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2 <br />A RESOLUTION REGARDING THE UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL'S PAYMENT C <br />SERVICE AVAILABILITY FEES TO THE ORANGE WATER AND SEWER AUTHORITY FOR WATER <br />AND WASTEWATER TREATMENT PLANT CAPACITY AND RELATED INFRASTRUCTURE <br />COSTS ASSOCIATED WITH NEW DEVELOPMENT <br />WHEREAS, the University of North Carolina at Chapel Hill (the University) and the Towns of Carrboro and Chape <br />Hill transferred their water and sewer utilities to the Orange Water and Sewer Authority (OWASA) in <br />February, 1977; and <br />WHEREAS, the transfer of water and sewer responsibilities occurred through Agreements of Sale and Purchase, <br />which require as a fundamental principle that OWASA's rates be based oncosts of service; and <br />WHEREAS, the Agreements of Sale and Purchase also exempt the University from acreage fees and similar fees <br />(now called service availability fees) for new connections to then-existing mains transferred to <br />OWASA, and the University sold its water and wastewater assets to OWASA at less than market value <br />and <br />WHEREAS, the University and OWASA entered into a Memorandum of Agreement in 1996 which defined, with a <br />map, the central campus as the area in which the University is exempt from paying service availability <br />fees; and <br />WHEREAS, when the University and OWASA developed the 1996 Memorandum of Agreement, the University ha <br />expressed an intent that future development would primarily occur on the University's Horace Willian <br />and Mason Farm tracts and not in the central campus area; and <br />WHEREAS, the Chapel Hill Town Council supported the 1996 Memorandum of Agreement between the University <br />and OWASA; and <br />WHEREAS, the University is now planning to concentrate new growth within the central campus area, which was <br />not anticipated to occur when the University and OWASA entered into the 1996 Memorandum of <br />Agreement; <br />NOW, THEREFORE, BE Tf RE5OLVED by the Orange County Board of Commissioners that the Board: <br />Supports the OWASA Board of Directors' stated position that cost recovery from the Univers: <br />related to growth is consistent with the cost of service principle whereby all customers pay the <br />full and fair share of the cost far the water and sewer service they receive, and the Board stanc <br />ready to assist as needed. <br />2. Expresses its appreciation to the University for its readiness to discuss ideas fora mutually <br />acceptable.solution concerning service availability fees. <br />Encourages OWASA and the University to expeditiously seek a fair resolution to this matter. <br />This the 6~' day of rune, 2000. <br />