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<br />ITEM Y 2 <br />AGENDA CT'EM <br />DISCUSSION OF UN[VERSiTY OF NORTH CAROLfNA SERVICE AVAILABILITY FEES <br />PURPOSE <br />- To solicit Board comment on staffs recommended approach to amend the 1996 Memorandum of <br />Agreement between the University and OWASA with respect to Service Availability Fees. <br />BACKGROUND <br />Pursuant to Chapter 723 of the North Carolina Session Laws of 1971, the water and sewer utility <br />facilities previously owned by The University of North Carolina at Chapel Hill (the University) were <br />conveyed to OWASA on February l 5, 1977, and a Sale and Purchase Agreement between the State of <br />North Carolina, on behalfof the University, and OWASA evidencing such conveyance was executed. <br />Sale and Purchase Agreements between the Towns ofChapel Hill and Carrboro and OWASA were <br />also executed in 1977. <br />- !n 1996, OWASA and the University entered into a Memorandum oCAgreement (MOA) which <br />provided further clarification of the original Sale and Purchase Agreement. The MOA specifically <br />outlined the geographic areas of the University that would and would not be subject to Service <br />Availability E'ees. These boundaries were established with certain assumptions about future demand <br />Cor water and sewer service within the University's central campus area. <br />• Current master planning efforts by the University now indicate that there will be substantially greater <br />growth in the central campus area than was assumed in 1996 when the MBA was signed. [n view of <br />this information, it is appropriate to amend the MOA to reflect what we and the University now know <br />about future water and sewer demands of the central campus area. <br />• Staff proposes that once the University reaches the maximum amount of existing or approved <br />developed floor area permissible on the central campus according to the Town of Chapel Hill's zoning <br />regulations, that the University would thereafter be responsible for paying all O~VASA Service <br />Availability Fees. <br />• According to the Town oCChapel Hill, the total amount of floor area existing or approved Cor <br />devclapment by [hc University on central campus as of April 1999 waz 13,213,522 square Cect. Thc <br />current maximum amount of floor area permissible under tht town's zoning regulations for t1~e central <br />campus is !4,(94,410 square feet- <br />ACTCON I~IEEDED <br />• Board discussion of staffs rccommcndation and direction to staff. <br />October 14, 1999 <br />1x.33 <br />