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5 <br />• the properties having road frontage along the southern side of West Ten Road have <br />physical access to the water main along West Ten Road, however these properties <br />are not permitted by zoning and the County Land Use Plan to receive utility service <br />and are thus not subject to assessment; <br />Insofar as Orange County is concerned, there are few out-of-pocket costs associated with <br />evaluating the financial aspects of assessment projects. Other than staff costs (unless the <br />BOCC elects to use a consultant to carry out the assessment process), expenses are <br />generally limited to those associated with mailings, public hearings, etc. Generally, <br />undertaking an assessment project benefits the County to the extent that a significant <br />portion of a construction project's casts can be recovered. In terms of an assessment for <br />the Buckhorn EDD/Gravelly Hill Middle School utility project, a large portion of the costs <br />(all of the +/-$700,000 in pumping station/farce main costs and a large share of the water <br />main costs, subject to BOCC decisions on acquiring addition sewer easements as noted <br />above) are associated directly with Gravelly Hill Middle School. <br />Assessment projects may have a short or long term negative financial impact on those <br />individuals whose property is assessed, depending on haw the property is <br />utilized/developed (i.e., large lot residential property converted to commercial use or more <br />dense residential use) and how long it takes to recover costs through a development <br />process. There are a number of properties in the Buckhorn area that are owned and <br />occupied by individuals of limited means. If these individuals elect to remain as residents <br />of the community (as opposed to converting or selling their properties for commercial use), <br />they may have difficulties meeting an assessment payment schedule. Depending on the <br />assessment calculation strategy adapted and decisions the County makes relative to <br />acquiring sewer easements internal to the EDD, it appears that a utility assessment could <br />recover approximately 50-75% of the Buckhorn EDD/Gravelly Hill Middle School utility <br />extension project costs. <br />The March 1, 2004 Utility Service Agreement between Orange County and The City of <br />Mebane, in its delineation of "Service Standards" contains provisions detailing fees that <br />can and cannot be charged to connected properties. In pertinent part, Section 4 of the <br />Agreement provides: "Connected properties may be charged normal hook up or tapping <br />fees, and connection or impact fees but will not be charged any assessment or fees in lieu <br />of assessment designed or intended to recoup construction costs." The context of this <br />provision indicates that it authorizes and limits the fees that the City of Mebane can charge <br />and does not pertain to an Orange County assessment project. Clarification on this point <br />should be a part of any decision the Board makes to do an assessment project involving <br />the Service Area prescribed in the Utility Service Agreement between the County and <br />Mebane. <br />If I may provide additional information on this issue or clarification of the information <br />provided herein, please advise. <br />3 <br />