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ORANGE COUNTY 048 <br /> BOARD OF COMMISSIONERS <br /> Action Ag n a <br /> Item No. <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: MAY 2, 1988 <br /> SUBJECT: REQUEST FOR WAIVER OF TOWN CAPITAL FACILITIES AND MAINTENANCE <br /> FEES/RENCHER STREET PROJECT <br /> DEPARTMENT: HOUSING/COMMUNITY DEV PUBLIC HEARING YES: NO: X <br /> ATTACHMENT(S) : INFORMATION CONTACT: Tara L. Fikes <br /> TELEPHONE NUMBER- <br /> Hillsborough -- 732-8181 <br /> Chapel Hill - 968-4501 <br /> Mebane - 227-2031 <br /> Durham - 688-7331 <br /> PURPOSE: To authorize a formal written request to waive Capital Facili- <br /> ties and Maintenance Fees for the Rencher Street CDBG Project. <br /> BACKGROUND: On April 4, 1988, the Board of Commissioners approved the <br /> execution of the Town of Hillsborough Water and Sewer Extension Contract <br /> pending approval and execution by the Hillsborough Town Board. This <br /> contract would allow the extension of water and sewer service to the <br /> Rencher Street Community Development target area. On April 11, 1988, the <br /> Hillsborough Town Board approved the Contract pending the clarification of <br /> details between the Town and County Attorneys . This contract requires that <br /> the County pay Capital Facilities fees (tap-on fees ) as well as a <br /> Perpetual Maintenance Fee for installation of a new sewage pump station in <br /> the project area. <br /> Since that time, County staff has been advised by the state that CDBG <br /> funds cannot be used to pay capital facilities fees for water/sewer <br /> construction costs . Additionally, CDBG funds cannot be used to pay <br /> maintenance fees . Presently, the Town is requiring the County to pay these <br /> fees . The estimated cost of the Capital Facilities Fees is $27, 000 and the <br /> estimated cost for the maintenance fee is $27, 000 . The payment of these <br /> fees would increase the project costs by approximately $54, 000 . <br /> Customarily, these fees are waived in order to make CDBG projects cost <br /> feasible. Therefore, County staff recommends that the Board of <br /> Commissioners request that the Hillsborough Town Board waive the capital <br /> facilities fees for the Rencher Street Project. This waiver is essential <br /> to the success of this application. <br /> RECOMMENDATION(S) : <br /> Authorize the Chair to make a formal written request to the Hillsborough <br /> Town Board asking that the all capital facilities and maintenance fees be <br /> waived for the Rencher Street Project. <br />