ATTACHMENT 1

March 17, 2004

Mr. Ed Kerwin

Executive Director

Orange Water and Sewer Authority

P.O. Box 366

Carrboro, NC 27510-0366

Dear Mr. Kerwin:

I am writing at the request of the Town Council to ask that OWASA consider instituting a policy that would allow recovery of some of the costs of installed water and wastewater infrastructure by those who install the infrastructure from those who later make use of that infrastructure.  I believe that OWASA once had a similar policy and ask that you consider either reinstituting the old policy or creating a new one.

The question arose during discussion of the Town’s upcoming Town Operations Center project on Millhouse Road.  As you know, the Town, as developer, will install water lines, sewer lines and a pump station to serve the facility.  Both the water lines and the sewerage facilities will be designed so as to allow future development in the area to use them.  While we agree that this is good planning for the community’s eventual health and safety, the capital investment to effect this infrastructure will fall entirely on the Town as the first developer in the area.  We believe it would be logical and equitable for future developers to pay some allocated share of the cost of the lines and pump station as a reasonable cost of their respective development projects.

We would welcome the opportunity to discuss this idea with you further.  Please contact me at your convenience and thank you for your consideration of this request.

Sincerely,

W. Calvin Horton

Town Manager

cc:        Mayor and Council