Western
Wake Partners
Policy Advisory Committee
Recommendations
Tuesday, February 27, 2007, 4:00
p.m.
Cary Town Hall, Administration Conference
Room, #22010
316 N. Academy Street, Cary, North Carolina
www.westernwakepartners.org
Cary
Mayor Ernie McAlister called the meeting to order at 4:10
p.m. Committee members attending were Apex Mayor
Keith Weatherly, Holly Springs Mayor Dick Sears, Morrisville Mayor Jan
Faulkner, Apex Town Manager Bruce Radford, Holly Springs Town Manager Carl Dean
and Morrisville Town Manager John Whitson.
Committee member absent Cary Town Manager Bill Coleman. The meeting adjourned at 4:50 p.m.
A. Approval of minutes of the Policy Advisory Committee held on January
23, 2007.
Mayor Weatherly moved to
approve the minutes, Mayor Sears provided the second and the committee
unanimously approved the motion.
B. Items for Discussion:
1. Western Wake Regional Wastewater Facilities
Budget Update and Proposed FY08 Operating Budget (PAC07-08)
Mayor Weatherly moved to approve the FY08 Operating
Budget. Mayor Faulkner provided the
second, and the committee unanimously approved the motion.
2. WWRWRF Electric Service Provider (PAC07-09)
Mayor
Faulkner moved to approve the selection of the Town of Apex as the electrical power vendor for the Western Wake Regional Water
Reclamation Facility
and authorize the Lead Agency to enter into any necessary agreements with Town
of Apex for that electrical power. Mayor Sears provided the second, and the
committee unanimously approved the motion.
3. Water and Sewer Extension Policy (PAC07-10)
Attachments (2)
Mayor
Weatherly moved to approve 1) for the Technical Advisory Committee to continue
with development of the Apex /Site 14 Water and Sewer Extension Policy; 2) that
the Town of Apex incorporate the Policy into
their local water and sewer extension and service policies; and 3) Option 1 of the cost share allocations.
|
Table 2. Potential
Partner Costs for
Apex / Site 14 Water and Sewer Extension Policy
Implementation
|
|
Project Partner
|
Option 1
|
Option 2
|
Option 3
|
|
Apex
|
$807,000
|
$1,008,000
|
$1,041,000
|
|
Cary
|
$1,329,000
|
$1,662,000
|
$1,716,000
|
|
Holly Springs
|
$675,000
|
$96,000
|
$0
|
|
Morrisville
|
$189,000
|
$234,000
|
$243,000
|
Mayor Faulkner provided the second. Vote was called for on the motion. Mayor Sears voted “no.” All others voted
“aye.” The motion carried by majority vote.
D. Other Business
Mayor Weatherly commented that the WRF/EPS site
should be in the Apex’s municipal boundaries for Apex to provide electric
service. Mayor McAlister asked if any thing
would affect the schedule for when the decision needed to be considered. Staff commented that the design engineers
need to know the jurisdiction of the site.
Apex staff clarified that Apex
could provide electric service outside their boundaries but it is very
difficult. Mr. Dean indicated that they
support the annexation according to statute.
Mayor
Weatherly motioned to move forward with Apex annexation given that Apex is the
closest to the site boundary at this date.
Mayor Faulkner provided second, and the committee unanimously approved
the motion.
E. Closed Session (not called)
F. Next Meeting:
March
27, 2007, 4:00 p.m., Cary Town Hall, Administration Conference Room, #22010,
316 N. Academy Street, Cary NC
Western Wake Partners
Report to the Policy
Advisory Committee (PAC07-08)
Date: February
15, 2007
To: Policy Advisory Committee
From: Kim Fisher, P.E. – Town of Cary, Director of
Public Works and Utilities
Prepared By: Leila Goodwin,
P.E. – Town of Cary, Water Resources Manage
Subject: Western Wake Regional Wastewater Facilities
Budget Update and Proposed FY08 Operating Budget
Section
3.3 of the “Design,
Construction, Ownership, Management and Operation Agreement” dated August
22, 2005
(“Implementation
Agreement”),
specifies that:
“The
Lead Agency shall prepare the Annual Budget for each Fiscal Year and as
expeditiously as possible shall provide each of the Project Partners with the
Annual Budget. The Lead Agency shall endeavor to prepare and provide to each
Project Partner by each March 15 a preliminary Annual Budget for the ensuing
Fiscal Year. To the extent possible, the
Lead Agency shall prepare the Annual Budget so that it will be possible to
determine from such budget the Current Expenses for the Wastewater Management
Facilities that will be allocable to each Project Partner during the Fiscal
Year.”
The
Project Partners entered into two agreements specifying tasks to be undertaken
by the Lead Agency, how costs for those tasks will be allocated, and
anticipated budgets:
1)
The Interlocal Agreement
for Regional Wastewater Management Facilities Land Acquisition and Preliminary Work (“Preliminary Work
Agreement”) addressed purchase of land for the Water Reclamation Facility (WRF)
and pump stations; permitting; and organizational, institutional and financial
development. For budget discussion
purposes, land costs will be included in facility design and construction
costs.
2)
The
Implementation
Agreement addressed design and construction of the facilities, and defined
Fixed Current Expenses, which includes project management expenses before
facility startup.
The
Partners subsequently agreed on how to share costs for the SCADA system, which
was implicitly included in the each facility’s costs but is being implemented
as a separate project. Report PAC07-10
also present several potential cost allocations for implementation of the
Apex/Site 14 Water and Sewer Extension Policy and while the cost allocations
have not been determined yet, one scenario (Option 1) is used in this update
for discussion purposes.
Table
1 presents the agreed-upon cost shares for various components of the
facilities. The cost shares for the
Apex/Site 14 Water and Sewer Extension Policy are based on Option 1 from Report
PAC07-10.
Preliminary Work
The
Preliminary Work included two items: permitting (original budget of
$1,500,000); and organizational, institutional and financial development
(original budget of $600,000). Table 2
shows a summary of the updated preliminary work budget, including additional
tasks that are being required for permitting.
Although
the organizational, institutional and financial development is largely unspent
at this time, it is anticipated that more work remains to be done to finalize
the service agreements between the Lead Agency and each partner. Therefore, there are no recommended changes
in the organizational, institutional and financial development budget.
Land Acquisition, Design
and Construction
The
last time land acquisition, design and construction costs were updated was in
the Draft Preliminary Engineering Report submitted to NCDENR in April 2006,
which contained planning-level cost estimates.
Since then, costs have been updated based on preliminary design of the
facilities and increased knowledge of pipeline routes and potential easement
costs. A 25 percent contingency was
added to current design contract amounts to account for additional work that may
be needed such as engineering, geotechnical investigation, land acquisition,
etc. Construction estimates already
include a contingency.
Summary of Capital Costs
Table
3 presents the updated cost estimates for land acquisition and facilities. The cost for the proposed Apex/Site 14 Water
and Sewer Extension Policy (addressed in PAC07-10) is also included. Table 4 presents a comparison of updated
costs with the previously budgeted costs, by Partner.
Project Management
Before
startup of the facilities, there will be some operating expenses, as has been
discussed previously, which will be billed to the Project Partners by the Lead
Agency as Fixed Current Expenses. To
date these include salary costs for a project manager, contract costs for land
acquisition services, and the cost for the annual audit. In the 3rd quarter of FY08 the
Town of Cary proposes to hire the Plant Manager and
Maintenance Team Leader for the WRF. The
Project Management budget for FY08 is proposed to be $281,000.
FY08 and Future Year Cash
Flow Estimates
Table
5 presents an estimate of the timing of cash flow for the project, for each
Project Partner. The cash flow estimates
incorporate the use and repayment of two SRF loans: $5 million for planning and permitting
(including some design) and $60 million for WRF construction. Table 6 shows the proposed FY08 Operating
Budget broken down into permitting, capital, and project management costs. Table 6 does not incorporate the planned
reimbursement of some costs by the SRF loans.
Requested Action: The Technical Advisory Committee requests
that the Policy Advisory Committee accept the recommended FY08 Operating
Budget.
|
Table 1
|
|
Cost
Share Allocations for Western Wake Regional Wastewater Management Facilities
|
|
Project
Component
|
Apex
|
Cary
|
Holly Springs
|
Morrisville
|
|
Prelminary Work and Land Acquisition Agreement
|
|
Preliminary
Work (Permitting)
|
26.9%
|
44.3%
|
22.5%
|
6.3%
|
|
Organizational,
Financial, Institutional
|
26.9%
|
44.3%
|
22.5%
|
6.3%
|
|
West Cary PS Land
|
0%
|
87.5%
|
0%
|
12.5%
|
|
Beaver Creek
PS Land
|
34.7%
|
57.2%
|
0%
|
8.1%
|
|
Western Wake WRF Land
|
34.7%
|
57.2%
|
0%
|
8.1%
|
|
Effluent Pump Station Land
|
26.9%
|
44.3%
|
22.5%
|
6.3%
|
|
Design, Construction, Ownership,
Management And Operation Agreement
|
|
West Cary PS
|
0%
|
87.8%
|
0%
|
12.2%
|
|
West Cary Force Main
|
0%
|
87.8%
|
0%
|
12.2%
|
|
West Cary Force Main Land
|
0%
|
87.5%
|
0%
|
12.5%
|
|
West Reedy
Branch Gravity Sewer
|
10.6%
|
78.2%
|
0%
|
11.2%
|
|
West Reedy Branch Gravity Sewer Land
|
10.6%
|
78.2%
|
0%
|
11.2%
|
|
Beaver Creek
PS
|
22.0%
|
68.6%
|
0%
|
9.4%
|
|
Beaver Creek
Force Main
|
26.2%
|
64.9%
|
0%
|
8.9%
|
|
Beaver Creek Force Main Land
|
34.7%
|
57.2%
|
0%
|
8.1%
|
|
Western Wake
WRF
|
34.1%
|
57.7%
|
0%
|
8.2%
|
|
Effluent Pump
Station
|
25.6%
|
43.4%
|
24.8%
|
6.2%
|
|
Effluent
Pipeline and Outfall
|
25.6%
|
43.4%
|
24.8%
|
6.2%
|
|
Effluent
Pipeline and Outfall Land
|
26.9%
|
44.3%
|
22.5%
|
6.3%
|
|
Operating Budget
|
|
Project
Management (Fixed Current Expenses)
|
26.7%
|
59.6%
|
5.3%
|
8.4%
|
|
Additional Items
|
|
SCADA
|
25.6%
|
43.4%
|
24.8%
|
6.2%
|
|
Apex/Site 14 W/S
Extension Policy (Option 1)
|
26.9%
|
44.3%
|
22.5%
|
6.3%
|
|
Table 2
|
|
Updated Budget for
Preliminary Work
|
|
|
|
|
Permitting
|
|
|
Original estimated cost
(2004)
|
$
1,500,000
|
|
|
|
|
Additional permitting costs
to date
|
$
500,000
|
|
SRF
Loan fee
|
|
|
USACE
404 wetlands permitting
|
|
|
Stakeholder
meetings
|
|
|
Address
NCDENR comments on April 2006 DEIS
|
|
|
Legal
review and assistance
|
|
|
|
|
|
Recommended additional
budget for current tasks
|
$
300,000
|
|
USACE
EIS Process
|
|
|
Additional
legal review
|
|
|
|
|
|
Recommended contingency
for budgeting
|
$
200,000
|
|
Total for budget planning
purposes
|
$
2,500,000
|
|
|
|
|
Resulting SRF Loan payment
total
|
$
3,360,000
|
|
|
|
|
Organizational, Institutional, Financial
|
$ 600,000
|
|
(Amount spent through 2/7/07)
|
$ 67,320
|
Western Wake Partners
Report to the Policy
Advisory Committee (PAC07-10)
Date: February
15, 2007
To: Policy Advisory Committee
From: Kim Fisher, P.E. – Town of Cary, Director of
Public Works and Utilities
Prepared By: Leila
Goodwin, P.E. – Town of Cary, Water Resources Manager
Subject: Cost Allocation for Apex/Site 14 Water and
Sewer Extension Policy
After
review by the Policy Advisory Committee (PAC), the Technical Advisory Committee
(TAC) has submitted a refined Water Reclamation Facility (WRF) site selection
discussion document (Technical Memorandum No. 5 in the Preliminary Engineering
Report [PER]) to NCDENR. TM 5 confirms
earlier recommendations for locating the Water Reclamation Facility (and
Effluent Pump Station [EPS]) on Site 14.
This site has a combination of low impacts to property owners and the
environment at a low cost, and the potential for adverse impacts (which is
minimal) to the disproportionately minority neighborhood just east of the site
can be mitigated, in part with the attached Apex/Site 14 Water and Sewer
Extension Policy (“Policy”) .
Many
mitigation measures have been incorporated into the arrangement of facilities
on Site 14 and in design features and construction best management practices
which are documented in the Environmental Impact Statement (EIS) and the PER for
the WRF and EPS. When residents near the
Site 14 were interviewed, the only area of concern that had not been previously
discussed in the EIS was the desire of some residents to improve their water
and sewer facilities (currently wells and septic tanks, with some problems
noted) at a low initial cost since they are so close to the facility that could
impact them. The attached Policy was
developed to address that concern and this report discusses potential cost
share allocations for implementing the Policy.
The
estimated cost for implementing the Policy is $3 million, and even with that added
cost Site 14 is the lowest cost site.
Further, a portion of that cost will be recovered by the Partners in
acreage and capacity fees if the residents who connect to water and sewer
subsequently sell or redevelop their property.
Any future payments to the Town of Apex in the form of acreage and
capacity fees for properties that took advantage of the Policy would be
reimbursed to the Project Partners using the same cost allocation percentages
applied to the cost of implementing the Policy.
There
are several ways that costs could be allocated for implementation of the
Policy. Three potential options are
described below and summarized in Tables 1 and 2:
Option
1: Since the Policy is a mitigation
measure identified during the EIS process, which is needed to make application
for an NPDES discharge permit, the costs could be shared according to the permitting
(Preliminary Work) cost allocations.
Option
2: Since the Policy is related to the
location of Site 14, which contains the WRF site and the EPS site, the costs
could be shared according to the combined WRF/EPS land cost allocations. Earlier agreements established that 14
percent of the site is allocated to the EPS and 86 percent allocated to the
WRF, so this results in a weighted average of the cost shares for those two
elements of land costs and is consistent with the way the WRF/EPS land acquisition
costs were shared.
Options
3: Since the Policy is related to
concerns about the site of the WRF, the costs could be shared according to the
WRF cost allocations.
|
Table 1. Potential
Cost Share and Reimbursement Allocations for
Apex / Site 14 Water and Sewer Extension Policy
Implementation
|
|
Project Partner
|
Option 1
|
Option 2
|
Option 3
|
|
Apex
|
26.9%
|
33.6%
|
34.7%
|
|
Cary
|
44.3%
|
55.4%
|
57.2%
|
|
Holly Springs
|
22.5%
|
3.2%
|
0.0%
|
|
Morrisville
|
6.3%
|
7.8%
|
8.1%
|
|
Table 2. Potential
Partner Costs for
Apex / Site 14 Water and Sewer Extension Policy
Implementation
|
|
Project Partner
|
Option 1
|
Option 2
|
Option 3
|
|
Apex
|
$807,000
|
$1,008,000
|
$1,041,000
|
|
Cary
|
$1,329,000
|
$1,662,000
|
$1,716,000
|
|
Holly Springs
|
$675,000
|
$96,000
|
$0
|
|
Morrisville
|
$189,000
|
$234,000
|
$243,000
|
The
area addressed by the Policy is in the Urban Service Area of the Town of Apex, and Apex is currently
putting in a water line nearby to serve their fire station. Since Apex will be the utility serving the
area, they would need to incorporate the Policy into their local water and
sewer extension and service policies.
Requested Action: The Technical Advisory Committee requests
that the Policy Advisory Committee: 1)
direct the Technical Advisory Committee to continue with development of the
Apex /Site 14 Water and Sewer Extension Policy; 2) request that the Town of
Apex incorporate the Policy into
their local water and sewer extension and service policies; and 3) select cost
share allocations.
TOWN
OF APEX
SITE
14 WATER AND SEWER EXTENSION POLICY
1.0 PURPOSE
The purpose of this document is to present a
proposed water and sewer extension policy for the provision of water and sewer
service for properties located within census block 534.03-1053.
2.0 PROPOSED POLICY
The proposed policy is intended to address issues
related to the financing, planning, design, land acquisition, permitting,
construction and operation of a water and sewer system to serve the community.
2.1 Geographic Extent of Policy
It is understood by all parties that the water
and sewer service is being provided as part of the mitigation efforts
undertaken by the Project Partners for the sole benefit and use of the existing
residents and property owners in the community, as well as the existing
structures, located within the boundaries of the affected area.
The geographic extent for the proposed policy
will be defined as the affected area encompassed by census block 534.03-1053,
which is bounded by New Hill-Holleman Road
to the east, Shearon Harris Road to the west, Old US
1 to the north and new US 1 to the south.
2.2 Eligibility
This policy applies only to current property
owners of record as of February 12, 2007, and is available for a limited time period
as described in Section 2.3.
2.3 Designated Service Provider
The affected community represented by census
block 534.03-1053 is located in the long-range Urban Service Area for the Town
of Apex. As such, it
is expected that at some unspecified date in the future, the affected community
will be annexed into the corporate limits of the Town of Apex and provided with urban services such as
water and sewer. While the specific date
of future annexation is not known at this time, it is understood that upon
annexation the Town of Apex will be the water and sewer service provider
for the affected community. Accordingly,
the Partners agree that the designated water and sewer service provider for the
affected community will be the Town of Apex.
Therefore, any decisions regarding the provision water and sewer service
to the affected community must be consistent with the water and sewer policies
and ordinances enacted, and as may be amended, by the Town Council of Apex.
2.4 Closing Date for Acceptance
Property owners of record who request water
and sewer service prior to January 1, 2012 may apply for service in accordance with the
terms and conditions presented in this proposed policy. Property owners of record who request water
and sewer service after the closing date may apply for service in accordance
with the standard water and sewer policies and ordinances enacted, and as may
be amended, by the Town Council of Apex.
2.5 Service Offerings
Under the proposed mitigation plan, property
owners in the affected community may request both water and sewer service, or
water service only. This policy does not
allow for provision of sewer service without water service.
2.6 Mitigation Plan Participation
The proposed policy has been developed with
the understanding that approximately 10 property owners will request water and
sewer service connections. In the event that
less than 10 property owners request water and sewer service under the
provisions of this policy, the Partners reserve the right to modify, and
possibly rescind, the proposed policy.
2.7 Annexation Requirements
Under the existing Town of Apex water and sewer policies and ordinances, as a
condition of receiving water and sewer service a property owner must agree to
be annexed into the municipal corporate limits of the Town. Under this proposed policy, the Town Council
of Apex will not require annexation as a condition for providing water and
sewer service.
Precedence
The Town of Apex currently provides wholesale water and sewer
service to residents located in the community of Feltonsville. The community of Feltonsville
is similar to the affected area located adjacent to Site 14 in that Feltonsville (a) has a minority population that exceeds the
average minority population for Wake County, and (b) is located outside of the
Town’s municipal corporate limits. The
water and sewer facilities required to serve the minority community of Feltonsville were financed and constructed through a
cooperative effort executed by the Town of Apex and Wake County.
Therefore, it is proposed that the Town of Apex grant a similar exception to the annexation
policy for the properties located within the affected area encompassed by census
block 534.03-1053.
Conditions
As a condition of accepting water and sewer
service in accordance with the terms and conditions of this proposed policy,
the property owners in the affected area must agree as follows:
1)
At a some unspecified date in the future, but no earlier than January 1,
2016 after the startup of the Western Wake WRF, the Town may initiate
annexation proceedings for all, or a portion of, the properties located in the
affected community. The only exception
to this condition is as described in Section 2.11.
2)
Upon initiating annexation procedures, the property owners that have
received water and sewer service in accordance with the terms and conditions of
this proposed policy will not protest or contest the annexation proceedings
brought forth by the Town of Apex.
3)
Protesting or contesting annexation will be grounds for termination of
water and sewer service by the Town of Apex.
4)
These conditions shall be installed as deed restrictions or restrictive
covenants on the properties that accept water and sewer service in accordance
with the terms and conditions of this proposed policy.
2.8 General Description of Water and Sewer
Facilities
It is understood that the Town of Apex, as the designated water and sewer service
provider, shall have responsibility for the planning, design, land acquisition,
permitting, construction and operation of the water and sewer system for the
affected area. It is further understood
that payment for all capital costs required for the installation of the new
water and sewer system shall be made by the Partners. The Partners reserve the right to make
payment for the capital costs using any sources of funds deemed most appropriate,
and the costs shall be proportionally allocated to each Partner based on an
equitable cost-distribution methodology.
In the event that the Town of Apex elects to size any of the water and sewer
facilities to serve additional customers, the Project Partners will be
responsible only for costs associated with serving the customers within the
affected area who request service under this policy.
Water System
It is expected that the water system will
consist of a water distribution pipeline that will loop through the affected
area starting and terminating at New Hill-Holleman Road. The
capital costs for the new water distribution system will include all required
land acquisition, pipelines, valves, remote-read automatic meters, backflow
prevention devices, disconnection of onsite wells, surveying, engineering and
inspection services and final connection of each dwelling unit on each property
to the new water distribution system.
Sewer System
It is expected that the sewer system will
consist of a gravity sewer system that will discharge to a wastewater pumping
station. The wastewater pumping station
will convey wastewater from the affected community to the Western Wake WRF at a
location designated by the Town of Cary. The
new wastewater collection system will include all required land acquisition,
pipelines, manholes, surveying, engineering and inspection services,
disconnection and decommissioning of existing septic tanks and final connection
of each dwelling unit on each property to the new wastewater collection system.
2.9 Easement Acquisition Considerations
It is expected that the construction and
installation of the new water and sewer system will require the acquisition of
easements from residents located in the affected community.
As a condition of accepting water and sewer
service in accordance with the terms and conditions of this proposed policy,
the property owners agree to allow Apex to acquire easements as may be required
for the proper construction, installation, operation and maintenance of the
water and sewer facilities. Apex agrees
that to the greatest extent practicable, all easements shall be located in a
manner so as to minimize impacts to existing structures and to not unreasonably
impact the property owner’s current and future uses of the property.
The Town of Apex agrees to provide fair compensation to
property owners for easements.
2.10 User Fees
The Town Council for Apex has the sole
responsibility and authority to establish and set rates, fees, charges and
penalties necessary for the operation, maintenance, management, administration,
upgrade, rehabilitation, improvement and expansion of the water and sewer
utility system. As an enterprise fund
within the Town, the Town Council will establish a schedule of rates, fees,
charges and penalties that will fully recover the total direct and indirect
costs associated with providing water and sewer services including personnel
services, operating expenses, capital improvements, and the principal and
interest on all debt issued.
Water and Sewer
Connection Fees
Under current Town of Apex policies and ordinances, residential
customers are required to pay the following fees and charges in order to
connect to the water and sewer system:
1)
Acreage fees for water and sewer at the rate of approximately $3,000 per
acre of area associated with the parcel
2)
Capacity fees at a rate of $4,500 per connection ($15 per gallon
multiplied by 300 gallons for a residential dwelling unit)
3)
Plumbing fees paid to a third-party contractor to connect the residential
dwelling unit to the water and sewer system.
The current estimate for this service is $5,000 for each water and sewer
connection.
Under the terms and conditions of this
proposed policy, payment of the acreage fees and capacity fees as identified
above shall be deferred by the Town of Apex.
Payment of acreage fees and capacity fees could become due and payable
by the property owner based upon the conditions described in Section 2.11. Plumbing fees will be paid collectively by
the Partners as part of the overall capital costs required to install the new
water and sewer system. The Partners,
nor the Town of Apex, will require repayment of third-party
plumbing fees.
Monthly Water and Sewer Bills
Under current Town of Apex policies and ordinances, residential
customers are required to pay a monthly water and sewer bill based on monthly
water meter readings.
As a condition of accepting water and sewer
service in accordance with the terms and conditions of this proposed policy,
property owners agree to pay a monthly water and sewer bill proportional to the
level of service received as determined by monthly water meter readings. Currently, the monthly water and sewer bills
include a water service charge, a water commodity charge, a sewer service
charge and a sewer commodity charge.
For properties located within the affected
area, it is proposed that the Town of Apex charge for water and sewer service based on
customary charges. Under the current
schedule of rates, fees and charges, customary charges are equivalent to double
the inside-town water and sewer charges.
2.11 Property Lien
It is understood by all parties that the
provision of water and sewer service is being provided for the sole benefit and
use of the existing residents and property owners, as well as the existing
structures, located within the boundaries of the affected area. Therefore, to preserve the intent of the
policy, the Town of Apex, on behalf of the Partners, will place a lien
on each property where the owner agrees to accept water and sewer service in
accordance with the terms and conditions of this proposed policy. The value of the lien on each property will
be the cost of the acreage fees and capacity fees deferred by the Town of Apex as described in Section 2.10.
In accordance with the terms and conditions of
the proposed policy, if at any time in the future, (a) there is a change in use
of the property, (b) the property is developed or redeveloped requiring a site
plan or subdivision plan, or (c) the existing structures are renovated or
replaced such that the assessed value of the property increases by 50% or more,
then the property owner of record agrees to the following:
1)
The full costs for the water and sewer acreage fees and capacity fees
described in the lien will be due and payable to the Town of Apex by the property owner of record at the time
of the new assessment.
2)
The Town of Apex may initiate annexation proceedings for the
property and the property owner of record will not protest or contest the
annexation.
3)
Protesting or contesting annexation will be grounds for termination or denial
of water and sewer service by the Town of Apex for the subject property.
Upon collection of the acreage fees or
capacity fees from the property owner of record, the Town of Apex will
reimburse each of the Partners in accordance with the agreed upon cost-distribution
methodology used to allocate construction costs for the water and sewer system.
