HomeMy WebLinkAboutRES-2000-043 Resolution Regarding University of North Carolina's Payment of Service Availability Fees to the Orange County Water and Sewer Authority (OWASA) C,
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A RESOLUTION REGARDING THE UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL'S PAYMENT OF
SERVICE AVAILABILITY FEES TO THE ORANGE WATER AND SEWER AUTHORITY FOR WATER
AND WASTEWATER TREATMENT PLANT CAPACITY AND RELATED INFRASTRUCTURE
COSTS ASSOCIATED WTTH NEW DEVELOPMENT
WHEREAS, the University of North Carolina at Chapel Hill(the University)and the Towns of Carrboro and Chapel
Hill transferred their water and sewer utilities to the Orange Water and Sewer Authority(OWASA)in
February, 1977;and
WHEREAS, the transfer of water and sewer responsibilities occurred through Agreements of Sale and Purchase,
which require as a fundamental principle that OWASA's rates be based on costs of service;and
WHEREAS, the Agreements of Sale and Purchase also exempt the University from acreage fees and similar fees
(now called service availability fees),for new connections to then-existing mains transferred to
OWASA, and
WHEREAS, the University and OWASA entered into a Memorandum of Agreement in 1996 which defined,with a
map,the central campus as the area in which the University is exempt from paying service availability
fees;and
WHEREAS, when the University and OWASA developed the 1996 Memorandum of Agreement,the University had
expressed an intent that future development would predominantly occur on the University's Horace
Williams and Mason Farm tracts and not in the central campus area;and
WHEREAS, the Chapel Hill Town Council supported the 1996 Memorandum of Agreement between the University
and OWASA;and
WHEREAS, the University is now planning to concentrate new growth within the central campus area,which was
not anticipated to occur when the University and OWASA entered into the 1996 Memorandum of
Agreement;
NOW,THEREFORE,BE IT RESOLVED by the Orange County Board of Commissioners that the Board:
1. Supports the OWASA Board of Directors' stated position that cost recovery from the University
related to growth is consistent with the cost of service principle whereby all customers pay their
fair share of the cost for the water and sewer service they receive.
2. Expresses its appreciation to the University for its readiness to discuss ideas for a mutually
acceptable solution concerning service availability fees.
3. Encourages OWASA and the University to expeditiously seek a fair resolution to this matter,
and stands ready to assist as needed.
This the 6h day of June, 2000.