Agenda - 09-29-1999 - 9d - Laserfiche WebLink

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4 Operation, the Efland sewer system carries a debt (initial capital construction costs) to the County's General Fund of approximately $200,000. Under the current fee structure, there are no fee revenues available to provide for any reduction of this debt. Hillsborough's fee structure applicable to customers of the Efland system has not remained static Even prior to the sewer system becoming operational, the Hillsborough portion of the availability fee was raised from $400 to $600, reflecting the then-current accessibility fee charged by Hillsborough for its in- town customers. Since that time, the Town of Hillsborough's fee structure has reflected fee increases on at least two occasions. The current availability fee structure sets a fee of $800 fora 5/8 inch water meter service (standard residential size) or $1000 per acre, whichever is greater, for in-town customers. Hillsborough's Town Engineer has recently advised that Efland customers not covered under the original tap fee agreement will be subject to fees applicable to other out-of--town customers or double the rate for in-town customers ($1600 for the standard 5/8 inch residential water meter service or $2000 per acre). Staff recommends that the BOCC adopt a revised fee structure that addresses the shortcomings in the existing fee structure. Specifically, staff recommends that the Board create and define: ~ a stub-out service line fee which recovers the administrative and construction cost of installing the service line on the basis of a cost plus fee structure; an acreage fee of $1000 per acre to be designated for retiring the debt plus interest for the General Fund loan that helped finance the cost of constructing the existing system. Furthermore, staff recommends that the County: maintain the existing availability fee of $600 per residential equivalency sewer tap to fund a capital replacement account for existing infrastructure; amend the Rules and Regulations for the Operation of the System to specifically require that the Hillsborough availability fee - as determined on a case-by-case basis by the Town - be passed through directly to the consumer/customer. Staff is not recommending that the original customers who have sewer tap/sewer service contracts be charged any access, availability or service stub-outs fees other than those required under the terms of their contract(s). The recommended fee policy does not address sewer use rate issues or costs. These issues can be dealt with at the Board's leisure as potential losses over short periods of time are not significant and rates can be changed at any time necessary. The fee recommendations likewise do not deal with the issues related to sewer assessments for new sewer construction or expansion. Typically, these assessment issues are addressed at the beginning of an expansion/construction project and ultimately resolved through a project and assessment resolution/ordinance upon completion of construction and finalization of expansion costs. If I may provide additional information or input, please advise.