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0 <br /> Exhibit 3. 18 <br /> EPTING AND HACKNEY , <br /> ATTORrifXS AND COUNSELLORS AL LAW <br /> 410 AIRPORT WAD <br /> r O.DRAVIES 1329 <br /> CHArEL HLLL.NORTM CAROLINA 27314 <br /> RQ{ERT ETTEt�G TRAYMME 919.0323 <br /> PE HA WCT •ACIIMIQ 929.31W <br /> ELMA{CT11 LICCET CM%is <br /> May 2, 1995 <br /> Mr. Everett Billingsley <br /> Executive Director <br /> Orange Water and Sewer Authority <br /> s Carrboro, NC 27510 <br /> Re: Sewer Service Area Boundary Task Force <br /> Dear Mr. Billingsley: <br /> I understand that the Board of Directors will consider on this <br /> Thursday night Commissioner Carey's December 14, 1994, memorandum <br /> which summarizes areas of potential agreement among the parties to <br /> the Service Area Boundaries Task Force. I have several fundamental <br /> concerns the Board of Directors may want to keep in mind in its <br /> deliberations on this subject. <br /> First, I share Ed Holland's concern as to the scope and <br /> 3 purpose of new tasks rather summarily assigned to parties. within. . . <br /> their areas of interest. The legal purport of th$se "tasks' is the <br /> creation of actual legal duties -in areas where none of the parties <br /> have actual experience. That is, to suggest that OWASA's tasks <br /> Within its area of interests would include respite and remedy from <br /> failed septic or alternative on-site waste treatment facilities, <br /> assigns a concomitant future capital burden for which no planning <br /> has been done to date. or, in the alternative, it requires OWASA <br /> to agree to undertake such tasks under a financial plan depending <br /> entirely upon assessments to the benefitting parties. I suggest <br /> caution in moving forward with any formal legal agreement until <br /> financing sources for gggnty facilities improvements area <br /> identified. <br /> Second, while the parties may determine to agree to service <br /> area boundary limitations, nothing in the enabling statutes or the <br /> organizational documents requires any such limitation. Bond <br /> counsel has often reminded us that potential service area is an <br /> asset having substantial, impact upon the potential financial health <br /> of utilities. OWASA should be sure it receives benefit for the <br /> waiver of any potential service area. <br /> Third, joint service area agreements can be ignored or <br /> = violated as easily as joint planning agreements -and agreements for <br /> sharing of water in times of drought. If the parties determine to <br />