Agenda - 04-05-2011 - 8d - Laserfiche WebLink

Browse Search

RES-foil-o34 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: April 5, 2011 Action Agenda Item No. -~ SUBJECT: Efland Sewer Rate Schedule Amendments DEPARTMENT: Planning PUBLIC HEARING: (Y/N) NO ATTACHMENTS}: 1. Proposed Efland Sewer Rate Increase Schedule 2. Existing Efland Sewer Rate Increase Schedule, Excerpt Directly from the Efland Sewer Resolution 3. City of Mebane Current vl~ater and Sewer Rate Schedule INFORMATION CONTACT: Kevin Lindley, PE, Staff Engineer, 245- 2583 Craig Benedict, Planning Director, 245- 2592 PURPOSE: To consider amendments to the existing Efland sewer rate increase schedule. BACKGROUND: In the Spring of 2009, the BnCG approved an amendment to the Efland Sewer Resolution outlining a new rate structure and afour-year series of increases to the Efland sewer rate. In July of 2009, the first of the four-year series of increases went into effect, marking the first time the sewer rate had changed in approximately twenty years. The increasing rate structure is currently in year two of the four-year cycle. The rate projected for year four was designed to provide sufficient revenue to cover the operational costs of running the system, in addition to providing minimal additional revenue to set aside for future capital projects or pay future debt service. RATE SCHEDULE ADJUSTMENTS While the rate schedule that is currently approved would bring, the system to sufficiency by year four, the rate that sewer customers in Efland would be charged by year four of the schedule would be one of the highest rates in the State. County staff has met with Efland customers and with Justice United, a social justice organization based in Chapel Hill, to discuss ways to avoid the Efland sewer rate rising to that level, While the Efland customers and County staff generally agree that the rates needed to rise after twenty years of operation, the question has been over how much and how fast. In light of these discussions, County staff has investigated several ways to keep the rates lower than projected. Since treatment of the wastewater typically represents about to°lo of the operational costs, staff has investigated ways to reduce treatment casts. One idea that has been discussed is to send the wastewater from the Efland system to the City of Mebane for treatment rather than to the Town of Hillsborough. The City of Mebane typically charges its customers several dollars less per 1,000 gallons of usage than does the Town of Hillsborough x$10.92 per 1,000 gallons for Mebane out-of-town customers versus $15.52 per 1,000 gallons for Hillsborough out-of town customers}. Discussions with Mebane staff regarding this idea are ongoing and there has been na formal agreement drafted, but the idea of switching the flow to