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HomeMy WebLinkAboutAgenda - 02-05-2013 - 4b1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: February 5, 2013 SUBJECT: OWASA Annual Update Presentation DEPARTMENT: County Commissioners ATTACHMENT(S): January 17, 2013 Letter from OWASA Board Chair Alan Rimer Action Agenda Item No. 4 -b PUBLIC HEARING: (Y /N) No INFORMATION CONTACT: Donna Baker, Clerk to the Board, 245- 2130 Frank Clifton, County Manager, 245- 2300 Ed Kerwin, OWASA Executive Director, 968 -4421 Alan Rimer, OWASA Board Chair, 968- 4421 PURPOSE: To receive a presentation and information from the Orange Water and Sewer Authority ( OWASA) on the recent activities. BACKGROUND: OWASA Board of Directors' Chair Alan Rimer will make a presentation to the Board of Commissioners on recent OWASA activities and specifically addressing the topics outlined in the attachment. OWASA Executive Director Ed Kerwin will be at the meeting, and Orange County's appointees to the OWASA Board, Terri Buckner and Michael Hughes, have also been invited to attend. FINANCIAL IMPACT: There is no financial impact associated with receiving the presentation. RECOMMENDATION(S): The Manager recommends that the Board receive the presentation as information and provide any feedback as necessary. ...................................................... 77 A .......... . ................................... C�77 \,C!]��.'T/:1� : ► t �►J • : 111 A ,public, non-profit agency providing water, sewer and re clairned water services- to the Carrhoro- Chapel" Hill communkv. '.-.hair Barry Jacobs *range County Board of Commissioners tost Office Box 8181 Hillsborough, NC 27278 ..00.0 M- Dear Chai "cobs, 4C(3 at j A 0111 ire 0 A& M A Chair Barry Jacobs January 17, 2013 Page 2 Commission (EMC) convert OWASA's existing Level II (future use) Jordan Lake allocation to Level I (current use when needed). We expect the EMC to act on our request later this spring. At our January 10, 2013 meeting, the OWASA Board approved a resolution (Attachment #2) to approve a Drought Response Operating Protocol (DROP). The DROP describes the procedures and criteria that OWASA will use in making water supply and demand management decisions during extended droughts, including provisions for notifying the public about possible Water Supply Shortage declarations, water purchases, and /or the use of OWASA's Jordan Lake allocation. Later this year we expect to submit our application to retain our existing Jordan Lake allocation (currently equivalent to approximately 5 million gallons per day) as part of the State's Round 4 allocation process. The EMC is expected to make its allocation decisions in 2014. Water And Sewer Management, Plan ' And Boundary A-greement The OWASA Board did not take any action during the past year regarding our 2010 request to clarify certain language in the Water and Sewer Management, Planning and Boundary Agreement (WSMPBA). The OWASA Board has not yet discussed what additional actions, if any, may be taken regarding the WSMPBA. Below is an excerpt from our January 9, 2012 letter to the Orange County Commissioners which may put this in context. On December 9, 2010, the OWASA Board adopted a resolution to clarify certain language in the 2001 WSMPBA so that the Agreement cannot be interpreted as constraining OWASA's access to its Jordan Lake allocation for use by OWASA customers. Hillsborough and Orange County adopted resolutions on March 14, 2011 and March 15, 2011, respectively, that would apply OWASA's requested language clarifications to their jurisdictions as well. The Carrboro Board of Aldermen approved the proposed change for Hillsborough and Orange County on March 1, 2011, but not for OWASA. The Chapel Hill Town Council had originally approved OWASA's request on February 28, 2011, but on April 25, 2011 reconsidered its previous action and rejected the language change. On June 9, 2011, the OWASA Board resolved to adopt and maintain a policy to purchase water from other communities or obtain water from its Jordan Lake allocation only after first declaring a Stage 1 Water Supply Shortage — provided that Carrboro and Chapel Hill approve the previously requested clarification to the WSMPBA. At our October 20, 2011 meeting, the OWASA Board discussed its June 9, 2011 policy resolution regarding water purchases during a drought and the importance of securing permanent access to our Jordan Lake allocation without the constraints of language presently contained in the WSMPBA. The Board was in agreement to modify its June 9th position and adopted a resolution stating that: "OWASA shall only purchase water from other communities or obtain water from its Jordan Lake storage allocation during periods of increased drought risk 3 Chair Barry Jacobs January 17, 2013 Page 3 after it has declared a Stage 1 Water Supply Shortage per OWASA's State - approved Water Shortage Response Plan and OWASA's Water Conservation Standards as incorporated therein. " Historic Ropers Road (Wafer /Sewer) OWASA staff has provided technical information on water /sewer issues as requested by County staff. Working within the parameters of the State Statutes, our policies and founding agreements, we will continue to support this important initiative as requested by County staff.. Mountains -To -Sea Trail In response to the County's inquiry, the OWASA Board expressed support (Attachment #3) for this County -led initiative. Our position remains unchanged and we think the benefits to the citizens of the County and State exceed the manageable security and water quality risks that OWASA will assume if the initiative goes forward. Forestry Management Pursuant to the North Carolina Wildlife Resources Commission's (WRC) forestry management plan for OWASA's 490 -acre Cane Creek Wildlife Mitigation Tract, 25 acres of declining quality Virginia pine were clear -cut, and 25 acres of hardwood forest were thinned during the fall of 2010. The 25 -acre clear -cut was replanted with loblolly pines in January 2011. All management activities were conducted according to forestry management best practices; however, we left substantially larger (and completely undisturbed) water quality buffer areas than required by current regulations. We will continue the phased implementation of the WRC's plan on this property in the coming years in compliance with conditions of the U.S. Army Corps of Engineers 404 Permit that allowed construction of the Cane Creek Reservoir. Upon the recommendation and guidance of the WRC and North Carolina Forest Service, OWASA also commissioned development of a draft plan for sustainable management of our remaining forest lands (about 1,900 acres). We hosted a community meeting in November 2010 to present and receive comments on the draft plan prepared by our consulting forester, and we received extensive comments from citizens, local elected boards, and several State agencies. We have deferred action on the draft plan to address higher priority matters. Communications We are very pleased that newly elected Commissioners Dorosin, Price and Rich met with us on January 11, 2013 for an overview of our operation and to discuss items of mutual interest. We welcome the opportunity to meet with the Commissioners to keep you informed about our work and to receive your feedback. Please let us know if you would like additional information on any of the above topics or information regarding other issues or aspects of our operation. C1 Chair Barry Jacobs January 17, 2013 Page 4 Very tru yours, -AW L Alan Rimer, P.E., Chair OWASA Board of Directors Attachments c: Mayor Mark Chilton, Town of Carrboro Mayor Mark Kleinschmidt, Town of Chapel Dill Mayor Tom Stevens, Town of Hillsborough Mr. Frank Clifton, Orange County Manager Mr. Roger L. Stancil, Chapel Dill Town Manager Mr. David Andrews, Carrboro Town Manager Mr. Eric Peterson, Hillsborough Town Manager OWASA Board of Directors Ed Kerwin, OWASA Executive Director 61 Attachment #1 Eel 99 1111k s A -is responsible - d future customers . reliable, sustainable, and cost-effective supply of high quality drinking water at all times, and is committed to making the highest and best use of our local water resources; and WHEREAS, OWASA's water conservation and reclaimed water programs, which are key components of our sustainable resource management strategy-, have and consistently reduced water consumption during the past ten years among all customer groups; r: d as +' result Cane Creek. University Lake, and Quarry Reservoirs are able to meet the community's expected water supply needs through 2060 under most circumstances; and "ITHE.-NE AS, notwithstanding these significant achievements,, we will become increasingly susceptible extended extreme Quarry Reservoir is availablein the mid 2030s- and WHEREASI it is prudent for OWASA to proactively plan and prepare for extreme droughts as well as operational emergencies; and WHEREAS, the B. Everett Jordan Reservoir (Jordan Lake)' has been recognized as an element of OWASA's long-range water supply planning since the NC Environmental Management Commission first approved a Level 11 water supply storage allocation for OWASA in w■ and WHEREAS, Ai)rd 20, 2012) identifies Jordan Lake as a necessary " insurance policy"' for use during future periods of extended drought or M' ■ ■ emergencies, especially ;, a; iexpanded Quarry Reservoir is avail.b • # and WHEREAS, ■ _i, OWASA that any use of Jordan Lake water, even for temporary or emergency use, must come from a Level I allocation, and the staffs of the Town of Cary and City of Durham have stated that OWASA must have its own Level I allocation as a prerequisite for any new or modified transfer agreements that would guarantee water to OWASA under specified conditions; and WHEREAS, it i's now apparent that OWASA must have + Level allocation circumstances, Jordan Lake under any short or long-term Mutual d agreements Cary and r and staff WHEREAS, DWR has expressed r t intended Jordan Lake as part of its strategy to minimize the risks of reservoir depletion during severe droughts or water supply emergencies is a sound and valid approach to water supply contingency plwming and not inconsistent with 15A NCAC 02G+0504(b) of the Jordan Lake water supply xesolution Requesting Conversion to a Level I Allocation December 13, 2012 Page 2 allocation rules, a - e Commission will assign Level I allocations qfJordan La'l storage water szipply based on an intent to begin withdrawing upaler ivithinfive years of th ef . ffiective date qf allocation. THEREFORE, ' DIRECTORS r*i Is Director 1. The Executive ■ letter to the NC Environmental Management Commission that includes the following elements: A request to immediately convert OWASA's existing Level 11 Jordan Lake water supply storage allocation It A statement of OWASA's intended use of Jordan Lake to supplement the supply of water available a a pn'mary supply - (University Lake, Cane Creek Reservoir, and Quarry Reservoir) during 'infrequent periods of extended drought 2. The Board hereby r that OWASA shall only purchase water from othe communities or obtain water from its Jordan Lake storage allocation during periods of increase trought risk after it has declared a Stage I Water Supply Shortage per OWASA's State-approve Water Shortage Response Plan and OWASA's Conservation Standards as incorporated therein. I 3. Any decision to invest OWASA funds in capital facilities needed to fully access it Jordan Lake allocation and/or to make periodic payments to Durham and/or Cary under the term *f new or modified water sales agreements will be based on an objective assessment of the likel. risks and benefits of the proposed investment or expenditure; and., such an assessment will mclude the consideration of the costs and benefits of alternative approaches. Adopted of µ+ ATTEST: C tu&l Ar' W` sib, Secretes 7 Attachment #2 E:] RESOLUTION ADOPTING A DROUGHT RESPONSE OPERATING PROTOCOL WHEREAS, OWASA is responsible for providing current and future customers with a reliable, sustainable, and cost - effective supply of high quality drinking water at all times and is committed to making the highest and best use of our local water resources; and WHEREAS, OWASA's role with respect to growth is explicitly addressed in its Mission Statement: "We will manage our responsibilities in a manner consistent and compatible with the adopted growth management policies and land use plans of the Town of Carrboro, the Town of Chapel Hill, and Orange County "; and WHEREAS, OWASA's water use efficiency, conservation, and reclaimed water programs, which are key components of its sustainable resource management strategy, have successfully and consistently reduced water consumption during the past ten years among all customer groups; and WHEREAS, notwithstanding these significant community -wide achievements in water use reduction, OWASA's University Lake, Cane Creek, and Quarry Reservoir supplies will be increasingly susceptible to shortages during extended periods of severe drought, especially until the expanded Quarry Reservoir is available in the mid 2030s; and WHEREAS, it is OWASA's duty to proactively plan and prepare for water supply shortages due to extended periods of severe drought; and WHEREAS, OWASA's Water Shortage Response Plan (November 11, 2010), as approved by the North Carolina Division of Water Resources, includes Response Triggers for a range of supply and demand conditions and describes the actions that OWASA will take during periods of water shortages; and WHEREAS, community members and elected officials from Carrboro and Chapel Hill have requested clarification of the procedures and criteria that OWASA will use for making water supply and demand management decisions during extended periods of severe drought, including provisions to assure prompt and complete public notice of potential Water Supply Shortage declarations, water purchases, and /or the use of OWASA's Jordan Lake water supply storage allocation. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF ORANGE WATER AND SEWER AUTHORITY THAT: OWASA shall use the Drought Response Operating Protocol text and graph attached hereto as its procedures and criteria for making water supply and demand management decisions during periods of extended drought, including provisions for public notice of potential Water Supply Shortage declarations, water purchases, and /or use of OWASA's Jordan Lake water supply storage allocation. Adopted this 10th day of January 2013. Alan . Rimer, P.E., Chair ATTEST: �I Amy W4sil, Secretary DROUGHT RESPONSE OPERATING PROTOCOL 9 JANUARY lO, 2013 Purpose To describe the procedures and criteria that OWASA will use for making water supply and demand management decisions during an extended drought, including provisions for public notice of potential Water Supply Shortage declarations, water purchases, and /or use of OWASA's Jordan Lake water supply storage allocation. The protocol outlined below will provide OWASA's customers, local elected boards, and the overall Carrboro - Chapel Dill -UNC community with timely notice of a potential water shortage due to extended drought and the opportunity to reduce water consumption in order to avoid and /or minimize the need for more severe water use restrictions or emergency actions. The statistically derived drought responses described below were based on the risk of depleting OWASA's existing Cane Creek /University Lake /Quarry Reservoir system to the Emergency Storage level. Those risks do not assume that Jordan Lake is part of OWASA's existing or primary water supply portfolio (University Lake, Cane Creek Reservoir, and Quarry Reservoir); instead, Jordan Lake is only an "insurance policy" for use during extended drought or operational emergencies. Protocol 1. OWASA shall monitor OWASA's water supply and demand conditions, short -and long -term weather forecasts, regional water supply conditions, and other factors which may affect the risk of a water supply shortage due to drought. 2. The attached graph, which is a modified version of the 7 million gallon per day (mgd) "trigger table "* in OWASA's State - approved Water Shortage Response Plan, shall guide OWASA's drought response decisions when raw water demands are at an annual average of 7 mgd. (When annual average demands are greater than 7 mgd, the corresponding trigger table graphs from the Water Shortage Response Plan shall be used.) Any drought - related Water Supply Shortage declaration at storage levels above those indicated on the trigger table, and /or any decision to purchase water from a neighboring jurisdiction (and /or to use OWASA's Jordan Lake allocation) during a drought, shall be made only upon approval by the OWASA Board of Directors. 3. OWASA shall declare a Water Shortage Advisory no later than when the total water stored in the reservoirs drops to within 10% of the mandatory Stage 1 trigger. (This Advisory stage is represented by the black dashed line on the attached graph). At or around that time, OWASA will initiate communications with the Carrboro Board of Aldermen, Chapel Dill Town Council, Orange County Board of Commissioners, and the University of North Carolina at Chapel Dill — and shall give public notice to customers and other stakeholders — regarding the likelihood that Stage 1 water use restrictions will go into effect, and that it may be necessary to begin purchasing water from the City of Durham and /or Town of Cary if current drought conditions continue or worsen. OWASA will carefully consider the advice and feedback from the elected boards. The OWASA Board of Directors will continue to exercise its sole responsibility and authority for decisions about water shortage declarations and water purchases, consistent with this Protocol. As in the past, OWASA will expand its standard conservation messaging before declaring the Water Shortage Advisory in order to encourage * The graph is based on an average daily raw water demand of 7 mgd. Trigger levels for greater or lesser demands will be correspondingly higher or lower than those depicted here. Drought Response Operating Protocol January 10, 2013 Page 2 and to give the community as much opportunity as possible to intensify its water saving practices. 4. When total water storage in OWASA's reservoirs system declines to the purple block on the attached graph, OWASA must declare a Stage 1 Shortage as required by its State - approved Water Shortage Response Plan. OWASA may, at its own discretion, initiate Stage 1 use restrictions — with or without corresponding drought rate surcharges — earlier than indicated on the graph, but not later. The OWASA Board may authorize purchases from other utilities and /or obtain water through its Jordan Lake allocation only when total water storage in University Lake, Cane Creek Reservoir, and the Quarry Reservoir is below the Mandatory Stage 1 Shortage trigger, but no sooner. Board approval for such a declaration or purchase decision shall not be required, however, during an operational emergency as determined by OWASA's Executive Director per OWASA's Water Shortage Response Plan. Operational emergencies are typically characterized by the need for rapid response and may require the curtailment of water use and /or purchases in a short period of time. Examples of such emergencies include, but are not limited to: • Production problems at the Jones Ferry Road Water Treatment Plant • Failure of pumps, storage tanks, or pipelines • Raw or treated drinking water quality problems • Planned or unplanned maintenance events • Natural disasters. 5. During an extended drought, OWASA staff will initiate discussions with the Board of Directors regarding the need and timing of commencing water purchases or other prudent actions as total water in storage approaches the mandatory Stage 1 trigger levels shown on the attached graph; however, no purchase or use of OWASA's Jordan Lake allocation shall be made without explicit approval by the Board of Directors (except during Operational Emergencies as described above in Paragraph 4). Restrictions shall, and purchases may, continue until storage returns to levels above the mandatory Stage 1 trigger. Water use restrictions shall continue until storage returns to the "rescission" levels specified in the Water Supply Shortage Response Plan. 6. OWASA shall provide regular updates to the community and to the local elected boards throughout the drought as described in Paragraph 3 above. The OWASA Board and staff shall be available to attend meetings of the local governments to provide information about supply and demand conditions and to provide any information or answer questions elected officials may have. 7. The OWASA Board shall review this protocol (a) concurrently with its review of OWASA's State - approved Water Shortage Response Plan (as required in conjunction with Local Water Supply Plan updates that must be submitted to the NC Division of Water Resources at least once every five years); (b) following any drought during which mandatory water use restrictions were implemented; and/or (c) at any time deemed necessary to reflect changes in water supply and demand conditions or other new information, such as when the expanded Quarry Reservoir comes on line. 10 Drought Response Operating Protocol January 10, 2013 Page 3 11 These responses are based on the risk of depleting OWASA's existing Cane Creek/ University Lake /Quarry Reservoir system to the Emergency Storage level and are consistent with the Response Triggers of OWASA's State - approved Water Shortage Response Plan. Those risks do not consider Jordan Lake to be part of OWASA's existing or primary water supply (University Lake, Cane Creek, and Quarry Reservoirs), but only as an "insurance policy" for use during extended drought or emergency conditions. if- -- Water Shortage-Advisor : Aggressive public awareness /education effort, including direct 1 communication with the Carrboro, Chapel Hill, and Orange County elected boards and the University of North Carolina at Chapel Hill. A Water Shortage Advisory may be intitiated earlier at OWASA's discretion. Stage 1 Shortage: Mandatory use restrictions -- with or without rate surcharges -- may be intitiated earlier at OWASA's discretion, but not later. The OWASA Board may authorize purchases of water from other utilities and /or obtain water through its Jordan Lake allocation only when total water storage in University Lake, Cane Creek Reservoir, and the Quarry Reservoir is below this Mandatory Stage 'I trigger, but not sooner. Board approval for such a declaration or purchase decision shall not be required, however, during an operational emergency as determined by the Executive Director per OWASA's Water Shortage Response Plan. Stage 2 Shortage: May be intitiated earlier at OWASA's discretion, but not later. Stage 3 Shortage: May be intitiated earlier at OWASA's discretion, but not later. Water Supply Emergency: Emergency actions will be taken to obtain supplemental water to ensure the protection of public health, safety and welfare. If Cane Creek /University Lake /Quarry Reservoir storage declines to this level, such actions would likely include the installation of temporary facilities to pump water from the Haw River to the Cane Creek Reservoir. Drought Response Operating Protocol (For Average Annual Reservoir Withdrawals of 7 MGD) 100% 90% .... Advisory �.., stage 1 80% Stagez U_ 70% Stage 3 �� —a 1 Emergency 1 '— —+ ! — —� 0 50% 50% 1 -W - -- — -- fJ) 40% L 0 30% N 20% d 10% Emergency Storage 0% Jan Feb March April May June July Aug Sept Oct Nov Dec These responses are based on the risk of depleting OWASA's existing Cane Creek/ University Lake /Quarry Reservoir system to the Emergency Storage level and are consistent with the Response Triggers of OWASA's State - approved Water Shortage Response Plan. Those risks do not consider Jordan Lake to be part of OWASA's existing or primary water supply (University Lake, Cane Creek, and Quarry Reservoirs), but only as an "insurance policy" for use during extended drought or emergency conditions. if- -- Water Shortage-Advisor : Aggressive public awareness /education effort, including direct 1 communication with the Carrboro, Chapel Hill, and Orange County elected boards and the University of North Carolina at Chapel Hill. A Water Shortage Advisory may be intitiated earlier at OWASA's discretion. Stage 1 Shortage: Mandatory use restrictions -- with or without rate surcharges -- may be intitiated earlier at OWASA's discretion, but not later. The OWASA Board may authorize purchases of water from other utilities and /or obtain water through its Jordan Lake allocation only when total water storage in University Lake, Cane Creek Reservoir, and the Quarry Reservoir is below this Mandatory Stage 'I trigger, but not sooner. Board approval for such a declaration or purchase decision shall not be required, however, during an operational emergency as determined by the Executive Director per OWASA's Water Shortage Response Plan. Stage 2 Shortage: May be intitiated earlier at OWASA's discretion, but not later. Stage 3 Shortage: May be intitiated earlier at OWASA's discretion, but not later. Water Supply Emergency: Emergency actions will be taken to obtain supplemental water to ensure the protection of public health, safety and welfare. If Cane Creek /University Lake /Quarry Reservoir storage declines to this level, such actions would likely include the installation of temporary facilities to pump water from the Haw River to the Cane Creek Reservoir. Attachment #3 Valarie Foushee, Chair Orange County Board of Commissioners Post Office Box 8181 Hillsborough, NC 27278 SUBJECT: MOUNTAINS -TO -SEA TRAIL Dear Chair Foushee: I'm writing to express OWASA's support for the Mountains -to -Sea Trail (MST) initiative. We have met with Kate Dixon, Executive Director of the Friends of the MST, and we are confident that we can make the necessary arrangements that will allow use of OWASA's property in the vicinity of the Cane Creek Reservoir, consistent with our primary mission of providing safe and reliable drinking water for our customers. As such, conditional upon the Orange County Board of County Commissioner' approval of the initiative, our Board has directed OWASA staff to immediately begin working with Orange County Staff and the Friends of the MST to develop the necessary agreements and arrangements that will allow use of our property providing there is no compromise of water quality, no expenditure of OWASA funds and we are able to make the arrangements necessary to minimize any additional security risks associated with inviting hikers to use the property around the reservoir. Additionally, although it is not a condition of our support for the trail, OWASA has a long history of notifying and receiving feedback from the public before finalizing any changes to recreational activities at the Cane Creek Reservoir, and we are hopeful that the County's process would include some level of public involvement prior to finalizing the plans for the trail. We look forward to participating in this initiative and believe the MST will be a tremendous asset for all citizens of Orange County. Best regards, Randy Kabrick, P.E., Chair c: Mr. Frank Clifton, Manager, Orange County Mr. Roger L. Stancil, Manager, Town of Chapel Dill Mr. Steven Stewart, Manager, Town of Carrboro OWASA Board of Directors Ed Kerwin, Executive Director 400 Jones Ferry Road Equal Opportunity Employer Voice (919) 968 -4421 Carrboro, NC 27510 -2001 Printed on Recycled Paper www.owasa.org