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HomeMy WebLinkAboutAgenda - 06-06-2000-5cORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 6, 2000 Action Agenda Item No. 5_ C SUBJECT: Resolution Regarding University of North Carolina's Payment of Service Availability Fees to the Orange County Water and Sewer Authority (OWASA) DEPARTMENT: County Commissioners PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Yes -Resolution and Background Information INFORMATION CONTACT: Moses Carey, Jr., ext 2130 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel .Hill 968-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To consider a resolution of support for OWASA `s cost recovery from the University related to growth consistent with the "cost-of-service" principle. BACKGROUND: Attached are letters that provide background information on the discussions held between OWASA and University officials. On page seven, the process to amend the 1996 Memorandum of Agreement between the University and OWASA with respect to Service Availability fees is outlined. The Chapel Hill Town Council approved a resolution regarding the University of North Carolina'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 with New Development on March 27, 2000. FINANCIAL IMPACT: NONE RECOMMENDATION(S): As the Board decides. 2 A RESOLUTION REGARDING THE UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL'S PAYMENT C SERVICE AVAILABILITY FEES TO THE ORANGE WATER AND SEWER AUTHORITY FOR WATER AND WASTEWATER TREATMENT PLANT CAPACITY AND RELATED INFRASTRUCTURE COSTS ASSOCIATED WITH NEW DEVELOPMENT WHEREAS, the University of North Carolina at Chapel Hill (the University) and the Towns of Carrboro and Chape 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 oncosts 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 the University sold its water and wastewater assets to OWASA at less than market value 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 ha expressed an intent that future development would primarily occur on the University's Horace Willian 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 Tf RE5OLVED by the Orange County Board of Commissioners that the Board: Supports the OWASA Board of Directors' stated position that cost recovery from the Univers: related to growth is consistent with the cost of service principle whereby all customers pay the full and fair share of the cost far the water and sewer service they receive, and the Board stanc ready to assist as needed. 2. Expresses its appreciation to the University for its readiness to discuss ideas fora mutually acceptable.solution concerning service availability fees. Encourages OWASA and the University to expeditiously seek a fair resolution to this matter. This the 6~' day of rune, 2000. O WASA ORANGE WATER & SEWER ALITHORI ~ L _.~ ;~_~-_ ~.. ; r Qrualitti~ Service Sinc ID -- March 13, 2000 ~~ Commissioner Moses Carey, Chairman Mayar Michael Nelson Mayor Rosemary a orf~ - - Orange County Board of Commissioners Town of Carrboro Town of Chapel Hill P.4. Box 8181 301 West Main Street 306 North Columbia Street Hillsborough, NC 27278 Carrboro, NC 27510 Chapel Hill, NC 27516 Subject: Service Availability Fees Dear Commissioner Carey, Mayor Nelson, and Mayor Waldorf: As you may know, OWASA staff has held discussions with University officials during the last year or so in an attempt to resolve what we believe will be an inequity between the University and our other existing and future customers with regards to the payment of connection fees for new service (Service Availability Fees). This situation has occurred as a result of the University's stated intention of concentrating new growth within the central campus area rather than at outlying property as previously understood. At our February 24, 2000 meeting, the Board of Directors strongly and unanimously affirmed our support for cost recovery from the University related to growth consistent with the "cost-of-service" principle (whereby all customers pay their full and fair share of the cast for the service they receive). This "cost-of service" principle is the foundation for all of our rate-setting decisions as clearly established in the Sale and Purchase Agreements among OWASA, the University, and the Towns. Furthermore, our Boazd directed staff to attempt to successfully resolve this issue with University officials by May 1, 2000. I have enclosed the agenda material from our February 24`" Board meeting which provides further information regarding this issue (some attachments are not included because of their size). I have also provided a copy of Mr. Ed Kerwin's February 25~' letter to Mr. John P. Evans expressing the Board's position and desire to work cooperatively with the University to resolve this matter. We will keep you and your colleagues advised and, as always, we welcome your feedback. Very truly yours, Peter C. Gordon, Chairman Board of Directors Enclosures c: Board of Directors Ed Kerwin ~f~~~ -F00 Jones Ferrv Road Equal Opporrunin~ ~mplu~ei li~ice (9l9) 968-~? 1 PO Sc~x 366 a,-~.,~,.a ,,., R.,,-.-,-I~.! r~..,~... Gnv jai a~ ova n icn ATTACHMENT 3 OWASA ORANGE WATER & SEWER ACZT'~iORITY Quality Ser'Yice Srnce 1977 August 17, 1999 Jade Evans Interim Vice Chancellor for Finance and Administration The University of North Camlina at Chapel Hill CB# t00d Chapel Hill, NC 27599-1000 Dear Mr_ Evans: In 1996, The Lluivtxsity of North Carolina at Chapel Hill (the University) and O WASA entered into a Memorandum of Agr~mcnt (MOA) which provided further dari5cation of the 1976 Sale and purchase Ag~mcat The MOA outlines the University's googr~hic areas that would and would not be subjact to new water and sewn cervix conncc~on fees. These boundaries wcr,e established with certain assumptions about ~fittxtne demand for-~ratcr-and sewer service' within the Univasit~s ocntral campus acea_ As you know, t~t.master pig efforCs by the University indicate that there wilt be growth in the ceuaral substantially campers azea than; wa~s a~i:mod im 1996 when the MOA was signed, In view of this inforimation, it is appropriate to arztcud to the M0.4, to reflect what vwc now know about future watcx and scworx demand of dxe acntraI campus area- . ,-- .. .. .r_ T have had several informal discussions with Bruce Runbcrg~ and Jonathan Howes and would lt~c to move the ~g ~ ~~~ proocss along to completion. Perhaps you could establish a t'~orlang.group to moct with me to have this issue cesolpod in a timely manzaer_ Please !ct me know what I can do to help, Very tnrly y°„,~ .~ + Ed Kerwin Exacutive Direcxor c: Board of Directors Bruce Runbc,rg Jonathan l-(owes Bob Epting t} ~ 1.30 ~~r THE UN[VERS1Ty OE NORTH CAROLWA wT CF[APEL Hit.L o(r~ a(d~c ~Ficc Ch+ncclbr far Finance +nd MmiuisTratipn September 2, 1999 Mr. Ed Kerwin Executive Director Orange Water & Sewer Authority 400 Jones Ferry Road P.O. Box 366 Ca-rrboro, NC 2514-0366 Dear Mr_ Kerwin: ATTACHMENT 4 D~,~~~~~ Ir _~_ ~~ 7 ,` ~~ I ~ I :' ~ ~y o(Nad~ C+`aGna at Q.apc~ ~ ~,u CBt IOOD- 700 Sough Buil~ina a`aPd ~L NC 27599-1000 (9191962J796 FAX: (919) 962-06a 7 I am writing in response to your letter dated Au relationship between The Universi gust 17, 1999. concerning the OWASA. ~. ty of North Carolina at Chapel Hill and partYCVlar, you referred to those elements of the 1976 Sale and chase Agrec7nent and the 1996 Memorandum of addressed, those portions of the Universii s ~ Agreement (MOA) that would not be subject to new water and sewer servicc~~nnection eesuld and I appreciate your reference to the informal oonv ~~ Bruce Run ersations that you have had berg and Jonathan Howes on this matter. As I am worlang toward a better understanding of my new r~esponsibi7ities, they have been good enough to provide me with background information on this matter. Rather than forming a group to work on this topic. I would suggest that you and your colleagues formulate a proposal that would provide focus for all of the discussions. I simply think we will fuid it usefi~.i to have a clear frame of reference and i hope you agree I look forward to working with you on this matter. Sincerely, P ,.. John P- Evans Interim Vicc Chancellor for Finance and Administration cc: Bruce Runberg Jonathan Howes ll~ 31 ATTACx1~ivT s ~ ' •I OWASA ORANGE WATER & SEWER A[1THORTE'Y Quality Ser~•ice Since 1977 October 19, 1999 'Mr. John P. Evans Interim Vice Chancellor For Finance and Administration The University of Notch Carolina at Chapel Hill CB# 1000 Chapel Hill, NC 27599-1000 Dear Jack: Thank you for your September 2, 19991etter suggesting that O WASA formulate a proposal that would provide focus for our discussion regazding new water and sewer service connection fees for the University.. We have developed a proposal with regards to this matter, which the OWASA Board of Directors endorsed at their October l4, 1999 meeting (background information enclosed). OWASA proposes what we believe to be a simple, yet equitable approach. We suggest that when the University reaches the maximum amount ofexisting or approved developed floor area permissible on the central campus according to the Town of Chapel Hill's existing zoning regulations, that the University would thereafter be responsibie for paying all OWASA Service Availability Fees. [ look forwazd to meeting with you or your colleagues soon to complete our discussion of this important matter. Very truly yours, ' .. 1 Ed Kerwin Executive Director EKrr Enclosure c: OWASA Board of Directors Bruce Runberg, Associate Vice Chancellor for Facilities Services, UNC-CH Jonathan Howes, Special Assistant to the Chancellor and Directorof Universit~• Outreach, UNC-CFI Cal Horton, Manager, Town of Chapel Hill Roger Waldon, Planning Director, Town of Chapel Hill Bob Morgan, Manager, Town of Carrboro John Link, Manager, Orange County (iob Epting, Esq., Epting and Hackney 1~,3Z. ITEM Y 2 AGENDA CT'EM DISCUSSION OF UN[VERSiTY OF NORTH CAROLfNA SERVICE AVAILABILITY FEES PURPOSE - To solicit Board comment on staffs recommended approach to amend the 1996 Memorandum of Agreement between the University and OWASA with respect to Service Availability Fees. BACKGROUND Pursuant to Chapter 723 of the North Carolina Session Laws of 1971, the water and sewer utility facilities previously owned by The University of North Carolina at Chapel Hill (the University) were conveyed to OWASA on February l 5, 1977, and a Sale and Purchase Agreement between the State of North Carolina, on behalfof the University, and OWASA evidencing such conveyance was executed. Sale and Purchase Agreements between the Towns ofChapel Hill and Carrboro and OWASA were also executed in 1977. - !n 1996, OWASA and the University entered into a Memorandum oCAgreement (MOA) which provided further clarification of the original Sale and Purchase Agreement. The MOA specifically outlined the geographic areas of the University that would and would not be subject to Service Availability E'ees. These boundaries were established with certain assumptions about future demand Cor water and sewer service within the University's central campus area. • Current master planning efforts by the University now indicate that there will be substantially greater growth in the central campus area than was assumed in 1996 when the MBA was signed. [n view of this information, it is appropriate to amend the MOA to reflect what we and the University now know about future water and sewer demands of the central campus area. • Staff proposes that once the University reaches the maximum amount of existing or approved developed floor area permissible on the central campus according to the Town of Chapel Hill's zoning regulations, that the University would thereafter be responsible for paying all O~VASA Service Availability Fees. • According to the Town oCChapel Hill, the total amount of floor area existing or approved Cor devclapment by [hc University on central campus as of April 1999 waz 13,213,522 square Cect. Thc current maximum amount of floor area permissible under tht town's zoning regulations for t1~e central campus is !4,(94,410 square feet- ACTCON I~IEEDED • Board discussion of staffs rccommcndation and direction to staff. October 14, 1999 1x.33 Y. OWAS~4 ORANGE WATER & SEWER ACITHORITY Q~ualiry Service Sine 1977 MEMORANDUM TO: Board of Directors FROM: l:d Kerwin DATE: ,October 5, 1999 SUBJECT: University of North Carolina at Chapel Hill Service Availability Fccs BACKGROUND Pursuant to Chapter 723 of the North Carolina Session Laws of 1971, the ti{~ater and sewer utility facilities previously owned by The University of North Carolina at Chapel Hill (the University) were conveyed to OWASA on February 15, 1977, and a Sale and purchase Agreement lietwccn the State of North Carolina, on behalf of the University, and O WASA evidencing such conveyance was executed. Sale and Purchase Agreements between the Towns of Chapel Hill and Carrboro and OWASA were also executed in 1977. The Saie and Pwrcttase Agreement between the University and OWASA pro~hded that the University would not be obligated to pay wnnection fees (Service Availability Fees) for new water and sewer service in the central campus area. It is believed that this arrangement was based on the fact that OWASA was receiving certain value for water and se~~er facilities conveyed by the.University at no cost lo. OWASA. [n 1996, OWA$A and the~Univexsity entered into a Memorandum ofAgroement (MOA) which Provided further cl~r'ifcation of the original Sale and Purchase Agreement. The MOA specifically outlined the geographic areas of the Universityy that would and ~abuld not be subject to Service Availability Ears. These boundaries were established with certain assumptions about future dexrtartd for water and sewoer service within the University's certtr-al campus area. As you know, cxurent chaster planning efforts by the University now indicate that there will be substantially greater growth in the cents( campus area than was assumed in 1996 when the MOA was signed. In view of this information, it is appropriate to amend the MOA to reflect what we and the University now know about future water and sewer demands of the central 'campus area. APPROACH Staff proposes what we believe to be a simple, yet equitable approach. We cu<~~~est that when the University reaches the maximum arnourtt of existing or approved devclapcd tlc~or area permissible on the central campus according to tltc 'hewn of Chapel !-fill's ronin~ rc~ulations. ~1,3~{ C Board of Directors University of North Carolina at Chapel Hill Service Availability Pees Page Z that the University would thereafter be responsible for paying all OWASA Service Availability Pees_ According to the Town of Chapel Hill, the total amoun[ of floor azea existing or approved for development by the University an central campus as of April 1999 was 13,213,822 square feet. The current maximum amount of floor area permissible under the Town's zoning regulations for the central campus is ! 4,194,410 squaze feet. NEXT STEPS The above approach was reviewed and endorsed by the OWASA Executive Committee on October 5, 1999 for presentation to the Boazd of Directors at their October 14. 1999 meetinfi. I I~ the Board supports this approach, 1 will prepaze a letter to John P_ Evans, Interim Vice Chancellor for Finance and Administration v~rith this proposal. [ will keep the Board advised with respect to this matter so that you may kcer our consti[ucnt governments fully informed. D~ ~it.Gt•-rr~. !~ , Cd Ket~vin "~~~ rxccutivc Director EK/j r c: Bob Epting Il.3S _~ . ATTACFIlVIENT 6 OWASA ORANGE WATER & SEWER AL[~i`HORITY Qualic~~ $en~~cc Sincc 1977 January 14, 2000 Dr. John P. Evans interim Vice Chancellor for Finance and Administration The University of North Carolina at Chapel Eiill CB# 1000, 300 South Building Chapel Hill, NC 27599-1000 Dear Jack: Thank you for meeting with Ed Kerwin and me to talk about OWASA's availability fees [ appreciated the opportunity to explain why this is an important issue for OWASA and to hear your views on the matter- The .question at this stage is whether the issue can be resolved through negotiations Discussions between Ed Kerwin (for OWASA) and Bruce Runberg and Jonathan Howes (for the University) began over six months ago. [feel that it is necessary to focus efforts an completing negotiations or for OWASA to address the issue on its own, We would be happy to provide any information about this topic that you would find useful and we look forward to hearing your thoughts on how to proceed Sin ly, ,,~_. ~~ Peter C. Croydon Chairman,.OWASA E3oard of Directors Il, 3(~ -_ _ ._ _ - _ .-- -------- , .ATTACHMENT 7 / / TFIE UNIVgR$X'X'y QF NQRTH C.a.120LiNs~ AT CF~AP'Fl. Ent.l. Rix of the Yore C7+~aellor fa Finanee and A4mieisvxiaa the Udreracy of Necd. C1~vliaa :.e C7aapsl X11 CBi IOQ(1, X00 5axh Building c~,va rswn. tic ns9v-loco (9(9) 962-3798 PAX: (919) %2-0ba7 Febzuary 17, 2000 Mr. Ed Kerwin Orange Water & Sewer Authority 400 Jones Ferry Road Post Office Box 366 Carrboro, North Carolir,.a 27510-0366 Dear Ed: T write in response to your January 14, 20001etter concerning availability fees. As we had discussed previously, the 1996 Memorandum of Agreement behveen OWASA and the University outlines a geographical boundary outside of which the University would pay availability fees. The Memorandum of Agreement dots not coate7nplate any changes to this arrangement when the University reaches a ecrtain level of developed properly, However, over the years, the University and OWASA have worked cooperatively on issues of mutual concern. In that spirit, vcre are ~~ to discuss, in face to face meetings with representatives of O'V~TASA and the Unive..rsity, ideas for a mutually acceptable solution concerning availability fees. I would expel these talks to acknowledge-what is provided in the 1996 Memorandum of Agreement. I have asked Eruce Runb~g ~, Jim Metgoer to represent the University in this endeavor. Bruce will contact you i.>x the near future to discuss arrangements for initiating these discussions. S ixrccrcly, John P. Evans Interim Vice Chancellor for Finance and Administration cc: znterim Chancellor William McCoy lblx. Jonathan Howes - Mr. Jim Mergner Mr. Bruce Runberg 11.37 • ;Jly!VERS!TY OF NORTH CAROLINA SERVICE ATTACHMENTS TO TFIE OWASA WATER AND SEWER SYSTEM AFTER 1977 OEC. 31.7999 PAGE 1 OF 3 PROJECT METER SIZE METER EQUN. METER/ SETTING FEE WATER AVAIL FEE SEWER AVAIL FEE TOTAL AVAILABILITY FEES ACTUAL FEE PAID 'Jniversity Press 3/4" 1 $330 $880 $72D $1,600 $1,930 Snack Bar 3/4" 1 $330 $880 $720 $1,600' $330 Lineberger Center 4" 25 $0 $11,220 $7,650 $18,870 $0 Bell Tower Trailer $/4" 1 $330 $880 $720 $1,600 $1,560 Bell Tower Trailer "2-3/4" 2 $660 51,760 $1,290 $3,050 $3,200 Swing Bktg. Trailer 3/4" 1 $330 $880 $720 $1,600 $1,560 Davis Library 4" 25 $1,200 $11,220 $7,650 $18,870 $1,200 Morehead Labs. 3" 16 $1,000 $7,220 $4,950 $12,170 ,$1,000 Ballfieki (Mason Farm) 3/4" 1 $330 $880 $0 $880 $330 Trailer #43 3/4" 1 $330 $880 ,$720 $1,600 $330 Blind Wash Faality 3/4" 1 $330 $880 $720 $1,600 $450 Dean Smith Center 4" 25 $0 $11,220 $7,650 $18,870 $p Computer Science 3" 1fi $1,100 $7,220 $4,950 $72,170 $1,100 Ransom Street 1 1/2" 5 $1,300 $6,300 $0 $6,300 $1,300 Kenan Center 3" 16 $1,200 $20,200 $13,400 $33,600 $1,2D0 Kenan ,Center (Irrigation) 1 1/Z" 5 $1,300 $6,300 $0 $6,300 $1,300 Kenan Center (Irrigation), 1 1/2" 5 $1,300 $6,300 $0 $6,300 $1.300 Carmichael Res. 4" 2S $1,400 $31,600 $21,000 $52,600 $1,400 Glaxo r s $s2o $1o,6p0 $7,000 $17,600 $s2o 400 Franklin (Irrigation) 1" 2.5 $525 $3,300 $0 $3,300 $525 Security Services 1 1/2" 5 $Z65 $6,600 $4,400 $11,000 $265 Family Physicians 3" 16 $1,45D $24,320 $16,160 $40,480 $17,610 UNC Support 5erv. 2' 8 $2,500 $10,600 $7,000 $17,600 520,100 Med: School Trailer 1" 2.5 $525 53,300 $2,200 55,500 $525 UNC Press Ware. 3/4" 1 $65 $1,520 $1,130 $2,650 $2,715 UNC Public Health r 4" 2S $1,950 $35,750 $23,750 $59,5DD 51,950 UNC Biotech Research 4" 2S $1,750 $38,000 $25,250 563,250 $1,750 UNC Power Plant 8" 80 $2,700 $128,800 $85,600 $214,400 $2,7pp UNC Alumni .(Irrigation) 1" 2.5 5110 $3,800 $0 $3,800 $110 UNC Friday Center 4" 25 $1,850 $43,765 $30,265 574,030 $75,880 1 F'AG1; 2 t7F 3 METER/ WATER SEWER TQTAL PACT METER METER SETT1Nt3 AVAIL AVAIL AVAILABILITY ACTI.IAL F~ SIZE EQUN. FEE FEE FEE FEES PAIQ UNC Ambulatory Care 4' 2 5 51,750 542,625 528,375 571,000 530,125 UNC Indoor Tennis 2" 8 5850 514.885 510,250 525.135 525,985 UNC Watts HiU Center (Irrigation) 1' 2. 5 5720 S4,2fi0 SO 54,260 S120 JNC Watts Hip Center 3' 16 51,500 527$0 518,160 545,440 51,500 school Public Hearth (frailer 39) (1/93) 1" 2.5 5775 54,260 52,975 57,235 5910 ]Id Fist (3/93) 3" 16 51,625 52780 ,518,160 545,440 51,625 ~ West ~) 3" 16 51,625 527,280 518,160 545,440 51,625 Jpper Quad'(Irrigafion) (9/93) 2' 8 5850 513,640 50 513,640 5850 ~etzer Gym (irrigation) (9193) 1" 2.5 5120 54,260 50 54,260 5120 ichool of Social War1c 4' 25 52,000 542,625 328,375 571,000 52,000 ~nadc Shop Relocate (1194) 5/8" 1 5700 51,705 51,270 52,975 5835 INC Hospital Admin. 3" 16 5675 530,096 520,500 550,596 $51,271 outhside Chiller Plant (?194) 1 112" 5 5250 58,525 SS,fi75 x74 200 5250 Credit existing ~~ -1 (575) (51,705) (51,135) , (52,840) (575) authside Ctuper Plant (2194) " 6" 50 52.500 385,250 556.750 5742,000 32 500 Credit ~ 4 -25 (5939) (542,625) (528,375) ($71,1]00) . ($939) hurston 6rnMes Bldg. (7194) 4" 25 52.040 542.625 528,375 371,000 52.040 aybr Hall Parking Lot (10/94) 5/8' 1 575 50 50 50 575 oraceWilliamsAirppt- 5/8" 1 SO 54 51,180 51,180 51 180 (~~Se~) 1" 2.5 50 SO 52,950 52,950 , 52.950 'A Facility (11/94) 4" 2S 57,090 544,325 529.500 573.825 51,090 VCIEPA FacTity (Irrigation Meter) (4/9 1-12" S 5260 59.045 50 59.045 5260 :nan Stadium (Irrigation Meter) (5195) 8' 80 57.406 5144.720 SO 5144.720 57,406 ~C Spool of Soaal Work (6/95) 3" 16 5956 528.944 . 519,264 548,208 ~ 5956 irofina Inn (8/95) ' 4" 25 52.500 545225 530,100 575 325 500 52 Cred d existing 3" -16 SO (528.944) (519,26!t) , (548.208) , 50 Credit existing 3" -16 30 (328.944) (51964) (548,2t>8) 50 lC Student Union (8195) 2" 8 52,500 514,472 59,632 524,104 52.500 :MH Neuropsydriatric Center (3196) 4" 25 52.600 546,575 531.000 577,575 52,600 rnds Ebrnen Blood Lab (7,197) 1-112' S 52,615 59,640 56,420 =16,060 $2,615 eberger Cancer Center (5197) 6" 50 52,483 596.400 564.200 5160 600 483 52 Credit existing 4" -25 50 (548,200) (532,100) , ($80,300) , 50 IC Dental Sd~ool (5/97) (Temp.) 5/8" 1 590 51,928 51,284 53,212 $90 C Thurston Bowies (fountain) (6197) 518" 1 390 51,928 50 51,928 590 C Modular Units (6/97) 1-112' S 5295 39,640 56,420 516,060 $295 l.. c PAGE 3 OF 3 ' PROJECT METER SIZE METER EQUIV. METER/ SETTING FEE WATER AVAIL. FEE SEWER AVAIL. FEE TOTAL AVAILABILITY FEES ACTUAL FEE PAID Kenan Flagler School of Business (7/97) 3" i6 $1,593 $30,848 $20,544 $1,593 UNC Kenan Stadium (8/97) 3" 16 $1,652 $30,848 $20,544 $51,392 $1,6~ Kenan Flagler School of Business (brig. 2" 8 $1,060 $15,424 $0 $15,424 $1,OE UNC Laundry Building (12/97) 2" 8 $1,035 $15,424 $10,272 $25,696 $1,0~ Dental School (1/98) 4" 25 $2,470 $48,200 $33,075 $81,275 $2,47 East Chiller Plant (3/98) 3" 16 $1,665 $30,848 $21,168 $52,016 $1,6E 1-112" 5 $295 $9,640 $6,615 $16,255 52~ WUNC (7198) 1-112" 5 $295 $9,640 $6,615 $16,255 $16,55 UNC Hospital (8198) 3" 16 $1,669 $30,848 $21,168 $52,016 $53,68 100 Raleigh Rd. (Irrigation) (8/98) 2" 8 $2,500 $15,424 $0 $15,424 $2,50 Lenoir Hall (10198) 3" 16 $1,670 $30,848 $21,168 $52,016 $1,67 Credit existing 2" 2" ~ 50 ($15,424) ($10,584) ($26,008) Soccer Center (2/99) 1-112" 5 $300 $0 Finley Golf Course (2199) Fountain 5/8" 1 $825 $1,763 $0 $1,763 $82 Fountain 518" 1 $825 $1,763 $0 $1,763 $82 Pump House 5/8" 1 $825 $1,763 $0 $1,763 $82 Bathroom 5/8" 1 $825 $1,763 $2,458 $4,221 $3,28 Credit existing 1-1/2" (brig.) 1-112" -5 $0 ($8,816) $0 ($8,816) Credit existing 1-1/2" (brig.) 1-1/2" -5 50 ($8,816) 50 ($8,816) Credit existing 1-112" (brig.) 1-11'1" -5 $0 ($8,816) $0 ($8,816) UNC Chancellors House (brig.) (4199) 1-12" 5 $300 $8,816 50 $8,816 $3C Law School Addition (6/99) 3" 16 $1,700 $28,210 $36,129 $64,339 $1,7C Health Affairs Bookstore (11/99) 1-12" 5 $370 $8,990 $11,515 $20,505 $37 Waste Storage -Airport Rd. (11/99) 1" 2.5 $145 $4,495 $5,758 $10,253 $10,3 UNC Neurosaence (12199) 4" 25 $2,514 $44,950 $57,575 $102,525 $2,51 ITOTA'LS , 937 ':591,139 $1;4!34.728 ,5878,472 $2;273,401 $39'5;135 ~, .Jr QWASA ORANGE WATER 8c SEWER AUTHORITY Quality Service Since ! 977 February 25, 2000 Dr. John P. Evans Vice Chancellor for Finance and Administration The University of North Carolina at Chapel Hill CB # 1000 Chapel Hill, NC 27599-1000 Dear Jack: Thank you for your February 17, 20001etter concerning availability fees and your expressed willingness to reach a mutually acceptable solution to this issue. As you have stated, OWASA and the University do indeed have a history of working cooperatively on issues of mutual concern. At their February 24, 2000 meeting, the OWASA Board of Directors strongly and unanimously affirmed their support for cost recovery from the University related to growth consistent with the "cost-of-service" principle. As you know, this "cost-of-service" principle is the foundation for all of our rate-setting decisions as clearly established in the Sales and Purchase Agreements. The Board also requested that I work with Messrs. Runberg and Mergner as you have suggested and seek a resolution to the availability fee issue by May 1, 2000. As our Board restated last night, OWASA very much values the University as our largest customer. We look forward to a timely and mutually agreeable solution. Very truly yours, Ed Kerwin Executive Director EK/jr c: Board of Directors William McCoy, Interim Chancellor Bruce Runberg, Associate Vice Chancellor for Facility Services Jim Mergner, Associate Director Utilities Operations Jonathan Howes, Special Assistant to the Chancellor and Director of University Outreach 40o Jonrti Ferry Rnad Equal Opportun~ry Employer Voice (919) 968-4-421 $~~~_. ~'''~~ TOWN OF CHAPEL HILL 3OF) NORTH COLUMBIA STREET CHAPEL HILL, NORTH CAROLINA 27S 16 OFFICE OF THE MAYOR March 30, 2000 Interim Chancellor William McCoy 103 South Building 005 CB# 9100 University of North Carolina Chapel Hill, NC 27599-9100 Dear Chancellor McCoy: (919) 968-2714 _FAX 919-967-$406 ~~~~~~ M1\ D ~~3r~ ~~ . Ji' At its meeting of March 27, 2000, the Chapel Hill Town Council adopted the attached resolution regarding the University's payment of service availability fees to the Orange County Water and Sewer Authority (OWASA). The Council approved: 1. Supporting 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 full and fair share of the cost for the water and sewer service they receive. 2. Expressing the Council's appreciation to the University for its readiness to discuss ideas for a mutually acceptable solution concerning service availability fees. 3. Encouraging OWASA and the University to expeditiously seek a fair resolution to this matter. We lrnow that you understand how important this issue is. We thank you far your hard work. Sincerely, ~ Sr ~ Rosemary I. Waldorf Mayor RIW/wms c Attachment: Town Council Resolution, Town of Chapel Hiil, March 27, 2000 2 I A RESOLUTION REGARDING THE UNIVERSITY OF NORTH CAROLINA A 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 WITH NEW DEVELOPMENT (2000-03-Z7/R-23) WHEREAS, the University of North Cazolina at Chapel Hill (the University) and the Towns of Carrbom and Chapel Hill transferred theix 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 alsa exempt the University from acreage fees and similaz fees (now called service availability fees) Far new connections to then-existing mains transferred to OWASA, and the University sold its water and wastewater assets to OWASA at less than mazket value; 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 primarily occur an the University's Horace Williams and Mason Farm tracts and not in the central campus azea; 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 azea, 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 Council of the Town of Chapel Hill that the Council: 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 full and fair share of the cost for the water and sewer service they receive, and the Council stands ready to assist as needed. 2. Expresses its appreciation to the University far its readiness to discuss ideas far a mutually acceptable solution concerning service availability fees. 3. Encourages OWASA and the University to expeditiously seek a fair resolution to this matter. - This the 27~' day of Mazch, 2000.