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10 <br /> additional cost is for those areas that are not gaining city taxes, yet still need utility crews to <br /> maintain the lines. <br /> Craig Benedict said he will discuss this with Hillsborough for this area and other areas, <br /> such as Churton Grove, who is still paying 195% rate in water and they have been there for 10 <br /> years. <br /> Commissioner Jacobs said a lower rate would be an incentive for economic <br /> development. <br /> Commissioner Jacobs asked if Hillsborough's extending of utilities and likely <br /> annexation, have any impact of Hillsborough's extraterritorial jurisdiction (ETJ). He asked if <br /> there is any automatic ETJ extension around the perimeter of a municipality. <br /> Craig Benedict said there is no ETJ extension. <br /> John Roberts said Hillsborough would be limited in how it can impose a different fee in <br /> different locations. He said there are legal limitations, and if all the customers are the same, <br /> despite their location, the rates must be equal. He said the Town could structure its rate based <br /> on the type of user, and impose a tiered approach, but not based on location. He said the <br /> County and the Town could have an incentive program for economic development that may <br /> offset those rates. <br /> Commissioner Jacobs asked if Orange County is providing most of the infrastructure, <br /> could the County not negotiate a lower water rate. <br /> John Roberts said there are legal limitations on how the Town can impose differing <br /> water rates. He said the rates must be the same regardless of location. <br /> John Roberts said he can talk with the Town's Attorney, but there are State statute <br /> limitations. <br /> Commissioner Jacobs asked if the County will try and recover some of its investment, <br /> other than via economic development. <br /> Craig Benedict said there is a placeholder for acreage fees, but it has been left silent <br /> for now due to legislation and sensitivity to utility rate structure. He said the Town is not <br /> adverse to the use of acreage fees. <br /> Commissioner Jacobs asked if rural buffer boundaries could be included on future <br /> maps of this area. <br /> Craig Benedict said yes. <br /> A motion was made by Commissioner McKee, seconded by Commissioner Jacobs to <br /> authorize the Chair to sign the revised interlocal agreement with County Manager approval for <br /> outlined aspects of the agreement, pending County Attorney review. <br /> VOTE: UNANIMOUS <br /> *The agreement is contingent upon the Town of Hillsborough's approval which occurs after the <br /> County since the County is the `requesting'party. <br /> b. Phase 1 Infrastructure Design, Permitting, Bidding, and Miscellaneous Related <br /> Services Contract for the Hillsborough Area Economic Development District <br /> The Board considered approving a contract with The John R. McAdams Company, Inc. <br /> (McAdams) for the engineering design, permitting, bidding, and miscellaneous related services <br /> for phase 1 water and sewer infrastructure extensions to serve the Hillsborough Area <br /> Economic Development District (EDD) south and west of the intersection of 1-40 and Old NC <br /> 86, as previously approved during the FY 2015-16 Budget/Capital Investment Plan process at <br />