Agenda - 02-21-2017 - 4-b - OWASA Annual Update Presentation

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41411111111k 2 OWASA ORANGE WATER AND SEWER AUTHORITY A public, non-profit agency providing water, sewer and reclaimed water services to the Carrboro-Chapel Hill community. January 20, 2017 Mayor Pam Hemminger Mayor Lydia Lavelle Chair Mark Dorosin Town of Chapel Hill Town of Carrboro Orange County Board of 405 Martin Luther King Jr. 301 West Main Street Commissioners Boulevard Carrboro, NC 27510 PO Box 8181 Chapel Hill, NC 27514 Hillsborough, NC 27278 Dear Mayor Hemminger, Mayor Lavelle and Chair Dorosin: We are pleased to submit this annual report on our services,projects and initiatives in 2016. Sewer for the Historic Rogers Road Area Orange County and OWASA have approved an agreement for OWASA's services in bidding, construction administration and construction oversight for the installation of sewer to serve the Rogers Road area. Construction is scheduled to begin in summer 2017 and finish in summer 2018. The project will include 3.5 miles of sewer pipes and will pass by 104 properties, including 86 in the Historic Rogers Road Area. New water rate for Multi-Family Master-Metered customers On December 8th, we approved a change in the water rates for Multi-Family Master-Metered (MFMM) customers, such as apartment complexes. Starting in May 2017, these customers will pay a year-round water rate of$5.67 per 1,000 gallons instead of the current seasonal water rates, which are higher from May through September and lower in the other seven months. In the past, MFMM residents expressed concern about unexpected increases in private water/sewer bills with the change to our peak seasonal rate in May, even when a resident's water use has not increased. About 7,700 households living in approximately 200 apartment complexes in Chapel Hill and Carrboro receive private water and sewer bills from property owners. Under rules of the NC Utilities Commission, the owners can pass through water/sewer costs to residents through private sub-metering and billing arrangements. The year-round rate will eliminate bill fluctuations due to changes in seasonal rates, so private bills should result in fewer questions and less confusion. Letter to the governing boards on December 13, 2016 Financial management Fiscal Year 2017 is the fifth consecutive year with no increase in our monthly rates. We received an unmodified opinion from our independent auditors for our FY 2016 Comprehensive Annual Financial Report. We continue to meet our financial performance objectives including the metric 400 Jones Ferry Road Equal Opportunity Employer Voice (919) 968-4421 Carrboro, NC 27510-2001 Printed on Recycled Paper www.owasa.org