Agenda - 06-06-2000-5c - Laserfiche WebLink

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2 I A RESOLUTION REGARDING THE UNIVERSITY OF NORTH CAROLINA A CHAPEL HILL'S PAYMENT OF SERVICE AVAILABILITY FEES TO THE ORANGE WATER AND SEWER AUTHORITY FOR WATER AND WASTEWATER TREATMENT PLANT CAPACITY AND RELATED INFRASTRUCTURE COSTS ASSOCIATED WITH NEW DEVELOPMENT (2000-03-Z7/R-23) WHEREAS, the University of North Cazolina at Chapel Hill (the University) and the Towns of Carrbom and Chapel Hill transferred theix water and sewer utilities to the Orange Water and Sewer Authority (OWASA) in February, 1977; and WHEREAS, the transfer of water and sewer responsibilities occurred through Agreements of Sale and Purchase, which require as a fundamental principle that OWASA's rates be based on costs of service; and WHEREAS, the Agreements of Sale and Purchase alsa exempt the University from acreage fees and similaz fees (now called service availability fees) Far new connections to then-existing mains transferred to OWASA, and the University sold its water and wastewater assets to OWASA at less than mazket value; and WHEREAS, the University and OWASA entered into a Memorandum of Agreement in 1996 which defined, with a map, the central campus as the area in which the University is exempt from paying service availability fees; and WHEREAS, when the University and OWASA developed the 1996 Memorandum of Agreement, the University had expressed an intent that future development would primarily occur an the University's Horace Williams and Mason Farm tracts and not in the central campus azea; and WHEREAS, the Chapel Hill Town Council supported the 1996 Memorandum of Agreement between the University and OWASA; and WHEREAS, the University is now planning to concentrate new growth within the central campus azea, which was not anticipated to occur when the University and OWASA entered into the 1996 Memorandum of Agreement; NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council: Supports the OWASA Board of Directors' stated position that cost recovery from the University related to growth is consistent with the cost of service principle whereby all customers pay their full and fair share of the cost for the water and sewer service they receive, and the Council stands ready to assist as needed. 2. Expresses its appreciation to the University far its readiness to discuss ideas far a mutually acceptable solution concerning service availability fees. 3. Encourages OWASA and the University to expeditiously seek a fair resolution to this matter. - This the 27~' day of Mazch, 2000.