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