Agenda - 11-17-2015 - 6a - Minutes

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9 1 Bonnie Hammersley said Carrboro will be discussing this issue on October 20, and 2 Chapel Hill has not yet scheduled a discussion. She said the purpose of this evening's 3 discussion is to get direction from the Board of County Commissioners. She said Bob Jessup is 4 here tonight as well to provide information on this issue. 5 Bob Jessup, Bond Counsel, said a lot of time has been spent with staff putting together 6 the abstract on this issue. 7 Chair McKee asked if Bob Jessup would please review the information in the abstract. 8 Bob Jessup read the information from abstract: 9 A "county water and sewer district" is a type of governmental entity authorized by North 10 Carolina law. Many counties across the State form these districts as a tool to provide utility 11 service in areas that cannot be conveniently served by existing utility providers. Some counties 12 have had more than five districts within their boundaries. These districts are often created to 13 serve isolated or more sparsely settled areas, but the vehicle provides flexibility to serve any 14 defined area within a single county. 15 16 Differences 17 Creating a county water and sewer district offers certain flexibilities compared to 18 extending service using current policies and procedures. 19 1. The District would be able to implement a schedule of rates, fees, and charges independent 20 of Orange Water and Sewer Authority's (OWASA) schedule, which can therefore be tailored to 21 the special characteristics of the District. For example, a District could establish a fee to recover 22 primary infrastructure costs as properties are developed or redeveloped in the future. Similarly, 23 the District could make use of unique technologies and design features that OWASA might not 24 choose to use on a system-wide basis, but might be appropriate for a smaller area. 25 2. The District may be able to obtain loans and grants for which Chapel Hill, Carrboro, and 26 Orange County are not eligible. This would include loans and grants from traditional water and 27 sewer funders, but also from funders more interested in the social justice aspects of the project. 28 3. Although the District would not have its own planning authority, having the District defined as 29 a separate entity may facilitate coordinated planning and other land use discussions among the 30 relevant governments. 31 32 Governance, Management and Construction 33 By law, the Board of County Commissioners serves as the District's governing body. 34 Existing law allows for no alternatives to this governing structure. Although the District could 35 bid and supervise the system's construction itself, staff has contemplated that the District would 36 contract with OWASA to supervise and manage the construction of the system. The District 37 could also contract with OWASA to manage the provision of utility service where OWASA would 38 be responsible for monitoring and maintaining the system and for billing and collecting from 39 customers. 40 41 Procedure to Create the District 42 Creating the District is not procedurally complex. The District could be fully established 43 within 60 days of the Board's determination of the geographic boundaries of the District. 44 Attachment B outlines the procedure for creating the District. Carrboro would need to consent 45 to including within the District any property that is within Carrboro town limits. 46 47 Financing 48 There are a variety of options for financing the construction of the system and for 49 recovering any loans made to the District. This discussion sets aside the possibility of external