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HomeMy WebLinkAboutAgenda - 09-07-2005-6dORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: September 7, 2005 Action Agenda Item No. le) - 1111 SUBJECT: Resolution Modifying Initiation of the Restrictions of the County's Water Conservation Ordinance DEPARTMENT: County Manager PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Draft Resolution INFORMATION CONTACT: County Engineer, ext 2303 Letter from the Mayor of Hillsborough TELEPHONE NUMBERS: Letter from the Hillsborough Town Hillsborough 732-8181 Engineer/Utilities Director Chapel Hill 968-4501 County Water Conservation Ordinance Durham 688-7331 Mebane 336-227-2031 PURPOSE: To present for BOCC approval a resolution that will: 1) temporarily modify how the County implements the provisions of the County's water conservation ordinance calling for voluntary and mandatory conservation of water by citizens in northern Orange County who use water provided by the Orange-Alamance and Town of Hillsborough water systems; and 2) initiate a process of discussion and negotiation with Orange-Alamance Water System and Town of Hillsborough as to future operation of the northern Eno water supply with respect to withdrawals and releases from Lake Orange and Hillsborough's West Fork Reservoir. BACKGROUND: In July 1986, the Orange County BOCC enacted the County-wide water conservation ordinance entitled ORDINANCE PROVIDING FOR THE CONSERVATION OF WATER DURING A WATER SHORTAGE, RESTRICTING THE USE OF WATER AND WATER WITHDRAWALS, AND ALLOCATING AUGMENTED STREAMFLOW FROM RESERVOIRS. The provisions of this ordinance were intended to address the periodic and generally seasonal water shortages which have historically affected the water supply capacity of the County's public water supply systems (OWASA, the Town of Hillsborough and the Orange- Alamance Water System). The ordinance initiated water conservation measures by setting forth increasing stringent levels of water withdrawal limitations on the County's public water suppliers as well as by restricting water using activities of the customers of those water suppliers. The severity of the conservation measures and restrictions was tied directly to the quantity of water remaining in the water supply reservoirs in the County, as measured and indicated by lake levels. As a consequence of a significant improvement in OWASA's water supply situation (the development and filling of the Cane Creek Reservoir), the ordinance's initiation of water conservation measures is no longer based on reservoir water levels. Conservation measures are now implemented on the basis of an intricate water supply/demand matrix that has been utilized to restrict water consumption only once - during the drought of 2002. The portion of the 2 ordinance dealing the Lake Orange/Eno River system has been utilized, in conjunction with the Eno River Capacity Use Plan, to restrict water consumption for fourteen of the last seventeen years. As drought and water supply conditions require, the provisions of the County's water conservation ordinance are both enacted and rescinded by means of a formal resolution by the BOCC or by means of an order of the Chair of the BOCC. In recent years, conditions related to both water supply and water use have improved significantly in the Eno system as well. Piedmont Minerals has changed the manufacturing/mining process that once required an Eno withdrawal of 400,000 gallons per day (gpd) or more to one that requires approximately 10,000 gpd. Hillsborough's average water daily demand has fallen (with the closure of Flint Fabrics) from more than 1.6 million gallons per day (mgd) to approximately 1.3 mgd and it has developed an additional water supply from its West Fork Reservoir (with an estimated safe yield of nearly 2.0 mgd). Orange-Alamance has disconnected the Swepsonville (approximately 350,000 gpd demand transferred to Graham's water system) from its system, developed the water supply provided by four ground water wells (more than 200,000 gpd capacity), and contracted to buy approximately 300,000 gpd from the Town of Haw River regardless of Eno flow conditions. Its daily Eno withdrawals have been reduced from more than 800,000 gpd to less than 400,000 gpd. The net effect of reduced demands by Hillsborough, Orange-Alamance and Piedmont Minerals has been to reduce daily releases from Lake Orange by approximately 1.3 mgd ( from 4.7 mgd to 3.4 mgd, including instream flow losses). At the same time, residual instream flow (stream flow below withdrawal points) has been increased by approximately 0.65 mgd as a consequence of the minimum instream flow release from the West Fork Reservoir. In recognition of the changes in their respective water supply/water demand conditions, the Town of Hillsborough and the Orange-Alamance Water System have recently revised (relaxed) their respective water conservation ordinances/policies related to water conservation by their customers. Both the Orange-Alamance and Town of Hillsborough water systems have invested heavily in water system improvements that represent fixed capital and operating costs (costs that are not reduced as less water is used). Water conservation measures actually cause the unit costs of water sold to water consumers to rise. Both Orange-Alamance and Hillsborough, striving to reduce the unit cost of water to consumers, have noted a desire and a need to sell as much water as possible within the limits imposed by their respective water supply/treatment capacity. Officials of Orange-Alamance and Hillsborough met with the BOCC Chair, Vice-Chair and County staff during the week of 29 August 2005 to request that the County consider relaxing the water use restrictions placed on their respective customers by the County's water conservation ordinance. As justification for this relaxing of restrictions, Hillsborough and Orange-Alamance officials noted the potential financial effect of the restrictions, the change in the water supply/demand conditions, the conflict between their own conservation policies/ordinances and that of the County, and the potential for public confusion as to which restrictions apply to which customers (as County ordinances apply to some customers and not to others). The Chair and Vice-Chair noted that County has concerns about the effect of easing water use restrictions (with the continued high rate of draw-down of Lake Orange) on the environmental health of Lake Orange and the Eno River. Orange-Alamance and Hillsborough officials expressed a willingness to discuss strategies to preserve the Lake Orange water supply while operating for extended periods absent the imposition of water conservation measures. The Chair and Vice- Chair agreed to take to the full BOCC for approval, a proposal calling for up to a 90-day moratorium on initiating County water conservation requirements while strategies are developed/discussed for revising the County water conservation ordinance to coincide with the policies/ordinances of Hillsborough and Orange-Alamance while providing an enhanced level of protection/preservation of the Lake Orange/Eno River environment. During this moratorium period, the provisions of the Hillsborough and Orange-Alamance water conservation ordinances/policies applicable to water consumers and the Eno River Capacity Use withdrawal restrictions applicable to the water utilities and Piedmont Minerals would remain in effect. FINANCIAL IMPACT: None at the present time. RECOMMENDATION(S): The Manager recommends that the Board: • review the draft resolution, • modify it as necessary • adopt the modified resolution direct its designated representative(s) and staff to meet with Hillsborough and Orange Alamance officials to develop new water conservation polices, procedures, agreements, ordinances, etc., for BOCC approval ORANGE COUNTY BOARD OF COMMISSIONERS A Resolution Agreeing to Initiate a 90-Day Moratorium on Enforcing the County's Water Conservation Ordinance While Negotiating with the Town of Hillsborough and the Orange-Alamance Water System for a Modified Water Conservation - Lake Orange/Eno River Preservation Strategy WHEREAS, Orange County, in discharging its statutory responsibilities to protect and enhance the public health, safety and welfare of all the citizens of Orange County, does have a strong interest in assuring the availability of high quality sources of potable water; and WHEREAS, A significant number of citizens of Orange County are provided municipal water utility services by the Town of Hillsborough and the Orange- Alamance Water System; and WHEREAS, Orange County owns and operates Lake Orange, a water supply reservoir that serves as a primary water supply for the Town of Hillsborough and the Orange-Alamance Water System; and WHEREAS, Orange County coordinates the use of water supplies drawn from the Eno River under the provision of the Eno River Capacity Use Agreement; and WHEREAS, Orange County does have in effect a water conservation ordinance with specifies voluntary and mandatory water conservation measures applicable to the portion of the customer base of the Orange-Alamance Water System and the Town of Hillsborough residing within County jurisdiction, WHEREAS, Orange County does have an interest in making the most efficient and cost-effective use of limited resources; and WHEREAS, Orange County seeks to ensure that the demand for Eno River water supply generated by population growth and development can be reconciled with availability of the resource and the protection of the Lake Orange/Eno River environment in an intelligent, sustainable manner; and WHEREAS, Orange County does recognize that those conditions related to both water supply and water use that have led to the creation of both the Eno River Capacity Use Agreement and the County's water conservation ordinance have improved significantly; and WHEREAS, Orange County does recognize that the conflicts between the County's water conservation ordinance and the policies/ordinances of the Town of Hillsborough and the Orange-Alamance Water System represent a potential source of confusion for water customers of both system; and WHEREAS, Orange County conducts an ongoing dialogue with the Town of Hillsborough and the Orange-Alamance Water System about the extension of utilities to provide water utility service and fire protection for commercial enterprises, new and existing residential development, new schools and other essential public facilities; and WHEREAS, Orange County finds it desirable and necessary that all water utilities serving the citizens of the County and other interested parties have the opportunity to meet to discuss issues of mutual concern and benefit, including water supply resources; NOW, THEREFORE, do we, the Orange County Board of Commissioners, hereby resolve to: • Enact a moratorium on activating and enforcing the restrictions and prohibitions of the County water conservation ordinance for a period of up to 90 days (without formal extension of the moratorium by the BOCC); and • Participate in a series of discussions and strategy sessions with officials of the Town of Hillsborough and the Orange-Alamance Water System to develop new water conservation polices, procedures, agreements, ordinances, etc., that will coincide with the policies/ ordinances of Hillsborough and Orange-Alamance while providing an enhanced level of protection/preservation of the Lake Orange/Eno River environment; and • Direct the Chair, Vice-Chair and appropriate County staff to represent the full Board in such discussions and strategy sessions and to bring back draft proposals, ordinances, etc., for Board approval. This is the 7th day of September, 2005 Moses Carey, Chair Orange County Board of Commissioners