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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: August 19, 2003 Action Agenda s <br />Item No. —! <br />SUBJECT: City of Mebane Request that Orange County Convey Ownership of Water Tank <br />Property to the City <br />DEPARTMENT: County Manager PUBLIC HEARING: (Y /N) I No <br />ATTACHMENT(S): <br />7/17/03 Letter from Mebane w/ <br />Attachments (agreements, payment <br />journal) <br />Orthophoto Property Map <br />INFORMATION CONTACT. <br />Geof Gledhill, 732 -2196 <br />Paul Thames, ext. 2303 <br />TELEPHONE NUMBERS: <br />Hillsborough <br />732 -8181 <br />Chapel Hill <br />968 -4501 <br />Durham <br />688 -7331 <br />Mebane <br />336- 227 -2031 <br />PURPOSE: To present a request from the City of Mebane that Orange County convey to <br />Mebane ownership of a parcel that contains one of Mebane's elevated water tanks. <br />BACKGROUND: In September, 1966, Orange County and the City of Mebane entered into an <br />agreement by which Orange County would finance (by means of a $400,000 bond sale) the <br />extension of water and sewer utilities from the City of Mebane to an industrial park in western <br />Orange County. The agreement furthermore stipulated that the City of Mebane would repay <br />these bonds (plus interest) to the County on the basis of revenue derived from the utility rates <br />charged to the customers of these utilities. In accordance with the agreement, ownership of the <br />utility infrastructure, additions, etc., were to be conveyed to the City of Mebane upon payment in <br />full of the bond debt. <br />In November of 1966, the bond referendum was passed by the voters of Orange County and <br />the utility extension project was ultimately undertaken and completed and operated as a <br />component of the City of Mebane utility system. The City of Mebane began making payments <br />on the bond in February 1978 and completed the repayment of the bond in November 1992. <br />With one exception, an apparent oversight, complete ownership of the infrastructure, <br />appurtenances, etc., passed to the City at that time. The oversight was the ownership of a <br />parcel of property (TMBL 3.20.E.1) located on South 11th Street (within the Mebane municipal <br />limits) that was acquired by the County in 1967 to be the site of an elevated water storage tank. <br />While the water tank was constructed on the site and ownership of the tank passed to the City <br />of Mebane in 1992, ownership of the parcel was never transferred and remained in the name of <br />Orange County. <br />