Agenda - 05-06-1998 -10a - Laserfiche WebLink

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