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Orange Water and Sewer Authority <br /> 77 <br /> February 11,1999 <br /> Page 19 - <br /> Towns annex land and OWASA serving that annexation. Regarding whether OWASA should have <br /> the authority to acquire retail customers in Chatham County, that is power that OWASA does not <br /> need. Dr.Gordon said it is politically wrong for customers Jmot to have a say on appointments to the <br /> OWASA Board of Directors when the Board is not in a position to reconstitute how members are <br /> appointed. <br /> Patrick Davis said it is important to point out that the comments the Board made relative to <br /> the retail service provision particularly in Chatham County clearly stated there is no intention on <br /> OWASA's part to unilaterally make a decision: Mr. Davis said the Board's concerns have been <br /> related to annexation and orderly growth and development of the two municipalities with whom <br /> OWASA has Sale and Purchase Agreements. <br /> Susannah Holloway said that as Robert Epting pointed out in his January 25,1999 letter,the <br /> annexation issue would not help the problem with The University of North Carolina at Chapel Hill <br /> (The University). The University Is a party to the Sale and Purchase Agreements and yet they are <br /> not part of the boundary agreement. Ms.Holloway said The University's rights might be affected by <br /> the boundary agreement. Susannah Holloway asked if there.was a way to have The University <br /> represented in the boundary-agreement. <br /> Peter Gordon said he would be concerned If the Sale and Purchase Agreements with The <br /> University could be construed to.say that if The University decided to build a campus In Chatham <br /> County that OWASA would have to serve them. <br /> Robert Epting said there isn't any question that the Sale and Purchase Agreements with The <br /> University says exactly that. Mr.Epting said the obligation of OWASA is to serve the orderly growth <br /> and development of the Town of Carrboro,Town of Chapel Hill,and The University. Robert Epting <br /> said that if The University expanded to Chatham County they would first look to Chatham County <br /> for their water. There isn't any reasonable likelihood that The Universitywould locate in Chatham <br /> County where OWASA water would be cheaper than Chatham County's water or more desirable to <br /> The University than Chatham County's water. Mr. Epting said OWASA would have to request <br /> Chatham County for the right to acquire easements and Chatham County now has the right to <br /> disapprove and could prevent OWASA from serving The University should they expand to Chatham <br /> County. Robert Epting said, for practical purposes,it is remote given that OWASA does not have a <br /> way to lay Its pipe In the ground In Chatham County without the permission of the Chatham County <br /> Board of Commissioners and why would they give permission when they could be selling water to <br /> The University themselves. Mr.Epting said he did not intend to imply that The University's ability <br /> to require that OWASA provide its service in Chatham County was a serious constraint In the Water <br /> and Sewer Management,Planning and Boundary Agreement. Robert Epting said he mentioned this <br /> matter because he believed It Is Important to understand that OWASA was formed for the purpose of. <br /> Providing service to The University on the same terms and conditions as It wasproviding service to <br /> the Town of Carrboro and the Town of Chapel Hill and their growth and development was clearly <br /> anticipated in 1977. <br /> Patrick Davis said when the Sale and Purchase Agreements were entered into with the Town <br /> of Carrboro and the Town of Chapel Hill, Franchise Agreements were also entered Into and It was <br /> agreed that the Town of Carrboro and the Town of Chapel Hill would not get into the water and <br /> sewer business. There are provisions that say that as long as OWASA is able to provide service to <br /> The University to accommodate growth and development then The University would rely on <br /> OWASA,but in the event that OWASA was constrained then The University had the right to do any <br /> and all things necessary to meet its growth requirements. <br /> Dan VanderMeer said the next discussion item is the sizing of lines and whether or not the <br /> agreement ought to address line sizing. <br /> �0 3� <br />