Agenda - 08-23-1999 - D4 - Laserfiche WebLink

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.-a\~~ - Orange Water and Sewer Authority ~ ~ ~ ' February 11, 1999 Page 19 - Towns annex land and OWASA serving that annexation. Regarding whether OWASA should liavc the authority to acquire retail customers in Chatham County, that is power that OWASA does not ' need. Dr. Gordon said it is politically wrong for customers not to have a say on appointments to the - OWASA Board of Directors when the Board is not in a position to reconstitute how members are appointed. Patrick Davis said it is important to point out that the comments the Board made relative to the retail service provision particularly in Chatham County clearly stated there is no intention on OWASA's part to unilaterally make a decision: Mr. Davis said the Board's concerns have been related to annexation and orderly growth and development of the two municipalities with whom OWASA has Sale and Purchase Agreements. Susannah Holloway said that as Robert Epting pointed out in his January 25,19991etter, the annezation issue would not help the problem with The University of North Carolina at Chapel Hill (The University). The University is a party to the Sate and Purchase Agreements and yet they are not part of the boundary agreement. Ms. Holloway said The University's rights might be affected by the boundary agreement. Susannah Holloway asked if there was a way to have The University represented in the boundary agreement. Peter Gordon said he would be concerned If the Sale and Purchase Agreements with The University could be construed to say that if The University decided to build a campus in Chatham County that OWASA would have to serve them. Robert Epting said there isn't any question that the Sale and Purchase Agreements with The University says ezactiy that. Mr. Epting said the obligation of OWASA is to serve the orderly growth and development of the Town oC Carrboro, Town of Chapel Hili, and The University. Robert Epting said that if The University expanded to Chathacci County they would first took to Chatham County for their water. There isn't any reasonable likelihood that The University would locate in Chatham County where OWASA water would be cheaper than Chatham County's water or more desirable to The University than Chatham County's water. Mr. Epting said OWASA would have to request Chatham County for the right to acquire easements and Chatham County now has the right to disapprove and could prevent OWASA from serving The University should they ezpand to Chatham County. Robert Epting said, for practical purposes, it is remote given that OWASA does not have a way to lay its pipe in the ground in Chatham County without the permission of the Chatham County Board of Commissioners and why would they give permission when they could be selling water to The University themselves. Mr. Epting said he did not intend to imply that The University's ability to require that OWASA provide itr service in Chatham County was a serious constraint in the Water and Sewer Management, Planning and Boundary Agreement. Robert Epting said he mentioned this matter because he believed it is important to understand that OWASA was formed for the purpose of providing service to The University on the same terms and conditions as it vas.providing service to the Town o[ Carrboro and the Town of Chapel Hill and their growth and development was clearly anticipated in 1977. • Patrick Davis said when the Sale and Purchase Agreements were entered into with the Town of Carrboro and the Town of Chapel Hi[!, Franchise Agreements were also entered into and it was agreed that the Town of Carrboro and the Town of Chapel Hill would not get into the water and sewer business. There arc provisions that say that. as long as OWASA is able to provide service to The University to accommodate growth and development then The University would rely on OWASA, but in the event that OWASA was constrained then The University had the right to do any and all things necessary to meet its growth requirements. Dan VandcrMccr said tl~c next discussion item is tlic sizing of lines and ~vhcthcr or not tl~c agreement ought to address line sizing. gyp. 3~