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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: September 6, 2016 <br /> Action Agenda <br /> Item No. 6-I <br /> SUBJECT: Orange County/City of Durham Utility Service Agreement Amendment <br /> DEPARTMENT: Planning and Inspections <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> 1. Original Agreement Craig Benedict, Planning, 919-245-2592 <br /> 2. First Amendment Kevin Lindley, Planning, 919-245-2583 <br /> 3. Proposed Second Amendment James Bryan, Attorney's Office, 919-245- <br /> 4. Eno EDD Map with New Focus Area 2319 <br /> PURPOSE: To amend the deadline for construction to begin in the current utility service <br /> agreement from January 31, 2017 to June 30, 2018. <br /> BACKGROUND: In late 2011 and January 2012 Orange County and the City of Durham <br /> developed and approved an interlocal agreement (Attachment 1): <br /> "Interlocal Agreement between Orange County and the City of Durham for <br /> Construction and Operation of Water and Sewer Facilities in the Eno Economic <br /> Development Zone of Orange County". <br /> This request is to amend the deadline for construction to begin as noted in the Second <br /> Amendment (Attachment 3). The design process is under way, with CDM Smith set to begin <br /> field surveying in mid-September 2016. Based on the current estimate of design, permitting, <br /> and bidding processes provided by CDM Smith, construction is estimated to begin near the <br /> end of 2017. Unfortunately, the deadline in the current agreement for construction to begin is <br /> January 31, 2017. The Second Amendment as proposed would extend the deadline for <br /> construction to begin until June 30, 2018. This should give an adequate time buffer if there <br /> are any deviations from the schedule and help to ensure the deadline will not have to be <br /> amended again. <br /> The purpose of the interlocal agreement was to develop a more formal utility service area <br /> within Orange County's Eno Economic Development District (EDD) area and within the City of <br /> Durham's urban service area (also known as their suburban tier). Typically, utility extensions <br /> would be solely the responsibility of developers, but in order to promote the EDD, Orange <br /> County will be funding some improvements. The agreement set forth parameters of water and <br /> sewer service, feasibility, design, construction and operation of Orange County funded utility <br /> investments. Future Capital Investment Plan (CIP) projects were programmed for investment <br /> in the area. <br /> This agreement was a necessary preamble to begin economic development infrastructure <br /> investment in the area funded by Article 46 Sales Tax revenue. The County wanted to ensure <br /> that the City of Durham would assume operational responsibility of new infrastructure once <br />