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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: March 3, 1999 <br />Action Agenda <br />Item No. 4, d <br />SUBJECT: Proposed OWASA Reimbursements to Orange Grove Volunteer Fire Department <br />DEPARTMENT: County Manager <br />ATTACHMENT(S): <br />1/5/99 Letter from OWASA Chair <br />12/10/98 OWASA Agenda Background <br />Materials <br />PUBLIC HEARING: (Y/N) <br />BUDGET AMENDMENT: (Y/N) <br />INFORMATION CONTACT: <br />John Link or Rod Visser, ext 2300 <br />TELEPHONE NUMBERS: <br />Hillsborough 732 -8181 <br />Chapel Hill 968 -4501 <br />Durham 688 -7331 <br />Mebane 336- 227 -2031 <br />PURPOSE: To consider a request from the Orange Water and Sewer Authority Board of Directors for <br />input regarding proposed payments from OWASA to the Orange Grove Volunteer Fire Department. <br />BACKGROUND: In its October 1997 report regarding protection of the Cane Creek water supply, and <br />in correspondence since then with the Orange Grove VFD, OWASA has indicated its conceptual support <br />for considering payments to Orange Grove VFD. These payments would help offset losses in fire district <br />revenues resulting from OWASA ownership of property in the fire district that is, by law, exempt from ad <br />valorem taxation. OWASA staff have prepared a number of alternative approaches to calculating possible <br />reimbursement payments to Orange Grove VFD. These were presented in background materials for <br />OWASA's meeting agenda on December 10, 1998. <br />OWASA has requested input from the Board of Commissioners on two questions: <br />1) what are the Commissioners' views about the request and does the Board of Commissioners concur <br />with OWASA's view that the request is reasonable? <br />2) does the Board of Commissioners have comments or suggestions regarding the method for calculating <br />a fair and equitable payment from OWASA to Orange Grove? <br />With regard to the first question, County staff believes that it is reasonable for OWASA to make <br />payments to Orange Grove VFD. OWASA Attorney Bob Epting has articulated a logical basis for such <br />reimbursements in his December 1, 1998 letter to OWASA Executive Director Ed Kerwin, and has stated <br />his opinion that it is within OWASA's statutory authority to make such payments. Staff offers two further <br />observations about the proposed payments. First, if OWASA proceeds with such payments, it is <br />reasonable to expect that other volunteer fire departments may consider approaching other local <br />government entities about payments for tax- exempt government properties that are protected by those fire <br />departments. Second, it is reasonable to expect the Orange Grove VFD Board of Directors to factor any <br />