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Board of Commissioners Page Two May 13, 3985 <br /> for existing dwellings and businesses during an initial <br /> application period established by the County Board of — <br /> Commissioners. In the event the system is not constructed <br /> Owner/User shall not be obligated to pay any charges and <br /> this agreement is in all respects null and void. <br /> It is fairly clear then that the County's obligation to <br /> construct Phase I of the .project is contingent on the terms of the <br /> resolution adopted by the Board on November 20, 1984. If this <br /> project is undertaken by the County it's responsibility is to <br /> • construct all of Phase I . However, there is no timetable <br /> established in the contract or in the resolution for its <br /> construction. The County can therefore, for budget reasons, <br /> establish a timetable to construct Phase I which permits its <br /> construction as funding becomes available. This would be done <br /> by regulation or ordinance as described in Article 11A and <br /> according to an engineering plan to service all of Phase I. <br /> • On the other hand, it is equally clear from the resolution <br /> adopted by the Board on November 20, 1984, that the County has <br /> agreed to appropriate $136,000.00 to the Orange County Utility <br /> Enterprise Fund, $15,000.00 to the Town of Hillsborough for tap <br /> • fees, and to issue its net debt reduction general obligation bonds <br /> in the amount of $200,000.00 to repay a $200,000.00 loan from the <br /> Farmer's Home Administration. This is the extent of the County's <br /> financial obligation for the capital portion in this project. If <br /> the project cannot be built for that amount of County funding then <br /> it need not be built at all. If it is not built at all then those <br /> signing contracts "shall not be obligated to pay any charges and <br /> (the) agreement is in all respects null and void." Article IIF of <br /> the Agreement. <br /> The County then has two options. The first is to terminate <br /> this project altogether because it cannot be built within budget. <br /> If that is done then of course none of the sewer easement and <br /> agreements presently executed by the property owners in Phase <br /> - are binding on them. Essentially then the County will be without <br /> • commitments if it should elect to undertake a different project:' <br /> one within budget. Second, the County can undertake to construct <br /> and operate Phase I of the project by establishing a timetable to <br /> do so, an engineering plan to do so and a financing plan to do <br /> so. In that event the sewer easement and agreements will <br /> continue to be valid. <br /> Very truly yours, <br /> Geoffrey E. Gledhill <br /> Ken Thompson <br /> Orange County Manager <br />