Minutes 10-13-2015 - Laserfiche WebLink

Browse Search

Commissioner Dorosin said his concern is that the project is not being put out to bid, and OWASA may not want to do what the County requests. He said having differential rates is a clear advantage. Bob Jessup said OWASA can speak for themselves on this question. He said the second reason to focus on the district was that the defined area may assist the three jurisdictions in doing joint planning. He said the district itself does not have any land use authority. He said the third reason to focus on the district is the idea that the district might be eligible for loan and grant programs that the County is not otherwise eligible for on its own. He said the Department of Agriculture programs are the best example of that. Commissioner Price asked who would write and manage such grants. Bob Jessup said the district would contract that responsibility or assign it to staff. Commissioner Price asked how this responsibility could be assigned to staff, if the County is not eligible for the grant. Bob Jessup said the grant would be awarded to the district. He said who writes it is irrelevant. He said County staff or another assigned group can administer the grant, while the district is considered the recipient. Bonnie Hammersley said the Board could assign County staff towards the district. Commissioner Dorosin said the three advantages are 1.) charging differential rates, 2.) potential developers can help subsidize the cost of the infrastructure, and 3.) eligibility to apply for other funding resources. He asked if Bob Jessup could identify any disadvantages. He said it seems that the setting up of a new administrative structure carries some administrative burdens. Bob Jessup said in practice the Board could include district items on its agendas, or gavel in and out as the district board. He said the burdens are insignificant. He said rather than considering disadvantages, one could consider the alternatives. He said the alternatives would be to do nothing, pay OWASA to do it all, cooperate with Carrboro and create a new water authority, or do it all as a County, but not have access to alternate financing. Commissioner Dorosin asked if the Board can amend the district. Bob Jessup said parcels could be added as long as noticed and hearings are held. He said the parcels do not have to be contiguous. Commissioner Rich asked if water would still be bought from OWASA, and if so, where would the money come from to cover the difference for the reduced rates. Bob Jessup said that would be a general fund obligation. Commissioner Rich asked if, with this information, it would be possible to split costs with Carrboro to make up the difference. Bonnie Hammersley said if that was the intention, this district could enter into some type of agreement with municipalities about the costs. Bob Jessup said a separate tax rate could be charged in the district, and after a period of development it may be more beneficial to levy a tax. Bonnie Hammersley said this has been looked at as a financial tool, not to be funded by the general fund, but to look at alternate resources for financing to cover the subsidies. Commissioner Rich asked if the Managers' initial discussions only involved the 86 current properties, or if there was an expansion. Bonnie Hammersley said the district has not yet been defined, but it will not change anything for these 86 properties. Commissioner Rich said there was a suggestion in SWAB to do districts, and it was not well received. She said a strong educational element will be important if this process moves forward. Commissioner Price said if the district does move forward, would the Board be able to apply grants to pay for the hook ups for the water and sewer.