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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: February 16, 2006 <br />Action Agenda <br />Item No. _~ <br />SUBJECT: Water and Sewer Assessment Process <br />DEPARTMENT: County Manager PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): <br />OWASA Assessment Procedures <br />INFORMATION CONTACT: <br />Paul Thames, 919-245-2303 <br />PURPOSE: To advise the BOCC as to processes of water and sewer assessments, including <br />those specified by the NC General Statutes. <br />BACKGROUND: In past discussions, its has been noted that Orange County faces the <br />prospect of financing a number of utility extension projects to serve proposed schools and parks <br />and the central Efland and Buckhorn areas. Utility assessments are one method of financing <br />such projects in such way as to insure that those who benefit from utility extensions and have <br />the ability to pay their share of the associated costs actually do pay their share. In general, <br />assessment projects are initially financed by the utility owner and the assessment process is <br />utilized to recover the utility owner's initial investment over a period of years. <br />The basics of utility assessments (public hearing process, methods of calculations of pro rata <br />cost assignment, etc.) are specified under the provisions of the NC General Statutes. However, <br />each utility and its elected/governing board may approach the assessment process and <br />assessment financed projects differently. The attached material outlining the policies, practices <br />and procedures employed by the Orange Water and Sewer Authority represents the approach <br />of one utility. OWASA's approach may be adopted in whole or in part by the BOCC, should the <br />Board wish to employ an assessment process to recover all or some portion of the County's <br />cost in the utility projects it undertakes. <br />OWASA's Director of Operations Jahn Greene has been invited and is scheduled to be on hand <br />to make a short presentation on OWASA's utility assessment process. <br />FINANCIAL IMPACT: There is no direct financial impact <br />RECOMMENDATION(S): The Manager recommends that the BOCC receive the information <br />requested and direct staff to provide any additional information as the Board desires. <br />