Agenda - 05-23-1985 - Laserfiche WebLink

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OFFICIAL COPY 1 KxNtn:EAPI_a___yaQym_sL3za MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS SPECIAL MEETING MAY 24, 1985 The Orange County Board of Commissioners met in Special Session on May 24, 1985 at 3:00 p.m. in the Commissioners' Room of the Orange County Courthouse, Hillsborough, North Carolina to discuss several items pertaining to the Efland Sewer Project. COMMISSIONERS PRESENT: Chair Willhoit, and Commissioners Shirley Marshall, Moses Carey and Ben Lloyd. COMMISSIONER ABSENT: Commissioner Norman Walker. ATTORNEY PRESENT: Geoffrey Gledhill. STAFF PRESENT: County Manager Kenneth R. Thompson, Assistant County Managers Albert Kittrell and William Laws, and Clerk to the Board Beverly A. Blythe. IroTO E* OM_ ' PM NI R: ON Don Kordell, Hazen and Sawyer, took the two options for the 191 people in Efland who had signed customer agreements back to FHA and explained the intention of the County to either scale back the original phase one project because of the limitation of funds or cancel the original project and start a new project with construction of the same sewers. FHA is in agreement that the County may scale back the project and suggested that the Board adopt an overall long-range plan, build what can be built at this time and then adopt a loosely defined schedule for construction of the remainder of the sewers. If the project was considered a new one, the present loans and grants would be lost. Kordell suggested adopting the modified plan, scale back the project to build what funds would allow and develop an implementation plan for construction of the remainder of phase one. He further suggested that a fee schedule be designed to generate additional revenue to help finance the growth to the system. 2.4.----REEDELALME_EMINIVPAN BY DON KORDELL Kordell reiterated the portion of the plan that could be built within the budget (Base + A + part of C). He noted the importance of the interceptor at McGowan Creek which would give the County the flexibility needed for servicing future industrial growth in the 1-85 corridor. If the bids come in higher than the amount of money available, the plan would need to be scaled back accordingly. As funds are available, additional sections could be constructed one at a time or in several sections at a time. 1. ORANGE HEIGHTS (See the map in the permanent agenda file.) Kordell presented a map of Orange Heights showing a total of 78 houses. Fourteen (14) or fifteen (15) could readily be served by the lines constructed under the base bid. In order to pick up all 78 houses it would require an additional investment of $130,000. 4. _QPTIONS FOR GENERATING CAPITAL Kordell presented a comparison of rates for several sewer providers in the area. He mentioned five (5) ways of producing capital to finance the system: (a) establishing rates for the users that would generate excess revenue which excess revenue would accumulate until enough money is available to construct a portion of the system, (b) increase the tap fees (c) charge an acreage availability charge, (d) future grants or loans, and (e) future County contributions. It would take approximately $700,000 to build the remainder of phase 1 to serve the 191 people who signed customer agreements. It would take 800 to 1,000 new customers to generate the $700,000 by resident equivalent with the proposed rate structure. One way to reduce the amount of time would be to charge an acreage fee ($300 or $400 an acre) or a front foot fee. This would reduce the amount of new customers needed to raise the money by brie half. 111111Mismommeimemmir