Minutes 03-22-2018 Chapel Hill - Laserfiche WebLink

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24 • System development fees are known by a variety of names, e.g. availability fees, impact fees. These are one-time fees for new connections, such as new residences and businesses, to the community’s water and sewer system. System development fees recover the cost of the capacity needed to provide water and sewer services to these new properties. • Utilities use a variety of methods to calculate these type fees: o Size of meter serving the property o Square footage o Type of property • OWASA was one of the first utilities to use square footage in determining fees applicable to residences. • Table 2 shows a comparison of system development fees neighboring utilities charge for a 1,600-square foot residential property. (Rates shown for OWASA are proposed based on the new NC law. The other utilities listed must go through the same process so their rates may also change.) • Number of accounts is noted because in a capital-intensive industry, such as water and wastewater, economies of scale (or lack thereof) can significantly impact cost-of-service fees. Council Member Parker said he applauds the creation of the lower tier, and bringing the rates down. He referred to tiny homes, which are typically 500 square feet or less, and asked if it would be possible to have an even lower tier just geared towards tiny homes. He said many of the tiny homes use compost toilets, and asked if it would be possible to get a special discount on the sewer rates, if the standard amount of sewerage is not being used. Mary Tiger said these are things that can be considered as the data is reviewed. She said the marked change in water usage seems to be at 800 square feet or less. Council Member Schaevitz said she has heard from OWASA that the percentage of people who participate in the care to share program was 8%. She asked if this is still accurate. Mary Tiger said it is probably about 5%. Council Member Schaevitz said she would like to think of ways that this number can be increased. She said it is likely related to a marketing need. She asked if Mary Tiger could come back with some suggestions as to how the elected boards can help. Mary Tiger said she would be glad too. Commissioner Rich said elected officials have been trying to do this for years. Council Member Parker said to make it an opt-out program, rather than an opt-in. Council Member Schaevitz asked if it is legally possible to make that change. Commissioner Rich said staff can provide the data from previous attempts to increase awareness of this program, and perhaps a new set of eyes will come up with new suggestions. Mary Tiger said Care to Share has typically been promoted as a round-up program, and about 95% of contributors would round up, and 5% were contributing a fixed amount. She said 35% comes from these fixed contributors. She said letters have been sent out to contributors, encouraging them to use the fixed model of contribution. Commissioner Rich asked if Mary Tiger would highlight where these funds go. Mary Tiger said the funds go to the InterFaith Council for Social Services (IFC), which they use to help their clients pay for water and sewer services, and provide rent assistance when it includes water and sewer service. Commissioner Jacobs said OWASA participates, but the Mayor started a Jordan Lake user/protector group and having sat through several of the meetings and listened as Raleigh and Durham by land in Orange County to protect water quality, and he wrote a letter to the