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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: October 18, 2011 <br />Action Agenda <br />Item No. S- 1 <br />SUBJECT: Revisions to the Efland Sewer Acreage-based Connection Fee <br />DEPARTMENT: Planning PUBLIC HEARING: (Y/N) 0 <br />ATTACHMENT(S): <br />1. Excerpt from the Most Recent Version <br />of the Efland Sewer Rules Resolution, <br />as Last Revised on November 4, 2010 <br />with Suggested Change Added <br />2. City of Mebane Connection Fee <br />Schedule <br />INFORMATION CONTACT: <br />Kevin Lindley, PE, Staff Engineer, 245- <br />2583 <br />Craig Benedict, Planning Director, 245- <br />2592 <br />PURPOSE: To consider changing the connection fee charged to new customers who connect <br />to the Efland sewer system (System). <br />BACKGROUND: With the imminent construction of the System extension, there are many <br />potential customers in this previously un-sewered community. All of these customers have <br />asked about the costs of connecting to the System once it is operational and many with large <br />parcels have been surprised by the acreage-based connection fee detailed in the Efland Sewer <br />Resolution. Staff has begun internal review of the acreage fee and believes that, in the case of <br />the Efland Community, acreage is an inefficient and inaccurate basis to gauge the impact <br />caused to the system by each new connection. There are many who are reluctant to agree to <br />connect to the system now specifically because of the acreage fee. <br />Current policy within the Resolution requires the collection of $1,000 per acre at the time of <br />connection. This means someone who has a single family residence on an eight acre parcel <br />would pay an $8,000 acreage fee at the time of connection, whereas someone who has a single <br />family residence on a half-acre parcel would only pay a $500 acreage fee. The impact to the <br />System, i.e. the portion of the System's capacity used by each single family residence, is <br />essentially the same. Both would also pay additional connection fees to Orange County and <br />the Town of Hillsborough, but the end result is that the owner of the larger lot would pay $7,500 <br />more than the owner of the smaller lot for the same impact to the System. <br />Staff recommends changing the System connection fee policy within the Resolution to mirror <br />that of the City of Mebane (see Attachment 1). Orange County is currently in negotiations with <br />Mebane to provide wastewater treatment for the System. Since staff is contemplating a change <br />in the connection fee structure, simply adopting Mebane's connection fee structure would <br />provide a seamless transition if and when negotiations are successful and the wastewater flow <br />