Agenda - 4-a - OWASA Annual Update Presentation

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OWASA System Development Fees December 18, 2017 Page 2 The new “low-tier” is proposed to be <800 square feet. The combination of the new methodology and new tier will result in a 47% reduction of system development fees for these very small homes. Multi-family Residential and Nonresidential: System development fees for new master-metered multi-family and non-residential properties are also based on anticipated water use using meter size as a proxy for water use. Depending on the meter size, system development fees will be reduced by 14-18% under the proposed fees for these property types. The OWASA Board of Directors discussed the issue at our December 14, 2017 Work Session and will decide on the methodology used to calculate the revised system development fees at our January 25, 2018 meeting. We do not anticipate community opposition to the proposed methodology. Once the methodology is determined on January 25th, we will publicize our analysis and calculations and incorporate the consideration of the revised fees into our annual budget and rates schedule, including a public hearing. The law requires that the new system development fees be in-place by July 1, 2018. We recognize that this letter provides a level of detail that we generally do not proactively share with you, but we believe it is important to provide you with an explanation of our process and advanced notification of changes that will impact water and sewer service affordability in our community. On behalf of the entire OWASA Board of Directors, we welcome your feedback, thoughts and questions. Sincerely, Robert Morgan, Chair Board of Directors c: Mr. Roger Stancil, Chapel Hill Town Manager Mr. David Andrews, Carrboro Town Manager Ms. Bonnie Hammersley, Orange County Manager OWASA Board of Directors Ed Kerwin, OWASA Executive Director 9