Petition for Remission of Administrative and Legal Costs to Orange County BOCC and OWASA

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Piney Mountain Petition -2- July 27, 1995 0 R Now that we are at the end of this process, as we compare our situation with that of other neighborhoods whose North State LPP Systems also failed, we observe some striking contrasts. In Wake County, for example, the county government has assigned a project manager to work with county attorneys to establish six sewer districts for obtaining grant money from the Environmental Management Commission("EMC"). Wake County is absorbing, and the Wake County customers are not being billed for, all administrative and legal time required by the county project manager and attorneys for the grant application process, the selection of design engineers, the preparation of bid documents, the selection of contractors, and the supervision of the construction. In addition, Wake County has succeeded in making available to residents in all 6 sewer districts a low interest revolving loan program which provides loans to former North State customers at the rate of 3.04%per year over amortization periods as long as 20 years, to pay for the construction assessment not covered by the grant from the EMC. In contrast with the experience of the Wake County North State Customers, the attached Expense Statement for Piney Mountain shows that Piney Mountain has spent $176,000 to hire attorneys, soil scientists and engineers to do what Wake County has done at no charge for its North State customers. It shows that Piney Mountain has incurred substantial attorneys fees to obtain grant money and settlement funds from responsible parties, and yet each lot still shows a financial loss of$4,030. Moreover, it does not show the staggering investment of time and energy and personal funds expended by so many Piney Mountain residents in two and one-half years of daily meetings, telephone conversations, late night paperwork, travel time, and physical inspections and labor. Also in contrast with the Wake County approach , is the agreement dated October 12, 1994("the Agreement")among Piney Mountain, Orange County and OWASA. Unlike Wake County, which is underwriting all administrative and legal costs of creating the sewer districts, applying for state grants, and overseeing the design and construction process for the new municipal systems, Orange County and OWASA are requiring Piney Mountain to pay "(1) all costs and expenses, including the value of administrative and professional time expended by each, in the application for, administration of and the closeout of the State Grant; and(2), all costs and expenses not covered by(1) expended by each in the design, bidding and contract award, construction, regulatory approval and permitting of the Subdivision wastewater system." Finally, we note that since 1994 the policy of OWASA has been not to charge any administrative or legal costs associated with assessment projects, and to cap assessments at $50 per linear foot. Even prior to 1994, OWASA did not charge for administrative or legal costs unless they exceeded 15%of construction costs. Can Piney Mountain be distinguished from other OWASA assessment projects? It cannot. We look forward to being OWASA customers,just as does any other homeowner whose septic tank has failed.