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Y. <br />OWAS~4 ORANGE WATER & SEWER ACITHORITY <br />Q~ualiry Service Sine 1977 <br />MEMORANDUM <br />TO: Board of Directors <br />FROM: l:d Kerwin <br />DATE: ,October 5, 1999 <br />SUBJECT: University of North Carolina at Chapel Hill <br />Service Availability Fccs <br />BACKGROUND <br />Pursuant to Chapter 723 of the North Carolina Session Laws of 1971, the ti{~ater and sewer utility <br />facilities previously owned by The University of North Carolina at Chapel Hill (the University) <br />were conveyed to OWASA on February 15, 1977, and a Sale and purchase Agreement lietwccn <br />the State of North Carolina, on behalf of the University, and O WASA evidencing such <br />conveyance was executed. Sale and Purchase Agreements between the Towns of Chapel Hill <br />and Carrboro and OWASA were also executed in 1977. <br />The Saie and Pwrcttase Agreement between the University and OWASA pro~hded that the <br />University would not be obligated to pay wnnection fees (Service Availability Fees) for new <br />water and sewer service in the central campus area. It is believed that this arrangement was <br />based on the fact that OWASA was receiving certain value for water and se~~er facilities <br />conveyed by the.University at no cost lo. OWASA. <br />[n 1996, OWA$A and the~Univexsity entered into a Memorandum ofAgroement (MOA) which <br />Provided further cl~r'ifcation of the original Sale and Purchase Agreement. The MOA <br />specifically outlined the geographic areas of the Universityy that would and ~abuld not be subject <br />to Service Availability Ears. These boundaries were established with certain assumptions about <br />future dexrtartd for water and sewoer service within the University's certtr-al campus area. As you <br />know, cxurent chaster planning efforts by the University now indicate that there will be <br />substantially greater growth in the cents( campus area than was assumed in 1996 when the <br />MOA was signed. In view of this information, it is appropriate to amend the MOA to reflect <br />what we and the University now know about future water and sewer demands of the central <br />'campus area. <br />APPROACH <br />Staff proposes what we believe to be a simple, yet equitable approach. We cu<~~~est that when the <br />University reaches the maximum arnourtt of existing or approved devclapcd tlc~or area <br />permissible on the central campus according to tltc 'hewn of Chapel !-fill's ronin~ rc~ulations. <br />~1,3~{ <br />