RES-2000-043 Resolution Regarding University of North Carolina's Payment of Service Availability Fees to the Orange County Water and Sewer Authority (OWASA)

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C, cS 3 A RESOLUTION REGARDING THE UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL'S PAYMENT OF SERVICE AVAILABILITY FEES TO THE ORANGE WATER AND SEWER AUTHORITY FOR WATER AND WASTEWATER TREATMENT PLANT CAPACITY AND RELATED INFRASTRUCTURE COSTS ASSOCIATED WTTH NEW DEVELOPMENT WHEREAS, the University of North Carolina at Chapel Hill(the University)and the Towns of Carrboro and Chapel Hill transferred their water and sewer utilities to the Orange Water and Sewer Authority(OWASA)in February, 1977;and WHEREAS, the transfer of water and sewer responsibilities occurred through Agreements of Sale and Purchase, which require as a fundamental principle that OWASA's rates be based on costs of service;and WHEREAS, the Agreements of Sale and Purchase also exempt the University from acreage fees and similar fees (now called service availability fees),for new connections to then-existing mains transferred to OWASA, and WHEREAS, the University and OWASA entered into a Memorandum of Agreement in 1996 which defined,with a map,the central campus as the area in which the University is exempt from paying service availability fees;and WHEREAS, when the University and OWASA developed the 1996 Memorandum of Agreement,the University had expressed an intent that future development would predominantly occur on the University's Horace Williams and Mason Farm tracts and not in the central campus area;and WHEREAS, the Chapel Hill Town Council supported the 1996 Memorandum of Agreement between the University and OWASA;and WHEREAS, the University is now planning to concentrate new growth within the central campus area,which was not anticipated to occur when the University and OWASA entered into the 1996 Memorandum of Agreement; NOW,THEREFORE,BE IT RESOLVED by the Orange County Board of Commissioners that the Board: 1. Supports the OWASA Board of Directors' stated position that cost recovery from the University related to growth is consistent with the cost of service principle whereby all customers pay their fair share of the cost for the water and sewer service they receive. 2. Expresses its appreciation to the University for its readiness to discuss ideas for a mutually acceptable solution concerning service availability fees. 3. Encourages OWASA and the University to expeditiously seek a fair resolution to this matter, and stands ready to assist as needed. This the 6h day of June, 2000.