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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: June 21, 2011 <br />Action Agenda <br />Item No. 5 - n <br />SUBJECT: Central Efland -Phase 2/Northern Buckhorn State Revolving Fund Loan Offer <br />Approval <br />DEPARTMENT: Planning PUBLIC HEARING: (Y/N) NO <br />ATTACHMENT(S): <br />State Revolving Fund DRAFT Loan Offer <br />INFORMATION CONTACT: <br />Craig Benedict, Planning Director, 245- <br />2592 <br />Kevin Lindley, PE, Staff Engineer, 245- <br />2583 <br />John Roberts, County Attorney, 245-2318 <br />Clarence Grier, Finance Director, 245- <br />PURPOSE: To consider approval of the State Revolving Fund (SRF) loan offer from the Local <br />Government Commission for the purpose of constructing the Central Efland and Northern <br />Buckhorn sewer extensions. <br />BACKGROUND: The County has been working towards construction of an extension to the <br />Efland sewer system and an extension of the City of Mebane's sewer system into the Northern <br />Buckhorn community for several years. The permit for the project was obtained on May 2, <br />2011. Advertising the project for construction bids has begun. <br />The BOCC authorized staff to apply for an SRF loan of up to $3,500,000 at the March 3, 2011 <br />BOCC meeting. The County has now applied for and received an offer for a SRF Loan from the <br />Construction Grants & Loans division of the North Carolina Department of Environment and <br />Natural Resources (DENR). This loan, in addition to two EPA Special Appropriations grants, is <br />an integral part of the County's construction financing plan for the extension of sewer in the <br />Efland and Buckhorn communities. In order to receive these funds, the BOCC must execute <br />the loan agreement. <br />FINANCIAL IMPACT: Executing the SRF loan agreement will provide the funds necessary to <br />construct sewer extensions in the Efland and Buckhorn communities. Payment on this loan will <br />not begin until six months after completion of the project, currently estimated at July 2013. The <br />debt service for this loan will be approximately $225,000 per year and has been included in the <br />County's Capital Investment Plan. A 2% closing fee of approximately $70,000 will be charged <br />at the beginning of the project, and this money is budgeted in the project capital account. <br />RECOMMENDATION(S): The Manager recommends the Board approve the SRF loan offer <br />and authorize the Chair to sign the loan agreement on behalf of the County. <br />