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f~E S- ~o~ 1 - o~ ~- <br />ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: April 5, 2011 <br />Action Agenda <br />Item No. ~j _ d. <br />SUBJECT: Efland Sewer Rate Schedule Amendments <br />DEPARTMENT: Planning PUBLIC HEARING: (Y/N) <br />ATTACHMENT(S): INFORMATION CONTACT: <br />1. Proposed Efland Sewer Rate Kevin Lindley, PE, Staff Engineer, 245- <br />Increase Schedule 2583 <br />2. Existing Efland Sewer Rate Increase Craig Benedict, Planning Director, 245- <br />Schedule, Excerpt Directly from the 2592 <br />Efland Sewer Resolution <br />3. City of Mebane Current Water and <br />Sewer Rate Schedule <br />PURPOSE: To consider amendments to the existing Efland sewer rate increase schedule. <br />BACKGROUND: In the Spring of 2009, the BOCC approved an amendment to the Efland <br />Sewer Resolution outlining a new rate structure and afour-year series of increases to the <br />Efland sewer rate. In July of 2009, the first of the four-year series of increases went into effect, <br />marking the first time the sewer rate had changed in approximately twenty years. The <br />increasing rate structure is currently in year two of the four-year cycle. The rate projected for <br />year four was designed to provide sufficient revenue to cover the operational costs of running <br />the system, in addition to providing minimal additional revenue to set aside for future capital <br />projects or pay future debt service. <br />RATE SCHEDULE ADJUSTMENTS <br />While the rate schedule that is currently approved would bring the system to sufficiency by year <br />four, the rate that sewer customers in Efland would be charged by year four of the schedule <br />would be one of the highest rates in the State. County staff has met with Efland customers and <br />with Justice United, a social justice organization based in Chapel Hill, to discuss ways to avoid <br />the Efland sewer rate rising to that level. While the Efland customers and County staff <br />generally agree that the rates needed to rise after twenty years of operation, the question has <br />been over how much and how fast. <br />In light of these discussions, County staff has investigated several ways to keep the rates lower <br />than projected. Since treatment of the wastewater typically represents about 70% of the <br />operational costs, staff has investigated ways to reduce treatment costs. One idea that has <br />been discussed is to send the wastewater from the Efland system to the City of Mebane for <br />treatment rather than to the Town of Hillsborough. The City of Mebane typically charges its <br />customers several dollars less per 1,000 gallons of usage than does the Town of Hillsborough <br />($10.92 per 1,000 gallons for Mebane out-of--town customers versus $15.52 per 1,000 gallons <br />for Hillsborough out-of--town customers). Discussions with Mebane staff regarding this idea are <br />ongoing and there has been no formal agreement drafted, but the idea of switching the flow to <br />