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Memorandum <br />Excess Capacity Credit Policy <br />November 3, 2005 <br />Page 2 <br />formed (Terri Buckner, Mac Clarke, Randy Kabrick, Mark Marcoplos) and met <br />with staff on October 13, 2005 (meeting summary attached). From this meeting <br />there was general agreement that any proposed excess capacity credit policy <br />would include the following principles. <br />COMPONENT WATER SEWER <br /> 8" minimum or size 8" minimum or size <br />Base Size required to meet required to meet <br /> develo ment demands develo ment demands <br /> a) Undeveloped drainage <br /> Entire OWASA service basins and subbasins, <br />Benefited Area or <br /> area b) Entire OWASA service <br /> area <br />Determination of Differential construction Differential construction <br />amount to be cost as determined by cost as determined by <br />credited OWASA OWASA <br /> Oversized water main Oversized sewer main <br /> projects eligible for a credit credits would be funded <br />Funding Source would be funded through through the collection of a <br /> the capital program sewer availability fee <br /> surchar e <br /> Sewer availability fee <br /> Water service fees, surcharge collected from: <br />Collection of commodity fees and water a) only new customers <br />funds for credits availability fee collected located within the <br /> from the general ratebase undeveloped basins, or <br /> b all new customers <br /> Annual payment based on <br />Disbursement of Lump sum at the time fees collected and number <br />funds facilities are dedicated to of active projects where <br /> OWASA excess capacity is being <br /> rovided. <br />Further detail on the basis for these principles is discussed below. <br />Base Size: <br />The Town of Chapel Hill has a requirement stating that the minimum water main <br />size for all mains providing service to fire hydrants is 8 inches ar larger in <br />diameter unless approved otherwise by the Town Manager and OWASA The <br />North Carolina Division of Water Quality (DWO) considers an 8 inch diameter <br />sewer main as the minimum reasonable size for providing public sewer service <br /> <br />