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-Ole" <br />Orange Water and Sewer Authority, <br />" February l 1,1999 <br />Page 14 <br />Dan VanderMecr requested that the points made in Robert Epting's January 25,19" letter <br />be discussed at the February 25, 1999 Board of Directors Meeting <br />William Strom said at some point the Board should talk about significant issues such as <br />whether or not permission is needed from the constituent governments to provide retail services <br />outside Orange County. Mr. Strom said it is his opinion that the Board should put Itself In a position <br />to sign the Water and Sewer Management, Planning and Boundary Agreement. <br />Dan VanderMeer said if the Town of Hillsborough is not participating then the whole <br />process does not seem to make a lot of sense. Why would there be a boundary agreement if it only <br />applies to OWASA? Why Is OWASA involved If the Town of Hillsborough is not participating3 <br />Peter Gordon said in his recent conversations with an elected official and a member of the <br />Task Force Committee, he got the impression that If the Town of Hillsborough will not sign the <br />Water and Sewer Management, Planning and Boundary Agreement that there was not an <br />expectation that OWASA would sign either. Dr. Gordon said his issues are: <br />1. Is the Town of Hillsborough In or out and what does that mean? <br />2. Ed Holland's February 5, 1999 memorandum - states "Current wording could be <br />construed to prohibit construction of a raw water train from Jordan Lake without <br />approval by all three bodies." This should be addressed and clarified. <br />3. With regard to the rural buffer In the watershed, the agreement is outstanding. Orange <br />County's willingness to • have the Orange County Health Department determine the <br />existence of an "adverse public health condition" lets OWASA off the hook. The Board <br />of Directors should make It clear that It Is appreciated. <br />4. There are potential Issues of efacten4 regarding emergency water transfers vs. <br />nonemergency water transfers particularly at the wholesale leveL <br />S. Permission for extending retail service into Chatham County. <br />Patrick Davis asked if the Board agrees with the concept of a formalized service area <br />boundary agreement that would define retail service area establishment for OWASA. Mr. Davis said <br />In past discussions there has been agreement that is a reasonable expectation of OWASA and would <br />be a good demonstration of OWASA's commitment to work In partnership with the local <br />governments. Patrick Davis said the concept of a retail service area boundary Is one that. OWASA <br />has supported In the past and Mr. Davis suggested that OWASA continue to support it. <br />Mr. Davis said if OWASA is looking for the Town of Hillsborough's commitment at *the <br />same time the To" of Hillsborough is looking for OWASA's commitment In a service area <br />boundary, then that Is a key cornerstone. What does It mean to OWASA K the Town of Hillsborough <br />Is not part of the Water and Sewer Management, Planning and Boundary Agreement? Patrick Davis <br />said there are Inconsistent provisions that are applicable to the Town of Hillsborough and their <br />ability to enter Into intergovernmental agreements on retail and wholesale service vs. OWASA's <br />totally different provisions. Mr. Davis said part of what the agreement Is doing is trying to get local <br />elected board control formalized over OWASA's ability to extend services and to enter Into <br />wholesale agreements. It does have significant utility ramifications. <br />Patrick Davis said he heard some representatives on the Water and Sewer Task Force <br />specifically state that they wanted veto authority over any project In which OWASA might build a <br />raw water transmission main solely to pump water from Jordan Lake up to OWASA's service area <br />and the representatives felt that was a significant growth.related issue. <br />William Strom said there has been discussion about coordinating regional policies. The <br />Issue of OWASA's relationship with the Town of Hillsborough is often overlooked but has the most <br />potential in the short- and medium -term to impact OWASA. OWASA should be at the table <br />negotiating an agreement that OWASA is comfortable with in.its service area and lead by example. <br />{ <br />10.2& <br />