ORDER NO. 2346 APPROVAL OF CONTRACTING WITH UGRA FOR SEPTIC SYSTEM SERVICE On this the 1st day of July 1996, +.~pon matian made by Judge Denson, seconded by Commissioner, Holekamp, the Court unanimously approved by a vote of 5-0-@, to approve the letter of proposal submitted to the Court as presented. July 1, 1996 The Honorable Robert A. Denson Kerr County Judge Kerr County Courthouse Kerrville, Texas 78028 RE: OSSF Program Dear Judge Denson and Members of the Court: The UGRA Board of Directors at its Special Meeting held on Saturday, June 29, 1996, authorized me to enter into the development of a memorandum of understanding that will allow UGRA to contract with Kerr County for the operation of the OSSF and other related programs in your Ken County Environmental Health Department. The following is the UGRA Proposal: That the TNRCC designated program provider continue to be Kerr County, but that the responsibility for the operation of the Program be transferred to the UGRA through an interlocal agreement. 2. That the UGRA become the reviewing agent for the environmental element of the Kerr County subdivison process. In accordance with UGRA and KCEHD staff, review of the department's workload over the past two years; this amounts to shifting conservatively 90% of the workload out of the Department. 3. That Kerr County and UGRA first develop a memorandum of understanding which eventually leads to the development of the interlocal agreement between the two entities. 4. That the original agreement be for four to five years with provisions for re- negotiation and renewal at the end of that period. 5. At the end of the term of the original agreement, Kerr County and UGRA revisit the status of the TNRCC Designated Provider. P.O. Box 1278 215 West Water Street Kerrville, Texas 78029-1278 (210) 896-5445 • Fax (210) 257-2621 The Honorable Robert A. Denson July 1, 1996 OSSF Program Page 2 6. That Ken County consider through the interlocal agreement, continued support of the program on an annual basis with the first year's contribution to be set at $40,000.00; $35,000.00 the second year; and $30,000.00 the third, fourth and fifth years. UGRA will assume the responsibility for any shortfalls between revenues (the County's annual support and fees collected), and the cost to operate the program(s). UGRA's tax revenues from the same tax base as the County's is significantly lower than the County's. Our current rate is 2.0698 cents(.020698), per $100.00 evaluation Based on the proposed Ken County regressive support from $40,000.00 to $30,000.00 annually, UGRA will still be required to raise its tax rate beyond the 3% limit. 7. Other elements UGRA would favorably consider in the interlocal agreement would include, but not necessarily be limited to: (a) Revisiting the current regulations and revising those areas that are not in compliance with TNRCC suggested rules, as well as the Texas Water and Health Codes. Also, any other change that will facilitate the homeowner, the orderly growth of rural Ken County, and the protection of the ground and surface waters of Kerr County. Public input will be encouraged in this process. (b) Monthly and annual reports of activities of the program, along with an outside audit of the program's financial operations will be provided to the County on a timely basis. (c) The creation of an Advisory Board made up of OSSF professionals from both a geographical base and types of systems. This Board will meet regularly with the UGRA General Manager and appropriate staffto discuss new technologies, system designs, application of the OSSF technologies and other matters of concern to the operation of the program. Other professionals will be considered for this panel. (d) Any other element found to be of value to an efficiently operated OSSF program in Ken County. The Honorable Robert A. Denson July 1, 1996 OSSF Program Page 3 Again, this is a letter proposal for your consideration. Hopefully, this will eventually lead to a memorandum of understanding which becomes the body of the interlocal agreement and a program to serve the on-site sewage needs of rural Kerr County. UGRA fully understands that time is of the essence and UGRA assures the Court that it will do everything possible to keep this matter moving toward an expeditious resolution. Your time on this matter is appreciated. UGRA looks forward to the refinement of this proposal and an excellent working relationship with the Court on this and other matters of mutual interest. ~'ou~rs.~En~ly, ~~,~ ~' '' ~, n J. Brown neral Manager cc: UGRA Board of Directors ORDER. NO. 23406 APPROVAL OF CONTRACTING WITH UGRA FOR SEPTIC SYSTEM SERVICE July 1, 1996 Vol U, Page 525