Minutes 02-17-2026 - Business Meeting

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10 Chair Hamilton thanked Michael Hughes, Johnny Randall, and OWASA staff for this presentation. Commissioner Greene asked for additional information about the southern Chapel Hill project challenges. Michael Hughes explained that one significant challenge is the need for sewer line extensions to support development in the newly annexed area of southern Chapel Hill. He said the existing infrastructure currently serves the South Creek development only. He noted that developers must extend sewer lines to their properties, which can be costly in terms of both construction and design/permitting expenses. To address these challenges, he emphasized the collaborative work being done between OWASA and the Town of Chapel Hill. He discussed that Chapel Hill's$50,000 grant supports a joint study with OWASA to determine the optimal alignment of sewer facilities, which could allow new developments to tie into existing systems more efficiently. He also mentioned the possibility of developing a reimbursement policy for developers who install infrastructure that benefits larger areas and not just their individual projects. This policy could distribute the costs more equitably among those benefiting from the extensions, ultimately lowering a barrier to development. Commissioner Greene said this goes to show how difficult it will be to get housing there. Michael Hughes asserted that OWASA remains committed to finding ways to facilitate strategic growth and support the development of additional housing. This includes working with the broader development community to boost communication and trust, and reassessing existing standards and specifications to better engage with developers and engineers. Commissioner Carter thanked them for this presentation and update. She also thanked OWASA staff for their work during Chantal. She asked Michael Hughes to talk more about what led to decision to separate out PFAS effort. Michael Hughes explained that the site where both the Clearwell and PFAS projects were planned had numerous constraints, including limited parking spaces needed for construction work. These constraints, coupled with deferred regulatory requirements, led to the decision to prioritize the Clearwell construction. He explained that OWASA's staff has been effectively managing water treatment processes to ensure that the water provided met proposed regulatory levels, reducing the urgency of the PFAS project. Vice-Chair Fowler inquired about the 16% rate increase in FY 23 and the timeline and funding strategy for the required capital expenditures. OWASA Deputy Director, Stephen Winters, said OWASA typically finances such projects using bonds with a maturity of 20-25 years. Vice-Chair Fowler asked if bonds are only being taken out for the Clearwell right now. Stephen Winter explained that OWASA has been strategically increasing rates to build necessary fund balances ahead of significant expenditures, and nothing has been borrowed yet. Commissioner McKee asked about the PFAS level in the water supply. Michael Hughes clarified that the raw water from Cane Creek Reservoir has a PFAS concentration of 110 parts per trillion. However, thanks to the diligent work of OWASA's staff and the current treatment processes, the PFAS levels in the treated water supplied to residents are reduced to approximately seven parts per trillion, adhering to the proposed regulatory limits. Commissioner McKee thanked them for keeping PFAS at the forefront, even though it was deferred. He said he will be bringing forward a petition about using OWASA property for waste collection in the southern part of the county. Commissioner Portie-Ascott asked if reimbursing households that want to tap into the lines being built is the only idea at this time. Michael Hughes said that is just a concept at this point. He assured her there would be additional conversations and public engagement on this issue. Commissioner Bedford asked which entity is allowed to build water and sewer in the areas in question.