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HomeMy WebLinkAboutAgenda - 02-16-2021; 4-b - OWASA Annual Update Presentation 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: February 16, 2021 Action Agenda Item No. 4-b SUBJECT: OWASA Annual Update Presentation DEPARTMENT: Board of County Commissioners ATTACHMENT(S): INFORMATION CONTACT: OWASA Quarterly Report with Laura Jensen, Clerk to the Board, 919- Information and Powerpoint 245-2130 Presentation on OWASA's Long Andrea Orbich, Orange Water and Range Water Supply Plan Sewer Authority, 919-537-4217 PURPOSE: To receive a presentation and information from the Orange Water and Sewer Authority (OWASA) on recent activities. BACKGROUND: At the beginning of each calendar year, OWASA representatives appear before the Board of Commissioners to make a presentation on recent OWASA activities. This year an update on OWASA's Long-Range Water Supply Plan will also be provided. OWASA Board Chair Ray DuBose and Board Secretary Jody Eimers, Orange County appointees to the OWASA Board, will present the annual update. OWASA Planning and Development Manager Ruth Rouse will provide an update to OWASA's Long Range Water Supply Plan (LRWSP). FINANCIAL IMPACT: There is no financial impact associated with this item. SOCIAL JUSTICE IMPACT: There is no Orange County Social Justice Goal impact associated with this item. ENVIRONMENTAL IMPACT: There is no Orange County Environmental Responsibility Goal impact associated with this item. RECOMMENDATION(S): The Manager recommends that the Board receive the presentation and information and provide any feedback as necessary. 2 Orange Water and Sewer Authority OWASA OWASA is Carrboro-Chapel Hill's not-for-profit public service agency delivering high quality water, wastewater, and reclaimed water services. January 27, 2021 Mayor Pam Hemminger Mayor Lydia Lavelle Chair Renee Price Town of Chapel Hill Town of Carrboro Orange County Board of 405 Martin Luther King Jr. 301 West Main Street Commissioners Blvd Chapel Hill,NC 27514 Carrboro,NC 27510 Post Office Box 8181 Hillsborough,NC 27278 Dear Mayor Hemminger, Mayor Lavelle, and Chair Price: We are pleased to submit this report on our services,projects, and initiatives since October 2020. This report includes information on the following items: 1. Care to Share Day 2. Financial Update 3. Standard Collection Practices 4. Long-Range Water Supply Plan 5. COVID-19 Wastewater Testing 6. Youth Water Academy 7. Energy Management/Solar PV 8. New General Manager of Operations 9. Key Infrastructure Investments 10. Upcoming Board Appointments Care to Share Day: Care to Share Day 2020 was celebrated on November 19, 2020. OWASA launched a social media campaign using Twitter and Facebook to raise awareness of and funds for the bill- assistance program known as Care to Share that is administered in partnership with the Inter- Faith Council for Social Service. We got the initial word out about Care to Share Day through an interview as part of Wonderful Water on WCHL on Monday,November 16. The concerted push on social media on Care to Share Day and throughout the campaign was successful in pushing more traffic to the website, where individuals could either sign up for monthly Care to Share donations or make a one-time gift to the IFC for Care to Share. This was boosted by our government partners and other stakeholders being aware of the effort ahead of time and helping to share OWASA's original messages or creating their own content to share. The IFC reported more than $6,000 in direct donations associated with the timing of Care to Share Day. OWASA also saw an increase in on-bill contributions correlating with this push. OWASA would like to thank all of our government and non-profit community partners who helped make Care to Share Day a success. ® 400 Jones ferry Road,Carrboro,NC 27510 Q5 919-968-4421 0 info@owasa.org © @OWASAI O www.awasa.org OWASA Quarterly Report 3 January 27, 2021 Page 2 Financial Update: Water sales remain below what would be considered normal as the COVID-19 pandemic continues to impact our community. We budgeted revenue for the first six months of Fiscal Year 2021 to be down by 12%, or about $2.2 million, from what we would have expected, if not for the pandemic. Actual revenue was lower for the six months ending December 31, 2020, down 1.1% or roughly $193,000 from the already-decreased budget for the combination of water, sewer, and reclaimed water revenue. In anticipation of lower revenue,we asked each department to avoid spending on non-essential purchases until we have a better grasp on how long the lower water demand will last. For the six- month period ending December 31, 2020, expenses were roughly $1.1 million under what was budgeted. However, continuing to defer operating expenses, including not increasing employee salaries, and delaying critical infrastructure projects is not a sustainable solution for the community. We will continue monitoring water sales and work to reduce operating expenses where possible. Standard Collection Practices: Orange County extended its local State of Emergency related to the ongoing COVID-19 pandemic through March 31, 2021. Using the local State of Emergency as guidance, OWASA has deferred resuming standard bill collection practices for residential customers until a to-be- determined date in 2021. OWASA has committed to giving a 30-day notice before resuming standard collection practices. Under standard collection practices, customers who miss two consecutive payments of their monthly bill risk service disconnection. OWASA will offer payment plans of at least 12 months. OWASA has been tracking and communicating with customers who are past due on their accounts and encouraging them to seek assistance from various resources to pay down any balances, including OWASA's Care to Share bill-assistance program. These various funding resources have also been updated on OWASA's website throughout the pandemic, including the Orange County Housing Helpline. There was also large demand for the NC HOPE program using federal funds distributed through the State of North Carolina to assist with rent and utility payments. The $117 million program announced it was accepting applications on October 15, 2020. By November 11, 2020, the applications were closed because the funding had been depleted. We are expecting this program to be revived with additional federal funding being allocated, but there has been no indication as to when that program will be accepting new applications. Long-Range Water Supply Plan: OWASA is in the process of updating the community's Long-Range Water Supply Plan. We are currently soliciting community feedback, which has included stakeholder feedback, an appearance on Wonderful Water on WCHL, a webinar that was held for the community in November, and presentations in mid-January to the Town Councils in Carrboro and Chapel Hill. OWASA Quarterly Report 4 January 27, 2021 Page 3 A similar presentation to the Orange County Board of Commissioners is scheduled for February 16. The work to date on the Long-Range Water Supply Plan indicates that OWASA has enough water for the next few decades. However, we are vulnerable during extended or back-to-back droughts. While OWASA plans to continue to use its local water supplies and encourage conservation, OWASA's Board recently acted to ensure there are no policy restrictions limiting OWASA's use of our Jordan Lake allocation. There is no way at this time, however, to guarantee accessing that allocation, particularly in a time of drought. We are continuing to solicit community feedback before bringing an update to the OWASA Board of Directors in March. COVID-19 Wastewater Testing: OWASA is continuing to support COVID-19 research by providing wastewater samples to track the virus. OWASA began providing weekly wastewater samples to researchers with the North Carolina Policy Collaboratory in mid-July. The goal of this phase of the project, which ended in December, was to perfect the analytical methods and to contribute valuable information to the State of North Carolina on the presence and persistence of COVID-19. A full report is under development and will be available by the end of January; we will share this report with our Board of Directors and local government partners as we receive it. Meanwhile,North Carolina is one of eight states participating in the National Wastewater Surveillance System being initiated by Centers for Disease Control and Prevention and the United States Department of Health and Human Services. OWASA was contacted by the North Carolina Department of Health and Human Services in December to participate in this national surveillance monitoring. Youth Water Academy: OWASA was thrilled to be able to host the third-annual Youth Water Academy this year in a virtual setting. Twelve water-conscious scholars from local high schools took part in the program this fall. The course covered five weeks and included virtual tours of OWASA's Water and Wastewater Treatment Plants, a career panel, a"choose your own adventure" game where they made choices to repair a broken water line, and a capstone project focusing on a water-related subject of their choice. One new aspect of this year's Youth Water Academy included a scavenger hunt where participants could identify OWASA infrastructure in the community or create water-related educational content. We look forward to hosting the next Youth Water Academy in the Fall of 2021. OWASA Quarterly Report 5 January 27, 2021 Page 4 Energy Management/Solar PV: OWASA is making significant progress toward our energy management goals. An updated Energy Management Plan approved by the Board of Directors in November 2020 reported a reduction in our use of electricity by 29% and of natural gas by 28% since 2010. These results are a result of an organizational-wide commitment to energy conservation and investment in cost-effective energy efficiency projects. Our energy management efforts avoided over$565,000 in energy costs last year, and these savings are expected to increase in future years. To help us achieve our stretch goal of a 35%reduction in purchased electricity by 2022, we are currently installing three solar photovoltaic (PV) systems on OWASA facilities. Collectively, these solar PV systems will generate almost 428,000 kWh of clean energy every year(equivalent to the energy use of over 40 homes). Through a lease agreement with private partners and rebates from Duke Energy, we are able to install these systems for no additional cost to OWASA customers in Year 1. In future years, we project to spend less on lease payments than we save on our energy bill. New General Manager of Operations: Orange Water and Sewer Authority is excited to announce that Mary Darr has been selected as the next General Manager of Operations following a nationwide search. Darr has most recently served as OWASA's Director of Engineering and Planning. She is succeeding Todd Taylor in the role after Taylor was named OWASA's Executive Director in July 2020. In this role, Darr is responsible for overseeing OWASA's various operations, including the Water Distribution and Wastewater Collection Department, OWASA's Water Treatment Plant and Wastewater Treatment Plant, and OWASA's reservoirs and other land resources. Darr's first day as General Manager of Operations was November 1. Key Infrastructure Investments: OWASA has made progress on several critical infrastructure projects since October 2020. A water line replacement project in the Kensington Drive neighborhood was recently completed. A project replacing water and sewer lines in the area around Dobbins Drive near the intersection of Erwin Road and Fordham Boulevard was also recently completed. Meanwhile, several other projects are in their early stages. A contractor will soon begin work to replace the water line on Bolinwood Drive at the bridge over Bolin Creek. OWASA construction crews are also starting a water line replacement project in the Kings Mill—Morgan Creek neighborhood. Several projects are also underway at the Water Treatment Plant (WTP) on Jones Ferry Road. The projects total a roughly $6 million investment to improve drinking water distribution and OWASA Quarterly Report 6 January 27, 2021 Page 5 treatment facilities at the WTP. Water line improvements directly in front of the WTP will build in additional redundancy and resiliency to support the community's water infrastructure and maintain a high level of service for customers. As part of the WTP improvement work, contractors will be making improvements to the WTP finished water pump system. Contractors will also be installing a new bulk chemical storage containment area, as well as making improvements to the existing bulk storage area. Upcoming Board Appointments: OWASA will have openings on its Board of Directors this year to be appointed by each local jurisdiction- Carrboro, Chapel Hill, and Orange County. A letter was sent to each local government partner on January 19, 2021, with information to assist with recruiting and selecting members to the OWASA Board. In addition, we have posted information on our website regarding Board Member recruitment. Recruitment for Board applications is ongoing. We are committed to promoting Board membership in our community engagement efforts and appreciate your assistance in attracting a diverse applicant pool, as well. OWASA embraces diversity and inclusion in everything we do, and we would like to encourage all interested candidates to apply for Board appointments. Our Board addresses a wide range of issues. The only true qualification needed is a genuine commitment to serve the community. Thank you for your continued support in appointing members to OWASA's Board of Directors. If we can assist you, please let us know. We would be happy to provide you more detailed information on the items above or other topics of interest as desired. Please feel free to contact our Executive Director, Todd Taylor (ttaylorkowasa.org or 919-537-4216), or me. Sincerely, e .4 Z7dfE.XDuBose, P.E., Chair OWASA Board of Directors Attachments cc: Mr. David Andrews, Carrboro Town Manager Ms. Bonnie Hammersley, Orange County Manager Mr. Maurice Jones, Chapel Hill Town Manager OWASA Board of Directors Todd Taylor, OWASA Executive Director Attachment 1 7 Information on OWASA's Long-Range Water Supply Plan January 29, 2021 Executive Summary OWASA is committed to supplying reliable and high-quality water to our growing community and economy for years to come. The planning,permitting, and partnerships required in water supply development can take decades to develop and secure. That is why OWASA is planning for the water needs of our community two generations ahead. In coordination with local planners, OWASA recently updated our 50-year forecast for water demands in the Chapel Hill-Carrboro community, as well as our projected water supply with current resources in a changing climate. These analyses show that OWASA has enough water under most circumstances for the next few decades. We do have one vulnerability: the watershed that fills the Cane Creek Reservoir,which stores most of the community's water, is relatively small and the reservoir is slow to refill. University Lake has a relatively large watershed for its size, but it offers significantly less water storage than Cane Creek Reservoir and by itself does not meet the community's needs. Thus, when we experience an extended drought or back-to-back droughts in the future,we risk low water supplies,particularly in light of increasing climate variability. Over the past six years, OWASA staff met with local government planners, UNC Chapel Hill (UNC), and developers, obtained input from Board members and neighboring utilities, and reviewed existing plans and documents to identify demand management, reuse, and supply alternatives to meet our long-term needs through 2070. We considered the relative environmental, financial, and societal impacts in our evaluation of each alternative. Alternatives that are not currently legal, do not substantially close the gap between projected demands and supply, or are simply not cost-effective were removed from further evaluation. Conservation by residents and customers across the service area in recent years has greatly reduced our average daily water use. This means that our future water supply needs cannot be met through additional day-to-day conservation measures. Based on our analysis, a suite of alternatives that improve our access to treated drinking water from Jordan Lake show the most promise in meeting our long-term needs. Some of these alternatives also provide an additional facility for water treatment(beyond our own Jones Ferry Road Water Treatment Plant), which further increases drinking water supply resiliency but would require significant capital investment. Some also have the potential to improve economies of scale of water treatment and transmission expenses by working with our regional partners. These alternatives for accessing water from Jordan Lake will be further reviewed by OWASA before a preferred alternative is selected in fiscal year(FY) 2022. While Jordan Lake shows the most promise in meeting our long-term water needs, we will still mainly rely on our three local water sources here in Orange County to meet most of our water needs. However, we may use our allocation of water from Jordan Lake proactively to prolong Information on OWASA's Long-Range Water Supply Plan 8 January 29,2021 Page 2 the use of our existing local supplies if local climatologists and weather experts are predicting regional drought. What is OWASA's Long-Range Water Supply Plan? OWASA's Long-Range Water Supply Plan (LRWSP) is an evaluation of our 50-year water needs (through 2070) and alternatives to meet those needs to ensure we have enough water for our community two generations from now. Why do we need to look out 50 years? The planning, permitting, and partnerships required to develop new water supplies can take decades to develop and secure. Thus, it is common practice for water utilities to plan for water needs 30-50 years into the future, and even longer. What are the key steps to develop the Long-Range Water Supply Plan? Figure 1 illustrates the key steps to develop the LRWSP. Water supply planning is an ongoing process. The remainder of this document includes headers which are numbered according to the processes included in Figure 1. Figure 1: Long-Range Water Supply Planning Process Ensuring Long-Range Water Supply Resiliency EVALUATE LONG-RANGE WATER SUPPLY PURSUE STRATEGIES TO INCREASE WATER SUPPLY RESILIENCY EVALUATE LONG-RANGE DEMANDS ADOPT LONG-RANGE MODEL FUTURE WATER SUPPLY PLAN 10 tiV,"�1 3 RISKS III ri d 0 D ALTERNATIVES COMMUNITY FOR REDUCING WATER ENGAGEMENT SUPPLY RISKS SELECT PREFERRED EVALUATE ALTERNATIVE 8 5 ALTERNATIVES COMMUNITY / PRIORITIZE ENGAGEMENT ALTERNATIVES Information on OWASA's Long-Range Water Supply Plan 9 January 29,2021 Page 3 1. Evaluate Long-Range Water Supply Where does OWASA currently get its water? OWASA has three locally managed water supply sources including Cane Creek Reservoir, University Lake, and its Quarry Reservoir as illustrated in Figure 2. OWASA also has an allocation of 5 percent of Jordan Lake's water supply pool which we can access through our mutual aid agreements with the Town of Cary and City of Durham. Figure 2: OWASA's Water Supply Sources 70 —� 66 } z U F11 U g$ 2 Q 2 Q 6 r7 OWASA Service Are OI-40 Durham Interconnect ❑ p Cane Creek Reservoir �$ Guar Carrboro Chapel Hill Quarry Durham Reservai r Q <6> 509 Watershed S4 Boundaries WTP F. VVWTP University 0 Lake s ORRNGZC❑U4ry ti NC-54 Durham CHArHA M CDUN7, Interconnect E Haw O7 f2fVCr 5Q, Jorda Lake N 64 GarylApex Intake s 64 �� 0 1 2na�ies Pittsboro �` Information on OWASA's Long-Range Water Supply Plan 10 January 29,2021 Page 4 How much water do we currently have? OWASA's three local reservoirs can provide approximately 10.5 million gallons per day (mgd) of water over the course of a year, assuming the drought-of-record. There are plans to expand our Quarry Reservoir, and when that expansion is completed in approximately 2035, we will have about 12.6 mgd of water. We expect that our allocation from Jordan Lake can reliably provide approximately 5 mgd, but we do not have the infrastructure in place to access that water on a permanent basis and have no guaranteed access to it. How have we historically used our Jordan Lake allocation? We have not used our Jordan Lake allocation for water supply purposes. We have received water from neighboring utilities during water emergencies in February 2017 and November 2018 and prior to Cane Creek Reservoir coming online. However, the City of Durham and Town of Hillsborough provided the water we received. Their water comes from local water supplies in the Neuse River Basin; neither of these communities currently have permanent access to their Jordan Lake allocations. We have tested our interconnections with the City of Durham and Town of Cary to make sure we can receive water from our Jordan Lake allocation if needed. 2. Evaluate Long-Range Water Demands How much water do we currently use? We currently use about 7 mgd of water on an annual average basis. How much water will we need in the future? Figure 3 illustrates the amount of water we can obtain from our existing water supplies and planned Quarry Reservoir expansion along with our 50-year estimated water demands. Information on OWASA's Long-Range Water Supply Plan 11 January 29,2021 Page 5 Figure 3:The Yield of OWASA's Water Supplies and Long-Term Water Demands OWASA has Sufficient Raw Water Under Most Conditions for Next 50 Years 16 14 -u 12 °q Yield UP Q ++ t • � 6 Actual �� � �� Baseline, end 99th � � Demands Percentile Projections 3 n QC a 2 o 19M 1990 2000 2010 2020 20M 2040 2050 2060 2crm Fiscal Year 3. Model Future Risks How did OWASA develop its water demand projections? OWASA based its water demand projections on regional growth projections that were finalized in 2018 for the regional Metropolitan Transportation Plan, in which the Towns of Carrboro and Chapel Hill and Orange County participated. The transportation planning effort also included information obtained from UNC about its expected growth. This regional transportation planning effort used a model to estimate the number of new single family and multi-family dwelling units and non-residential square footage for 2045 and build-out conditions based on land use plans provided by the local governments. OWASA then applied water use factors estimated from billing data for each residential dwelling unit and each square foot of non-residential space. We assumed that build-out will occur in 2070. We tested this assumption, and it appeared reasonable assuming a linear rate of growth. More details on the methods used to develop the water demands can be found in this report. OWASA recognizes that estimating water demands in 50 years has much uncertainty. Growth could occur faster or slower than anticipated, different types of growth could occur than anticipated(new large water user could move to area), our service area boundary could change, and water demands could change depending on behaviors and technology. Climate change could also impact the rate of growth(will people relocate from coastal areas to the Triangle) and water use (will we use more water as temperatures rise). Thus we included an uncertainty analysis in our demand projections as illustrated by the grey shading in Figure 3 (more information is here). Information on OWASA's Long-Range Water Supply Plan 12 January 29,2021 Page 6 Is there also uncertainty in our yield estimates? Yes. The following factors contribute to uncertainty in the yield estimates: • Streamflow records—the stream flow records available to estimate the yield of our reservoirs have measurement errors and limited spatial and temporal extent. They may not be representative of long-term historical flows. • Estimates in storage volume—potential errors in storage volume include (1) the accuracy of the original survey data, and(2)the rate of sedimentation into the reservoir • Climate change—climate change will impact flows into our reservoirs and evaporation rates. The majority of climate change models indicate that the southeast will receive approximately the same or more rainfall on an average basis,but we will have more frequent high flow events. Some of those models also indicate there will be more intense droughts. More intense droughts and different types of droughts will impact our estimated yield. Because of the difficulty in estimating uncertainty around climate change and the cost to develop an analysis similar to the one completed for the demand projections, OWASA opted not to perform a similar analysis for yield. However, our consultant did perform a sensitivity analysis around the inputs and noted that changing inflows to the reservoir have the highest impact on our estimated yield. Based on the sensitivity runs performed, OWASA's estimate yield after the expanded Quarry Reservoir is online could vary between 11.5 and 15 mgd(baseline estimated yield is 12.6 mgd). What role does water conservation and water recycling and reuse play in our water needs? Water conservation and recycling water have played a very important role in OWASA's service area resulting in reduced drinking water demands and energy use. As illustrated in Figure 4, we are using the same amount of water that we were using in the early 1990s despite an increase of about 70 percent in customer accounts. Following the droughts of 2001-02 and 2007-08, our customers conserved water and have continued to save water. In addition, UNC partnered with us to develop a reclaimed water system that allows them to use highly treated wastewater to meet non-drinking water needs such as for cooling buildings and irrigation. Our reclaimed water system now meets over 10 percent of the community's water needs. OWASA also developed a system to recycle water within its Jones Ferry Road Water Treatment Plant(WTP), which saves approximately 7 percent of our drinking water. Information on OWASA's Long-Range Water Supply Plan 13 January 29,2021 Page 7 Figure 4: OWASA Water Sales and Customer Accounts 9.0 24,000 c 8.5 22,000 L a°1 8.0 c 7.5 20,000 o ,+ 0 7'0 18,000 c b 6.5 a 6 0 16,000 0 5.5 Reclaimed Water to UNC 14,000 N cn 5.0 Begins 2009 v 4.5 _ 12,000 M 4.0 10,000 `o 95 ti Ci C0� 00� 00� 00� O,yO O,� 0, ti ti ti ti ti ti ti ti ti Actual Water Sales Customer Accounts Our water demand projections assume that our customers will continue to look for ways to save water. We assume that conservation practices will continue to result in demands decreasing by 5 to 10 percent per account (factors varied depending on whether new/existing development and whether residential or commercial development) over the next 25 years. Why do we need additional supplies or demand management strategies? As seen in Figure 3,we will have plenty of water under most circumstances. However, it is imperative to the resiliency of our community that we plan for an unclear future given the uncertainty in our demand projections, the uncertainty in the model used to estimate the reliable yield of our reservoirs, and the uncertainty of a changing climate. We also need to be prepared to reliably meet demands should we have a major operational emergency at one of our water supplies. While we have plenty of water under most circumstance, Cane Creek Reservoir is vulnerable to extended drought or back-to-back droughts. It was designed to maximize storage, which is generally good and provides us a higher yield. However, it has a relatively small drainage area for its storage volume and can take a long time to refill. University Lake refills quickly,but it does not hold enough water to meet our daily needs. Thus, the small watershed area of Cane Creek Reservoir leaves our water supply susceptible for a period of time after a drought. Having options to meet future needs helps ensure the reliability and resiliency of our water. Running out of water is not an option. Information on OWASA's Long-Range Water Supply Plan 14 January 29,2021 Page 8 4. Identify Alternatives for Reducing Water Supply Risks What are supply and demand management strategies? Supply-side options are strategies which increase the total reliable yield of our water supply system. In other words, they would raise the blue line shown in Figure 3. Demand-side management options are strategies which reduce raw water demands from existing and/or new development or lower the black line shown in Figure 3. How did OWASA identify which supplies and demand management strategies to evaluate? We met with local government planners and UNC, obtained input from Board members and neighboring utilities, and reviewed existing plans and documents to identify potential alternatives to meet our long-term needs through 2070. Through this process we selected demand management(increased water efficiency and conservation) and reuse strategies, as well as supply strategies to evaluate in further detail. 5. Evaluate Alternatives What supplies and demand management strategies did OWASA consider? OWASA evaluated nine supply alternatives which can be grouped into three major categories: 1. Jordan Lake alternatives (4 alternatives) 2. Quarry Reservoir(2 alternatives) 3. Indirect and direct potable reuse (3 alternatives) Each of these alternatives are summarized below along with OWASA staff recommendation for next steps in its consideration. The four Jordan Lake alternatives are summarized below: • Alternative 1 —Full Partner in New Intake and Water Treatment Plant (WTP) on Western Side of Jordan Lake—OWASA would partner with the Western Intake Partners (currently City of Durham, Town of Pittsboro, and Chatham County) on a new water supply intake, water treatment plant, and major transmission infrastructure on the western side of Jordan Lake. o Recommendation: Continue to evaluate alternative • Alternative 2—Continue with Mutual Aid Agreements—This is our existing baseline condition. Under this alternative, OWASA would access its Jordan Lake allocation using its mutual aid agreements with the Town of Cary and City of Durham. This alternative does not guarantee access to our allocation. o Recommendation: Baseline condition; maintain for the time being • Alternative 3—Develop New Agreement with Towns of Cary and Apex to Guarantee Access to Jordan Lake Water—The Towns of Cary and Apex jointly own the only water supply intake on Jordan Lake and share a water treatment plant. Under this alternative, OWASA would develop a new agreement with the Towns to guarantee withdrawal and treatment of a certain amount of water on an annual basis. Information on OWASA's Long-Range Water Supply Plan 15 January 29,2021 Page 9 o Recommendation: Alternative not feasible at this time • Alternative 4—Develop Agreement with Western Intake Partners to Guarantee Access to Jordan Lake Water—OWASA would develop an agreement with the Western Intake Partners to guarantee capacity in the proposed intake and water treatment plant on the western side of Jordan Lake. This agreement would guarantee a certain amount of water on an annual basis in return for payment from OWASA. o Recommendation: Continue to evaluate Two Quarry Reservoir supply alternatives were evaluated: • Alternative 5—Shallow Quarry—access with existing pumping infrastructure. This is the alternative selected in the 2010 LRWSP and considered the future baseline alternative. The yield from the expanded Quarry Reservoir is included on Figure 3. o Recommendation: Baseline condition; included in our capital improvements program • Alternative 6—Deep Quarry—deeper quarry depths would be accessed with new pumping infrastructure when the expanded Quarry Reservoir is online. o Recommendation: Eliminate from further consideration due to high capital cost and does not address vulnerability of small Cane Creek Reservoir watershed OWASA evaluated the use of reclaimed water(highly treated wastewater) for drinking (potable) water uses. As used in our LRWSP, indirect potable reuse involves mixing reclaimed water in an environmental buffer prior to being treated at the Jones Ferry Road WTP; direct potable reuse involves further treating the reclaimed water at the Mason Farm Wastewater Treatment Plant (WWTP) and then pumping it directly into our water distribution system. Potable reuse alternatives evaluated are summarized below: • Alternative 7a: Indirect Potable Reuse with Pretreatment Mixing Basin near Quarry Reservoir—This alternative was developed to meet the requirements of a general statute which allows for indirect potable reuse mixed at specified ratios with another source water in an engineered pretreatment mixing basin. Reclaimed water from the Mason Farm WWTP would be pumped to a new pretreatment mixing basin near the Quarry Reservoir. This water would be mixed with water from Cane Creek Reservoir in accordance with the statute. o Recommendation: Eliminate from further evaluation since very high capital and life cycle costs • Alternative 7b: Indirect Potable Reuse with Return to Quarry Reservoir—This alternative is similar to Alternative 7a,but water from the Mason Farm WWTP would be pumped to the Quarry Reservoir rather than a new pretreatment mixing basin. o Recommendation: Eliminate from further evaluation since very high capital and life cycle costs • Alternative 8: Indirect Potable Reuse with Return to University Lake—Reclaimed water from the Mason Farm WWTP is returned to University Lake. Information on OWASA's Long-Range Water Supply Plan 16 January 29,2021 Page 10 o Recommendation: Eliminate from further evaluation since it is not legal • Alternative 9: Direct Potable Reuse—Under this alternative, additional treatment would be constructed at the Mason Farm WWTP and treated water would then be pumped directly to our distribution system. Two methods of treating the reclaimed water were identified: (1)use of carbon(generally preferred since typically lower capital and operating/maintenance costs) and(2)reverse osmosis—may be required to removed total dissolved solids. o Recommendation: Eliminate from further evaluation since it is not legal OWASA considered four main demand management alternatives based on research and stakeholder engagement with the Towns and UNC Chapel Hill. Three of these alternatives involve the use of reclaimed water and one is a series of programmatic demand management strategies that collectively had the potential to reduce water demand to a degree that could delay the need for additional supply. • Alternative 10: Reclaimed Water to UNC Cogeneration Facility—This alternative involves the installation, operation and maintenance of new infrastructure that would enable UNC to use RCW instead of drinking water at its Cogeneration Facility. o Recommendation: Eliminate from further evaluation due to very high capital cost per gallon of water saved and UNC concerns about quality requirements • Alternative 11: Expanded Reclaimed Water Use at UNC Main Campus —This alternative involves expanding the use of reclaimed water on UNC's campus to meet certain non-drinking water demands in new buildings envisioned in the University's recently updated Master Plan. o Recommendation: Eliminate from further evaluation due to high life cycle cost per gallon of water saved • Alternative 12: Onsite Wastewater Treatment and Reuse—This alternative evaluated the use of reclaimed water systems to meet non-drinking water needs at the building or major development scale. o Recommendation: Eliminated from evaluation due to high capital and life cycle costs per gallon of water saved • Alternative 13: Programmatic Demand Management Strategies—Four alternatives were evaluated: o Alternative 13a: Unit Submetering and WaterSense Installation—Multi- family development is projected to be a significant area of water use growth in our service area. Sub-metering will help to ensure that the users of water within those developments are aware of the amount of water they use. This strategy was coupled with a requirement for developers to use high efficiency WaterSense fixtures. The impact was assumed to be relatively minor because most new developments are installing submeters without a requirement. o Recommendation: Eliminate from including as long-range water supply option because of minor impact on water use; consider as part of Water Conservation Plan Information on OWASA's Long-Range Water Supply Plan 17 January 29,2021 Page 11 o Alternative 13b: Water Efficiency Design Assistance and Conservation- Oriented System Development Fee—Under this alternative, OWASA would provide individualized design review assistance for new development. This service would be complemented with a system development fee that further incentivizes efficiency beyond our current fee structure. Rather than a regulatory requirement, this alternative would act more as a customer service enhancement to encourage more efficient development. o Recommendation: Eliminate from including as long-range water supply option because of minor impact on water use; consider as part of Water Conservation Plan o Alternative 13c: On-bill Financing for Water Efficient Fixtures—Older homes may have inefficient water fixtures, which became a requirement in 1994. Under this alternative, OWASA would loan a customer money to replace older fixtures, and the loan is paid back through an on-bill financing program. o Recommendation: Eliminate from further evaluation due to minor impact on water use and high cost per gallon of water saved o Alternative 13d: Minimize Need for System Flushing for Water Quality Purposes—OWASA flushes its water lines to maintain high levels of water quality. There are some locations in the system where low water flow results in "stale"water(dead end lines) that require more frequent flushing. Under this alternative, OWASA would loop lines to remove dead end areas. o Recommendation: Eliminate from further evaluation due to high capital cost 6. Prioritize Alternatives What option(s) are recommended for further evaluation? We evaluated each of the alternatives against the three pillars of sustainability: social performance, environmental performance, and financial performance and more detailed information on the alternatives analysis is found here. The section immediately above also briefly identifies whether OWASA plans to continue evaluating an alternative, and if not, why it is recommended to eliminate from further consideration. OWASA has not yet selected a preferred alternative and will consider feedback from the community before it makes its final selection in FY22. The Jordan Lake alternatives are the most cost-effective alternatives that will meet our long-term needs. OWASA plans to develop guiding principles to evaluate the Jordan Lake alternatives against one another and perform additional analyses. Community feedback will be incorporated into the guiding principles and into the selection of a preferred alternative. OWASA plans to evaluate the cost-effective demand management strategies in a Water Conservation Plan that will be included as an appendix or companion document to the LRWSP. Information on OWASA's Long-Range Water Supply Plan 18 January 29,2021 Page 12 How does OWASA plan to use its Jordan Lake allocation? While Jordan Lake shows the most promise in meeting our long-term water needs, we will still mainly rely on Cane Creek Reservoir, University Lake, and the Quarry Reservoir to meet most of our water needs. How we use the allocation will depend on which alternative is selected as our preferred alternative. Under any of the Jordan Lake alternatives, we may use our allocation proactively to prolong the use of our existing local supplies if local climatologists and weather experts are predicting regional drought. What are OWASA's next steps? (Steps 7 through 11) OWASA's next steps are as follows: • Engage the community to obtain feedback on work completed to date and proposed path forward(in process). • Develop guiding principles to evaluate the Jordan Lake alternatives against based on feedback from the community. The public is invited to participate in this process through OWASA Board meetings. • Develop a Water Conservation Plan to be included as an appendix to the LRWSP. • Perform evaluation of Jordan Lake alternatives. • Draft LRWSP and select the preferred alternative. • Engage the community to obtain feedback on the preferred alternative and draft LRWSP • Adopt the LRWSP including the Water Conservation Plan. • Pursue selected alternative(s) and conservation strategies to increase our water supply resiliency. Attachment 2 Lon g g- Ran a Water Su pp Y Pan : Information to Board of County Commissioners Ruth Rouse , Planning and Development Manager Fe bruary 16 , 2021 / 77 A Carrboro-Chapel Hill's not-for-profit public service agency delivering high W quality water,wastewater,and reclaimed water services. 20 • Provide information on work completed to-date on OWASA's Long- Range Water Supply Plan • Receive questions and feedback on that work • Receive feedback on - -- proposed path forward = w. � ' r University Lake 21 Key Messages • We have a low risk of running out of water. • Our largest vulnerability is in extended drought. -W • Jordan Lake alternatives - - - appear to be most cost- effective option for increasing resiliency. Intake on Cane Creek Reservoir 22 Ensuring Long- Range Water Supply Resiliency EVALUATE LONG-RANGE WATER SUPPLY PURSUE STRATEGIES TO INCREASE WATER SUPPLY RESILIENCY EVALUATE LONG-RANGE DEMANDS ADOPT LONG-RANGE MODEL FUTURE WATER SUPPLY PLAN VI i RISKS 3 �I -- 0 Q �� 9 IDENTIFY ALTERNATIVES COMMUNITY fry FOR REDUCING WATER ENGAGEMENT SUPPLY RISKS ( . . - r=EEn P SELECT PREFERRED GEE O EVALUATE ALTERNATIVE ALTERNATIVES COMMUNITY PRIORITIZE ENGAGEMENT ALTERNATIVES 23 z Hillsborough > ru O U w as U Q Q B6 OWASA s Water ❑WASA ar 40 c°J o Supplies ServiceAre Ly 64 I�0 Durham Interconnect o 0 Cane Creek Reservoir � y� Quarry Carrbaro Chapel Hi!! Durham Rest oir 86 54 � Janes Fercy • Local Water Supplies Watershed Roatl WTP 50 54 Boundaries Mason Farm Road VYVJ�P • Cane Creek Reservoir University p Lake -� ORANGE COUNT, n� NCS4 Durham CHATHAM COUNTY � Interconnect • University Lake • Quarry Reservoir • Jordan Lake Haw River �s sot s� f fi4 N CarylApex Entake o fiC r Prffsboro 3e Polential Intake and Plant Q t 2 on Jordan Lake 24 Jordan Lake • Federal, multi-purpose reservoir • Flood control • Water supply • Downstream water quality • Recreation • OWASA has had an allocation since 1988. - • Practice has been to only use Jordan Lake during water shortage L • We have no guaranteed access to Jordan La ke. Jordan Lake 25 9.0 24,000 -- Water Sales and Accounts 8.5 Droughts 22,000 > A a 8.0 m 0 5 20,000 7. Seasonal a n 'A7.0 Rates = 0 18,000 Q 6.5 m p Increasing 16,000 6.0 Block Rates 0 C N 5.5 14,000 - Reclaimed Water System Online 5.0 12,000 4.5 4.0 10,000 SO C'1. �b (& O'L Off` 00 04' ,y0 ,y0� ,y�o ,�`b ,LO ,LO ,LO ,LO ,LO Actual Water Sales +Customer Accounts 26 Our Water Supply Meets Demands Under Most Conditions 16 14 -000 E 12 Yield 10 CL N+ �,�► E 8 a 6 ��� Actual Baseline, 1st, •"'' Demands 4 ana 99th 3 2 Percentile Projections 0 1980 1990 2000 2010 2020 2030 2040 2050 2060 2070 Fiscal Year 27 Hillsborough a r, w gy d= Our Water Supply 4 B6 OWASA 40 0 0 Service Are z Risk is Low 5F I-40 nterco Durham Interconnect o Cane Creek Reservoir Carrboro Quarry Chapel Hill Durham �Res/rvoir 46 • Our predecessors set us up well 5 Watershed Road WTP `fit Boundarie hlasonFarm W� • Supply Roan wwtP • University Conservation sLake r ORAN'ECDUfVTY c NC•54 Durham • Cane Creek Reservoir has small CHATRAMCpUlvny - Interconnect watershed relative to its storage • Long refill times following drought • Our main vulnerability is extended Haw drought �z,�erRiv ` D • Plan to proactively use Jordan Lake g, allocation • Reduce vulnerability __;__, ti • Reduce drought surcharges IN _C•rylApexfntake e Pffsbaro 3 6 F 2 Po.nh.l lnta ke and Plant LEE-miles on Jordan Lake 28 Social my Partnership Financial Environmental 29 0 Identifying Alternatives to Evaluate Narrowing the Evaluation All Ideas Field of Strategies L� • Meetings • Potential water supply or Apples to apples • Plans savings comparison across 3 • OWASA Board Incremental costs pillars of and others Implementation sustainability 1 Ak Demand Supply Management Alternatives Alternatives Reclaimed Water Quarry Reservoir Programmatic Potable Reuse Strategies Jordan Lake 31 Demand Management Alternatives • Do not meet long-term 9.0 24,000 demands `° p 8.5 22,000 a 8.0 20 7.5 ,000 N • Cost-effective strategies o 0 7.0 18,000 will be considered in = O 6.5 Water Conservation Plan a 6.0 16,000 0 ;� 5.5 Reclaimed Water to UNC 14,000 as Appendix to LRWSP begins2009 `^ N 5.0 12,000 a� 4.5 c� 2 4.0 10,000 �<o cb0 O'l. O, 04' Oti O, 01 ,yO 'yr° 1O 1O 1O IO tiO 1L IL IL LO I .LO Actual WaterSaIes Cu sto me r Acco u nts 32 Supply Options • Deep Quarry (a • Does not diversity water supply • High capital cost • Potable Reuse 0 • Options not legal or have uncertain permitting process • High capital cost • Jordan Lake • Meets long-term needs and diversifies our water supply • Lower capital costs • Several potential ways to use Jordan Lake • Largely rely on our 3 local supplies 33 Where are we headed ? • Report to Board of Directors on community engagement - March • Develop guiding principles to evaluate Jordan Lake alternatives — May/June • Continue to evaluate Jordan Lake - FY22 • Mutual aid agreements • Full partner in new intake and plant on western side of Jordan Lake • New agreement with Western Intake Partners to guarantee access to our Jordan Lake allocation • Select draft preferred alternative - FY22 • Engage the community • Develop final Long-Range Water Supply Plan with preferred alternative 34 Questions an • Discussion • Does the Council or community have any questions on our long-range water supply planning process? • What feedback would you like shared with the OWASA Board of Directors regarding future evaluation of Jordan Lake water supply alternatives? _ tY • Other? Ruth Rouse/ rrouse@owasa.org