manager far Business and Government Relations.
The Board of Education has requested that the County Commissioners discuss with them
possible approaches to resolving this matter expeditiously,
FINANCIAL IMPACT: As outlined in the attached correspondence, the potential cost
associated with placing electrical supply lines underground for this project could approach a
quarter of a million dollars, with any funding source undetermined at this time,
RECOMMENDATION(S): The Manager recommends that the boards discuss the
infrastructure matters and provide direction to staff, as appropriate.
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Pr. Shirley Carraway
Superintendent
September 21, 2005
Mr. Moses Carey, .Jr., Chair
Orange County Board of County Commissioners
P.O. Box 8181
Hillsborough, NC 27278
Dear Mr. Carey and Board Members,
(919) 732-8126 Telephone
(919) 732-8120 Fax
www.orange.kl2.nc.us
The construction of Middle School #.3 is progressing beautifully, and is beginning to look like a school.
The steel has been erected, the slabs have been poured, and the widening of West Ten Road is nearing
completion.. The Board of Education is currently in the process of arranging for electric power to the site..
We have run into a problem in our negotiations with Duke Power, however, and we are hoping the Board
of County Commissioners can help us address it..
Here is the situation: In order to keep construction on schedule, we need power on the property by
7anuary 1, 2006.. Most of the middle school site is in Duke Power's territory, although a small portion,
including the pump station, is in Piedmont Electric's territory. In fact, Piedmont Electric is currently
supplying temporary power to an irrigation pump. Duke Power has the ability to provide electric service
to the school within our time frame if a decision is made immediately, However, they are requiring that
we grant them an easement across the property to provide for future development of three-phased power
to the east of our site. Unless we allow the easement, they will not provide power to the school. The
Board of Education is willing, of course, to grant Che easement, buC we disagree wiCh Duke's provisions
about the type of power lines Chey will supply.
The Special Use Permit that allowed us to build the school requires us to place utilities underground, and,
in fact, the Board of Education wants the power lines to be underground.. Duke Power views overhead
power lines as standard service, and underground lines as a customer option for which the customer must
pay. Because the easement would provide no benefit to Orange County Schools and is required only to
meet Duke Power's future needs, the Board believes that Duke should install the lines underground across
the easement at no cost to the district. Duke maintains that the district must pay for the underground
lines..
Piedmont Electric has indicated that they can provide underground service within our required time fiame
at a fraction of the cost that Duke Power is charging because they realize that over the
years, they will recoup any investmenCS they make in our property. With Chis offer in hand, the
September 21, 2005 Page 2 Mr. Moses. Carey. Jr.
district is sending an official letter to Duke Power, asking them Co release Che Cerritory to PiedmonC
Electric, a request that is likely to be denied.. The Board of Education will likely appeal Duke Power's
expected response to the North Cazolina Utilities Commission, asking that they either require Duke Power
to release the territory to Piedmont Electric or that they require Duke Power to provide underground
service across the easement at no charge to the district.
At this point, we believe that we have three options for' obtaining service fiom Duke Power, assuming the
likelihood that the Utilities Commission does noC rule in our favor:
Option 1: Most desirable
Supply power underground fiom the drop point to the lift station at a cost of $50,000 to $75,000, and
from the lift station east along West Ten Road to the southeast corner of the property at a cost of
$100,000 - $175,000. The Board of Education feels very strongly that Duke Power should assume the
cost of this option.
Option 2
Supply power overhead along the east side of the retention pond, between the pond and the athletic field;
run lines underground to the building transformer, then overhead across the front of the school in the
easement area. The Board feels that the overhead lines would be particularly unsightly in these locations..
The cost would be approximately $2,000 for the underground portion of the power supply.
Option 3: Least desirable
Supply power overhead along the west and south sides of the retention pond; run lines underground to the
building transformer, then overhead across the front of the school in the easement area. This option
would require the construction and maintenance of a commercial grade access road in order for Duke to
erect and maintain the lines. The cosC for the road is estimated at $150,OOQ and the cost for Che
underground portion of the power supply would be about $2,000.
The Board of Education agrees with the Special Use Permit requirement to have underground power lines
and will vigorously seek Option 1, while possibly pursuing efforts to get the Utilities Commission to
release the territory Co PiedmonC Electric- However, timing is critical, and any delay in obtaining
electrical power would mean that the school would not be ready to open in time. If the Board chooses to
pursue an appeal to the Utilities Commission, it could be months before they could even hear our case.
Unfortunately, we cannot afford to wait.
Because of the urgency, we are asking the Board of County Commissioners to help us by providing the
approximately $250,000 necessary, to proceed with the design and installation of the lines -while we
continue our efforts to obtain power without incurring the additional costs.
We appreciate your consideration of this matter and hope that you will let us know as quickly as possible
so that we can move forward on this essential constuction step.
Sincerely,
Shirley Can'away, Ed,D.
SuperintendenC
/pmc
cc: Mr John Link, County Manager
Orange County Board of Education
MEMORANDUM
TO: County Commissioners
COPIES: Jahn Link, County Manager
FROM: Paul Thames, PE, County Engineer
DATE: September 23, 2005
SUBJECT: Efland Band/Buckhorn EDD/community sewer expansion project
As the Efland Middle School #3 is scheduled to open in August 2006, the entities and
individuals involved with that opening have expressed concerns as to the timetable far
completing the necessary utility (water/sewer/power, etc,) extensions to the school site, In
accordance with the request of the County Manager, the following information about utility
extension and associated timing issues is provided.
The water/sewer utility design and approval process has fallen approximately one month
behind schedule as a consequence of several design/environmental/right-of-way issues:
1. construction and environmental permitting issues crossing the wetland area at the
southwest corner of the middle property;
2. the overabundance of existing telephone utilities (Mebtel) located in both shoulders
and the entire NCDOT right-of-way for West Ten Road (proposed routingllocation of
water main to school site and force main from wastewater pumping station);
3, the non-responsiveness of the NG Railroad Corporation an matters of providing
easements/encroachments (and the NCRC's preliminary projected easement costs) in
the railroad rights-of-way (in the shoulders of Washington Street at Buckhorn
community location and Forrest Avenue in central Efland location) for installing sewer
lines; and
4, non-railroad related system layout and easement complexities involved in the central
Efland portion of the project.
To avoid school opening delays, these issues have been addressed/resolved to the extent
passible by: proceeding with the project design development and construction document
preparation under the assumption (confirmed to be acceptable to the permitting/grant
funding agency) that the overall project can be split into two separate projects (Buckhorn
EDD/community); negotiating with Mebtel to remove/abandon its telephone lines in the
northern shoulder of West Ten Road (at a Mebtel-cited cost of $31,000); persuading
NCDOT to remove the beaver dam in the creek south of West Ten Road (thus reducing a
pond on the north side of West Ten to atwo-foot-wide stream); structuring the
construction documents for the Buckhorn EDD/community portion of the project to allow
eliminating (temporarily) those areas affected by railroad right-of-way far inclusion into the
central Efland portion of the project; and redesigning all portions of the project to minimize
incursion into railroad rights-of-way,
Construction plans for the Buckhorn EDD/community water/sewer utility extension portion
of the project have been completed pending review (and design changes arising out of
those reviews) of the following agencies that must approve or permit various elements of
this project:
• NC Division of Water Quality -Construction Loans and Grants Section -review and
approval/permitting all EPA grant funded projects;
• NC Division of Environmental Health -Public Water Supply Section -review and
approval/permitting of all non-EPA funded water distribution system improvements;
• NCDOT -Division of Highways -review and approval/permitting (encroachment
agreement, driveway permit) of projects requiring construction within or to NCDOT
rights-of-way;
City of Mebane (as the ultimate utility/easement/encroachment owner in this portion
of the project) review/approval of all aspects of water/sewer lines, wastewater
pumping station, some on-site water/sewer lines;
• NC Railroad Corporation -review and approval (encroachment agreement) of
projects requiring construction within the railroad right-of-way belonging to NCRC;
• NC Division of Land Quality -review and approval/permitting of
sedimentation/erosion control plans for local government projects; and
• Orange County Planning Department -site plan and building permit review/approval
for wastewater pumping station at Middle School #3.
The critical path for the approval process has the City of Mebane first reviewing and then
either approving or requiring revisions to the project design; submitting the revised project
documents to NCDOT, NC Division of Land Quality, NC Public Water Supply Section, and
Orange County for approval, Comments from those agencies are integrated to project
documents which are then submitted to NC Division of Water Quality -Construction Loans
and Grants Section (which will not review or approve plans prior to other review agencies),
As of this date, construction documents have been reviewed by the City of Mebane and
the City's comments and required revisions are now being integrated into the construction
documents, Revised plans will be submitted tc NCDOT, Public Water Supply, NC Division
of Land Quality and Orange County by September 30`h. It is anticipated that comments
can be received from those agencies, revisions/corrections integrated into construction
documents and document submitted to the Construction Loans and Grants Section in
early November. It is unlikely that approval to bid the project can be obtained prior to early
December, It is anticipated, however, that the project can be bid and a recommendation
for bid award be put before the BOGC at its .)anuary 2006 meeting,
The best case scenario for a completion date for the water/sewer infrastructure for the
Buckhorn EDD/West Ten Middle School is July 1, 2006. This timeline projection assumes
the project and bid review and approval times noted above as well as issuing a formal
Notice to Proceed to the project contractor as of February 1, 2006 and acontract-
specified 150 days to complete the portion of the project involving the middle school
utilities, The approvals process as well as various construction issues (inclement weather,
equipment manufacturing issues, etc.) represent potential delays in final project
completion.
For nearly a year, County and Orange County School staff have met and negotiated with
Duke Power officials as to the configuration (overhead or underground) and location of an
extension of three phase power to the West Ten Middle School site, Initial discussions
revalued around the desire to avoid a power line constructicn disturbance of the high value
wooded area across the northern third of the school property, A proposal was made to
extend three phase power -overhead -from its existing source at the east-bound I-40
truck weigh station eastward along the interstate right-of-way to the common property line
between the middle school and soccer complex, then south along that line to a point
where it would go underground to the school (see attached map, Route 1), When NCDOT
refused to grant an easement along the interstate right-of-way, County and Board of
Education staff proposed a second route for overhead power lines that would take
advantage of an existing power line right-of-way and cut as well as an existing farm road
cut along at the northwest corner of the school property and along the western property
line to and across West Ten Road, then east along the West Ten Road right-of-way (see
attached map, Route 2 and 2A), Power to the school would be taken underground from
the overhead Route 2 line and extended to the school. Duke Power officials evaluated
this proposal and indicated that: 1) the area west of the existing pond appear to have
issues with a difficult access to the line (swampy area); and 2) if that route where chosen,
the Board of Education would have to agree to build (at a cost of approximately $150,000)
and perpetually maintain (cast unknown) an all weather access road along the power line
route, Duke proposed to install overhead lines along the eastern side of the existing pond
and the northern side of West Ten Road on school provided easements (see attached
map, Route 2B).
In recent discussions between Board of Education and Duke Power officials, Board
officials indicated that the Board would give Duke Power the easements for the Route 2A
installation, but would require that Duke install the lines underground in accordance with a
formally stated School Board preference as well as in accordance with the school special
use permit conditions and adopted Buckhorn Road EDD development standards. Duke
Power officials have indicated that they will install overhead lines at no cost to the School
Board but that an underground installation along the 2A route will cost the Schcol Board
up to $250,000 (approximately 2500 linear feet of multi-conduit concrete encased duct
bank with manholes at cost of approximately $100 per foot), The School Board and Board
of Education staff have indicated that they are unwilling to pay this additional cost.
As the school property straddles the boundary between Piedmont Electric and Duke
Power service areas, School Board and Board of Education staff have also spoken with
Piedmont Electric officials about the cost obtaining underground three phase power from
Piedmont, Piedmont has advised that it can provide the power at a cost projected to be in
the $10,000 to $20,000 rarige. However, the school building lies within the Duke Power
service area (the pumping station and some athletic fields will lie within the Piedmont
Electric service area), Before Piedmont can extend power to the school building, Duke
Power will have to relinquish the site (considered unlikely) or the Public Utilities
Commission will have to rule that Piedmont can serve the building (in response to a formal
request from the Board of Education, Orange County, etc, for such a ruling). The School
Board has directed Board of Education to formally request that Duke Power relinquish the
site in preparation for making a formal request to the Utilities Commission.
There are serious timing issues involved in these attempt to get three phase power to the
site. Duke Power officials have indicated that Duke will need 120 days to complete a
power extension project with the clack starting only when the School Board has executed
an extension and easement agreement/contract. Piedmont Electric can accomplish the
extension in 30 days. However, it is unknown how long it might take the Utilities
Commission to make a Wiling on the service area change request. The middle school
design consultants have indicated that the school building contractors will be looking for
monetary compensation for project delays if three phase power is not available to the site
in January 2006. One hundred twenty days from October 1, 2005 falls in very late
January 2006.
If I may provide additional information on these issues, please advise.
Mfm"•" This map conlalns parcels prepared for the inventory of real propety wWrin
~~.., Orange County, and Is compllotl from rscortled tleetl, plats, antl other public
!;1;~, records antl tlata. Users of This map are hereby nolif~otl that Iha aloramenlioned
a °"^ public primaryinformallon sources should be consultotl for vsnfcation of the
""°:. Informallon contalnetl on This map The county and its mapping companios assume
no legal responslbilily for Ibo Infomralion contained on This map
N
1:4800
Rod Visser. -- ------- Page 1
From: Rod Visser
Scott TGardner/Cust/DukePower
09!15/2005 10:38 AM
To
<George McFarleyCa~orange.k12.nc.us>
cc
Subject
George,
As stated at the meeting Wednesday, Duke looks forward to providing
electric service to Orange County Schools in compliance with North
Carolina Utilities Commission approved rate schedules and service
regulations which dictate major aspects of electric facilities
construction and associated charges which apply in this case. Please be
mindful that until we have the appropriate easements in hand, we cannot
complete the design nor begin construction of electrical facilities on the
site. Additionally, current lead times for project completion for a
project of this size and scope is in the 10 to 12 week range, weather
permitting (as I write this, travel teams have been dispatched to assist
with power restoration on the NC coast, so that lead time may well be
extended).
As background, Duke Power, with guidance from the North Carolina Utilities
Commission (NCUC), designs its' electrical infrastructure to be safe,
reliable, and low cost. Consequently, we design our facilities to meet
those three objectives and our rates reflect the results of that
philosophy. Generally speaking, overhead construction meets these
objectives in the case of major infrastructure and bulk feeders, and
underground construction meets these objectives in smaller, tap line and
service line cases. This philosophy results in Duke Power's rates being
among the lowest in the Southeast and 20% below the national average and
our reliability being among the best in the Southeast and the nation. If
customers want something beyond the basic, low cost design, additional
charges apply. These additional charges are reflected in NCUC approved
rate schedules and service regulations.
In the case of the Middle School #3 project, this parcel has the unique
characteristic of being located between two ends of existing
infrastructure. Duke Power has an obligation to plan ahead with each
project we construct, and in this case and other similar cases, we have an
obligation to take advantage of the opportunity to connect the two ends of
existing infrastructure which will provide for the ability meet future
load growth in the area and to provide faster electric service restoration
in the event of a major outage. There is no charge to Orange County
Schools for the additional three phase bulk feeder facilities to complete
this connection with the lowest cost overhead construction
With this background in mind, we met with Orange County Schools in the
fall of 2004 to review design options and costs. As I understand it an
option to run along the back side of the property was deemed unacceptable
because we were unable to secure an easement from NCDOT. This led to the
current route (OPTION 1) which includes overhead construction parallel to
Rod Visser - ~ Page 2
Duke existing transmission easement along the west side of the property to
a point near the northeast side of the retention pond where we will 1)
proceed underground to serve the transformer for the school, and 2)
continue overhead along the east side of the retention pond southward to
West 10 Road and then proceed overhead eastward along the frontage of West
10 Road to southeast corner of the property. The cost of this option was
in the hundreds of dollars (for additional linear footage for the
underground service line beyond that which is covered in our Underground
Plan).
In early summer 2005, we met with OCS and Orange County officials to
review other options to the overhead extention beyond the dip pole on the
northeast side of the retention pond. We reviewed two additional
options: constructing the underground which would require additional
charges to OCS beyond the basic, low cost design; or constructing the
facilities overhead, but behind (or along the west and south side of) the
retention pond out to West 10 Road and overhead along West 10 Road. This
option would require additional charges to OCS in that a commercial grade
roadwaylaccess road would have to be constructed and maintained for Duke
to have access to construct and maintain the facilities along this route
(additional charges above the basic, low cost design apply) OCS was to
determine the cost they would incur to proceed with this option, Our
recollection of the outcome of that meeting was that the overhead option
along the west and south of the retention pond was the preferred option -
OPTION 2
In August of 2005, we met again with OCS to agree upon the desired route
and to secure the appropriate easements from OCS to allow us to complete
design and begin construction. We learned at this meeting that no
decision had been made regarding the desired route (OPTION 2) and that the
underground option was still on the table (OPTION 3)
At our meeting on Tuesday, September 13, representatives from Duke,
Orange County, and OCSs met again to review the three options and
considerations for each. As we understand the current situation, OGS is
considering three options:
OPTION 1 -overhead construction along the east side of the retension pond
-cost to OCS is in the hundreds for the additional footage for the
underground run to the building transformer;
OPTION 2 -overhead construction along the west and south sides of the
retention pond -cost to OCS is a) in the hundreds for the additional
footage for the underground run to the building transformer, and b) for
the construction of a commercial grade roadway/access road would have to
be constructed and maintained for Duke to have access to construct and
maintain the facilities along this route (Duke has no knowledge of the
costs associated with this aspect of this option);
OPTION 3a -underground construction along the east side of the retention
pond to West 10 Road;
OPTION 3b -underground construction along West 10 Road to the southeast
corner of the OCS site
Our "ballpark" estimate for undergrounding the three phase bulkfeeder from
the dip pole southward to West 10 Road (OPTION 3a), and from that point
eastward along West 10 Road to the other side of the school property
(OPTION 3b) is in the $150K to possibly $250K range. For discussion
purposes, we project $50K-$75K for OPTION 3a and 100K-$175K for OPTION 3b.
Rod Visser - Page 3
These are very preliminary and non binding estimates. We are attempting
to tighten up this preliminary, non binding estimate range, but without a
detailed estimate, we may only be able to provide such a range from which
to make your decision. Let me know if you want a detailed estimate
(engineering design charges will apply).
I hope this summary is helpful in clarifying Duke's position and the
associated costs for the current options under consideration for this
project. Again, as a reminder, we are looking at a 10-12 week lead time
on project completion from the time we receive the necessary easements and
payments which apply to the option chosen.
Please let me know if you have any questions
Scott
ScottT Gardner
Triangle Area Manager, Business and Government Relations
Duke Power Company, 4412 Hillsborough Rd Durham, NC 27705
soardnerCo?duke-energv.com
Phone: (919) 687-3000; Fax: (919) 687-3219