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15 <br />Mnipff4 <br />of Understanding as a commitment to communication, and as a <br />mechanism for further agreement through refinements and /or <br />supplemental documnts as the local governments reach agreement on <br />additional matters. <br />The Council's proposal for annual, intergovernmental review of <br />OWASA's draft capital improvement programs is an example of a <br />procedure which could be incorporated into the communication <br />process for OWASA and the local governments. <br />II. Service area and OWASA system development <br />Back round <br />OWASA now serves about 60,000 customers in Chapel Hill, Carrboro <br />and surrounding areas including the Durham County part of Chapel <br />Hill and about a dozen customers in northern Chatham County near <br />Star Point. <br />OWASA's present customers in the University Lake watershed include <br />the Heritage Hills neighborhood west of Smith Level Road and the <br />Rangewood neighborhood south of NC 54 and west of Hatch Road. These <br />two neighborhoods were developed many years ago, before OWASA <br />adopted restrictions on extending service into the watershed. <br />In 1987, OWASA adopted a policy restricting extension of its <br />service into this watershed except due to imminent hazards. In <br />1990, the OWASA Board amended this policy on the advice of general <br />counsel to allow service to lots assessed for sewer service in the <br />Rangewood neighborhood.. <br />OWASA has also entered into a service area agreement with the City <br />of Durham which parallels the 1986 annexation boundary agreement <br />between Durham and the Town of Chapel Hill. <br />OWASA has no other service area. boundary agreements, but the Board <br />has adopted a policy of being guided by:_the land management plans <br />of the localities which OWASA serves. <br />Comments and recommendations: <br />The 1987 Joint Planning Agreement among Chapel Hill, Carrboro and <br />Orange County defines Urban Transition and Rural Buffer areas as <br />part of a Joint Planning Land Use Plan (attachment). <br />The Rural Buffer includes most of the Now Hope Creek drainage basin <br />north of Chapel Hill and Carrboro, and most of the University Lake <br />watershed. The Towns have agreed not to annex Rural Buffer areas <br />defined in this agreement. <br />Based on these concepts, the Chapel Hill land use plan includes an <br />"urban services" district including the area in the Town limits, <br />