Agenda - 03-03-1999 - 9c - Laserfiche WebLink

Browse Search

purchase and sale agreements. The Council also requested that the staff review the 1976 OWASA purchase and sale agreements and suggest any changes that might be desirable. F DLSCUSSION Based an the Council's previous discussion and our review of the purchase and sale agrccmrnt, we suggest eonsideratioa of three areas of posse-ble change: I _ Brne$ting p:tress -Section 6 (Special Terms and Conditions) of the sewer purchase and sale agreement between OW ASA and the Town of Chapel FIilI includes the key language, "Orange Water and Sewer Authority hereby agrees that it will adopt and maintain, as long as the Authority supplies sewer services to citizens of the Tawas of Chapel F~II and the surrounding oratory, a basic policy with respect to the cxtcnsivn of sever mains which provides, to the extent possible, that the ultimate cost of any such extension will be borne by those primarily benefiting from such extension." (Please sec Attachment 3, p. 26). A strict iatcrprctation of this provision might require that individual property owners pay all of the costs of the extensions of sewer suvice to their properties. OWASA bas made such an interpretation in the past. ~ - The University has responded to~ the sewer assessment policy discussion paper by restating their position the OWASA general' rate bast should not be used to fund water and sewer extetision,prolcei.~, (PIcasc~see. Dr -EL4on Flayd's letter, Attarlimetit ~. ~ Included on tonight's Council agenda is a report from.the Council committee on sewer assessment policy.. 2. Subsidy of fees for lvw income 'customers -Section 7 (Special Terms and Conditions) of the OWASA -Chapel Hill sewer purchase and sale agreement outlines the rates .that customers will pay for service. This. section state's asst the Authority agrees, "to serve and charge reasonable rates, based on cost of strvicc to all classes of users of the water and sewer system impartially and without unjust discrinziaation." (Please sec. Amt 3, p. 29). This language can be iatcrgreted to allow no flexibility in the rates OWASA charges to customers. It can be argued. that u~sder the ewrent agreement, O'iNASA cannot allow Iower rates for low income families as de5acd by the Federal poverty level, waiver of .tap fees for public housing developments, special paym~at schedules for customers with financial difficulties, or other public assistance programs. We believe that it would be desirable w amend or interpret the OWASA -Chapel Bill sewix purchase and sale agrecmc~ to allow such subsidies far low incotnt people. 3. Sewer szteasian policy -Section 6 (Special Terms and Conditions) of the OWASA . - Chapel Hill sewer purchase and sale ~: states, `"The Authority agrees that it will not impede or bar the resideati8l or industrial growth and development of the