Agenda - 10-17-2013 - 4 - Laserfiche WebLink

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1 local match ($75,000). The BOCC authorized the County Manager to proceed with a Memorandum of Agreement (MOA) with the Town of Carrboro, which was subsequently drafted. At that time, the County's co -share of the estimated sewer line repair cost was thought to be approximately $37,500 and would not exceed $40,000. The MOA stated the County would reimburse the Town once the sewer line repair work was completed. Orange Water and Sewer Authority (OWASA) had already approved the work. On June 25, 2012 the North Carolina Department of Commerce awarded the Town of Carrboro a $171,700 Community Development Block Grant to cover 70% of the repair cost, with the Town and County providing the remaining funds through the required 30% co -pay. Orange County Economic Development assisted the Town in its successful CDBG application by making a direct petition to the Secretary of the N.C. Department of Commerce and the Community Development Division. On October 22, 2012 the Memorandum of Agreement (MOA) between Orange County and the Town of Carrboro was signed. As the project moved forward, Carrboro received new contractor bids on the actual repair of the sewer line, and the revised repair estimate indicated an unexpected shortfall of at least $56,000 compared to initial repair estimates. Considering a 25% contingency and added administrative consulting costs to re -bid the project, the Town anticipated facing an increase of $80,000 in overall repair costs. The Town requested that Orange County increase its financial participation in the Roberson Street /Main Street sewer line repair due to higher than expected repair bids being received from contractors. Based on the Board's previous authorization for the Manager to proceed, and also on the Manager's signature authority, the Interim Manager recently signed an amended MOA agreeing to reimburse Carrboro for 50% of the additional costs, up to an additional $40,000. County funds would come from "Article 46" 1/4 cent sales tax economic development funds (for infrastructure improvements) to pay one half of the actual local match necessary to complete the project. The Town of Carrboro would pay the remaining costs. FINANCIAL IMPACT: The County's "Article 46" 1/4 cent sales tax for economic development, specifically for utility infrastructure development, will be used to fund the County's portion, or, one -half of the actual local match for the project. The County's portion includes the original estimate ranging from $37,500 to $40,000 (as outlined in the October 22, 2012 MOA), plus the additional increase of up to an additional $40,000 to cover the increased repair estimate. RECOMMENDATION(S): The Interim County Manager recommends that the Boards receive the update, discuss as necessary, and provide any comments and /or direction.