AGENDA #5b
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Information Report: Petition for Sewer in Emily Road/Partin Street Area
DATE: March 4, 2002
This memorandum responds to a petition from Ms. Mildred Council concerning the provision of sewer in the Emily Road/Partin Street neighborhood in Chapel Hill.
BACKGROUND
On February 11, 2002, Ms. Mildred Council presented a petition to the Town Council requesting the extension of sewer into the Emily Road/Partin Street neighborhood in Chapel Hill (please see Attachment 1).
The Emily Road/Partin Street neighborhood is currently not served by public sewer provided by Orange Water and Sewer Authority (please see Attachment 2, map of area).
We note that staff also discussed this situation with Mr. Craig Land in the fall of 2001; a copy of that correspondence is attached (please see Attachment 3). At that time, staff also researched the annexation history of the neighborhood at the request of Mr. Land. The area was annexed on December 31, 1979 (please see Attachment 4).
DISCUSSION
There are policies in place with Orange Water and Sewer Authority and the Town of Chapel Hill to assist owners with the costs of projects to extend sewer to unserved existing neighborhoods. The appropriate first step is for a majority of owners in the area to petition the Orange Water and Sewer Authority to extend the lines, and to agree to be assessed for the cost of the extension. A copy of OWASA’s petition form is attached (please see Attachment 5). In addition, OWASA has provided a November, 1999 summary of key questions and answers about sewer projects and assessments (please see Attachment 6).
If a petition is accepted by the Board of Directors of the Orange Water and Sewer Authority, the Authority will extend the lines and assess benefiting properties for costs of sewer extension. As noted in the November 1999 summary,
“OWASA does not assess for engineering expenses up to 15% of project cost, or for legal expenses up to 5% of project cost. Usually, engineering costs are about 10% of project expenses. Similarly, legal expenses are less than the 5% cap. Therefore, the engineering and legal costs excluded from assessments are normally less than the 20% maximum.”
Owners would then be responsible for paying back to OWASA the assessed costs over a time period established in the particular assessment roll, typically ten years.
The Town of Chapel Hill has a policy of participating in this funding formula, if funds permit, up to 20% of the cost of the project (up to a maximum of $4500 per property), per Council resolutions last adopted on September 9, 1998. Attachment 7 explains the history of current Chapel Hill’s Water and Sewer Assistance Policy.
Status of Discussions with Orange Water and Sewer Authority
The Orange Water and Sewer Authority has provided a letter summarizing the status of neighborhood inquiries related to providing sewer in the Emily Road/Partin Street area (please see Attachment 8). The letter also reviews preliminary plans and costs to provide sewer to the area, noting that the construction cost for the project could be significant, in the range of $1 million.
Status of Town of Chapel Hill Water and Sewer Assistance Fund
The Town Council has set aside funds to assist neighborhoods with the cost of connecting to the public sewer system. The current balance of funds reserved for this specific purpose is $200,000. Of this amount $192,000 is reserved for the Mason Farm/Morgan Creek area per a July 1, 1996 Council resolution 18. Attachment 7 explains the history of this Fund. We note that one of the recent budget reductions to account for the loss of State revenues included interest income assigned to the Water and Sewer Assistance Fund.
Status of Mason Farm/Morgan Creek Sewer Petition
As discussed in Attachment 7, the Town Council in 1996 reserved funds for assisting with providing sewer in the Mason Farm/Morgan Creek area. According to the OWASA letter, there is currently no active petition from this neighborhood for extension of sewers under consideration by OWASA.
NEXT STEPS
The key next step would be for a majority of property owners in the area to submit a petition to the Orange Water and Sewer Authority. Once submitted, the Town Council could consider using funding from the Water and Sewer Assistance Fund for this project, if it determines the remaining funds should no longer be reserved for the Mason Farm/Morgan Creek neighborhood.