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r <br /> 8 a <br /> Memorandum <br /> Water and Sewer Boundaries <br /> November 3, 1995 <br /> Page 4 <br /> submitted that the provision of utility service within areas circumscribed by a boundary <br /> agreement represents an exclusive privilege with concomitant responsibilities, such as the <br /> technical, administrative, and financial capability of providing those services, as well as some <br /> responsibility for failing private systems in the designated area of interest. <br /> The Chapel Hill resolution(and Orange County staff recommendation) recommend "that Orange <br /> County governments and utilities enter into,on an interim basis,a memorandum of <br /> understanding to abide by the proposed utility boundaries pending a permanent agreement ..." <br /> The Chapel Hill resolution also proposes that "representatives of the local governments and <br /> utilities discuss, in parallel with the utility service area boundary considerations, additional issues <br /> identified in the task force's December 14th report including responsibilities for dealing with <br /> failure of private community water and wastewater systems and with the consideration of <br /> proposed new community systems" (see pages 22 and 26, attached). This proposal for parallel <br /> discussions of boundaries and other issues neither provides nor rules out the degree of linkage <br /> that might be acceptable to OWASA. <br /> Recommendations <br /> If the Authority proceeds toward negotiation of an interim agreement as proposed by Chapel <br /> Hill, I recommend that such an agreement include necessary commitments to the two basic <br /> provisions of the Board's May 25 resolution; specifically, a willingness of all participants to <br /> formalize a long term agreement through binding legislation; plus an appropriate commitment to <br /> clarifying and resolving the "correlative objectives" of the December 14, 1994 Task Force <br /> Report. Other issues noted by the Authority in Exhibits 2 and 3 (see pages 10-13, attached) <br /> should be pursued as appropriate both through negotiations of the proposed interim agreement as <br /> well as through the "parallel discussions" proposed to take place. <br /> Please let me know if I can provide further information or commentary. <br /> Edward A. Holland, AICP <br /> Director of Planning and Development <br /> encl. <br /> PROVIDE TO BOARD OF DIRECTOR <br /> AP T <br /> /Z• <br />