Agenda - 04-01-1985 - Laserfiche WebLink

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} 017 1. Hillsborough's interest is to own collection systems connected to its treatment plant as a further means to govern what is allowed to enter the plant. 2. Were no other considerations involved and so long as there were guarantees for service continuation the question, of ownership would have no bearing on the delivery of sewer service to the customers. Pisaadvantages to the County 1. The County would be transferring an asset to the Town at no cost which would have a remaining useful life and which would have been paid for by: (a) the customers, (b) County citizens at-large through the pledge of the County's full faith and credit as collateral to repay the loan, and (c) by the County government's appropriation toward construction (this latter cost could go higher depending on the outcome of the bidding process). 2. Revenue bonds, which is the chief means governments use for water and sewer extension financing, would not be available to the County for extending the system further. Such bonds require the borrowing party to have both a prospectus that shows ownership of assets and utility income sufficient to defray debt service. 3. Public support for the County to finance further extensions into the unincorporated area might be lessened if the terms of such action were understood to include a transfer of assets following construction and loan repayment. 4. The trend is for counties and towns to work as partners versus one being the customer of the other. Counties take on the burden of financing the extensions whereas the towns which have treatment plants typically agree to treat the sewage on a bulk rate basis. 5. Were the line turned over it is to be questioned whether the Town would or should have the same sense of responsi- bility as the County to serve citizens in phases II thru VI of the Cheeks Zbwnship Sewer Plan. 6. Phase I of the planned sewer system is to be a complete system with the exception of facilities for waste removal. While use of the Hillsborough Plant is proposed to be used for this purpose the economics of scale may necessitate a shift now or in the future to an alternative treatment plant. Accordingly, the system should not be viewed as an appendage of the Hillsborough plant. Rb do so could tie the County's hands in making changes out of cost-benefit consideration. 7. Farmers Home rules specify that sewer purchase contracts "will not contain provisions for: (1) construction of facilities which will be owned by the supplier, and (2) options for the future sale or transfer of the system" (FinHA Loan Instruction 1942-A, Section 1942.18(f).