Minutes - 19841016 - Laserfiche WebLink

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3 F. EFTArIY1 SET+;ER OAERAT7NG BUDGET ThomY.~son noted that policy guidelines far consideration included (1) the number of users to be carried by the blanl:et tap fee, and (2) hova the blanket tap fee is to ae pzid. He indicated that only 179 owners of properties with existing houses or businesses responded positively through the survey which is not a sufficient number for the project to be self-sustaining. pwners of 54 additional parcels have requested inclusion; a number which would make the project viable. Ne expressed a need to have in writing the commitment of those intending to connect and suggested a contract be entered into with each owner before construction begins. A clause requiring all connections to be made within 90 days of sewer line completion is suggested as part of the sewer use ordinance. xhe Tgwn of Hillsborough has agreed to a 515,500 blanket tap fee for 233 users. Chair [~Tillhoit noted that Hillsborough had increased the blanket tap fee from 515,000 to 520,000. It will cost 515,000 additional to serve those 18 homes outside of the project area but there will not be a savings of 515,000 to the people in the project area because any money left over will revert to FHA. Thompson noted that the addition of these 18 homes is critical to ma{:ing the project viable. The number of customers is needed to determine the revenue that will be produced by the project. There will be alternate bids and a final determination made at the time of acceptance for the 18 homes. Chair [~7illhoit proposed that the t•4anager meet with the attorney to draw up a contract showing the minimum and maximum costs, the loan amount and additional costs. Users signing the contract will provide a definite number as well as a mechanism far collecting the charges. Commissioner [tThitted fears that the contract will not be enforceable and the County will subsidize the users. The project is too marginal and can't be done on a projected basis. Commissioner t:arshall noted that if additional money is required that the increased amount would be a loan from the County that would be reflected in the monthly sewer bi1l;.she questioned how this amount could be reflected in the contract. Chair ['7illhoit noted that the 5136,000 as well as any additional shortfall of revenue will be retired by future tap fees from the growth in the area. Commissioner [~Thitted stated that in order to collect the 5136,000 the County would have to spend money to es:tend the plant and suggested that the Board state the amount of subsidy that may or may not be recovered. Chair G~lillhait requested the County Manager provide the Board with (1) a pojected five (5) year plan for additions to the project that would provide money to pay back the 5136,000, and (2) the number of undeveloped lots that front on the proposed sewer line. Commissioner [Walker L-eels that once the sewer is in place there will be enough tap ons to pay back the 5136,000. He suggested increasinc, the tap fee to 51,000 to make the project cost effective because when the line is run the lots will become usable. Commissioner ?ahitted indicated that it would take the ecuivalent of several hunc.red tap ons to repay the money and that cannot be assumed; it is not feasible to anticipate that kind of growth. Chair [~7illhoit expressed an unwillingness to design a project that will require z subsidy but is willing to accept certain zssumption recognizing that if the assumptions fail ~o materialize it may take a long time to recover the money spent on the prcject.