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O WASA ORANGE WATER & SEWER ALITHORI ~ L _.~ ;~_~-_ <br />~.. ; r <br />Qrualitti~ Service Sinc ID -- <br />March 13, 2000 ~~ <br />Commissioner Moses Carey, Chairman Mayar Michael Nelson Mayor Rosemary a orf~ - - <br />Orange County Board of Commissioners Town of Carrboro Town of Chapel Hill <br />P.4. Box 8181 301 West Main Street 306 North Columbia Street <br />Hillsborough, NC 27278 Carrboro, NC 27510 Chapel Hill, NC 27516 <br />Subject: Service Availability Fees <br />Dear Commissioner Carey, Mayor Nelson, and Mayor Waldorf: <br />As you may know, OWASA staff has held discussions with University officials during the last year or <br />so in an attempt to resolve what we believe will be an inequity between the University and our other <br />existing and future customers with regards to the payment of connection fees for new service (Service <br />Availability Fees). This situation has occurred as a result of the University's stated intention of <br />concentrating new growth within the central campus area rather than at outlying property as previously <br />understood. <br />At our February 24, 2000 meeting, the Board of Directors strongly and unanimously affirmed our <br />support for cost recovery from the University related to growth consistent with the "cost-of-service" <br />principle (whereby all customers pay their full and fair share of the cast for the service they receive). <br />This "cost-of service" principle is the foundation for all of our rate-setting decisions as clearly <br />established in the Sale and Purchase Agreements among OWASA, the University, and the Towns. <br />Furthermore, our Boazd directed staff to attempt to successfully resolve this issue with University <br />officials by May 1, 2000. <br />I have enclosed the agenda material from our February 24`" Board meeting which provides further <br />information regarding this issue (some attachments are not included because of their size). I have also <br />provided a copy of Mr. Ed Kerwin's February 25~' letter to Mr. John P. Evans expressing the Board's <br />position and desire to work cooperatively with the University to resolve this matter. <br />We will keep you and your colleagues advised and, as always, we welcome your feedback. <br />Very truly yours, <br /> <br />Peter C. Gordon, Chairman <br />Board of Directors <br />Enclosures <br />c: Board of Directors <br />Ed Kerwin <br />~f~~~ <br />-F00 Jones Ferrv Road Equal Opporrunin~ ~mplu~ei li~ice (9l9) 968-~? 1 <br />PO Sc~x 366 a,-~.,~,.a ,,., R.,,-.-,-I~.! r~..,~... Gnv jai a~ ova n icn <br />