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16 <br />M M 8 ff V F_ <br />swat of the Town's extraterritorial planning area, and the urban <br />transition areas. <br />We believe OWASA's service area should be defined as a Chapel Hill <br />- Carrboro urban services area bounded by the University Lake <br />watershed on the west, the Now Hope Creek part of the Rural Buffer <br />area to the north, Durham - Chapel Hill annexation boundary on the <br />east and the Chatham County and Rural buffer boundaries to the <br />south. <br />Defining such a service area would help OWASA make long -range plans <br />for system capacity based on a discrete area rather than based on <br />undefined, unknown and continually growing service area. <br />The proposed service area would also reflect the fact that <br />residents of Chapel Hill and Carrboro and a few surrounding areas <br />are paying for the cost of acquiring the OWASA system in 1977 and <br />for making major system improvements including purchase and <br />development of the Cane Creek reservoir and expansions of treatment <br />plants. The long -term capacity of the present OWASA water and <br />wastewater system should be kept in place to serve the Chapel Hill - <br />Carrboro area citizens who have and will pay for these assets. <br />In addition, defining the Chapel Hill - Carrboro service area would <br />help provide focus on meeting community needs which already exist, <br />including reduction of inflow and infiltration into the wastewater <br />system, addressing neighborhoods where private septic and well <br />systems will eventually need to be replaced in the urban service <br />area, and other basic system needs. <br />OWASA's capital improvement program documents in past years have <br />shown an emphasis on accommodating demand associated with new <br />development. While this objective is appropriate and consistent <br />with the 1977 Purchase and Sale Agreements, there should be an <br />equal emphasis on meeting the needs of neighborhoods which are <br />already developed but lack public water and sewer service in areas <br />designated for urban'services. <br />We note that defining a Chapel Hill- Carrboro service area would be <br />consistent with the provisions in the 1977 sales agreements that <br />OWASA will meet the reasonable needs of the Towns of Carrboro and <br />Chapel Hill for wastewater services. <br />Defining a service area for OWASA based on the principles in the <br />Joint Planning Agreement is the single most important policy matter <br />which should be addressed by the local governments. Such a decision <br />or not of decisions would have important and positive effects <br />regarding the focus and priorities for the Authority. <br />We note that a service area as described above need not preclude <br />contractual arrangements with other jurisdictions under appropriate <br />conditions, which are discussed below. <br />