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Discussion Paper <br />March 12, 1998 <br />Page 5 <br />7 <br />In 1992 and 1993, OWASA was petitioned to provide sewer service to six neighborhoods. In response <br />to citizen concerns about the high cost of the service, the OWASA Board of Directors adopted, in <br />December 1993, a Policy Statement On Assessment Projects For Extension Of Water And Sewer Mains. <br />This policy established a line foot method for determining the assessment amount and excluded a <br />portion of engineering and legal fees. This policy was applied to the six sewer projects with the <br />OWASA Boazd's direction to review the cost experience at the end of 30 months (June 1996). <br />The Town of Chapel Hill contributed funds to five of the six sewer projects. The Town also developed a <br />method for assisting individuals who met certain economic criteria with subsidies for availability fees <br />and plumbing costs. The Town of Carrboro recently established a policy to provide $750 of assistance <br />to property owners connecting. existing homes to the sewer system. . <br />The OWASA Board developed incentives to encourage system connections within assessment areas. <br />This program. rebates a portion of the availability fee if the property owner is connected to the new <br />system within 90 days of project completion. The program also offers monetary assistance to property <br />owners who were previously connected to the sewer system but not in accordance with OWASA's <br />current water and sewer extension and service policies. <br />Staff s review of the six sewer assessment projects andertaken during the 30 month period .revealed that <br />the line foot rate established by the Board did not recover the full cost of the improvements. Of the six <br />projects, the benefited parties paid approximately 39 percent of the total cost ($1,234,227}, the Town of <br />jbr f:Wbuite~nigo~doo4eponalwspol_IO.san <br />