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MEMORANDUM <br />TO: Mayor and Town Council <br />FRAM: W. Calvin Hortoq Town Manager <br />SUBJECT: Options for Changes to OWASA Purchase and Sale Agreements <br />DATE: September 9, 1998 <br />AGENDA #96 <br />The purpose of this memorandum is to suggest options far changes to the OWASA Ptu+chast and <br />Sale agreements. This memorandum is related to the upon from the Cottacii Comaiittcc on <br />Sewer Asscssmeat Policy. . <br />BACKGROUND <br />The Orange Water and Sewer Authority (OWASA) was farmed~in 197b after the State of North <br />CaroLina~ decided to divest the University of its public utilities. (water, wastewater, electricity, <br />and telephone). The elsezrie and phone utilities. were sold to Deice Power and BellSouth. <br />Prior to divcsriturc, tkae. Universiry,..owned all of the water utility far the Chapel Hill-Carriwro <br />arcs, and shared the ownership of the Mason Farm wastewater trsamncnt pleat with the Town of <br />Chapel Hill. Chapel Hill and Carrboro separately owned wastewater collection systems. <br />Although formed is 1976, OWASA did not begin operations until February, 1477, whca tt~ <br />University, Town of Chapel Hill, and Town of Caaboro closed the sale of their water and. sewer <br />assets to the Authority. ~Ihcre are four distinct. but very simalar purchase and ~ sale agreements <br />iavvIviag OWASA, the Town of Chapel HiII, the Town of Carrboro, and the University. Each <br />agr~rameaat except the ?own of Carrboro's agreement with the University is attached. <br />In January of I996, OWASA and the University catered into a Memorandum of Agreement to <br />clarify language regarding the gayazettt of availability fees by the University ~ on the central <br />campus. (Please see Attachment 1). The agrxments have not otherwise beta amended. or <br />interpreted. ~ _ <br />At the June 8, 1998 mating of the Council, OWASA pteseated .a dis~vssion paptr entitled, <br />"Assessme~rt Polity ,4pplicahle to Water ~ Sewer Service .Ezterfs~a~ts..ta: Existing~L-Inrervad- <br />Neighborhoods". (Please see Attachment 2). The Chair of the ~?WASA board requested <br />feedback from the Council on this policy before September 18, 1998. The Cauacil appointed <br />Council Members Batcmaq Capowski, and McClintock to serve as a review committee and <br />make rccommcndations to the full Council on the discussion papa artd the 1976 OWASA <br />