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VOTE: UNANIMOUS <br />c. Resolution Regarding University of North Carolina's Payment of Service Availability Fees <br />to the Orange County Water and Sewer Authority (OWASA) <br />The Board considered a resolution of support for OWASA's cost recovery from UNC Chapel Hill <br />relative to growth under the "cost-of-service" principle. <br />Chair Carey said that this was placed on the agenda because it was a foundation for some <br />discussions that OWASA is currently having with the University of North Carolina to try and pursue equity in <br />the payment, development, and maintenance of certain facilities in the OWASA service area. <br />Commissioner Jacobs made some changes to the wording of the resolution, and they are <br />incorporated in the blue copy. <br />A motion was made by Commissioner Brawn, seconded by Commissioner Halkiotis to approve <br />and authorize the Chair to sign the resolution as changed by Commissioner Jacobs and stated below: <br />A RESOLUTION REGARDING THE UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL'S PAYMENT <br />OF SERVICE AVAILABILITY FEES TO THE ORANGE WATER AND SEWER AUTHORITY FOR WATER <br />AND WASTEWATER TREATMENT PLANT CAPACITY AND RELATED INFRASTRUCTURE <br />COSTS ASSOCIATED WITH NEW DEVELOPMENT <br />WHEREAS, the University of North Carolina at Chapel Hill (the University} and the Towns of Carrboro and <br />Chapel Hill transferred their water and sewer utilities to the Orange Water and Sewer Authority <br />(OWASA} in February, 1977; and <br />WHEREAS, the transfer of water and sewer responsibilities occurred through Agreements of Sale and <br />Purchase, which require as a fundamental principle that OWASA's rates be based on costs of <br />service; and <br />WHEREAS, the Agreements of Sale and Purchase also exempt the University from acreage fees and <br />similar fees {now called service availability fees) for new connections to then-existing mains <br />transferred to OWASA, and <br />WHEREAS, the University and OWASA entered into a Memorandum of Agreement in 1996 which defined, <br />with a map, the central campus as the area in which the University is exempt from paying <br />service availability fees; and <br />WHEREAS, when the University and OWASA developed the 1996 Memorandum of Agreement, the <br />University had expressed an intent that future development would predominantly occur on the <br />University's Horace Williams and Mason Farm tracts and not in the central campus area; and <br />WHEREAS, the Chapel Hill Town Council supported the 1996 Memorandum of Agreement between the <br />University and OWASA; and <br />WHEREAS, the University is now planning to concentrate new growth within the central campus area, <br />which was not anticipated to occur when the University and OWASA entered into the 1996 <br />Memorandum of Agreement; <br />NOW, THEREFORE, BE IT RESOLVED by the Orange County Board of Commissioners that the Board: <br />Supports the OWASA Board of Directors' stated position that cost recovery from the <br />University related to growth is consistent with the cast of service principle whereby all <br />customers pay their fair share of the cost for the water and sewer service they receive. <br />Expresses its appreciation to the University for its readiness to discuss ideas for a <br />mutually acceptable solution concerning service availability fees. <br />Encourages OWASA and the University to expeditiously seek a fair resolution to this <br />matter, and stands ready to assist as needed. <br />