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Home My WebLink AboutAgenda - 08-19-2003-8iORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: August 19, 2003 Action Agenda s Item No. —! SUBJECT: City of Mebane Request that Orange County Convey Ownership of Water Tank Property to the City DEPARTMENT: County Manager PUBLIC HEARING: (Y /N) I No ATTACHMENT(S): 7/17/03 Letter from Mebane w/ Attachments (agreements, payment journal) Orthophoto Property Map INFORMATION CONTACT. Geof Gledhill, 732 -2196 Paul Thames, ext. 2303 TELEPHONE NUMBERS: Hillsborough 732 -8181 Chapel Hill 968 -4501 Durham 688 -7331 Mebane 336- 227 -2031 PURPOSE: To present a request from the City of Mebane that Orange County convey to Mebane ownership of a parcel that contains one of Mebane's elevated water tanks. BACKGROUND: In September, 1966, Orange County and the City of Mebane entered into an agreement by which Orange County would finance (by means of a $400,000 bond sale) the extension of water and sewer utilities from the City of Mebane to an industrial park in western Orange County. The agreement furthermore stipulated that the City of Mebane would repay these bonds (plus interest) to the County on the basis of revenue derived from the utility rates charged to the customers of these utilities. In accordance with the agreement, ownership of the utility infrastructure, additions, etc., were to be conveyed to the City of Mebane upon payment in full of the bond debt. In November of 1966, the bond referendum was passed by the voters of Orange County and the utility extension project was ultimately undertaken and completed and operated as a component of the City of Mebane utility system. The City of Mebane began making payments on the bond in February 1978 and completed the repayment of the bond in November 1992. With one exception, an apparent oversight, complete ownership of the infrastructure, appurtenances, etc., passed to the City at that time. The oversight was the ownership of a parcel of property (TMBL 3.20.E.1) located on South 11th Street (within the Mebane municipal limits) that was acquired by the County in 1967 to be the site of an elevated water storage tank. While the water tank was constructed on the site and ownership of the tank passed to the City of Mebane in 1992, ownership of the parcel was never transferred and remained in the name of Orange County. It is now the City's intent to lease the right to mount a communications antennae on the top of the water tank. However, this cannot occur until the City has outright (fee simple) ownership of the property. Accordingly, the City has, by letter from Utilities Director James Jobe to County Manager John Link, requested that Orange County convey ownership of the subject property to the City of Mebane. That letter, copies of the original agreement between Orange County and the City of Mebane, the City's log of payments to the County, and an orthophoto (aerial photography) property map generated by Orange County GIS are attached. FINANCIAL IMPACT: None RECOMMENDATION(S): The Manager and the Attorney recommend that the Board: 1) agree to transfer ownership of the subject parcel; 2) direct the County Attorney to prepare and record the necessary documents; and 3) authorize the County Manager, as signatory, to execute the necessary documents. Robert L. Wilson City Manager Glendel Stephenson Mayor Crnmcil Ed Hooks, Mayor Pro Tem Alice Bordsen Tim Bradley Bob Hupman Henry Johns Julyl7, 2003 � ttq of Atbane 106 E. Washington Street Mebane, N.C. 27302 (919)563 -5901 Mr. John Link, County Manager Orange County P. O. Box 8181 Hillsborough, NC 27278 ,EM JUt 2 1 2003 Re: Property on S. 1111. Street - Mebane NC - Water tank location Dear Mr. Link: Elaine J. Hicks Asst Mgr ✓City Clerk /Firrance Officer Marilyn Carter Tar Collector 3 Gary Bumgarner Chwf of Policy Jimmy Jobe Public Works Director Mike Hite Waste Treatment Director Dean Ray Recreation & Parks Director Bob Louis Fire Chiej Montrena Hadley Planning Director The City of Mebane request you to put the following on the Orange County Commissioners agenda as soon as possible. The City of Mebane has a water tank located on S. 11 th. Street in Mebane, Orange County, that we do not have a deed for. In researching this matter, we find that the deed in still in the name of Orange County. The agreement between the City of Mebane and Orange County for water and sewer line reimbursement was for the payment of $ 400,000.00 and at the end of the payments the utilities would become property of the City. The water tank and property is part of the utility system. The last payment on the agreement was made on November 11, 1992. I have enclosed a copy of the agreement and a copy of each payment made with date of payment and check number. The City OF Mebane request the Orange County Commissioners convey or release the property to the City of Mebane at this time. If you have any questions please call me at 919 -563 -5901. .4w A. Jobe, Jr. :)r of Public cc: Robert L. Wilson, City Manager Chartered in 1881 NORTH CAROLINA ORANGE COUNTY THIS AGREEMENT, Made this the 29th day of September, 1966, by and between The County of Orange, State of North Carolina, party of the first part, hereinafter designated the County, and the City of Mebane, a municipal corporation in Alamance County, North Carolina, party of the second part, hereinafter designated the City, WITNESSE TH: That whereas, the County of Orange has engaged the firm of Alley, Williams, Carmen & King, Inc., Engineers and Architects, to make a survey and prepare detailed plans in order to provide water and sanitary sewer facilities to an industrial park area located in western Orange County near the City, said survey and plans bear date of August 29, 1966; and Whereas, representatives of the County and the City have had' several meetings to discuss the various problems connected with the furnishi: I, of water and sanitary sewer treatment for the proposed industrial park area as described in the detailed report above referred to; and Whereas, both the County and the City are of the firm opinion that the establishment of said industrial area will inure to the benefit of both the County and the City: NOW, THEREFORE, in order to carry out the above described 11 undertaking the County of Orange agrees as follows, to -wit: 1. To use its borrowing capabilities for the issuance of bonds 11 in an amount not exceeding $400, 000, the proceeds from said bonds to provide for the laying of water pipes and sanitary sewer facilities to the area de- v 11scribed as the industrial park area according to the report and plans as pared by the engineers. That the Board of Commissioners of Orange County has already set in motion the necessary and required steps to have 4 in election by the voters of Orange County on November 8, 1966, to express 5 their approval, or disapproval, of the issuance of the said $400, 000 of bonds. Z. That the County obligates itself to make payments. of the principal and interest of said bonds until all of same are retired. 3. That as a part of the consideration of this agreement, the City of Mebane, party of the second part, agrees to pay to Orange County all of the income received from water and sewer users who may have tapped on the line constructed by the party of the first part until such time as the $400, 000 principal and the interest thereon has been paid in full. That upon said payment in full to the party of the first part it is mutually understood and agreed by the parties hereto that the water lines and sewage lines, together with such equipment and additions as have been constructed, will then be conveyed to the party of the second part, and the party of the first part will thereafter have no interest or control in said water and sewer lines' And to carry out said agreement, and as a part of the consideratio hereof, the party of the second part, to -wit, City of Mebane, agrees: 1. To furnish water and sanitary sewer treatment for the industrial park area, and to maintain the water lines and the sewer lines in perfect repair and condition. 2. To pay annually to the party of the first part, to -wit, Orange County, all of the income received from water and sewer users who have tapped and are served by the lines both water and sewer to be constructed from the proceeds of the $400, 000 bond issue until the said amount of $400, 000 principal and the interest thereon which may accrue during the lifetime of the bonds has been paid in full. 3. Further the Town of Mebane agrees to negotiate, if water capacity is available, for extensions of present lines to additional interested users of water and sanitary sewer services. It is understood and agreed that -2- such extensions will be made of the same size pipe as the lines proposed in the engineers' plans, and the cost thereof will be borne by the party of the second part, with the full understanding and agreement that all tevenue received from such extensions will be and belong to the party of the second It is clearly understood and agreed that this latter provision does not part. apply to tap -ons on the lines as shown in the engineers' report referred to in the first part of this agreement. This agreement made and entered into as of the day and year first above written is executed in duplicate with the clear understanding by both parties hereto that if the proposed bond election on November 8, 1966,; should fail of passage, then this agreement will be null and void; and the party of the first part has caused same to be executed by the Chairman of it Board of County Commissioners, duly attested by its County Administrator and its Clerk to the Board, with the seal of the County attached; and the; party of the second part has caused these presents to be signed in its corporate name by its Mayor, duly attested by the City Clerk and the seal duly attached. ORANGE COUNTY l1 1 1 1 BY, / /f �i� Attest: Chairman, Board of Com- missioners of Orange County ty ?, j str,tot rk to Board of C missioners of Orange County Atte s 2A City Clerk CITY OF MEBANE : t By. 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