MINUTES
STATE OF
The
Cane Creek Water & Sewer District Board met for a regular meeting at
Present
were: Chairman Bill Moyer, Vice-Chairman
Also
present were: Deputy Clerk to the Board
CALL TO ORDER
Chairman
Moyer called the meeting to order.
Commissioner Messer made the motion for
the Board to convene as Cane Creek Water & Sewer District. All voted in favor and the motion carried.
SEWER EXTENSION ASSESSMENT POLICY
Chairman
Moyer stated that in the past discussion was held in regards to the sewer line
and how it affects the Fletcher Substation that is on Highway 25. The board was willing to get involved in
loaning the money for the funding but not take it out of the general
funds. It would be made available
through the Cane Creek Sewer District but the Board wanted a policy that would
ensure that the money came back from the people that would benefit from
it. The Board has looked at a number of
alternatives and requested that County Engineer Marcus Jones discuss this
further.
Marcus
Jones explained that the agreement that had been developed for reimbursement
from the last meeting has the Fire Department concerned that it will not recoup
the full expense of that extension.
Marcus felt that this was not an inaccurate assumption. The Fire Department would like for the Board
and staff to consider a way to assure that the cost of the line is recovered
from the people that the line will serve.
There are five parcels that will be served by that extension and the
recommendation to accomplish that would be:
1) For the Board to approve an assessment policy
2) To apply that policy to the particular case of the
Fletcher Fire and Rescue Department
Chairman
Moyer stated that the issue is broader than just the Fire Department and he
felt that when the Board approved it their intent was to come up with a formula
that would be sure to get the money back that is being put forth for this
line. Initially when the Board started
looking at it the plan was to do this based on usage, but depending on how the
land was developed etc., this would probably ensure that CCWSD would not be reimbursed.
Marcus
Jones explained that the reimbursement agreement contained two variables that
we have no control over. 1) If the
property owners apply for sewer within the ten (10) year timeframe and 2) The
amount of land use that the parcel applies for (example: A storage facility would
require less use in the capacity of the line than compared to a restaurant).
Chairman
Moyer stated that the Board and staff had looked at other alternatives and
wrestled with looking at frontage. Most
residential projects are done on the assessment of so much frontage but most of
these parcels have a smaller amount of frontage but a lot of acreage. The Board looked at several combination
approaches. The assessments would be
based on the formula and then CCWSD would work out with the property owners
that they would have up to five (5) years to pay for it. He feels that this acreage is a prime site
for development with two highway crossings.
He was in favor of adopting this agreement. Chairman Moyer stated that this will set the
policy for the future. The CCWSD has had
other requests to have the line run and now the policy will be clear.
County
Attorney Russ Burrell stated that this policy would give the Board the most
flexibility to choose any one of the six (6) options available that would best apply
to that certain project per General Statutes.
Chairman
Moyer was in favor of the 60 frontage/40 acreage option for this project.
The
Commissioner McGrady made the motion
that the Board adopt the resolution setting out the assessment policy as
recommended in the Board packet. He
further moved that the Board adopt a 60% frontage and 40% acreage assessment
scheme in the Fletcher Fire and Rescue Sewer extension, such assessments to be
required to be paid in monthly installments up to five years. The motion passed 4 to 1 with Commissioner
Williams voting nay.
County
Manager Steve Wyatt stated that the funds would come directly from the CCWSD
funds and then they will recoup the cost by use of this policy.
RESOLUTION ADOPTING ASSESSMENT POLICY APPLICABLE TO
SEWER EXTENSIONS TO EXISTING UNSERVED AREAS
WHEREAS, the Board of Trustees of the Cane Creek Water
and Sewer District of Henderson County (“CCWSD”) has determined to review its
assessment policies in order to assure that the manner in which the costs of
sewer extension projects are calculated and assessed is fair and meets the
requirements of the general statutes, and, in particular, that it does not
impair the orderly availability or unduly discourage otherwise necessary
connections to these vital public services; and
WHEREAS, the Board of Trustees of CCWSD has determined that the attached policy is necessary and appropriate to assure the availability and orderly provision of public sewer service to CCWSD’s service area, and that it is necessary and will result in the protection of the environment and public water supply, and that it will primarily benefit persons who are able to connect to these services as well as their neighbors and the public at large;
NOW, THEREFORE, BE IT RESOLVED:
1.
That the CCWSD Board of Trustees adopts the attached policy entitled,
“Assessment Policy Applicable To Sewer Extensions To Existing Unserved Areas”,
2.
That the policy shall become effective upon adoption.
3. That staff is directed to implement and interpret the
“Assessment Policy Applicable to Sewer Extensions to Existing Unserved Areas.”
Adopted this the 19th day of December, 2007.
CANE CREEK WATER AND SEWER DISTRICT
By:__________________________ Chairman, Board of Trustees
Attest:
____________________________
Elizabeth W. Corn Clerk to the
Board
ASSESSMENT POLICY APPLICABLE TO SEWER
EXTENSIONS TO EXISTING UNSERVED AREAS
PURPOSE: The purpose of this policy is to set forth
the principles and guidelines for the extension of and the allocation of cost
for the sewer mains of the Cane Creek Water and Sewer District (CCWSD) when
such facilities are extended through the assessment process.
BACKGROUND:
An integral part of the operation of CCWSD is the
orderly extension of sewer service from its existing facilities or the
construction of new facilities. This extension of service may consist of the
construction of new collectors, interceptors, mains, pump stations and other
appurtenances necessary to serve a group of properties whose owners have
petitioned CCWSD for service and have agreed to assume the cost of the sewer
extension or to serve properties without a petition from property owners that
CCWSD has determined are benefited by the extensions. The North Carolina
General Statutes enable CCWSD to make such extensions and assess benefited
properties the costs associated with the extensions.
POLICY:
CCWSD, at the discretion of its Board of Trustees, may
arrange for the installation of sewer mains to serve specified areas and assess
the cost of the improvements to the benefited properties in accordance with the
North Carolina General Statutes. Extension to new residential development will
not be financed through the assessment process.
lf undeveloped land within an assessment area benefits from an
assessment project then such land will be assessed for the improvements.
Undeveloped land through or along construction of off-site line extensions may
also be assessed.
Assessment projects must have prior approval of the
CCWSD Board of Trustees and may be initiated by petition of property owners,
County or State public health agencies, by a municipality, or by CCWSD at its
discretion. CCWSD’s decision to undertake an assessment project shall not be
subject to prior endorsement from a majority of the property owners benefiting
from said project. In determining whether or not to proceed with an assessment
project, CCWSD will consider the needs of all property owners who are impacted
by such project. Multiple assessment project requests will be prioritized for
construction by CCWSD.
Extension of service shall be made in a manner to
appropriately serve individual properties and to allow for the future orderly
development of the sewer system to serve other properties. Sewer main extensions and appurtenant
facilities installed by CCWSD through the assessment process shall be financed
by the owners of the benefited properties through (1) special assessments made
in accordance with the provisions of the North Carolina statutes and laws; (2)
prior funding of the improvements; and/or (3) other financial arrangements satisfactory
to CCWSD.
The cost of the assessment project, as determined by
CCWSD, shall be specially assessed against each of the lots or parcels
determined by CCWSD as benefiting from the project and set out in a Final
Assessment Roll. Such allocation of cost shall be in accordance with the
provisions of North Carolina General Statutes 153A, Article 9, Special
Assessments.
Costs
recovered through assessments shall not include the engineering design and
construction observation expenses in an amount up to 15% of total expenditures
for a given project costs recovered through assessments shall not include the
legal expenses in an amount up to 5% of total expenditures for a given project.
Any such engineering design and observation costs in excess of 15% and/or legal
costs in excess of 5% will be included in the summation of costs to be
assessed.
Costs recovered through assessments shall not include
off-site costs, including any easement acquisitions of intervening improvements
required to connect assessment projects situated within any incorporated limits
when the CCWSD Board of Trustees determines that (a) the off site improvements
are assessed to intervening benefited properties; or, the cost of the off site
improvements are reasonably anticipated to be recovered within the next 10 year
period through fees from service connections or extensions to the proximate
intervening properties; and (b) the costs of the off-site improvements that are
not assessed are in reasonable relationship to the costs of the assessment
project and funding is available in the approved Capital Improvements Budget
for such off-site cost, or funds are reliably available from other sources such
as grants, subsidies or contributions in aid of construction from private or
public parties.
Off-site mains shall be defined
as those sections of mains installed outside of the benefited project area
which do not provide service directly to individual lots within the benefited
area and are of a size so as to provide service to areas other than that
defined by the assessment project resolution.
Upon completion of the project, property owners will
be notified and a Final Assessment Roll adopted. Liens against the property will be recorded
as security for the amount of the assessment.
Assessments may be paid without interest at any time
before the expiration of thirty (30) days from the date that notice of
confirmation of the Final Assessment Roll is published. If the assessments are
not paid within this time, all installments shall bear interest at a rate set
by the CCWSD Board of Trustees in the assessment proceedings until paid. In the
event one or more payments of the assessment against a parcel of property are
not made in accordance with the terms for such payment, CCWSD will take action
under the lien to collect the money due.
For assessment projects, the property owner connecting
within sixty (60) days of the confirmation of the Final Assessment Roll may
enter into a contract with CCWSD to pay service availability fees for
connections to lines extended by an assessment project, but not service
connection fees, under established terms and conditions by monthly installments
over the same time period and at the same interest rate as established for the
assessment project costs. The installment payment of service availability fees
shall become a part of the monthly billing for service, and nonpayment shall be
subject to the same policies and penalties that apply to delinquency in the
payment of monthly charges for sewer services provided by CCWSD. The unpaid
balance shall be secured by a lien against the benefited property and personal
security to satisfy any outstanding balance upon sale of the property. The
payment of the unpaid balance shall become due upon transfer of the property.
For assessment projects, the residential property
owners connecting within ninety (90) days of notice from CCWSD that the
construction has been completed and service is available for active service
connections, the service availability fees applicable to the property will be
reduced by 25%, not to exceed $500 per benefited property:
If an assessed lot is subdivided at any time after
adoption of the Final Assessment Roll, the newly created lots shall be required
to pay all applicable availability fees in accordance with the Schedule of
Rates and Fees in effect at the time, prior to establishing a service
connection to the system(s) owned by CCWSD.
MINUTES
Draft
minutes were presented for the Board’s review and consent approval of the
following meetings: August 2, 2006 - October
2, 2006 - July 18, 2007 - August 2, 2007 - August 14, 2007
Commissioner McGrady made the motion
that the Board approve the minutes for CCWSD for August 2, 2006, October 2,
2006, July 18, 2007, August 2, 2007 and August 14, 2007. All voted in favor and the motion carried.
SEWER EXTENSION ASSESSMENT POLICY
CONTINUED
County
Manager Steve Wyatt asked the CCWSD Board to approve the project and budget
with a contingency.
Chairman Moyer made the motion that the
CCWSD Board approve accepting the contract from the Fire Department with the
price increase in the amount of $123,760 with the possibility of adding a 10%
contingency. All voted in favor and the
motion carried.
Adjourn
Commissioner McGrady made the motion to
adjourn as the Cane Creek Water & Sewer District Board. All voted in favor
and the motion carried.
Attest:
____________________________________
Teresa
L. Wilson, Deputy Clerk to the Board
William L. Moyer, Chairman