Agenda - 02-05-2013 - 5a - Laserfiche WebLink

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7 1 6. The managers propose that a "County Sewer District" be created for the Rogers 2 Road area as well as adjoining areas that do not have sewer, and that the district 3 use the special assessment process to recoup some of the costs of extending sewer 4 service to these areas. Presumably, the proposal is referring to a County Water and 5 Sewer District created pursuant to Article 6 of G. S. Chapter 162A. Such a district 6 would be a legally separate municipal corporation, but the governing body of the 7 district would be the Orange County Board of Commissioners. Such a district could 8 issue its own bonds to raise the capital to cover the cost of extending the lines. 9 Assessments could be based on various criteria listed in G.S. 153A-186 including 10 "the area of land served...at an equal rate per unit of area," which would mean that 11 properties with greater development or redevelopment potential would pay more than 12 small properties, but the statute does not provide a way to exempt from the 13 assessments specific properties based on criteria not listed in the statute. Thus, if 14 the objective is to extend sewer lines at little or no cost to the longstanding owners of 15 properties in the Rogers Road area, but to recapture some of the cost of extending 16 the lines when properties in this area are developed or redeveloped, the special 17 assessment process appears to be a useful tool. 18 An alternative might be to establish the District and have the District issue its bonds to 19 raise the cost of extending the lines. Carrboro could contract with the District to pay for the cost 20 of extending the lines to serve properties that are within the town. The District would contract 21 with OWASA to operate and maintain the lines and to bill the customers in the same manner as 22 other OWASA customers. (An amendment to the WSMPBA would probably be needed). Then 23 the District could establish a fee — call it a service line extension fee — that would be designed to 24 recoup some of the costs incurred by the District in extending the lines. (OWASA has an 25 "availability fee" that is designed to recoup the cost of the treatment plant and major outfalls, but 26 this fee does not cover the service lines because those are typically installed at the developer's 27 expense). This fee would be paid at the same time as OWASA's availability fee — when a 28 connection is made. The District's policy could provide that the service line extension fee would 29 be waived for the first connection made to any property existing as of a specified date." 30 31 32 33 Aldermen Slade said that the proposal does not mean that they would not be providing 34 their portion of the costs for the community center and the sewer. He said that $900,000 35 represents 14% of those two costs aggregated. It is more of a way to facilitate technically the 36 management of the two projects. 37 Aldermen Gist said that she appreciated the memo today because it pointed out 38 potential "alligators" that could damage the whole project and the whole effort. She thinks that 39 these are very serious, pragmatic, legal issues that have to be dealt with. She wants to invite 40 the task force to address these issues. 41 Commissioner Rich suggested that the task force hand this over to the managers, 42 attorneys, and planning departments. She thinks that the issues coming up from the attorney 43 are things that managers and attorneys have to make everyone aware of. She thinks that the 44 task force has met the charge and has identified the monies. She also thinks that they have 45 identified their commitment to sewer and the community center. She does not want to keep 46 discussing this without making sure that all of the managers have discussed this. She does not 47 want to hold any of this back. 48 Mayor Chilton said that Carrboro elected officials are in an unusual position in that a 49 huge portion of the sewer component and the costs of serving the entire area happens to fall 50 within the town limits of Carrboro. However, the number of homeowners and renters to be 51 served who live in the Carrboro town limits is very small. He said that Carrboro is very happy to