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HomeMy WebLinkAboutAgenda - 10-17-1995 - IX-B 1 OR AN G E C 0 U N T Y BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: October 17, 1995 Action Agenda Item # SUBJECT: WATER AND SEWER SERVICE BOUNDARY TASK FORCE DEPARTMENT: PLANNING PUBLIC HEARING: YES _X—NO e ATT4CHMENT(S) : INFORMATION CONTACT: - Report Summary David Stancil, Ext. 2590 - Task Force Report with Map Gene Bell, Ext. 2589 - Resolutions from Hillsborough, OWASA, and Chapel Hill - 8-28-95 Public Hearing TELEPHONE NUMBERS: Minutes Hillsborough - 732-8181 - Draft 9-18-95 Planning Board Chapel Hill - 967-9251 Minutes Durham - 688-7331 Mebane - 227-2031 PURPOSE: To provide comments to the Water and Sewer Boundary Task Force on preliminary utility service area boundaries and implementation objectives contained in the Task Force report. BACKGROUND: The Water and Sewer Service Boundary Task Force, comprised of governing board members from Orange County, Chapel Hill, Carrboro, Hillsborough and OWASA, met from June-December 1994 to recommend comprehensive service area boundaries and/or agreements. The report of the task force has been submitted to governing boards for review and comment. It includes preliminary utility service area boundaries and related implementation objectives. It is anticipated that once agreement has been reached extended discussions will begin including the Cities of Durham and Mebane, and the Orange-Alamance Water System. OWASA, Hillsborough, and Chapel Hill have adopted resolutions responding to the report. The Town of Hillsborough has raised questions about the scope of the Town's responsibility for failed systems within its service area. OWASA has called for legislation to make the boundaries legally binding, and agreement to incorporate the objectives into the legislation. The Chapel Hill Town Council has called for an interim Memorandum of Understanding; the inclusion of Mebane, Durham and Orange- z Alamance; and further discussion of outlined issues. This item was presented at the quarterly public hearing on August 28, 1995. No public comments were received, but one County Commissioner and two Planning Board members had comments. Commissioner Willhoit suggested that the Orange County interest area be expanded to include the I-85/US 70 Economic Development District (EDD) and the area southwest of the Buckhorn EDD. Two Planning Board members expressed concern at the extent of the proposed OWASA service area, and that the proposed OWASA service area invites OWASA into the Rural Buffer. At their September 18 meeting, the Planning Board did not make a formal recommendation. Individual Board members expressed concerns with the delipeation of the boundary map, financial equity aspects raised by OWASA, and the potential term of any service area agreement. RECOlYMNDATION: The Administration recommends action consistent with the Chapel Hill Town Council resolution of June 26, 1995, the basic provisions of which are: 1. Endorsement of the "straw line" proposal for long-term boundaries among water and sewer utilities; 2. entering into, on an interim basis, a memorandum -of understanding to abide by the proposed utility boundaries pending a permanent agreement; and that such an interim agreement be drafted by the Task Force for consideration by the local governments and utilities; 3. that Orange County, Hillsborough, Carrboro, Chapel Hill, and OWASA representatives meet with representatives of additional jurisdictions and utilities such as the Orange- Alamance Water System, the Town of Mebane, and the City of Durham to determine whether they would be willing to enter into a utility boundary agreement on an interim basis for a term such as five years and on a long term basis such as for 20 years; and 4. that representatives of the above discuss, in parallel with service area boundary issues, additional issues identified in the Task Force report including responsibility for failure of private community water/wastewater systems, and with the consideration of proposed new community systems. 3 REFERENCE: WATER AND SEVER SERVICE BOUNDARY TASK FORCE ORIGIN OF PROPOSAL Staff Planning Board BOCC Public _X_Other- later-governmental Task Force PUBLIC HEARING DATE: August 28, 1995 PURPOSE OF ITEM: To obtain public comment on the Water and Sewer Boundary Task Force report. The task force, comprised of governing board members from Orange County, Chapel Hill, Carrboro, Hillsborough and OWASA, has proposed service area boundaries and implementation objectives for water and sewer service. ISSUES: The proposed boundary lines indicated on the attached map delineate both current service areas, and longterm interest areas for Hillsborough, OWASA and Orange County. The long-term interest areas do not indicate imminent expansion of utility services. Rather,the interest areas would provide that: 1) the utility in question would be responsible for addressing system failures within the longterm interest area,and 2) if and when utility service is deemed necessary in these areas, the utility in-question would be the service provider. Approval of these boundaries was recommended by the Task Force to be contingent on agreement to address six objectives: • Continue to support orderly growth and efficient provision of water services. • Continue to promote local control of land use policies;reinforce through appropriate water and sewer service area boundary agreements. • Delineate utility districts or interest areas that reflect the approximate water and sewer capabilities of the respective utilities for a 50 year period. • Promote equity for all parties.Formulate service areas and other agreements so that benefitting parties pay their fair proportional shares Of operating and capital costs incurred by the entity serving that district or interest area • Ensure that appropriate public health and environmental needs will be met and responsible entities identified. • Ensure that the integrity of interconnections for emergency water transfers is not compromised by service area boundary delineations and supporting agreements. Prior to responding to the task force report, the Orange County Board of Commissioners called for a public hearing to be held to obtain public input on the proposed boundaries and objectives. The public hearing will be held Monday, August 28 at 7:30 p.m. in the Superior Courtroom of the Orange County Courthouse in Hillsborough, NC. ORANGE COUNTY COMMISSIONERS 4 P.O. Box 8181 HILLSBOROUGH, N.C. 27278 Moses Carey,Jr. 732-8181 Alice M.Cordon 968-4501 Stephen H. Halldods 688-7331 Verla,C. Insko 227-2031 Don Willhoit 644-3004 (Fax) MEMORANDUM 4 DATE: December 14, 1994' SUBJECT: Public Water and Sewer Service Boundary Task Force FROM: Moses Carey, Jr., Chair TO: Orange County Board of Commissioners Mayor and Chapel•Hill Town Council Mayor and Hillsborough Board of Commissioners Mayor and Carrboro Board of Aldermen Chair and OWASA Board of Directors I am pleased to inform you that the Public Water and Sewer Service Boundary Task Force has completed its original charge and submits the following summary of actions: On a motion made by Council member Joe Capowski, seconded by Council member Jim Protzman, the Task Force unanimously submits for the governing bodies review: (1) Attachment A - A map which establishes a straw line boundary for water/sewer service provision by OWASA, the Town of Hillsborough and the County. (2) Attachment B Approval of the boundary as depicted on Attachment "A" should be contingent on the governing bodies agree&ent to successfully address the correlative objectives listed in Attachment (3) The Task Force recommends that each governing body seek public response that it deems appropriate and to submit to the Task Force each governing body's response to the boundary line and the objectives cited in Attachments "A" and "B" respectfully and to include any changes that the body wishes the Task Force to consider. The Task Force recommends that each governing body respond by July 1, 1995. I wish to commend all participants on the Task Force for open and candid discussion which focused on the issues and provided an improved understanding of the complicated issues involved in this subject. It is encouraging.to note that the Task Force is willing to accept the remaining charge by the governing bodies YOU COUNT IN ORANGE COUNTY ! 5 Public Water and Sewer Service Boundary Task Force (Con't). Pg. 2 to work on the draft of a proposed agreement based on the responses given by the governing bodies. Finally, the Task Force members noted that Charge 5 of the original resolution (see Attachment "C") will need to be incorporated in the reconvening of the Task force. Specifically, any further discussions as to the boundaries of other water sewer providers in the county will require involvement by their representatives. If I or any member of the Task Force need to respond to the contents of this report, please do not hesitate to call. CC. Members Public Water and Sewer Service Boundary Task Force ATTACHMENT "A" Long Range Interest Areas Public water/Sewer Service — Orange County, NC r 1 I • r a Legend • OVASA Interest Area —Generally all portions of Orange County City Limits south of the ridge line between the Neese and Cape Fear river basins ET! Hillsborough Interest Area — Estimated urban services Transition Areas boundary for the Town of Hillsborough in the year 2045 �\ Orange County Interest Area — Potential Orange County/Efland Orange County Utility Service District to be considered by the Board of ftamn It County Commissioners kwtmni laor County Roads miamtim Serna Diva- N 91le!Z-10"194 ATTACHMENT "B" 7 PUBLIC WATER AND SEWER SERVICE BOUNDARY TASK FORCE CORRELATIVE OBJECTIVES TO ADOPTING THE BOUNDARY MAP 1. Continue to support orderly growth and efficient provision of water services. "Orange County Comprehensive Plan, Joint Planning Area; Carrboro, Chapel Hill , and Hillsborough Land Use Plans Development Ordinances, etc. "Capital development plans for new public buildings, schools , etc. ; greater involvement with Boards of Education. 'Orange County Water and Sewer Policy. "Other policies and agreements that currently exist or need to be developed. 2. Continue to promote local control of land use policies; reinforce through appropriate water and sewer service area boundary agreements. "Maintain "good neighbor" policies that respect neighboring jurisdictional interests . "Ensure that service area boundary agreements do not compromise land use policies of other jurisdictions . 'Agree that one utility provider will not enter another's interest area without invitation. Each entity to be accountable for the utility needs within its own interest area. 3. Delineate utility districts or interest areas that reflect the approximate water and sewer capabilities of the respective utilities for a 50 year planning period. "Consider available raw water resources, waste assimilation capacity of receiving streams, etc. "Consider technical , administrative, and financial capacity of the respective entities . 4. Promote equity for all parties. Formulate service area and other agreements so that benefitting parties pay their fair proportional shares of operating and capital costs incurred by the entity serving that district or interest area. "Efland sewer system. "Lake Orange water supply. New Hillsborough reservoir. 'Economic Development Districts . "(Others) 5 . Ensure that appropriate public health and environmental needs will be met and responsible entities identified. "Clear delineation for all types of water/sewer - provisions within each district or interest area. "Clear understanding that the resolution of water or sewer system failures is the responsibility of the utility provider serving that district or interest area. "Clear understanding of how certain water/sewer systems not presently under the purview of local utilities should be financed; including financial provisions for installation, operation, 8 CORRELATIVE OBJECTIVES TO ADOPTING THE BOUNDARY MAP PAGE 2 maintenance, and repair or replacement . . "Consider assigning to OWASA the review authority for all community water and sewer systems proposed for its interest area conditioned upon any approval necessary from State or local public health authority. "Seek agreement by all affected entities : public utilities and local governing boards (Carrboro, Chapel Hill , Hillsborough, Orange County, and OWASA) , Orange County Health Department, NC Department of Environment, Health and Natural Resources . "Determine the location, within the overall long range interestf area, of the urban services boundary (i . e. water and sewer service boundary) for each utility provider versus the long term interest area where no water and sewer service will be extended during the short term. 6. Ensure that the integrity of interconnections for emergency water transfers is not compromised by service area boundary delineations and supporting agreements. Execute emergency water agreements where they do not exist prior to service area boundary agreements . ' ATTACHMENT "C a 9 A -RESOLUTION APPROVING A PROPOSED COMPOSITION OF AND CF-3LRGE TO A COMMITTEE . TO PROPOSE UTILITY SERVICE AREA BOUNDARIES, AND APPOINTING TWO COUNCIL MEMBERS TO SERVE ON THE COMMITTEE (94-4-11/R-5) BE IT RESOLVED that the Council of the Town of Chapel Hill approves the following composition of and charge to a committee to proposed : utility service area boundaries. Purposes of considering water and sewer service area boundaries:IF To enable local governments and utilities to make long-term plans with known rather than continuously changing boundaries. To eliminate or minimize the potential for conflicts regarding utility service areas and future annexation areas. To complement the existing framework of land us.e plans under the Joint Planning and Cooperative Planning agreements. Composition: Two representatives from each of the following entities: 1 . Orange County Board of Commissioners Hillsborough Board of Commissioners Carrboro Board of Aldermen Chapel Hill Town Council Orange Water and Sewer Authority Board of Directors Charge 1: To make a report and recommendations by October, 1994 to the Orange County Board of Commissioners, Hillsborough Board of Commissioners, Carrboro Board of Aldermen, Chapel Hill Town Council and Orange Water and Sewer Authority Board of Directors regarding long-term water and sewer service area boundaries in Orange County. Charge 2: To develop a proposal for water and sewer service areas which is based on broad policy .considerations of the elected boards, including those policies in intergovernmental planning agreements. Charge 3 : The Committee's report to be submitted in October, 1994 shall be considered.a..proposed basic .framework--as-a-starting-paint--- - for developing an agreement(s) . This report shall not include a discussion of oversight of community or alternative wastewater systems or of the timing of public water or sewer extensions within long-term service area boundaries. Charge 4: If the boards represented on the Committee agree in principle on a proposal for, long-term service area boundaries, the Committee shall draft a proposed agreement(s) for consideration by the local government and utility boards. This agreement may provide R-, 10 R• that matters involving extension of public water and sewer in the Rural Buffer are to be separately discussed. .Charge 5 : If the boards agree in principle on a proposed agreement, the Committee shall seek to meet with representatives of additional jurisdictions and utilities which may need to be included in agreement(s) . The additional entities would include but not necessarily be limited to the Orange Alamance water System, City of Durham, Mebane, Graham, etc. A proposed agreement with these additional entities would be submitted for consideration by all parties. ` Footnotes: The Committee, and each of the boards involved in the process above, would hold public hearing(s) at such times as each determines appropriate. The Committee would be a public body with open meetings in accord with State law. BE IT FURTHER RESOLVED that the ,Council appoints and to represent the Council on the Committee. This the 11th day of April, 1994 . jjwn .af tll�b�r�vr�t .t 101 E. Orange Street P.O. Box 429 4 HILLSBOROUGH, NORTH CAROLINA (919) 732-2104 ti 27278 MEMORANDUM TO: Moses Carey, Jr. , Chair Orange County Board of Commissioners FROM: Horace H. Johnson, Mayor �'p r Town of Hillsborough DATE: May 26, 1995 RE: RESOLUTION RESPONDING TO THE PUBLIC WATER AND SEWER SERVICE BOUNDARY TASK FORCE Attached is a copy of the Resolution Responding to the Public Water and Sewer Service Boundary Task Force as adopted by the Hillsborough Town Board on May 15, 1995. The Town appreciates the opportunity to be a part of this process. Attachment 12 RESOLUTION RESPONDING TO THE PUBLIC WATER AND SEWER SERVICE BOUNDARY TASK FORCE WHEREAS, the Task Force has proposed the Water and Sewer Utility Service Area Boundaries delineated on Attachment "A" which coincide with the Town of Hillsboroughs' 50 year Master Plan; and WHEREAS, the Task Force has proposed to include with the approval of these boundaries the "Correlative Objectives" delineated in Attachment."B"; and WHEREAS, The Town of Hillsborough resolves to continue providing water and sewer utility service to its customers within the delineated area of interest; and WHEREAS, The Town of Hillsborough intends to comply with all necessary regulations and agreements required to provide such water and sewer utility services; NOW, THEREFORE, BE IT RESOLVED by the Town Council of the Town of Hillsborough that those boundaries delineated within Attachment "A" shall be considered to delineate the area of interest for the Town of Hillsborough to provide water and sewer service; and BE IT FURTHER RESOLVED that the Town Council intends to address the "Correlative Objectives" in Attachment "B" subjea"to the following comments and clarincations: 1. No comment or change. 2. No comment or change, for prescribed accountability and utility needs see number 5 herinbelow. 3. The Town accepts those boundaries delineated within Attachment"A" as .they are understood to coincide with the ridge line between the Cape Fear and Neuse River Basins as delineated in the Towns current 50 year Sewer Master Plan. 4. The Town of Hillsborough concurs in the effort to promote equity for all utility interests within Orange County. The Town currently is bound by the Eno River Capacity Use Agreement with the State and other local entities. This agreement shall supercede and govern any subsequent agreements or initiatives. 5. The Town agrees to provide public water and sewer service within the prescribed area where economically feasible. Onsite disposal systems shall continue to be permitted and inspected by the Orange County Health Department. Response to failing onsite disposal 13 systems shall continue to be dealt with by the Deparrmeric of Environmental jIvIanagerneric in concert with the County Health Depa=enc- The Town stands ready to aid in the resolution of emergency situations in a way that will not place an undue 0 burden on its facilities or its existing customers. The Town will provide water and sewer utility services based upon "Long Term' Nfaster Plans. "S'nort Term" initiatives co curb growth through withholding the provision of water and sewer service will be entertained, however, they will- not be enforced until such time as they are voted, by the Town Council, as ammendmencs to the Master Plans. 6. The Town currently has emergency agreements with all surrounding water utilities. This the Iff" day of May, 1995. Mayor Horace H. Johnson AT=: TOWN CLE ,/RK O 14 RESOLUTION RESPONDING TO ORANGE COUNTY WATERAND SEWER SERVICE AREA BOUNDARIES TASK FORCE REPORT OF DECEMBER, 1994 WHEREAS, Orange Water and Sewer Authority has been asked to respond to recommendations of the Orange County Water and Sewer Service Area Boundaries Task Force, dated December 14, 1994 and attached to this Resolution as Exhibit I;and WHEREAS, the Authority finds that the scope and purpose of new tasks and utility services enumerated in Objective 5 in the Task Force memorandum(Exhibit 1,Attachment B) Ir wil! egnire further definition and concurrence by parties to the potential agreement;and WHEREAS,OWASA customers may be asked to pay for systems that do not benefit them;and WHEREAS,the Authority notes that 11MIment of the objectives and intent of the proposed agreement will rNuire eventual participation and concurrence by the City of Durham, Town of Mebane,and Orangc-Aiamance Water System,Inc,and WHEREAS, an agreement to service area limitations may have negative financial effects on OWASA for which the Authority'should receive appropriate consideration;and ' WHEREAS, a joint service area agreement such as proposed by the Task Force is not legally binding unless ratified by North Carolina General Assembly. NOW,THEREFORE,BE IT RESOLVED: I. That the Board of Directors of Orange Water and Sewer Authority endorses the straw line boundaries for water and sewer service provision by OWASA,the Town of Hilisbamugh,and Orange County,as presented on Attachment A of the December 14, 1994 Task Force Report,contingent on the following: A. That the governing bodies of Carrboro,Chapel Hill,Hillsborough,Orange County,and OWASA agree to seek legislation during the 1996(Short)Session of the North Carolina General Assembly that would make legally binding a water and sewer service area boundary agreement among all parties signatory thereto;and B. That those same local bodies agree to commit the necessary resources to clarify, define,and seek agreement on the issues implicit and unresolved in Attachment B of the December 14, 1994 Task Force Report such that those items and definitions maybe incorporated into the legislation proposed above. Issues to be clarified shall include,but not limited to.the specific scope of services and responsibilities within each providees interest area;Financial authority and funding arrangements for these services;OWASA review authority of all community water and sewer systems proposed for its interest area;as well as other pertinent issues listed in Exhibit 1,Attachment B. 15 orange Water and Sewer Authority May 25, 1995 Page 2 2. Tbat additional written materials from OWASA smffand General Counsel be attached as information to this Resolution as Exhibits 2 and 3. 3. That copies of this Resolution and Ex ibits be forwarded to the Cantoro Board of Aldermen,Chapel Hill Town Council,Town of Hillsborough Board of Commissioners,and jr Orange County Board of Commissioners. Adopted the 25th day of May, 1995. Jutrannc M.Andt2 Chairman ATTEST: ;zrt Riley W Secretary-Ticasurer Orange Water and Sewer Authority Exhibit 2• OV1rASA 400 Jones Ferry Road 16 P.O. Box 366 Carrboro, NC 27510 (919) 968-4421 Orange County Public Water and Sewer Service Area Boundary Task Force Report Discussion Issues Prepzrced by OWASAfStaff April,1995 The following issues are offered for Board discussion: 1. Item (2)of the December 14, 1994 mexnorandtrm frrna Moses Carey is unclear about the relationship between the straw line service area boundaries shown on Attachment A and the objectives listed on Attachment B. OWASA's Task Force representatives have expressed concern that participating entities not endorse the boundaries without first establishing very specific actions or agreements that satisfactorily meet the objectives of ;asn Attachment B. This concern was expressed in Ms.Andresen's 3anuary.13-. 199S letter to Mr.Carey. 2. Several of the Attachment B objectives arc of particular interest to the Authority, especially Objective 5: "Ensure that appropriate public health and environmental needs will be met and responsible entities identified • "Clear delineation for all types of waterisewer provisions within each district or interest area • "Clear understanding that the resolution of water or sewer system failures is the responsibility of the ut ty provider serving that district or interest area_ » "Clear understanding of how certain water/sewer systems not presently udder the purview of local utilities should be financed;including financial provision for installation,operation.maintenance,and repair or replacement. • "Consider assigning to OWASA the review authority for all community water and seAver systems proposed for its interest area conditioned upon any approval Accessary from State or local public health authority. : An Equal Opportunity Employer • Water and Sewer Boundaries 17 Discussion Issues April, 1995 Page 2 • "Seek agreement by all affected entities:public utilities and local governing boards(Carrboro,Chapel Hill,Hillsborough,Orange County,OWASA),Orange County Health Department,NC Department of Environrz=j,Health,and Natural Resources. • "Determine the location,within the overall long range interest area,of the urban services boundary(i.e.water and sewer service boundary)for each utility provider versus the Iong tam interest area where no water and sewer service will be extended d-=ng the short term-- The implications of this list are substantial,and their importance should not be underestimated. OWASA would be the designated public utility for resolving a range of water and wastewater system problem areas throughout southern Orange County. Neither policies,programs,nor operational capability currently east for dealing with community welt or private wastewater problems in the Rural Buffer,University Lake,or Cane Crock watersheds—all of which would be located within the Authority's designated area of interest. Of similar concern would be ftraueial and equity issues inherent to areas outside OWASNs normal service area Even if the Orange Water and Sewer Authority attained accessary financial,operational,and policy capacity for responding to utility needs throughout its designated area,it is not clear that either Hillsborough or Orange County would have similar capabilities. What if,for example,a subdivision or industry located within Hillsborough's area of interest required public watertsewer service,but HilLsbor+ough were financially or operationally incapable of providing it? It is likely that Orange County would be requested to help. To the extent that more than 60 percent of Orange County's taxpayers are already OWASA ratepayem it would be unfair for OWASA customers to pay for resolving Hillsborough's problem while already bearing the cost of their own assigned portion of the County,but having no role in the remainder. 0 Exhibit 3. 18 EPTING AND HACKNEY , ATTORrifXS AND COUNSELLORS AL LAW 410 AIRPORT WAD r O.DRAVIES 1329 CHArEL HLLL.NORTM CAROLINA 27314 RQ{ERT ETTEt�G TRAYMME 919.0323 PE HA WCT •ACIIMIQ 929.31W ELMA{CT11 LICCET CM%is May 2, 1995 Mr. Everett Billingsley Executive Director Orange Water and Sewer Authority s Carrboro, NC 27510 Re: Sewer Service Area Boundary Task Force Dear Mr. Billingsley: I understand that the Board of Directors will consider on this Thursday night Commissioner Carey's December 14, 1994, memorandum which summarizes areas of potential agreement among the parties to the Service Area Boundaries Task Force. I have several fundamental concerns the Board of Directors may want to keep in mind in its deliberations on this subject. First, I share Ed Holland's concern as to the scope and 3 purpose of new tasks rather summarily assigned to parties. within. . . their areas of interest. The legal purport of th$se "tasks' is the creation of actual legal duties -in areas where none of the parties have actual experience. That is, to suggest that OWASA's tasks Within its area of interests would include respite and remedy from failed septic or alternative on-site waste treatment facilities, assigns a concomitant future capital burden for which no planning has been done to date. or, in the alternative, it requires OWASA to agree to undertake such tasks under a financial plan depending entirely upon assessments to the benefitting parties. I suggest caution in moving forward with any formal legal agreement until financing sources for gggnty facilities improvements area identified. Second, while the parties may determine to agree to service area boundary limitations, nothing in the enabling statutes or the organizational documents requires any such limitation. Bond counsel has often reminded us that potential service area is an asset having substantial, impact upon the potential financial health of utilities. OWASA should be sure it receives benefit for the waiver of any potential service area. Third, joint service area agreements can be ignored or = violated as easily as joint planning agreements -and agreements for sharing of water in times of drought. If the parties determine to 19 7 -2- undertake a formal agreement limiting their ability to extend lines at will, I suggest that such an agreement ought to' be ratified by appropriate action of the Legislature. Then future Hoards and Commissions will be bound to uphold the same by their oath to uphold the laws of the State. Finally, I note the potential for "double taxation" of'county taxpayers who are already customers of OWASA, where non-utility revenue funds are used by the County to extend water and sewer service to citizens not served by OWASA. I suggest a mechanism should be developed to have OWASA customers share in such non- utility revenue funding of OWASA system improvements; or, in the alternative, that the County give its commitment to fund Water and sewer utility line improvements with County revenues that are not collected from OWASA service area taxpayers. Otherwise, owAsA customers will end up paying all of the cost of operating the awASA system, and about sixty percent of the cost of extendinq a system . for County residents outside the OWASA service area. With kindest regards, I remain V 1y I - ti a'.. ASA Genera Co el s 20 DISTRIBU i --o Fir - A.,.- C.7. .461,071eZ.,1 TOWN OF CHAPEL HILL 306 NORTH COLUMBIA STREET CHAPEL HILL,NORTH CAROLINA 27516 OFFICE OF THE MAYOR (919)968-2714 June 29, 1995 FAX 919-%7-8406 Julie Andresen, Chair Orange Water and Sewe ,F Authority Board of Directors 400 Jones Ferry Read "; Carrboro, NC 2751b 0 Mr. Moses Carey Jr. , Chair Orange County Board of Commissioners PO Box 8181 Hillsborough, NC 27278 Mayor Horace Johnson Town of Hillsborough PO Box 429 Hillsborough, NC 27278 Mayor Eleanor Kinnaird Town of Carrboro 301 West Main Street Carrboro, NC 27510 Dear Eleanor, Julie, Horace and Moses: Re: Water and sewer service areas and related matters On June 26th, the Town Council unanimously adopted the enclosed resolution regarding water and sewer service areas and related matters. I hope that there will be consensus to continue the Task Force's discussion of these matters when all of the governing boards have • acted, and look forward to the opportunity to reach agreement. Sincerely, Kenneth S. Broun Mayor enclosure: resolution 21 r If. Peter M.J. Richardson, CMC, Town Clerk of the Town of Chapel ' Kill, North Carolina, hereby certify that the attached is a true and correct copy of Resolution 95-6-26/R-15, adopted by the Chapel Hill Town Council on June 26, 1995 . This the 29th day of June, 1995 . 1tZ ` Peter M J. Richard on, CMC Town C1 rk ti O��k C AR�y 22 A RESOLUTION REGARDING THE DECEMBER 14, 1994 REPORT OF THE TASK FORCE ON WATER AND SEWER SERVICE AREA BOUNDARIES IN ORANGE COUNTY (95-6-26/R-15) BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council hereby submits the following comments regarding the report and proposal dated December 14, 1994 for long-term boundaries among water and sewer utilities including local governments in 0 a Orange County and regarding related matters: 1. The Council endorses the "straw line" proposal for long-term boundaries among water and sewer utilities including local governments in Orange County. 0 2. The Council proposes that Orange County governments and utilities enter into, on an interim basis, a memorandum of understanding to abide by the proposed utility boundaries pending a permanent agreement; and that such an interim agreement be drafted by the Task Force for consideration by the local governments and utilities. 3. The Council proposes that the Orange County, Hillsborough, Carrboro, Chapel Hill and OWASA representatives meet with representatives of additional jurisdictions and utilities such as the Orange-Alamance.Water System Inc., the Town of Mebane and the City of Durham to determine whether they would be willing to enter into a utility boundary agreement an on interim basis for a term such-as five years and on a long term basis such as for 20 years. 4. The Council proposes that representatives of the local governments and utilities discuss, in parallel with the utility service area boundary considerations, additional issues identified in the task force's December 14th report including responsibilities for dealing with failure of private community water and wastewater systems and with the consideration of proposed new community systems. BE IT FURTHER RESOLVED that the Council authorizes the Mayor to transmit this resolution to the Mayors of the*Tow= of Hillsborough and Carrboro, the Chairs of the Orange County Board of Commissioners and of the Board of Directors of the Orange Water and Sewer Authority and such other parties as the Mayor deems appropriate. This the 26th day of June, 1995. t 23 7 . ,1, requirements are more geared 'on -how to -develop in the floodplain. The changes are relatively few with some new additions added as well as 3 definitions for renovating and improving existing structures in the 4 floodplains. 5 6 THERE WERE NO COMMENTS OR QUESTIONS. 7 8 A motion was made by -Commissioner Willhoit, seconded by 9 Commissioner Halkiotis to approve the proposed ordinance. 10 VOTE: UNANIMOUS 11 12 13 4. Proposed Public Water Z Sewer service Boundaries 14 Planner Gene Bell presented this item to receive public 15 comments regarding the report of the water and Sewer Service Boundary 16 Task Force as described in the agenda. The report of the task force 17 has been submitted to governing boards for review. It includes 18 preliminary utility service area boundaries, as well as related 19 implementation objectives. 20 In answer to a question from Commissioner Crowther on 21 Durham's interest in serving the areas on the east side, Gene Bell said 22 that Durham's involvement is included in the next phase as well as 23 Orange Alamance and Mebane. 24 Commissioner Willhoit said that if there is any thought in seeking legislation to define those service areas, he would think that the area on the east side would be a County interest. Actual service 2-r' provision could always be contracted out and would give Orange County 28 more control over the planning of that area. 29 Chair Carey said that the intent was not to seek legislation 30 but to enter into interlocal agreements that would be binding like that 31 in the Joint Planning Area. 32 Commissioner Willhoit emphasized he feels the County needs to 33 designate that area as a County interest so that Durham is aware of 34 this. Commissioner Halkiotis agreed. 35 It was clarified that the first objective needs to include 36 sewer service as well as water. 37 Gene Bell clarified that it is proposed that the County will 38 be responsible for the EDD section at Buckhorn Road. 39 Commissioner Willhoit said that the Board has talked about 40 including the southwest quadrant in the EDD -- making the whole 41 interchange as part of the EDD. This is included in the revised goals. 42 John Link stated that the County will probably need local 43 legislation for the area along the Durham/Orange County line to prevent 44 Durham from bringing in water and sewer. 45 In answer to a question from Commissioner Gordon about how 46 far Durham's Vision Plan goes into Orange County, Marvin Collins said 47 that the 2005 plan takes in basically the EDD district. The 48 Durham./Hillsborough waterline agreement has a line that runs along the 4� western boundary of the EDD district that extends to other areas Ul T-�-1 yy5 =�s rKUr~i utwritat i r �uru~i 15�i ur,tns i u 1 NbeEf-T!a4b t .0� 24 8 ' f stopping at the Rural Buffer. There are no planned extensions from Person County. 3 Bill Waddell asked about OWASA serving some additional areas 4 on the west side and east side. He noted that this seems, rather than 5 the first item, to support orderly growth and efficient provision of 6 water and sewer service a denial of water service to certain areas in 7. the future. Chair Carey said that in the case of a water emergency, 8 for protection of health and safety, the County would know who to 9 contact and if it is the blue area as shown on the map, they would 10 contact OWASA. In the Cane Creek area there will probably not be water 11 and sewer service. 12 Planning Board member Elizabeth Walters noted that the way 13 the lines are drawn, it is inviting OWASA to move into the Rural Buffer 14 and provide water and sewer. ` 15 16 A motion was made by Commissioner Halkiotis, seconded by 17 Commissioner Crowther to refer this report to the Planning Board for a 18 recommendation to be received not earlier than October 2, 1995. 19 VOTE: UNANMOUS 20 21 D. 22 With no further items on the agenda, Chair Carey adjourned the 23 meeting. The next regular meeting of the Board will be held on 24 Tuesday, September 5, 1395 at 7:30 p.m. at the Caldwell Community ?k Center in Rougemont, North Carolina. 27� 28 Moses Carey, Jr., Chair 29 30 31 32 33 Beverly A. Blythe, Clerk TOTAL P.02 Y 25 9-18-95 Draft Planning Board Minutes Stancil presented this item, stating that the Water and Sewer Service Boundary Task Force met from June-December 1994 and recommended a preliminary set of boundaries for the Hillsborough and OWASA service areas which reflected both current service areas and long-term interest areas where each would be the utility for addressing any private system failures. Each of the elected boards that had representatives on the task force were asked to provide comment to the Task Force. Comments have been received from Hillsborough, OWASA and Chapel Hill. In addition, the Chapel Hill TAC has provided comment for the Planning Board's consideration. The Board of Commissioners chose to solicW citizen input and placed this on the August 28 public hearing. Reid asked about the status of Eubanks Road, and noted that the Town had begun enforcing road standards in areas of Eubanks Road. Stancil responded that only the central portion of Eubanks was in the Rural Buffer, the remainder was in the Town of Chapel Hill and Town of Carrboro Transition Areas. Barrows asked what OWASA meant in its resolution when discussing "negative financial effects for OWASA. " Stancil stated that the question of financial equity was discussed in the task force meetings, and that OWASA had indicated concern that areas benefitting from the addition or hookup of water/sewer service pay a "fair" share of the cost. Stancil added that this issue was not resolved by the task force, and is thus included in the correlary objectives. Barrows asked about Hillsborough's concerns with responsibility for responding to system failures. Stancil responded that Hillsborough has indicated tentative agreement with the boundary lines, but has expressed concerns about having to provide service to failed systems which might place "undue burden" on the Town. Waddell stated that OWASA is interested in having rural property owners protect land within OWASA watersheds without providing them water service, but is apparently less interested in paying for the impacts of those consequences. Brown stated that she strongly supported the OWASA resolution, because it brings out the issue of who will pay for all of this. Brown added that financing should also be a County issue for all taxpayers, especially in regard to the Economic Development Districts. She suggested that perhaps a bond issue should be discussed as an alternative to using County tax money to provide service in these areas. Brown continued that the map of the preliminary boundaries needs refinement, and should show existing Plan categories, watersheds, the Rural Buffer and other areas not programmed to receive water/sewer service under current plans. Brown added that this map gives the impression that the entire area will be provided with water and sewer, which is not what's being proposed. 26 Waddell noted that it was now 10.30 p.m. , and asked for a motion to continue the meeting. A motion was made by Howie, seconded by Barrows. The motion passed 7-4 . f Barrows asked Brown to expand upon her comments about the financial aspects raised by OWASA. Brown noted the letter from the OWASA attorney which addressed this. Stancil noted that all of the resolutions and in fact the task force report have indicated that the issues raised in the corollary objectives will be addressed in the future. Brown continued that she agreed with the OWASA attorney that these boundaries should be taken tb the legislature to make them binding, to avoid misunderstandingsithat have occurred in the past. Price asked about the legality of OWASA being given a monopoly on service in their area, and asked about other companies' potential for providing service. Stancil responded that OWASA is a water and sewer authority as defined in the North Carolina General Statutes, and their governing board is comprised of appointees from the constituent local governments. As such, OWASA has authority to provide service under the parameters of the participating local governments and the statutes. Price asked if where utilities should provide service was an issue. Stancil responded yes, this was an issue identified in the task force report. Price continued by asking if OWASA should be sealed up for eternity as the service provider in this area. Stancil noted that there would be a term to any agreement, and that potential terms of agreement discussed to date have ranged from five to 20 years. Barrows indicated that she liked the idea of supporting orderly growth, and although there were things to be worked out, she was in favor of the concept of defining water and sewer boundaries. Waddell noted the Chapel Hill TAC comments regarding water and sewer in the Rural Buffer. Stancil added that it is current County policy and not the Joint Planning Area Plan that governs water and sewer in the Rural Buffer. Waddell asked for further discussion, and hearing none, asked that these comments be forwarded to the Board of Commissioners.