STAFF REPORT
Operations Committee, January 3, 2008
Agreement with Wake County and funding for Acreage
Fee Reimbursement for the South Wake Waterline Project
(PWUT08-15)
Consideration of approving funding in the amount of
$141,464.70 to Wake County for the payment of acreage fee reimbursement for the
installation of the South Wake Waterline project
Speaker: Mr. Mike Bajorek
From: Michael J. Bajorek, Interim
Director, Public Works and Utilities
Prepared by: John D. Holloway, PWUT Operations Analysis Supervisor
Approved by: William B. Coleman, Jr., Town Manager
Approved by: Benjamin T. Shivar, Assistant Town Manager
Background: The South Wake Waterline (SWWL) was installed by Wake County in the 1980’s for the benefit of the Towns of Garner, Fuquay-Varina, Holly Springs, Apex and Cary. Agreements exist with all of the towns or reimbursement of the cost of installation of the line based upon acreage fees and fees in lieu of assessment collected by the towns as properties are developed. In 1983, the Town began collecting acreage fees and fees in lieu of assessment for the SWWL. The Town responded to Wake County in September, 2001 with a calculation of fees owed at that time totaling $155,594.63 ($101,265 in acreage fees, and $54,329.63 in frontage fees). To date, no fees have been paid to Wake County.
During 2007, Wake County supplied Cary staff with GIS coverage of parcel data and the project area to determine a final fee and close out the project. A visual assessment of 2005 aerials was also conducted to verify the existence of structures on parcels within the buffer. Cary staff also provided additional Town planning documents to confirm current and future development activity within the buffer.
Two calculation methods were developed for assessing the Town of Cary’s proportion of fees due. One method, developed by Wake County, based a fee structure on the cost to build with water line. The cost was based on three contracts: contract 1–waterline contract, contract 2–general construction, and contract 3–electrical construction. The second calculation method, developed by CH2M Hill, was calculated based on repayment to Wake County using acreage and frontage fees. For the purposes of repayment, a buffer width of 920 feet was determined to be appropriate for Cary by the county, and an acreage fee of $750 / acre was determined necessary to fully repay the county if land within the buffer became developed. In addition, for parcels abutting either side of the main water line, an additional charge of $10.50/linear foot of frontage per property was assessed. Acreage of roads was not included as part of the acreage fee calculation, unless the road was completely within a parcel.
Based on the available data utilized in the CH2M Hill fee estimation analysis, and the buffer width determined by the County, the newly calculated total fee owed by Cary to Wake County is $141,464.70. This fee amount is based on 108.8 acres within the SWWL buffer and frontage of 5,701.4 feet. The total current fee is much lower than the original cost to construct the SWWL, but based on the fact that much of the area in the SWWL buffer is not inside the ETJ of Cary. Upon execution of the attached agreement, Cary will have fulfilled the acreage fee payment for the benefit to Cary’s water system for the installation of the waterline.
Fiscal Impact:
Operating: There are no operating impacts associated with this staff report.
Funding: Staff recommends appropriating $141,465 from utility capital reserve unrestricted fund balance to a newly created water capital project entitled Wake County Acreage Fee Reimbursement - South Wake Waterline. This appropriation will fully address the Town's share of this project.
Staff Recommendation: Staff recommends that Council approve and execute the attached agreement between Wake County and the Town of Cary in the amount of $141,464.70 for Cary’s proportional cost of the benefit from the installation of the South Wake Waterline. Staff requests that Council approve the appropriation of $141,465 from utility capital reserve unrestricted fund balance to a newly created water capital project entitled Wake County Acreage Fee Reimbursement - South Wake Waterline.
Amendment to the Agreement for the installation, Operation
Maintenance and ownership of the South Wake Waterline Project
This Amendment entered into as of the _____ day of ________, 2008, by and between Wake County, hereinafter referred to as County, and the Town of Cary, hereinafter referred to as Town.
WITNESSETH:
WHEREAS, the County and Town entered into an agreement entitled “Agreement for the Installation, Operation, Maintenance and Ownership of the South Wake Waterline” dated September 6, 1983 (“Agreement”) setting forth certain terms and conditions relating to the installation of a waterline from Fuquay-Varina through Holly Springs and Apex to Cary (“the Project); and,
WHEREAS, this Amendment sets forth terms of repayment of the cost of the waterline installation to the County through fees collected by the Town in full satisfaction of the obligations of the parties under all the Agreements relating to the Project; and,
WHEREAS, since completion of the project and in accordance with the Agreement, the Town has collected certain fees as connections were made to the line to provide water service to identified properties within a collection corridor; and,
WHEREAS, the County and Town have worked cooperatively to determine the amount of repayment currently due to be remitted to the County under the terms of the Agreements; and,
WHEREAS, the Town wishes to make payment to the County in exchange for the County conveying all rights and title to the portion of the waterline project located within the Town’s service area; and,
WHEREAS, upon payment to the County of the agreed upon sum, the County and Town desire to acknowledge the Agreements as fulfilled, completed, and with no further obligations of either Party with respect to the Project;
NOW THEREFORE in consideration of the above understanding of the Parties, and the mutual covenants and promises contained herein, the County and Town agree to this Amendment as follows:
1. The Town agrees to make payment to the County on or before February 1, 2008 in the amount of $141,464.70 as agreed upon and approved by the Town’s governing board.
2. The County agrees to convey to the Town title to all property rights acquired for the Project and ownership of all improvements constructed or installed as a part of the Project that are located within the Town’s service area as defined within the Agreement. The conveyance shall occur within 60 days of payment.
3. Upon receipt of payment from the Town as indicated above the County and Town acknowledge this Agreement, and any subsequent Agreements related to the Project are completed and of no further effect, and any obligations of either party with respect to the Project are hereby terminated.
IN WITNESS WHEREOF, this Amendment is executed the day and year first above written pursuant to resolutions adopted by the governing boards of the County and Town.
WAKE COUNTY
_______________________________
Chairman
Attest:__________________________
Clerk
Approved as to form:
_______________________________
County Attorney
_____________________________
Mayor
Attest:________________________
Clerk
Approved as to form:
______________________________
Town Attorney