HomeMy WebLinkAboutAgenda - 04-03-2001-10b
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: April 3, 2001
Action Agenda
Item No. I o-b.
SUBJECT: OWASA and Orange County Jordan Lake Allocations
DEPARTMENT: County Manager PUBLIC HEARING: (Y/N) No
ATTACHMENT(S):
County Engineer's 3/21/2001 Memo
Additional Materials of Explanation from
OWASA
INFORMATION CONTACT:
Paul Thames, ext 2300
TELEPHONE NUMBERS:
Hillsborough 732-8181
Chapel Hill 968-0501
Durham 688-7331
Mebane 336-227-2031
PURPOSE: To review and discuss information regarding the future allocation of raw water from
Jordan Lake.
BACKGROUND: The NC Environmental Management Commission (EMC) is currently
conducting a third round of allocation requests for raw water supplies from Jordan Lake. The
total allocations requested in the second and third rounds have far exceeded the rated 100
million gallon per day (mgd) water supply capacity of Jordan Lake. The Round 3 allocation
process requires that all entities having an existing Level II allocation (for future withdrawals)
reapply to preserve their allocations. Unlike the initial Round 1 application process, Round 3
applications must provide detailed projections as to water demand and water supply capacity as
justification for requested allocations.
The attached memorandum from County Engineer Paul Thames explains in detail OWASA's
Round 3 request fora 6.0 mgd Level II (future) allocation of raw water from Jordan Lake and
the difficulties Orange County will face in retaining or utilizing its existing Level II allocation. The
Engineer will briefly outline the major points of his report, and respond to the Board's questions
on this subject. A Board decision about the County's allocation will be needed no later than the
April 17, 2001 regular meeting.
FINANCIAL IMPACT: If Orange County is to maintain its Level II allocation, its annual cost in
interests and service/maintenance charges for Jordan Lake will be approximately $2,300 per
year. If the County maintains its Level II allocation and eventually does convert to a Level I
allocation, the annual cost will be approximately $4500 for the raw water allocation plus
additional charges for water withdrawal, treatment and distribution operational costs. At 1.0
mgd, capital costs could exceed two million dollars with operational costs approaching $5,000
or more per day.
RECOMMENDATION(S): The Manager recommends that the BOCC receive the report and
make decisions, either at this meeting or at the April 17 meeting, to
• support, in whatever manner the Board deems appropriate, OWASA's Round 3 application
fora 6.0 mgd Level II raw water allocation from Jordan Lake; and
• relinquish Orange County's existing 1.0 mgd Level II raw water allocation from Jordan Lake,
in recognition of the difficulty in justifying Orange County's Jordan Lake allocation as well as
the high cost and difficulty of accessing and distributing water from Jordan Lake,
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MEMORANDUM
TO: County Commissioners
John Link, County Manager
COPIES: Ed Kerwin, Executive Director, OWASA
FROM: Paul Thames, PE, County Engineer
DATE: Mazch 21, 2001
SUBJECT: Orange County and OWASA Raw Water Allocations from Jordan Lake Allocation
The following information relative to the raw water allocation/re-allocation process and history for
OWASA and Orange County is provided as per the request of the BOCC.
The Environmental Management Commission is currently conducting a thud round of allocation
requests for raw water supplies from Jordan Lake. Allocations have thus far been requested from as far
away from Jordan Lake as Greensboro and Fayetteville. The total allocations requested have far
exceeded the rated 100 million gallon per day (mgd) water supply capacity of Jordan Lake: In the third
round allocation process, all entities that have a Level R allocation (for future withdrawals) are required
to reapply to maintain their existing allocations. Furthermore, round 3 applications - unlike the initial
round 1 application - aze required to provide detailed water demand and water supply capacity
projections as justification for requested allocations.
In the round 1 allocation request process of July 1988, Orange and Chatham Counties, the Town of
Hillsborough, OWASA and the Orange Alamance Water system submitted a joint application to the NC
Environmental Management Commission (EMC) far Level I (immediate withdrawals) and Level II
(future withdrawals) raw water allocations. The total Level I allocation request for 4.0 (mgd) came from
Chatham County. The Level II allocation requests totaled 38.3 mgd. Eventually, the EMC awarded
Chatham the 4.0 mgd Level I allocation it requested and 2.0 of the 6.0 mgd Level II allocation it
requested. The other Level II allocations were: OWASA - 10 of 19 mgd requested, Hillsborough - 5.5 of
6.0 mgd requested, Orange-Alamance - 3.5 of 4.0 mgd requested and Orange County - 1.0 of 1.3 mgd
requested.
OWASA's commitment to its allocation of the Jordan Lake water supply went so far as its purchase, in
the eazly 1990's, of 125 acres of land adjacent to Jordan Lake at the point identified as the best raw
water intake site on the west side of the lake. It was supposed at the time of the purchase that the site
could be used to accommodate all of the infrastructure necessary to withdraw, treat and distribute
(pump) the water allocations for all of those entities who were party to the joint application. However,
since the time of the joint allocation request and OWASA's purchase of the Jordan Lake property, the
circumstances relating to a potential partnership among those who submitted the joint allocation request
have changed drastically. Hillsborough and Orange-Alamance relinquished their allocations in 1993
when the EMC and the NC Division of Water Resources began the process of billing the pro rata costs
of developing and maintaining the portion of Jordan Lake dedicated to raw water supply to those entities
holding allocations (Orange County pays about $2,000 per year to preserve its allocation). Chatham
4
County has developed its own water treatment capacity and has entered into a partnership with Cary and
Apex that gives it access to the existing raw water intake facilities on the eastern side of Jordan Lake.
OWASA's projected need for water supplies from Jordan Lake has decreased significantly as a
consequence of: 1) reductions in projected demand from its newly defined (Utility Service Area
Boundary Agreement) service area; and 2) the projected availability of the water storage capacity of the
American Stone quarry reservoir.
The end result of_a11 of these changes is that it can no longer be assumed that OWASA would or should
be the lead agency (on the western side of Jordan Lake) in developing the infrastructure necessary to
withdraw, treat and distribute water from Jordan Lake. It is probable that some other jurisdiction such as
Durham (which is requesting a 25 mgd allocation in the round 3 allocation process and which has
interconnections with OWASA, Hillsborough and Orange-Alamance as well as other water systems to
the north and east) maybe the more appropriate lead agency. As OWASA still controls the property that
would be most appropriate for locating the necessary infrastructure, it maybe assumed that it would
continue to play a key role in the process of utilizing Jordan Lake's water supply capacity - at least on
the west side of the lake.
For the round 3 allocation process OWASA has amended -reduced -the amount of its Level II
allocation request from 10 mgd to 6 mgd. As stated earlier, this reduction reflects OWASA's
projections of reduced demand and increase supply capacity from other sources. OWASA has further
determined and so indicated that its projected need for a Jordan Lake water supply is temporary,
bridging the time gap between a projected demand in excess of its existing supply capacity and the
availability of the American Stone Quarry reservoir' storage capacity. However, as long as OWASA
maintains its allocation and there is some infrastructure in place allowing either Durham or Chatham
County to withdraw and treat OWASA's allocation, OWASA should be able to maintain access to its
allocation if or when it is needed.
Orange County maybe in real danger of losing its 1.0 mgd allocation, even if the BOCC should decide
to pursue maintaining it. The round 3 allocation process is geared toward entities that are actual water
providers that operate water treatment and/or water distribution systems. Specifically, the primary
criteria for awarding a round 3 allocation involve the ability to demonstrate that: 1) there is differential
between projected water supply capacity and projected water demand that can be addressed by having
possession of the allocation; and 2) that there are not other reasonable or feasible means of
accommodating that differential. In the case of Orange County, there maybe additional requirements of
explaining how .the County would gain access to its allocation and convey treated water to the areas and
those customers who require it.
Lf Orange County is to demonstrate a projected demand for water supplies, a corresponding projected
insufficiency of water supply capacity and some means of conveying treated water to customers, it will
have to include either or both Hillsborough and Orange-Alamance into its plans. Currently Hillsborough
has a water supply in excess of its needs, a plan to expand its reservoir and water supply capacity at
need, and contractual arrangements to purchase water on an emergency and non-emergency basis from
neighboring water systems (Durham and OWASA). Orange-Alamance currently has a water demand
and water supply capacity that are nearly equivalent under the best circumstances (unrestricted
withdrawals during periods of high flow in the Eno River) and water purchase agreements with
neighboring water supply systems (Mebane/Crraham, Hillsborough and Durham) that are sometimes
5
problematic from an operational standpoint. If the entire Efland-Cheeks and Buckhorn Road EDD
portion of the Orange-Alamance service area were built out, an additional water demand of
approximately 0.4 to 0.5 mgd might be generated. However, from a land use perspective, Orange
County policy makers have not yet determined that the community should be built out to the extent that
such a water demand (and wastewater disposal demand) would be generated.
In conclusion, OWASA has generated water demand and water supply capacity projections that justify
maintaining a Jordan Lake water supply allocation, albeit an allocation that is significantly reduced.
Orange County, however, will find it difficult to justify maintaining ain allocation where it must rely on
the good offices of others to withdraw, treat and convey the water to some point within the County and
on the capacity of yet others to distribute it to water users.
If I may provide additional information, please advise.
OWASA
January 3, 2001
ORANGE WATER & SEWER AiXTHORITY
Quality Service Since 1977
Chairman Stephen Halkiotis Mayar Michael Nelson
Orange County Boazd of ' Town of Carrbora
Commissioners 341 West Main Street
200 Sauth Cameron Carrboro, NC 27510
Hillsborough, NC 2727$
Re: Jordan Lake Water Supply Allocation
Dear Chairman Hallciotis, Mayor Nelson, and Mayor Waldorf:
Mayor Rosemary Waldorf
Town of Chapel Hill
306 North Columbia Street
Chapel Hill, NC 27516
JAhd - ~: `: ~:
I am writing to follow up on my December 6, 20001etter to you regarding OVJASA's Jordan
Lake water supply allocation.
We have submitted a draft application to the N.C. Division of Water Resources (DWR)
requesting that our existing 10 million gallons per day (mgd) allocation of Jordan Lake's water
supply stoxage be reduced to S mgd. We have further advised the DWR that we retain the right
to make substantial changes in this application, should the need arise, prior to the final
application deadline currently scheduled for Apri12001.
The background and rationale for this action is contained. in our Jordan Lake Water Supply
Allocation Discussion Paper, dated January 2001, which is provided herewith. I have also
attached a copy of the cover letter to Mr. John Morris, DWR Director regarding our draft
application for your information.
The OWASA Boazd of Directors will continue to carefully evaluate this matter and will keep
you advised.
Sincerely,
~~•
Peter C. Gordon
Chairman
Board of Directors
c: OWASA Boazd of Directors
~/ John Link
Bob Morgan
Cal Horton
Ed Kerwin
Robert Epting
6
400 Jones Ferry Road Equal Opportunity EmployFr voice (919) 968-4421
...-. .. ~~r _ . .. . ... C~V i~~n~ o[O AA LA
~~11/~lSA ORANGE WATER S~ SEWER ALXTH~RTTY
t2uality Service Since 1977
December 29, 2000
Mr. John Morris, Duector
NC Division of Water Resources
1611 Mail Service Center
Raleigh, NC 27699-1611
Dear Mr. Morris:
I am pleased to submit this draft application for a Jordan Lake water supply allocation on behalf
of the Orange Water and Sewer Authority (OWASA ). We believe the information contained
herein supports our preliminary request to reduce our existing 10 million gallon per day (IvIGD)
Level II allocation to 5 MGD.
OWASA has invested substantial resources ~in our Jordan Lake option since 1988. These have
included $149,000 in fees for the 10 MGD Level II allocation; $550,000 in the early 1990s for
125 acres of land adjacent to Corps of Engineers property on the western side ofJordan Lake;
$25,000 for an intake siting study in 1991; and $60,000 in construction costs for pipe casings
placed under U.S: Highway 64. It is obvious that our longstanding interest in Jordan Lake is
more than casual, and it goes without saying that OWASA is.committed to meeting any and all
financial obligations associated with a Jordan Lake allocation.
Historically, our allocation.has represented a supply that could supplement existing sources when
their yield na longer meets the growing needs of the community we serve. More recently,
OWASA's Comprehensive Water and Sewer Master Plan and its March, 2000 Water Supply SO-
Year Vision paper identified the extended (3 billion gallon) Stone Quarry Reservoir as the best
choice for the next increment of water supply expansion. This option has been strongly endorsed
by our Board of Directors and the community.
Due to the extended time needed to increase the volume of the existing quarry through
commercial rock exhactian, as well as contractual commitments between 4WASA and
American Starve Company (our commercial quarrying partner), the expanded quarry is not
expected to be available for use as a storage reservoir unti1203S. The supply and demand
analysis presented in the attached draft application indicates a.likely deficit of up to several
million gallons per day between 2020 and.2035. We propose using our Jordan Lake allocation
as a temporary supplement to offset that deficit until the expanded Quarry Reservoir can be
placed in service in or about 2035.
It is not known at this time if OWASA's use of its allocation will be in partnership through a
regional enterprise, or more simply through along-term finished water purchase/sale contract
with the City of Durham and/or Chatham County.
400 Jones Ferry Road Equal Opportunit-• Employer 1/oice (919) 968-4421
7
For the past two years, OWASA staff have participated in active discussions with staff of both
Durham and Chatham County about potential joint ventures in withdrawal, transmission, and
treatment facilities, including the possible creation of a Jordan Lake water development
authority. We have kept the OWASA Boazd of Directors well apprised of these discussions and
opportunities, but they have not yet benefited from a full discussion with other leaders of the
community, so it is premature to speculate on their eventual outcome.
OWASA will provide more detailed plans to the Environmental Management Commission
(EMC) for its use of Jordan Lake water as these options.aze more fully developed in the months
to come.
The OWASA Boazd has discussed the application process extensively and requests that I convey
their keen interest in retaining a substantial portion of our 10 MGD ,Level II allocation. A critical
element of OWASA's mission of providing an adequate supply of high quality drinking water
has been maintaining a reliable range of long-term options for the future. Jordan Lake has
always represented an important hedge against an uncertain future -and, as you well know --
future water supply and demand scenarios are subject to major unknowns and uncertainties.
Changes in underlying conditions or assumptions on which forecasts aze based can result in
radical changes to future scenarios. The Board of Directors has asked me shaze with you some
of the major uncertainties inherent in OWASA's future supply and demand scenarios:
.Service Area Growth and Demand--Our demand forecasts are based on an array of specific
expectations, including the assumption that OWASA's service area, defined as the Urban
Services Area delineated in the Carrboro-Chapel Hill-grange County Joint Planning
Agreement, will remain unchanged. OWASA's water demand forecasts also assume that the
limited amount of land available for future growth and development under existing local policies
will result in service area "buildout" sometime during the next 50 years. At that time, the
historic trend of increasing water demands would level off at a demand of between 1 d and 22
MGD. We note that the demand forecasting methods prescribed for these draft applications da
not provide for any variation from the forecast demand curves. OWASA's own analyses include
"high" and "low" bands of uncertainty that vary approximately 10 percent above and below the
"expected growth" line.
Rate of Quarry Expansion and Ultimate Capacity--The ultimate yield of the extended Quarry
Reservoir will depend on its water storage capacity. OWASA's sustainable yield projections aze
based on a final capacity of 3 billion gallons (BG). The current capacity of American Stone's
active quarry is approximately 1 billion gallons. OWASA's existing Quarry Reservoir has a
storage volume of 0:2 bg. American Stone's agreement with OWASA contains a "due
diligence" commitment to maintain rock production at an average rate of b50,000 tons per year,
which corresponds to a quarry pit volume increase of O.OGS billion gallons per year. At this rate,
quarry volume will increase by 1..95 bg over the next 30 years, providing a total volume of
slightly more than 3 BG. If-due to economic conditions, mazket competition, or changes in
corporate policy -- American Stone's production activity decreased below this level, or if the
company went out of business and stopped production altogether, then the usable storage volume
and resulting water supply yield would be less than what has been projected.
9
Meteorological Variation and Climatic Change -The sustainable yield estimates calculated for
OWASA's existing and future raw water supply system were based on historic temperature and
streamflow records that reflect the natural variation and uncertainty characteristic of such
observations. To the extent that future weather conditions differ from the historic range
reflecting_either short term variation'or longer term climatic changes -the yield of OWASA's
water supply system will differ from what has been projected.
We urge your staff and the EMC to consider these and other uncertainties as you evaluate
OWASA's and other requests.
Please consider this draft application as our preliminary request. We understand that OWASA
retains the right to make substantial changes in this application should the need arise prior to the
final application deadline currently scheduled for Apri12001.
If you or your staff have any questions or need further information about the attached materials,
please feel free to contact me directly or iVir. Ed Holland, OWASA's Planning Director.
Sincerely,
LAX --~
Ed Kerwin
Executive Director
attachments
cc: Mr. Sydney Paul Miller
OWASA Boazd of Directors
U1RI/ASA ORANGE WATER & SEWER ACITHORTI"Y 10
Quality Service Since 1977
Jordan Lake Water Supply Allocation
Discussion Paper
January 2001
Purpose
This paper outlines a future role for Jordan Lake in OWASA's long-term water supply and
contingency plans. It has been developed in conjunction with OWASA's request to the North
Carolina Environmental Management Commission (EMC) to retain a portion of its Jordan Lake
allocation.
Background
OWASA has held an allocation of 10 percent of Jordan Lake's water supply storage capacity
since the EMC first issued allocations in 1988. The reservoir can supply an estimated average of
100 million gallons of water per day (MGD); therefore, OWASA's portion represents a yield of
about 10 MGD. (For semantic convenience, all subsequent references to "allocation" in this
paper are expressed in terms of yield or MGD, rather than as a percentage of water supply
storage capacity.)
The EMC issued a second round of allocations in 1995, a portion of which aze still undergoing
review for interbasin transfer issues. If all of the EMC staff recommendations are approved, a
total of 44 MGD of Jordan Lake's water .supply will have been allocated through the first and
second rounds. •
Mast recently, the EMC began a third cycle of allocations in response to the City of Durham's
needs, as well as those of other Triangle area and downstream Cape Feaz River communities.
Decisions will be based, in part, on water demand forecasts for the next 30 years. EMC guidance
and information requirements for this new round of applications are substantially more rigorous
than in previous cycles, reflecting a concerted effort to assure more consistent and credible
methods in the allocation requests. OWASA was required to submit a Round Three application
in order to retain all or a portion of the 10 MGD allocation held since 19$8.
A draft application was submitted to the NC Division of Water Resources on December 29, 2000
to comply with the filing deadline. A formal deadline for final applications has not yet been set,
but these aze expected to be due sometime in April, 2001. The EMC is scheduled to issue new
Jordan Lake allocations by the end of December, 2001.
40D Janes Ferry Road Equal apporcunicy Employer Voice (919) 968-4421
Ph Rox 366 Printed en Recycled Parer _ ~ •- ~^ FAX (919) 968-4464
Jordan Lake 'V~ater Supply Allocation
January 2001 .
Page 2 of 6
A Role for Jordan Lake?
A critical element of OWASA's mission of providing an adequate supply of high quality
drinking water has been maintaining a viable and reliable range of long term options for the
future..Historically, OWASA's Jordan Lake allocation has represented a supply source that
could supplement the University Lake, Cane Creek, and existing Stone Quarry supplies when
their yield no longer meets the growing demands of the commuzuty.
Stone uar Still the Preferred Choice
Mare recently, OWASA's Comprehensive Water and Sewer Master Plan (Master Plan) and its
Mazch, 2000 Water Supply SO-Yeaz Vision paper identified the extended (3 billion gallon) Stone
Quarry Reservoir as the best choice for the next increment of water supply expansion. Although
the necessary approvals have dot yet been obtained for the quarry extension, OWASA is
optimistic that they will be granted before the EMC issues its Jordan Lake allocation
decisions in December, 2001.
Potential Su 1 Deficit Before 2030
The figure on the next page projects raw water supply and demand through 2035. The diamond-
shaped data points represent actual raw water demand for the past 20 years. The three diverging
straight lines aze the High, Low, and Expected demand forecasts developed in the Master Plan.
Three levels of supply capacity: (1) Existing System; (2) Conveyance Upgrades; and (3) 3 billion
gallon (BG) Quarry Reservoir -- are shown as straight horizontal lines. The Conveyance
Upgrades and 3 BG Quazry Reservoir capacity levels are approximately five percent lower than
presented previously in the Master Plan due to their depiction as 50-year, rather than 30-yeaz,
sustainable yields. ('The EMC is requiring that upcoming Jordan Lake allocation requests be
based on a 50-year safe yield analysis of existing and alternative sources.)
The solid, step-shaped line represents the raw water supply available at a given time. The shaded
areas indicate water supply shortfalls or deficits under the supply and demand conditions
specified. According to terms of OWASA's lease agreement with the American Stone
Company, quarrying may continue through 2030. OWASA's Master Plan consultant estimated
that the finished pit could not be brought into service as a water supply reservoir for an
additional two and a half to six years. The indication of a 1 to 3 MGD raw water supply deficit
between the years 2020 and 2030 suggests that OWASA should retain a significant portion of its
current Jordan Lake water supply storage allocation.
11
Jordan Lake Water Supply Allocation
January 2001
Page 3 of 6
Raw Water Supply, Demand, and Defic it Fo recas ts .
20
..
18
~ 16
. ~a
~ 14
-
12
~
10
~ 8
,
~.
6
~
4
1980 1990 2000 2 010 2 020 2 030
Notes:
I ndivrdual dots represent historic raw water demands by .fiscal year.
Upper, middle, and lower diverging. lines correspond to High, Expected, and Low demand
forecasts developed in the Master Plan.
Heavy, step-shaped line represents raw water supply available at specified time.
Shaded areas represent potential raw water supply deficits under indicated conditions of demand.
Supply capacities (in mgd) are expressed as 50-year sustainable yield.
Sources of Uncertain
Future water supply and demand scenarios are subject to major unknowns and uncertainties.
Changes in underlying conditions or assumptions on which the forecasts have been based can
result in substantial changes to future scenarios.
Service Area Growth and Demand - OVdASA's demand forecasts are based on an array of
specific expectations, including the assumption that its utility service area, defined as the Urban
Services Area delineated by the Carrboro-Chapel Hill-Orange County Joint Planning
Agreement, will remain unchanged. OWASA's water demand forecasts also assume that the
limited amount of land available for future growth and development under existing local policies
will result in service area "buildout" sometime during the next 50 yeazs, but neither the rate nor
3 BG Quarry Reservoir (19.4 mgd) ....»». ... ...._. ».»-. ,.......
Con veyance ~Upgrad es (14 3 mgd)
.
1 m
d)
stem (11
Existin
S
.
g
g
y
~ ~.•'
.• ~
.. ,+
.
•"'~ ~
12
Jordan Lake Water Supply Allocation
January 2001
Page 4 of 6
timing of this is known. At that time, the historic trend of increasing water demands would level
off at a demand of between 16 and 22 MGD (not depicted on this graph, which extends only to
2035).
Rate of Quarry Expansion and Ultimate Capacity -The ultimate yield of the Quarry Reservoir
will depend on its water storage capacity. Sustainable yield projections illustrated in the attached
figure are based on a final capacity of 3 BG. The current capacity of ,American Stone's active
quarry is approximately 1 BG. OWASA's existing Quarry Reservoir has a storage volume of 0.2
BG. American Stone's agreement with OWASA contains a "due diligence" commitment to
maintain rock production at an average rate of 650,000 tons per year, which corresponds to a
quarry pit volume increase of 0.065 billion gallons per year. At this rate, quarry volume will
increase by 1.95 BG over the next 30 years, providing a total volume of slightly more than 3 BG.
If -due to economic conditions, market competition, or changes in corporate policy -American
Stone's production activity decreased below this level, or if the company went out of business
arid stopped production altogether, then the usable storage volume and resulting water supply
yield would be less than what has been projected.
Meteorological Variation and Climatic Change -The sustainable yield estimates calculated for
OWASA's existing and future raw water supply system were based on historic temperature and
streamflow records that reflect the natural variation and uncertainty characteristic of such
observations. To the extent that future weather conditions differ from the historic range --
reflecting either short term variation or longer term climatic changes -the yield of OWASA's
water supply system will differ from what has been projected.
Is There Still a Rale for Jordan.Lake in OWASA's Water Supply Fntnre?
Even assuming the anticipated approval of the Extended Stone Quarry Reservoir, OWASA faces
a potential 1 to 3 MGD water supply shortfall for a period of several years before the new 3 BG
Quarry Reservoir can be put into service. If any conditions of service area growth, quarry
production rates, or 30-year weather trends differ fmm those that have been assumed, the extent
and duration ofthe water supply shortfall may be greater or lesser. In keeping with OWASA's
past practices and with industry standards of maintaining as many viable and reliable water
supply options as possible, OWASA should retain at least a portion of its Jordan Lake water
supply allocation.
How Much?
It is clear from the EMC's application requirements that the new round of allocations will be
based on a more rigorous analysis of demand forecasts and supply alternatives than has been
applied in the past. It is unlikely that allgcations will be issued in the absence of thorough and
credible demonstrations of need, which have been provided in the application materials.
Because OWASA recognizes tl:at its anticipated needs do not warrant the full IO~MGD Level
II allocation that it currently holds, the draft application voluntarily offers to adjust OWASA's
allocation downward to S MGD.
Jordan Lake Water Supply Allocation
January 2001
Page 5 of 6
How Would This Allocation Be Used?
It is anticipated that the 5 MGD allocation would be used to offset the potential water supply
shortfall that may occur if service area demands exceed the 14.3 MGD capacity of the planned
improvements to OWASA's raw water conveyance system before the 3 BG Quarry Reservoir
can be put into service. OWASA proposes using its Jordan Lake allocation as a temporary
supplement to offset that deficit until the expanded Quarry Reservoir can be placed in.service in
or about 2035.
The most feasible means by which OWASA could use this allocation would be through potable
water interconnections with the City of Durham and/or Chatham County. Rather than pumping
raw water through a lengthy pipeline from Jordan Lake to OWASA's treatment plant in
Carrboro, or pumping treated water from a new plant on the western side of Jordan Lake in
Chatham County through a new transmission line to OWASA's service area, it appeazs to be
mare feasible to obtain treated water directly through the Durham or Chatham County system.
This assumes, of course, that Durham successfully obtains its own Jordan Lake allocation and
develops the necessary withdrawal, treatment, and transmission facilities to use that allocation.
According to Durham staff, this scenario might evolve solely through Durham's own efforts or
through an interlocal or regional partnership.
The other assumption inherent to this scenario is that OWASA would be parry to a satisfactory
long term agreement with Durham and/or Chatham County that guaranteed to OWASA the
future availability of specified amounts of treated water.
What About OWASA's Existin Ynvestments in Jordan Lake?
OWASA owns a 125-acre parcel in Chatham County adjacent to Carps of Engineers property on
the west bank of Jordan Lake south pf U.S. Highway 64. This land cost $550,000 in the early
1990s. ~ Additionally, OWASA has~paid a total of $148,933 in annual fees for its existing 10
MGD allocation. Current payments are between $19,000 and $20,000 per year. Other Jordan
Lake expenditures have included approximately $60,000 in construction costs for pipe casings
placed under U.S. Highway 64 several years ago and approximately $25,000 far an intake siting
study conducted in 1992.
It is expected that some of these assets, especially the land and the intake siting analysis, would
be useful in negotiating appropriate water supply agreements with Durham and/or Chatham
County. Durham staff have indicated interest in using O WASA's Jordaa Lake property far a
water treatment plant, but have not evaluated this extensively. OWASA would be entitled to a
pro-rated reimbursement of previous allocation payments made to the State if the EMC adjusts
the present 10 MGD allocation downwazd.
1~
Except for the pipe casement under Highway 64, it appeazs that the full value of OWASA's
Jordan Lake assets could be recovered or reinvested.
Jordan Lake Water Supply Allocation
January 2001
Page .6 of 6
Summa.rv
• Consistent with OWASA's past practices and with industry standazds ofmaintaining as many
.viable and reliable water supply options as possible, OWASA seeks to retain a portion of its
existing Jordan Lake water supply allocation.
• OWASA will face a potential water supply shortfall of up to several MGD before the new 3
BG Quarry Reservoir can be put into service. if the conditions of service azea growth, quarry
production rates, or 30-year weather trends differ from those that have been assumed in
OWASA's most recent forecasts, the extent and duration of that shortfall could be greater.
• OWASA has offered to adjust its current Level II allocation downward from 10 MGD to 5
MGD, but retains the right to make substantial changes in its final application if the need
arises before the deadline (currently scheduled for April 2001).
• It is expected that the fiiture use of OWASA's Jordan Lake allocation will be via purchases
of treated water transmitted through the Durham and/or Chatham County systems.
Prepared by:
Edward A. Holland,- AICP
Planning Director
Approved by:
.I
Ed Kerwin
Executive. Director
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