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Town of Chapel Hill header
File #: [25-0464]    Version: 1 Name:
Type: Discussion Item Status: Agenda Ready
File created: 10/10/2025 In control: Town Council
On agenda: 10/22/2025 Final action:
Title: OWASA Service Extension Studies
Attachments: 1. Interlocal_Resolution A, 2. Interlocal_Draft Interlocal Agreement and Exhibits
Related files: [23-0795], [23-0671]
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AGENDA ITEM EXECUTIVE SUMMARY

ITEM TITLE*

title

OWASA Service Extension Studies

presenter

RESPONSIBLE STAFF, TITLE, DEPARTMENT*

Theodore Voorhees, Town Manager, Town Manager’s Office

STAFF RECOMMENDATION*

Staff recommends that Council adopt the resolution to authorize the Town Manager to execute the interlocal agreement with OWASA for service extension studies in the southern extraterritorial jurisdiction.

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ACTION/DECISION POINTS*

Council must approve or reject the resolution.

LEGISLATIVE CONTEXT*

The Town is permitted to enter into interlocal agreements per NCGS §160A-461.

BACKGROUND AND CONTEXT*

With the consent of its member jurisdictions, OWASA expanded its primary service area to include approximately 360 acres of Chapel Hill’s southern extraterritorial jurisdiction (ETJ) in 2024. This action allows OWASA to extend water and sewer services into the southern ETJ. Preliminary engineering studies are required to identify optimal alignments for new sewer lines in the area.

Understanding where new sewer lines can be placed will inform the Town’s efforts to plan for the appropriate development intensities in the impacted area. 

FINANCIAL IMPACT

The proposed interlocal agreement commits the Town to paying up to $50,000 to support preliminary studies for the southern ETJ and those funds have been identified in the FY 2026 budget. 

ATTACHMENTS

Interlocal_Resolution A

Interlocal_Draft Interlocal Agreement and Exhibits

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