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HomeMy WebLinkAboutAgenda - 10-30-2002 - 1 (AOG) 1 ASSEMBLY OF GOVERNMENTS AGENDA ITEM ABSTRACT Meeting Date: October 30, 2002 SUBJECT: Assembly of Governments Discussion Items DEPARTMENT: County Manager PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: As noted in "Background" section Rod Visser, ext 2300 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To discuss topics of mutual interest among the governing boards of Orange County and the Towns of Carrboro, Chapel Hill, and Hillsborough. BACKGROUND: 1. SAPFO Implementation Timeline and Decision Points For the past several years, the governing boards of the County, Towns, and school systems have been discussing the possible adoption of a Schools Adequate Public Facilities system. As noted in the Memorandum of Understanding (MOU), that reflects the recognition of the need to work together to ensure that new growth within the County's two school districts occurs at a pace that allows Orange County and the school districts to provide adequate school facilities to serve the children within new developments. It is also important to continue to maintain a Capital Investment Plan (CIP) that is financially feasible and synchronized with historical growth patterns. Staff will provide a brief review of an MOU Decision Matrix which lays out the major decision points for each jurisdiction that will consider implementation of the MOU and Ordinance, and of a timeline that could lead to implementation of a Schools Adequate Public Facilities system by February 15, 2003. Staff and attorneys will be available to review and respond to questions elected officials may have about information contained in the following attachments. Attachment la Schools Adequate Public Facilities Memorandum of Understanding Attachment lb Exhibit A — Schools Adequate Public Facilities Ordinance Attachment 1 c Decision Matrix of MOU Elements Attachment Id Schools Adequate Public Facilities MOU and Ordinance Possible Implementation Timeline 2. Southern Park and Collaborative Park Planning Process a Southern Park, located just south of Southern Village along US 15/501 South, is a Town of Chapel Hill park to be funded by Orange County from 1997 and 2001 County bond funds. On March 25, the Chapel Hill Town Council adopted the Conceptual Plan for Southern Communty Park, as developed by a citizens task force during 2001. The Board of County Commissioners began its review of the conceptual plan on October 1st. Following County approval of the conceptual plan, and Town/County agreement on a process for construction and project approval, the Town will begin Special Use Permit review for the park. Staff will be available to respond to elected official questions regarding the proposed park design. Attachment 2a Project Summary(Excerpt from 1114102 Conceptual Plan Committee Report) Attachment 2b Conceptual Plan Map 3. Issuance Plan for 2001 County Bonds and Alternative Financing The County Commissioners have approved a plan for the issuance of November 2001 voter- approved bonds and alternative capital financing. County staff are working with the Local Government Commission on a $3.475 alternative financing deal that will close in December 2002. The first sale of 2001 bonds is scheduled for an LGC sale on March 11, 2003, in the amount of$19.175 million. The attached spreadsheet lays out the current plans for obtaining proceeds to finance various capital projects through FY 2007-08. Staff will be available to respond to any questions about funding for projects of specific interest to each jurisdiction. Attachment 3 Table — Proposed Projects by Fiscal Year 4. Regional Transportation Issues Time is allotted for the Boards to discuss any transportation matters that may be of mutual interest to the local governments. No Attachments 5. Drought and Collaboration on Water Supply and Protection The County has been working collaboratively (note the accompanying H2Orange flyer) with other jurisdictions, including water providers, to promote water conservation and good stewardship of this resource. The importance of this effort has been sharpened by the collective experience of Town and County residents in dealing with mandatory water restrictions brought about by the ongoing drought. Elected officials may wish to discuss measures that should be considered to continue the focus on water conservation, water supply protection, and other related topics addressed at the Orange County Water Summit in May 2002. Attachment 5a H2Orange Flyer Attachment 5b Meeting Summary— 5116102 Orange County Water Summit 6. State Budget Impacts — FY 2002-03 and Beyond 3 Time permitting, the Boards may wish to discuss impacts felt on their budgets, programs, and services resulting from withholding by the State of local government revenues during the current and previous fiscal years, as well as concerns about the next fiscal year. Handouts from a recent BOCC work session on this topic are provided just for information. Attachment 6a Flowchart— Fiscal Year 2001-02 Financial Update Attachment 6b Flowchart— Fiscal Year 2002-03 Financial Update 7. Information Items At the request of various elected officials, background materials on the following topics are provided simply for informational purposes. Staffs can follow up on any questions that may be generated from review of these documents. TOPIC DOCUMENT Attachment 7a Release of Shaping Orange County's 10124102 OC Planning Staff Future Report Memo Attachment 7b Consideration of Recommendations on 8128102 Letter from Mayor Foy Shifting of Urban Service Boundary South (this letter prompted a Chapel of Chapel Hill and Carrboro Hill-Camboro Schools inquiry on the feasibility of making changes to the urban services boundary; County staff analysis of that request is docketed for the 1116102 BOCC meeting) Attachment 7c Mental Health Reform Update Orange-Person-Chatham Area Program— Information Report on Mental Health Reform Progress Attachment 7d Early Action Compacts — Presentation 10123102 TJCOG Executive from the NC Division of Air Quality Committee Agenda Item FINANCIAL IMPACT: There is no direct financial impact associated with discussion of these topics. There are no action items requiring formal Board decisions. RECOMMENDATION(S): The Manager recommends that the Boards discuss the topics listed and provide appropriate direction to the respective staffs. QC-i1 .L�.. Approved by Schools and Land Use Councils 11/14/01; Draft completed by staff 2/8/02 SCHOOLS ADEQUATE PUBLIC FACILITIES MEMORANDUM OF UNDERSTANDING This Memorandum of Understanding is entered into this day of , 200_, by and between the Town of , the Town of , Orange County, and the (the "School District"). WHEREAS, the portion of Orange County, served by the [Chapel Hill/Carrboro] [Orange County] School System has for the past decade been experiencing rapid growth in population; and WHEREAS, this growth, and that which is anticipated, creates a demand for additional school facilities to accommodate the children who reside within new developments; and WHEREAS, the responsibility for planning for and constructing new school facilities lies primarily with the [Chapel Hill/Carrboro] [Orange County] School Board, with funding provided by Orange County; and WHEREAS, [Chapel Hill, Carrboro, Orange County and the Chapel Hill School District] [Orange County, Hillsborough, and the Orange County School District], have recognized the need to work together to ensure that new growth within the School District occurs at a pace that allows Orange County and the School District to provide adequate school facilities to serve the children within such new developments; WHEREAS, the parties have worked cooperatively and developed a system wherein school facilities are currently adequate to meet the needs of the citizens of the county and will continue to maintain a Capital Investment Plan (CIP) that is financially feasible and synchronized with historical growth patterns; NOW, THEREFORE, the parties to this Memorandum hereby agree as follows: Section 1. The parties will work cooperatively to develop a realistic Capital Improvement Plan for the construction of schools such that, from the effective date of this Memorandum, school membership within each school level (i.e. elementary, middle or high) does not exceed the following: Elementary School 105% of Building Capacity Middle School 107% of Building Capacity High School 110% of Building Capacity a. For purposes of this Memorandum, the term "school membership" means the actual number of students attending school as of November 15 of each year. The figure is determined by considering the number of students enrolled (i.e. registered, regardless of whether a student is no longer attending school) and making adjustments for withdrawals, dropouts, deaths, retentions and promotions. Students who are merely absent from g:\craig\sapfo\mou-final 1 Approved by Schools and Land Use Councils 11/14/01; Draft completed by staff 2/8/02 class on the date membership is determined as a result of sickness or some other temporary reason are included in school membership figures. Each year the School District shall transmit its school membership to the parties to this agreement no later than five (5) school days after November 15. b. For purposes of this Memorandum, "building capacity" will be determined by reference to State guidelines and the School District guidelines (consistent with CIP School Construction Guidelines/policies developed by the School District and the Board of County Commissioners) and will be determined by a joint action of the School Board and the Orange County Board of Commissioners. As used herein the term "building capacity" refers to permanent buildings. Mobile classrooms and other temporary student accommodating classroom spaces are not permanent buildings and may not be counted in determining the school districts building capacity. C. Prior to the adoption of the ordinances referenced in Section 2, the parties shall reach agreement on the following: (i) A Capital Improvement Program (CIP) that will achieve the objectives of this Memorandum; (ii) A projected growth rate for student membership within the School District's three school levels during the ten year life of the CIP; (iii) A methodology for determining the projected growth rate for student membership; and (iv) The number of students at each level expected to be generated by each new housing type(i.e., the "student generation rate"). d. After the adoption of the ordinances referenced in Section 2, the Orange County Board of Commissioners may change the projected student membership growth rate, the methodology used to determine this rate, or the student generation rate if the Board concludes that such a change is necessary to predict growth more accurately. Before making any such change, the Board shall receive and consider the recommendation of a staff committee consisting of the planning directors of the Town(s) and the County and a representative of the School District appointed by the Superintendent. The committee shall provide a copy of its recommendation to the governing boards of the other parties to this memorandum at the time it provides such recommendation to the Board of Commissioners. In making its recommendation, the committee shall consider the following, and in making its determination, the Board of Commissioners shall consider the following: g:\craig\sapfo\mou-final 2 Approved by Schools and Land Use Councils 11/14/01; Draft completed by staff 2/8/02 (i) The accuracy of the methodology and projected growth rate then in use in projecting school membership for the current school year; (ii) The accuracy of the student generation rate then in use in predicting the number of students at each level actually generated by each new housing type; (iii) Approval of and issuance of CAPS for residential developments that, individually or collectively, are of sufficient magnitude to alter the previously agreed upon school membership growth projections; or (iv) Other trends and factors tending to alter the previously agreed upon projected growth rates. If any such change is made in the projected growth rate, the methodology for determining this rate, or the student generation rate, the Orange County Board of Commissioners shall inform the other parties to this Memorandum prior to February 1St in any year in which such change is intended to become effective what change was made and why it was necessary. e. The Orange County Board of Commissioners shall provide a copy of the updated CIP to each of the parties to the Memorandum as soon as it is revised, annually or otherwise. Section 2. The towns and the county will adopt amendments to their respective ordinances, in substantially the form attached hereto as Exhibit A, to coordinate the approval of residential developments within the School District with the adequacy of existing and proposed school facilities. Section 3. The following process shall be followed by the School District to receive and take action upon applications for Certificates of Adequacy of Public School Facilities ("CAPS") submitted by persons who are required by an implementing ordinance conceptually similar to that attached as Exhibit A to have such certificates before the development permission they have received from the town or county becomes effective. a. On February 15th of each year, the School District shall calculate the building capacity of each school level and the school membership of each school level as of November 15th of the previous year. Also on February 15th of each year, the School District shall calculate the anticipated school membership for each school level and the anticipated building capacity for each school level as of November 15th in each of the following ten years. These calculations shall be made in accordance with the provisions of Section 1 and also in accordance with the remaining provisions of this section. g:\craig\saDf6\mou-fina1 3 Approved by Schools and Land Use Councils 11/14/01; Draft completed by staff 2/8/02 b. School membership calculations made on February 15th (utilizing the previous November 15th data) for each of the ten years following the year in which the calculation is made (the base year) shall be determined by applying the projected school membership growth rates determined in accordance with Section 1 of this Memorandum to the actual school membership numbers of the base year. C. The school building capacity calculations shall be based upon the following: (i) A calculation of the existing building capacity within each school level; (ii) The anticipated opening date of schools under construction; (iii) The anticipated opening date of schools on the ten-year CIP for which funding has been committed by the Board of Commissioners as a result of an approved bond issue, an approved installment purchase agreement, or otherwise; and (iv) The anticipated closing dates of any schools within the School District. d. By comparing the existing and calculated school membership to the existing and calculated school building capacity each year, the School District shall determine what remaining capacity (if any) exists or is projected to exist to accommodate new development. The School District shall make that information known to the local governments within 15 days of the comparison. e. As CAPS are issued for new developments during the course of the twelve month period from February 15th of one year to February 15th of the next year, the School District shall continually reduce the remaining available school building capacity in each of the ensuing years wherein new students are projected to be added to the school system by the developments for which the CAPS are given during that year. f. When an application for a CAPS is submitted, the School District shall determine the impact on school membership for each school level as calculated on February 15th in each year of the period during which the development is expected to be adding new students to the school system as the result of such new construction. In making this determination, the School District shall rely upon the figures established under Section 1 of this Memorandum as to the number of students at each level expected to be generated by each housing type, and data furnished by the applicable planning department as to the expected rate at which new dwellings within developments similar in size and type to the proposed development are g:\craig\sapfo\mou-final 4 Approved by Schools and Land Use Councils 11/14/01; Draft completed by staff 2/8/02 likely to be occupied. Notwithstanding the foregoing, if, upon request of the applicant, the planning jurisdiction approving the development imposes enforceable conditions upon the development (such as a phasing schedule) to limit the rate at which new dwellings within the development are expected to be occupied, then the School District shall take such limitations into account in determining the impact of the development on school membership. g. If the School District determines that the projected capacity of each school level is sufficient to accommodate the proposed development without exceeding the building capacity levels set forth in Section 1 of this Memorandum, then the School District shall issue the CAPS. If the School District determines that the projected capacity of each school level is not sufficient to accommodate the proposed development without exceeding the building capacity levels set forth in Section 1, then the School District shall deny the CAPS. If a CAPS is denied, the applicant may seek approval from the appropriate planning jurisdiction of such modifications to the development as will allow for the issuance of a CAPS, and then reapply for a CAPS. h. The School District shall issue CAPS on a "first come first served" basis, according to the date a completed application for a CAPS is received. If projected building capacity is not available and an application for a CAPS is therefore denied, the development retains its priority in line based upon the CAPS application date. Section 4. A CAPS issued in connection with approval of a subdivision preliminary plat, minor subdivision final plat, site plan, or conditional or special use permit shall expire automatically upon the expiration of such plat,plan, or permit approval. Section 5. The towns and the county will provide to the School District all information reasonably requested by the School District to assist the District in making its determination as to whether the CAPS should be issued. Section 6. The School District will use its best efforts to construct new schools and permanent expansions or additions to existing schools in accordance with the CIP. Section 7. Orange County will use its best efforts to provide the funding to carry out the Capital Improvement Plan referenced in Section 1 above. Section S. In recognition of the fact that some new development will have a negligible impact on school capacity, a CAPS shall not be required under the following circumstances: a. For residential developments restricted by law and/or covenant for a period of at least thirty years to housing for the elderly and/or adult care living and/or adult special needs; n•\crai v\sanfo\mou-final 5 Approved by Schools and Land Use Councils 11/14/01; Draft completed by staff 2/8/02 b. For residential developments restricted for a period of at least thirty years to dormitory housing for university students. If the use of a development restricted as provided above changes, then before a permit authorizing such change of use becomes effective, a CAPS must be issued just as if the development were being constructed initially. Section 9. The parties acknowledge that this Memorandum of Understanding is not intended to and does not create legally binding obligations on any of the parties to act in accordance with its provisions. Rather, it constitutes a good faith statement of the intent of the parties to cooperate in a manner designed to meet the mutual objective of all the parties that the children who reside within the School District are able to attend school levels that satisfy the level of service standards set forth herein. g:\craig\sapfo\mou-final 6 f frTac�n Er�f- 16 Approved by Schools and Land Use Councils 11/14/01; Draft completed by staff 2/8/02 Exhibit A AN ORDINANCE AMENDING THE DEVELOPMENT ORDINANCE TO REQUIRE THAT THE ADEQUACY OF PUBLIC SCHOOL FACILITIES TO ACCOMMODATE NEW DEVELOPMENT BE CONSIDERED IN THE APPROVAL PROCESS WHEREAS, the portion of Orange County served by the [Chapel Hill/Carrboro] [Orange County] school system, has for the past decade been experiencing rapid growth in population; and WHEREAS, this rapid growth, and that which is anticipated, creates a demand for additional school facilities to accommodate the children who reside within new developments; and WHEREAS, the responsibility for planning for and constructing new school facilities lies primarily with the [Chapel Hill/Carrboro School Board] [Orange County School Board], with funding provided by Orange County; and WHEREAS, [Chapel Hill, Carrboro, Orange County and the Chapel Hill/Carrboro School District] [Orange County, Hillsborough, and the Orange County School District] have recognized the need to work together to ensure that new growth within the School District occurs at a pace that allows Orange County and the School District to provide adequate school facilities to serve the children within such new developments; and WHEREAS, to implement the Memorandum of Understanding between [Orange County, Chapel Hill, Carrboro, and the Chapel Hill/Carrboro School Board] [Orange County, Hillsborough, and the Orange County School Board], the [governing body] desires to provide a mechanism to assure that, to the extent possible, new development will take place only when there are adequate public school facilities available, or planned, which will accommodate such new development; NOW THEREFORE, ORDAINS: Section 1. Section of the Development Ordinance is amended by adding a new to read as follows: ADEQUATE PUBLIC SCHOOL FACILITIES 1. Purpose. The purpose of this ordinance is to ensure that, to the maximum extent practical, approval of new residential development will become effective only when it can reasonably be expected that adequate public school facilities will be available to accommodate such new development. g-\crai g\sanfo\ordinance-final t Approved by Schools and Land Use Councils 11/14/01; Draft completed by staff 2/8/02 2. Certificate of Adequacy of Public School Facilities. (a) Subject to the remaining provisions of this [article], no approval under this ordinance of a subdivision preliminary plat, minor subdivision final plat, site plan, or conditional or special use permit for a residential development shall become effective unless and until Certificate of Adequacy of Public School Facilities (CAPS) for the project has been issued by the School District. (b) A CAPS shall not be required for a general use or conditional use rezoning or for a master land use plan. However, even if a rezoning or master plan is approved, a CAPS will nevertheless be required before any of the permits or approvals identified in subsection (a) of this section shall become effective, and the rezoning of the property or approval of a master plan provides no indication as to whether the CAPS will be issued. The application for rezoning or master plan approval shall contain a statement to this effect. (c) A CAPS must be obtained from the School District. The School District will issue or deny a CAPS in accordance with the provisions of the Memorandum of Understanding between [Chapel Hill, Carrboro, Orange County, and the Chapel Hill Carrboro School District] [Orange County, Hillsborough, and the Orange County School District] dated (d) A CAPS attaches to the land in the same way that development permission attaches to the land. A CAPS may be transferred along with other interests in the property with respect to which such CAPS is issued, but may not be severed or transferred separately. 3. Service Levels. (a) This section describes the service levels regarded as adequate by the parties to the Memorandum of Understanding described in subsection (b) with respect to public school facilities. (b) As provided in the Memorandum of Understanding between [Orange County, Chapel Hill, Carrboro, and the Chapel Hill/Carrboro School District] [Orange County, Hillsborough, and the Orange County School District], adequate services levels for public schools shall be deemed to exist with respect to a proposed new residential development if, given the number of school age children projected to reside in that development, and considering all the factors listed in the Memorandum of Understanding, projected school membership for the elementary schools, the middle schools, and the high school(s) within the [Chapel Hill/Carrboro] [Orange County] School District will not exceed the following percentages of the building capacities of each of the following three school levels: elementary school level 105% middle school level 107% high school level 110% e:\craig\sanfo\ordinance-final 2 Approved by Schools and Land Use Councils 11/14/01; Draft completed by staff 2/8/02 For purposes of this ordinance, the terms "building capacity" and "school membership" shall have the same meaning attributed in the Schools Adequate Public Facilities Memorandum of Understanding among the Towns of , and Orange County and the Board of Education. 4. Expiration of Certificates of Adequacy of Public School Facilities. A CAPS issued in connection with approval of a subdivision preliminary plat, minor subdivision final plat, site plan, or conditional or special use permit shall expire automatically upon the expiration of such plat, plan, or permit approval. 5. Exemption From Certification Requirement for Development with Negligible Student Generation Rates In recognition of the fact that some new development will have a negligible impact on school capacity, a CAPS shall not be required under the following circumstances: a. For residential developments restricted by law and/or covenant for a period of at least thirty years to housing for the elderly and/or adult care living and/or adult special needs; b. For residential developments restricted for a period of at least thirty years to dormitory housing for university students. If the use of a development restricted as provided above changes, then before a permit authorizing such change of use becomes effective, a CAPS must be issued just as if the development were being constructed initially. 6. Applicability to Previously Approved Projects and Projects Pending Approval. (a) Except as otherwise provided herein, the provisions of this ordinance shall only apply to applications for approval of subdivision preliminary plats, minor subdivision final plats, site plans and conditional or special use permits that are submitted for approval after the effective date of this ordinance (b) The provisions of this ordinance shall not apply to amendments to subdivision preliminary plats, minor subdivision final plats, site plans, or special or conditional use permit approvals issued prior to the effective date of this ordinance so long as the approvals have not expired and the proposed amendments do not increase the number of dwelling units authorized within the development by more than five percent or five dwelling units, whichever is less. g:\craig\sapfo\ordinance-final 3 Approved by Schools and Land Use Councils 11/14/01; Draft completed by staff 2/8/02 (c) The [governing body] shall issue a special exception to the CAPS requirement to an applicant whose application for approval of a subdivision preliminary plat, minor subdivision final plat, site plan or conditional or special use permit covers property within a planned unit development or master plan project that was approved prior to the effective date of this ordinance, if the [governing body] finds, after an evidentiary hearing, that the applicant has (1) applied to the School District for a CAPS and the application has been denied, (2) in good faith made substantial expenditures or incurred substantial binding obligations in reasonable reliance on the previously obtained planned unit development or master plan approval, and (3). would be unreasonably prejudiced if development in accordance with the previously approved development or plan is delayed due to the provisions of this ordinance. In deciding whether these findings can be made, the [governing body] shall consider the following, among other relevant factors: (1) Whether the developer has installed streets, utilities, or other facilities or expended substantial sums in the planning and preparation for installation of such facilities which were designed to serve or to be paid for in part by the development of portions of the planned unit development or master planned project that have not yet been approved for construction; (2) Whether the developer has installed streets, utilities, or other facilities or expended substantial sums in the planning and preparation for installation of such facilities that directly benefit other properties outside the development in question or the general public; (3) Whether the developer has donated land to the School District for the construction of school facilities or otherwise dedicated land or made improvements deemed to benefit the School District and its public school system; (4) Whether the developer has had development approval for a substantial amount of time and has in good faith worked to timely implement the plan in reasonable reliance on the previously obtained approval; (5) The duration of the delay that will occur until public school facilities are improved or exist to such an extent that a CAPS can be issued for the project, and the effect of such delay on the development and the developer. (d) The decision of the [governing body] involving a special exception application under subsection (c) is subject to review by the Orange County Superior Court by proceedings in the nature of certiorari. Any petition for review by the Superior Court shall be filed with the Clerk of Superior Court within 30 days after a written copy of the decision [of the governing body] is delivered to the applicant and every other party who has filed a written request for such copy with the Clerk to the [governing body] at the time of its hearing on the application for a special exception. The written copy of the decision of the [governing body] may be delivered either by personal service or by certified mail, return receipt requested. g:\craig\sapfo\ordinance-final 4 Approved by Schools and Land Use Councils 11/14/01; Draft completed by staff 2/8/02 (e) The [chair or the mayor] of the [governing body] or any member temporarily acting as [chair or mayor] may, in his or her official capacity, administer oaths to witnesses in any hearing before the [governing body] concerning a special exception. 7. Appeal of School District Denial of a CAPS. The applicant for a CAPS which is denied by the School District may, within 30 days of the date of the denial, appeal the denial to the [governing body] of [local government from which development permit is sought]. Any such appeal shall be heard by the [governing body] at an evidentiary hearing before it. At this hearing the School District will present its reasons for the denial of the CAPS and the evidence it relied on in denying the CAPS. The applicant appealing the denial may present its reasons why the CAPS application should have, in its view, been approved and the evidentiary basis it contends supports approval. The [governing body] may (1) affirm the decision of the School District, (2) remand to the School District for further proceedings in the event evidence is presented at the hearing before the [governing body] not brought before the School District, or (3) issue a CAPS. The [governing body] will only issue a CAPS if it finds that the CAPS should have been issued by the School District as prescribed in the Memorandum of Understanding among the School District, Orange County and the [governing body]. A decision of the [governing body] affirming the School District may be appealed by the applicant for a CAPS by proceedings in the nature of certiorari and as prescribed for an appeal under Section 6(d) of this ordinance. 8. Information Required From Applicants. The applicant for a CAPS shall submit to the School District all information reasonably deemed necessary by the School District to determine whether a CAPS should be issued under the provision of the Memorandum of Understanding between the [governing body], Orange County, and the School District. An applicant for a CAPS special exception or an applicant appealing a CAPS denial by the School District shall submit to the [governing body] all information reasonably deemed necessary by the [governing body] to determine whether a special exception should be granted as provided in Section 6(d) of this ordinance or for the hearing of an appeal of a School District denial of a CAPS as provided in Section 7 of this ordinance. A copy of a request for a CAPS special exception or of an appeal of a School District denial of a CAPS shall be served on the superintendent of the School District. Service may be made by personal delivery or certified mail, return receipt requested. Section 2. This ordinance shall become effective The foregoing ordinance, having been submitted to a vote, received the following vote and was duly adopted this day of , 200_. Ayes: Noes: Absent or Excused: gAcraig\sapfo\ordinance-final 5 Ic. / \ 3 � �E° ~ > � � 3 � l / 2 \ � Q / g � a § � � » _« 5 & l ) �g $/ } f k / as u ¢ 2 � Updated 10/17/02 f K STUDENT PROJECTIONS AVG 5 PROJ Average-5 projections created from Fall 2001 membership Decision data. Forthcoming Section lc(ii) STUDENT 35,10 , PROJECTION METH COHORT/ Use 3, 5, 10 Cohort and Tishchler Linear and Orange County Decision TISCHLER Planning Linear Wave. Forthcoming NO MOU Section lc(iii) LINEAR OCP STUDENT GEN RATE TISCHLER Use Tischler and Assoc. Student Generation Rates Report Decision made: YES from 2001. Tischler MOU Section lc(iv) Note 1: An earlier SFTF draft report included recommendations concerning building capacity and recommended that mobile classrooms("portables") not be included as part of permanent capacity. Note 2: Many of the variables noted in Section lc (i— iv) of the MOU will be reanalyzed each year by the Planning Directors, School Representative Technical Advisory Committee and recommendations made,if necessary, and distributed to all parties to the agreement. 2 At6"1Y-r7C'-7t 1� Updated 10/24/02 SCHOOLS ADEQUATE PUBLIC FACILITIES MEMORANDUM OF UNDERSTANDING (MOU) AND ORDINANCE POSSIBLE IMPLEMENTATION TIMELINE Mid-September 2002 School Facilities Task Force Review and Recommendation of Memorandum of Understanding variables as delegated by Board of County Commissioners. Late September 2002 Special Schools and Land Use Councils meeting(Sep 25) Schools and Land Use Councils Review and Recommendation of Memorandum of Understanding/School Adequate Public Facilities Ordinance based on local government, School District and Schools Facilities Task Force responses(which incorporate public input). October 16, 2002 Schools and Land Use Councils transmit final version of Memorandum of Understanding/School Adequate Public Facilities Ordinance, including all determined variables,for consideration by local governments and school districts. ORDINANCE ADOPTION October 21,2002 5:30 PM dinner/work session regarding Schools Adequate Public Facilities Ordinance prior to regular Board of County Commissioners meeting at Southern Human Services Center Late October 2002 Discussion at October 30, 2002 Assembly of Governments meeting. November 2002 All local governments and School Districts address MOU and adopt,or readopt accordingly, if necessary. A transmittal of final version will be made. November, December, Local governments adopt actual SAPFO regulation through their typical Public January Hearing process. November 6, 2002 Board of County Commissioners Agenda Item for adoption of Memorandum of Understanding and Model Ordinance. November 11, 2002 Board of County Commissioners Work Session—if necessary for adoption. November 15, 2002 Receipt of membership numbers by school levels from School District for Planning Directors, School Representative Technical Advisory Committee (PSTAC),begins 2002 School Adequate Public Facilities Ordinance student projection report. November 19, 2002 Board of County Commissioners Agenda Item for adoption of Memorandum of Understanding and Ordinance if not acted upon on November 6 or November 11, 2002. Early January 2003 Planning Directors, School Representative Technical Advisory Committee report issued to School Adequate Public Facilities Ordinance parties. January 2003 Local governments and districts provide input to BOCC regarding SAPFO variables. Early February 2003 Board of County Commissioners certification of 2002 School Adequate Public Facilities Ordinance system February 15, 2003 New development subject to School Adequate Public Facilities Ordinance. Project Summary The Southern Community Park Conceptual some of the major concerns raised in the Plan Committee has developed a proposed planning process: conceptual plan for the 70- acre property that we believe would meet many of the Preservation of Open Space community's parks and recreation related needs while preserving significant portions of About 60-70%of this site would be left as Dog- the site as open space. open space. Most of the site south of Dog- wood Acres Drive would remain undis- The Committee met from February until turbed. Woodland trails would provide September 2001 and considered a wide range access to these natural areas.Large buffers of information including: would protect neighbors,the Highway 15- • Comments provided by citizens at 501 entranceway, and the park drainage meetings ways. A new meadow area would be created • Comments provided through the out of an area that is now a young pine Committee's web site grove. • Comments received at two public Active Recreation forums • Information and comments gener- Most of the active recreation would be ated by committee members clustered near the northeast corner of the site • Site analysis just south of the Southern Village Park and • Information and opinions provided Ride lot.Specific facilities recommended for by the consultant inclusion in a first phase of the park include: • Staff gererated information. • Athletic/soccer fields(2) • Youth ballfield The committee recognizes that the needs of • Dog park the community are varied and sometimes in • Extension of the Fan Branch Trail conflict with one another. Citizens spoke • Large play area with passion concerning the need to both • Water play area(spray park) preserve open space and develop the prop- • Basketball courts(2) erty for active recreation.The committee • Roller hockey court also considered the need to protect estab- • Small court area(horseshoes, lished neighborhoods,protect sensitive bocce) natural areas,the lack of certain types of • Performance area active recreational facilities,and the lack of • Disc golf course large properties for future park • Picnic shelters(one large,several developement. small) • Recycling center(to be developed The proposed conceptual plan is intended to by Orange County) blend these many needs into a coherent plan • Bio-retention ponds that takes advantage of the property's topog- • Parking raphy,vegetation, and location.The plan • Restrooms (3) proposes the following general solutions to • Maintenance shed 4 The plan also includes possible features for a second phase and several facilities that could be built, if needed,in the future.These include: • Community center building • Outdoor leisure pool • Youth athletic/soccer field • Expanded parking(all lots can be expanded) Access Most of the park's access would be provided via an extension of the main drive through the existing park and ride lot and Highway 15-501.This would leave only incidental access at Dogwood Acres Drive and Merritt Road. Safety Vehicular access is primarily provided through a traffic light controlled intersection. Recommendations are included that would address safety related issues on Dogwood Acres Drive including: • Speed of vehicles in the park • Safety of trail users crossing the road • Pedestrians accessing the park from the Dogwood Acres neigh- borhood We believe that the park as proposed would provide meaningful recreation opportunities for a wide variety of interests for genera- tions. 5 Pe SS - 2 N wr r,1[RwR rKW oB rh} 80!A 451120 45J125112 0 5�. W CrNRI MILL a"CAM C[NMR , V'TIOW z r, 2 Basketball Courts I 'Roller Hockey Court' , Sid J '� y t +, r' ao•swe ' 'jll Bocce ball Court V ° l wttanro.rn 4M� K, wrcnnr[�niu.cnRRe�R� M 131y3�a D- ' r Rlde_L t K l 1 1 i - — i�• bUt>�O 3�rt $�,itl(�f(rl� ,. // � __ ��(� f l ut� _.w, t,i r O o� '..o _ l��. :-._ . ;:�\1,, ({! :,t rr rriirr/(///t�l�Y•.� 1�-- � ` �' o ��0 1' a. . 40W� .. ' L � r-' j t l�/'l!.i/�i 1<,�f� � I � ' � � — ��-___.' I,"��I_'7L�;—yr yti t � •. Future Cornn'1y Center`1, t l f}?llr � yJ�;•'�Jitili �,- � � tr/�- , \.. \. ..' � - � '�q_ S- . 1 , ,f +' .r � �J�/!, `I l`l �-��r�J;� �t�, `!��! � � _ _ > /•.' � J� "� Cb11dt�,';;r�a�$r F�la��': ,�i J/i t�`t rr eCw f J �� �a•r � / Z 'a(TI�I`r ` ; hh / � �'rcroc Area A \ s\ t I}X111�J1Jl i1J! Nrf UAROY5' r r! ..__ r �• *\ �a3—_ - - ? 2 Atletrateld C r!, ,.._I! f cF+�4►voGOra//'�1 J 'l/x i , t� l t t mf m7 » o Picnic Aryu, i !/r.�j) llllf! I i �i 1�ir�11���'1�/' - � �\� ♦. t -"� r 5 .� 11 r'Jik _ �_ V. _ Possible Ycttlletic Field Of i�,t.=.;.'.\n✓�-uhf -� `ilb r��' L.\'1 i `'' \ - � ECM 1V171 \�\ , -` � , \. , \\ —•r p,,rk1 ii t\ f\---------- � , ,n tyo,:�% , rails Legend (} /, Ir'1S„ �t j!r rte! / .✓ I( i/i \ l`\ '1 Gl �/^ 1. "�. ,,�i�,- • \ I�i f.- r -.-.i Greenway Trail , mil•'{'• ✓• Other Paved Trails Natural Surface Trails tiv K Southern Community p Park 3m �• I,- Town of Chapel Hill ' ` •'� November 7, 2001 - Scale: 1"-100' �Ac h iv en 3 Table 4. Proposed Projects by Fiscal Year(September 3,2002 Revision) revisions reflect BOCC budget work session discussions that haw taken place through 6124/02.Proposal maintains the priorities and timelines submitted by the County's bond roposal(ass Table 5.Comparison of Proposed Projects to Be Included in Bond and Alterative Financing Issuances for Fiscal Year 2002-03. partners.Purple highlighted cells rellsct staff proposed changes from the FY 2002-03 FY 2003-04 FY 2004-05 FY 2005-OB FY 2006-07 FY 2007-08 Total - Bond Altematlw. Bond Altemadve Bond Altemative Bond Alternative Bond , Altemative Albmative Bond AltamaUve Protect Total A B O Schools C 0 E F G H I J l M N CHCCS-Cha I F4a H h 1 5750.000 SO 51.250.000 SO 30 SD SD SO SO SO 50 32.000.000 SO 52.000 000 2 CHCCS EIementa at0 SD SD s0 SO St,125.000 $0 S11.675.000 s0 SO I so SO $12.800.000: 50 5/2,800000 3 CHCCS EIementa 49 511.100,000 SO St,7OO.000 s0 SO s0 s0 SO 50 50 SO 312.800.000 50 $12,$00,000 4 CHCCS Unfunded from Bond Request Ina yef.demrfi d by CHCCS) SO s0 s0 s0 SD $3,700,000 so $0 $0 $3,700.000 $3.700,000 s0 31 t:100,000 $11100,000 5 OCS-HiIlsbOrou h Eleme Ia $900 000 s0 s0 sp 30 i SO $D 1 $900.000 SD 5800 000 6 OCS Oron a High Renovations s0 a 2::$950.000 s0 50 SO... so r s0 so SO 50 SD SO 5950.1X10 $930,000 .9 Total Schools $13,750,000 $950,000 $7,450,000 so f10 625,000 $5,350 000 515,173,000 $0 $O $3,700,000 S3,700000 L/7,000,000 $13,700.000 $60,700,000 10 Parks.Recreation&Open S ace Cedar Grove District Park - f0 t t 3200.000 s0. $500.000 -s0 5500.000 so so S0 $0 so SO $1.200,000 SO $1,200,000 12 Cha Hill District Park S2OO.000 so 5500.000 -SO $500,000 s0 SO SD SO SO 50 51.200.000 $0 f1 200,000 13 1--i Cheeks Park Phase 2) $125.000 SD $725.000 SO so so $0 SO SO so s0 $250,000 s0 $250,000 14 Fairview Padc 52170.000 -SO 5500.000 $O S150,000 so EO SO So s0 s0 $850.000 SO $850,000 15 GreemvaY Develo ent 5400,000 so 3200,000 SO $575.000 $0 5575.000 s0 $0 so so $1,750.000 SO $1,750,000 16 Homestead Aquatics Center $0 s0 $3,500.000 $0 so SD so so Janos I -CY(Including _ SO SD $Q $3,500,000 f -SO u 500,000 t7 Priority Projects identified during Capital Needs Advisory - Task Force 51.750.000 SO $1,750,000 so 51.750,0110 - $0 $1,750,000 s0 so SO SO 57.000.000 I s0 $7,000,000 18 SmiN Middle Schoa Park 5250.000 $0 so so $0 SD $0 i SO SO $0 $0 $250.000 s0 (230,000 19 soccer super Fund 5500.000 SO 5600.000 SO 5600.000. $0 5300.1XX! 30 s0 so $0 $2.000.000 so fz,000,000 20 Soutnem Cormuni Park $0 s0 50 s0 51,000.000 I s0 51.0001000 SO SD SO SD $2.000.000 $0 52000.000 21 Total Parks,Recreation and Open Space $3,823,000 $0 $7,873000 f0 55,075,000 SO $3,625,000 s0 s0 so - - f0 $20,000,000 $0 $20,000,000 22 Affordable Housing $1,300,000 f0 61,300,000 - SO $1,400,000 so $0 $0 f0 f0 $0 S4.000.00O $O $4,000.000 23 Conservation Easements SO $1,000,000 s0 - SO s0 $500,000 $o $750,000, so "So goo so s0 53.000.000 f3 000 000 24 Senior Centers - - 70 25 Chapel Hill Censer 540p,0o0 50 51,000,000 $O Sfi00.000 51,075,000 SO SO 50 SD $O 52,000,000 5/.075,000 $3,075,000 26 : fVOnheMCentral Orarge Center 3100.000 s0 $500.000 SD $1,400.000 $1,075.000 so SO SO 50 SO $Z,000.000 "s1 W5.000 $3075,000` 27 TOtal Senior Canters $500.000 so $1,500,000 SO $2,000,000 $2,150.000 s0 s0 so so s0 $4,000,000 52.150,000 $6,130,000 28 Other County Facilities Community College Satellite - s0 f0 29 Cam $(Count Match so s1,o004000 s0 SO SO - $3,000.000 $0 s0 s0 $0 so SO $4.000,000 $4000000 30 Govemmern Servmces Center Addition s0 s0 so _ s0 sp $0 s0 $0 $0 54,000,000 54.000.000 SO $B.OW.000. (8.000,000 31 Justice F n so so $0 so so so s0 S61000.000 50 s0 $0 s0 38.000.iX70 fs 000.000. 32 Ora a Ent. nses s0 5525,000 SO So SO s0 s0 - - s0 s0 Planning 8 Ag Center SD $0. 30 t 3523.000- $523,000 33 Renovations and Farmers Market SO s0 s0 SO so s0 so -s0 s0 s0 $500:000 SO 55004000 $300.000 34 Total Other COUn Fxlittle. so $1,523,000 f0 30 $0 $3,000,000 SO 56,000,000 f0 $4000900 14,5 00,000 f0 $19023000 -$19,025,000 35 Total $19,175,000' 53,475,000 $17,925,000 $0 $19,100,000 $11,000,000 $18,800,000 56,730,000 $0 $8,430,000 $8,200,000 $75,000,000 $37,875,000 $112,875,000 36 18,030,000 17 650.000 .`,; 1.500.. $13.100. tA7w, 0 4 ,000 172,700,000y 17 lwxx: Orange County Residents are feeling the impact of a drought that has plagued our state over the past five years. We are experiencing little to no rainfall and a high demand for water. Our situation is urgent and all citizens must take an active role in reducing water use. Conserving water now can lessen the consequences later. Drought Hotline 644-3333 Kitchen • Eliminate leaks by replacing old gaskets. A dripping faucet can waste 3,600 gallons a year. • Install faucet aerators. • During water restrictions use bottled water, paper plates, and single-service drinking and eating utensils. • Keep a pitcher of cold water in the fridge, instead of running water until it is cold. • Don't leave the water running while rinsing dishes. • Don't use a garbage disposal. Certain food scraps can be composted or wrapped in newspaper and placed in the garbage. • Only use dishwasher with full loads, and use the'water-saver'setting if available. • Don't rinse dirty dishes before loading into dishwasher; scrape clean and let the machine do the rest. • Don't thaw frozen food under running water. • Use bagged ice. SUMMARY 1 ORANGE COUNTY BOARD OF COMMISSIONERS ORANGE COUNTY WATER SUMMIT MAY 16, 2002 The Orange County Board of Commissioners met on May 16, 2002 at 4:00 p.m. at the Southern Human Services Center in Chapel Hill, North Carolina for a water summit. COUNTY COMMISSIONERS PRESENT: Chair Barry Jacobs and Commissioner Moses Carey COUNTY COMMISSIONERS ABSENT: Margaret W. Brown, Alice M. Gordon and Stephen Halkiotis COUNTY ATTORNEY PRESENT: S. Sean Borhanian COUNTY STAFF PRESENT: County Manager John M. Link, Jr., and Clerk to the Board Beverly A. Blythe (All other staff members will be identified appropriately below) NOTE: ALL DOCUMENTS REFERRED TO IN THESE MINUTES ARE IN THE PERMANENT AGENDA FILE IN THE CLERK'S OFFICE. NOTE: THIS WAS NOT AN OFFICIAL MEETING SINCE ONLY 2 COUNTY COMMISSIONERS ATTENDED. THIS VERBATIM TRANSCRIPT WILL BE PLACED IN THE PERMANENT AGENDA FILE IN THE CLERK'S OFFICE FOR FUTURE REFERENCE. 1. INTRODUCTION A. Opening Remarks Chair Jacobs made opening remarks. Welcome. We are pleased to have so many people that we wanted to have here today at this water summit, which is hosted by the Orange County Commissioners. Commissioner Moses Carey is sitting over here by the window. Commissioners Margaret Brown, Alice Gordon, and Steve Halkiotis will probably be here by and by. We will take time, so that everybody who is sitting up here can introduce himself or herself. I will be glad to recognize other people who are here. If you are representing one of the water providers, and you would like to come sit up here, there is still room. So please feel free. My name is Barry Jacobs, I am also one of the Orange County Commissioners. We are pleased to host this water summit. We wanted to start off with a little comment from Ambrose Pierce to set the tone, and it's a definition of neighbor. "A neighbor is one whom we are commanded to love as ourselves and who does all he knows how to make us disobedient." We are all neighbors, but if we do not communicate, then we develop misunderstandings. Sometimes personalities get in the way. Sometimes we simply do not recognize that we have common interests. So what we really are all about is trying to get beyond the frictions and divisions. We assume that the water providers who are here today are here out of a sense of self- interest. Self-interest is good in this setting. What we want to do is talk about the issues that brought us to come to the conclusion that it would be a good idea to have this water summit and to have these players in the same place at the same time. We are proud in Orange County of how long we have been committed to protecting watersheds, water supplies. We, in fact, in discussing this meeting, we protect the water for all of the municipalities and for Orange-Alamance. Everybody who is here, we help protect your water, because we protect the watersheds. We are not a water provider. Obviously, we cannot keep on doing things the way that we have been doing them over the course of the years. As growth takes place, it changes some of the equations, it bumps us against one another, and it starts to affect the resources that we have. We are obviously also in a difficult financial climate, more difficult for some than for others, but difficult for all of us. That may not go away. That may make.us look at things a little bit differently. And we are also in a changed climate period, whether it is temporary or not. We went to capacity use in the Eno River system two and a half months before we normally do because of drought conditions. We are working on an update of our comprehensive land use plan. We first did it 20 years ago. Obviously it has been amended many times since. But we are trying to incorporate a lot of the thinking that has changed and also trying to incorporate the plans of those who have a participatory role in how Orange County grows. When we talk about learning the challenges and concerns of the water providers, we think it would be useful to have some common understanding of what we are each doing, a common language, and a common sense of at least understanding. Before we can even talk about collaboration or cooperation, we. 2 need to at least understand where the other person, or in this case, entity, is coming from. I think all of the utilities are committed to providing safe drinking supplies, quality water, we want to have a sufficient quantity of water to provide for the customers, the citizens; and we want to do it in a way that is environmentally sensitive and that is cost effective. As far as our interests, we are trying to be very up front. We have a number of interests. As I said, we are not a water provider, but we are a sewer provider in the Efland area, and we recently decided to go ahead and at least complete a master plan for an Efland sewer system. We started the Efland sewer in the early 80's in response to some failing septic systems, and we are still perfecting that plan now and have a million dollars in bond monies that will be applied to expanding the current system. Even though we are talking about Orange County in general, and you all have different parts of Orange County, we are really talking mainly about the central part of Orange County today in terms of whom we have brought together. And you can see that there are a number of issues—a new County middle school. The County school board would like to put one near where we have an elementary school, but we do not have sufficient water for fire suppression. Economic development, we have existing businesses and an 850-acre designated economic development district between Efland and Mebane that has no provision of services contemplated, nor have we identified a source of those services. I would like to welcome the members of People for Progress, who are sitting in the back several rows. This is a community that kind of falls in a no-man's land between Mebane and Efland, not really in anybody's service area. They have water and sewer problems, and we need to figure out a way to coordinate so that we can address those problems in a way that is satisfactory, that brings them the service that they need. When we talk about water and sewer boundaries, we have an agreement that was recently put in place between Hillsborough; OWASA, which represents Chapel Hill and Carrboro, as well as Orange County; and the Orange County government that delineates the water and sewer boundary for each utility so that we know who is going to provide where and which areas will not have service provided unless there is a public health emergency. We do not have those kinds of agreements in central Orange County. I cannot go through this without mentioning conservative use of limited resources. I walked down to Seven-Mile Creek, which is near my house, before I came here in fact. It was hard to leave. I brought one of our other constituents, this mussel. And when we talk about all of this, we know that we have to protect the environment. We know that, for instance, the Eno River cannot be pumped dry like it used to. We know that we have to provide not only for ourselves, but for our descendants. And in order to do that, we think it would be good to work together. We recently co-sponsored with the Chatham County Commissioners a symposium on emergency preparedness, looking regionally primarily at the threat posed by a possible nuclear accident at Shearon Harris, but even more generally, looking at emergency preparedness and how we might improve it in case of any kind of major threat to public health. And it was certainly striking, the lack of coordination, the lack of leadership from the State, the lack of coordination on a regional level. We have put that up there because some of the same kinds of thinking may need to be done to link us better. We have linked water lines, but we do not have linked thinking, we do not have linked planning. These other issues, I do not think I need to read to you, but they all come into play when we talk about providing water and protecting watersheds. And finally, another quote from Ambrose Pierce, "Discussion, a method of confirming others in their errors." We hope to have a good discussion. We do not come here with a sense that we want to tell you what the outcome should be. We look forward to working with all of you. As you know, within the last several years Commissioner Halkiotis and I have met with all of the entities that are here to just try and reach out and say, 'We would like to work together. We would like to identify common areas of interest." And we appreciate the fact that you are here. He asked everyone up front to introduce themselves and say whom they represent. B. Roundtable Self Introductions Bob Atwater, Chatham County Commissioner Katie Calvin, City of Durham Public Works Director Moses Carey, Orange County Commissioner Louis Cheek, Mayor Pro-tem, City of Durham Don Cox, Orange County Soil and Water Conservation District Supervisor Mike Gering, Hillsborough Town Commissioner Kenny Keel, Town of Hillsborough Engineer and Utilities Director Ed Kerwin, Executive Director of OWASA Faye Metcalf, Orange-Alamance Water System Bernadette Pellisier, Chair of the OWASA Board 3 Eric Peterson, Town of Hillsborough Manager Joe Phelps, Mayor of Hillsborough Margaret Pollard, Chatham County Commissioner Terry Roland, City of Durham Environmental Resources Director Darrell Russell, City of Mebane Engineer Ron Singleton, Chatham County Public Works Director Marshall Staton, Pearson Equipment, Architects and Engineers— Representing Orange-Alamance Bill Strom, Chapel Hill Town Council Member Clark Thomas, Pierce and Whitman - Representing Orange-Alamance Water System Robert Wilson, City Manager of Mebane Chair Jacobs recognized Orange County Manager John Link and Carrboro Manager Bob Morgan. 2. PUBLIC WATER UTILITY PROVIDERS PRESENTATION/REPORT A. Town of Hillsborough—Eric Peterson For quite a few years now, we have been purchasing water from the City of Durham up until the past year, and we have an interconnection with them and purchase water during times of drought and to meet our peak demands. We just completed construction of a reservoir about a year ago. As of today, it is about 65-70%full. We are hoping that will be enough to get us through the summer without having to purchase any more water from Durham during peak situation. Even though we have just completed the first of two phases of the reservoir, we are projecting, based on the current scenario of current customers and obligatory customers that we have already signed water and sewer contracts with, that the capacity will probably be eaten up in a period of three to five years, depending on what the growth scenario looks like. Once you take the obligatory customers, we probably have room for another 600-700 residential units in Hillsborough, or that type of an equivalent. Unfortunately, we spent a lot of money on the reservoir and we could be reaching peak capacity. What this means is in that three to five-year period, it may be one day per year, it may be a dozen days per year, but we need to purchase water from someone else because we cannot meet our peak demands. So we will have the choice in a few years whether or not we want to purchase water again from Durham or OWASA, or go ahead and proceed with the second phase of our reservoir project and our water plant, which have to be done simultaneously. So we get a double whammy at one time, we cannot do one without the other. Once that phase II expansion is completed, we can go ahead and probably go another 10 years under an aggressive growth scenario, 15 years under a more modest growth scenario. So even under modest and controlled growth conditions, we are going to be looking at a need for a long-term water source in the 15-year range. We are still reeling from the cost of our first reservoir and are going to try to delay these expansions as long as we can so we can build up some additional capital facility fees to make it a little more manageable. As the Mayor mentioned, we are doing everything we can to stabilize our water rates, as they have been going up considerably in recent years. That is what we are bringing to the table, we have a Band-aid approach for the next 10-15 years. Thereafter, we are going to need some help and we are willing to cooperate with our neighbors and hope that somebody in here may be able to help us out in the long run. Chair Jacobs: Can you give us a little detail about capacity in terms of numbers of gallons? Eric Peterson: Sure. I have a handout that has some detailed information about capacity. We currently have 3 mgd plants and under stage II water restrictions, that combined with the reservoir output, we can yield just under three million gallons a day. With the reservoir coming on line, we were about reaching plant capacity. As far as getting into the phase Il, that will add another 1.2 million gallons per day when that takes place. The unfortunate thing about Flynt Fabrics leaving town a couple of years ago was we lost 20% of our revenue overnight. The customers felt that immediately. Our use is down now to about 1.1 mgd and peak days are at about 1.9 mgd. We do have a fair amount of development that has been approved outside of Hillsborough that has yet to come online that we are capable of servicing. So we have a fair amount of water that is available, it is just earmarked to different developments. Chair Jacobs: And you have purchased water from Durham before and sold to Orange- Alamance before, is that correct? 4 Eric Peterson: What was happening primarily was we were passing through. Durham was selling to Orange-Alamance, and it was getting passed through our system. There have been some other occasions where we have sold directly to Orange-Alamance. Chair Jacobs: And you are still a customer of Durham? Eric Peterson: Yes, we rely on the interconnection, fortunately, between OWASA and Durham, for emergency provisions, and Durham basically kept Hillsborough afloat and we are very appreciative of the support for many years. Once again, in just a few years, it may be that we will be discussing with Durham what type of a timeframe we may need to buy from them on a continuing basis until we are prepared to expand the reservoir and the water plant. B. Orange Alamance Water System _Clark Thomas My name is Clark Thomas, with Pierce and Whitman, here representing Orange Alamance today. I'll try and address these questions one at a time. Orange Alamance is currently serving about 3,400 customers, and that is based on a certain percentage of commercial, industrial, but the majority of it is residential. It is serving the flux of the people between Mebane and Hillsborough. Their system is kind of strung out and it is serving quite a few people in quite a few different areas. Currently they have a water treatment plant drawn out of Lake Orange. The water treatment plant has a capacity of 1.35 million gallons per day and they have three wells. One well is about ready to come into operation right now. The total capacity of the combined wells is around 305,000 gallons per day. The supply that they have varies, of course, based on the river flow and the level. Their current safe yield is at 370,000 gallons a day out of the river. The historical low, based on restrictions, went down to 700,000 gallons a day in 1997 and 1998. The average demand is around one million gallons a day, with the peak at about 1.34 million gallons per day at this time. Based on their current demand and their current supply, they are not meeting their demand. They are having to purchase water, and they are purchasing water from Graham Mebane and also from Hillsborough, and also Durham. Right now they do not have any long-term contracts with these providers. They are buying on an as need basis and as an emergency basis. So maybe this summit will help open some of the doors to extend these talks. Since they are not meeting their current demands, they are going to need some help in the future also. The provisions that they are probably going to explore in the future are to obtain more sustainable water supply will be long-term contracts, maybe installing some more wells, or even the potential purchase of raw water. Thank you for your time. Chair Jacobs: Could you describe for people what Orange Alamance is and where its service area encompasses. Faye Metcalf: Orange Alamance is a non-profit membership organization. It was organized back in 1965 by a group of residents that had a dream of providing water for the rural areas of Orange and Alamance Counties. In June of 1969, that because a reality. They started pumping to the first customers, which were about 350 customers, along the area of Highway 70. And now we have approximately 3,700 customers. But we serve the areas of Efland, parts of Mebane, Graham, Haw River, and Swepsonville. It is a pretty spread out system, but it is all in the rural areas. Chair Jacobs: So it is capitalized by its rates and you have to be a member once you start getting water, is that right? Faye Metcalf: That's correct. Chair Jacobs: And so you are helping them with a long-term plan? Clark Thomas: That's the intention, yes. Faye Metcalf: Actually, they are doing a water resources planning study for us at the current time. Chair Jacobs: What's your timeframe for completing that? Clark Thomas: Soon, hopefully within the next month. Bill Strom: Could you talk about your administrative structure a little bit, or the members? Do the members vote on the directors? I'm more familiar with public water and sewer providers, so it would be helpful to understand. Faye Metcalf: We have a board of directors and we have an annual meeting each year. The membership is allowed to vote on the directors and also they are nominated from the floor, but they are voted on by the membership. We have a board of directors which totals nine. 5 C. City of Durham —Ter Roland Terry Roland did a PowerPoint presentation. The City of Durham relies on two lakes for our water supply. We have Lake Mickey with a total capacity of about 2.8 billion gallons, Little River Lake 4.6 billion gallons, and a total storage capacity of 7.4 million gallons. We have a safe yield from all of those lakes, I might mention the slide here says one billion gallons when empty. We have some physical limitations that would put us in a tough situation to have to achieve getting that last one billion gallons of water out of the lake. That is not to say we couldn't do it if we had to. But we don't count on it in our safe yield calculations. We have 37 million gallons a day, based on a 50-year safe yield, using the storage that we have readily available to us. We also have a web page that we keep up to date. Ever since last summer we've started doing this and you can go to our web page and see current lake levels and what our situation is at anytime. The web page is www.ci.durham.nc.us.We set a record low level last year in both Lake Mickey and the Little River. Everybody knows it has been a pretty dry period. Our low levels in Lake Mickey got to 318.2 on December 26, 2001 and the previous record low level had occurred in 1998. The Little River got down to 326.6, on January 6, 2002. That also set a record low level for us. Our current situation is Lake Mickey has come back up about 19.65 feet, but we are still 3.15 feet below full. We were full about a month ago at Lake Mickey, but the dry weather has started to pull it back down again, or the demand combined with the dry weather. And Little River Lake hasn't filled up yet this year, which is kind of unusual for us. We have never in the history of Durham not been full by the first of April, so we are kind of plowing new ground this year. We are not concerned about it yet, but if it continues,we'll start to look a little closer at that. But we are about six feet down still in Little River, but we've come up 22 feet. So we are a lot better than we were. This is a projection of our demand. We are expecting to meet our average daily demand. Our raw water safe yield at 37 million gallons per day, we would expect to meet about 2010,just a little beyond 2010. of course, with the State guidelines at 80% of that number, we would be bumping up against that 80% number about 2005. Because of that, we have a pending application now with the State for allocation from Jordan Lake. Our water treatment capacity is currently 52 million gallons a day, and we have an expansion underway now to increase that to 61 million gallons per day, but that's not finished yet. Our peak demand would hit that 52 million gallon per day, based on the projection of previous demand,just beyond 2005 and hit the 61 at about 2015. And again, we have the same 80% rule for water supply and water treatment, so we would need to be looking at further expansion probably before that time. The questions included a question about projection of population, and this is from our planning department. We are projecting all the way to 2050 a population in Durham of about 329,000 people. At 2020, about 276,000. These are our projected demands. In 2020, the projected demand is right out of our Jordan Lake application. This is dealing with raw water supply, so the average daily 2020 demand is about 45, exceeding our current 37. The 2050 demand is about 54 million gallons a day. This is just something I threw in here so you can kind of see what we have been up against the last several years, and most of you know what you have been up against. These are the lake levels of Lake Mickey and Little River and the record low levels that we reached in 2001-2002. And you can see we came close to that except for Little River in 1998. And I will mention, one thing we did this year and back in the fall; having had the two dry years pretty much in a row, we typically don't see three dry years in a row, and really didn't anticipate this year being as dry as its been. So we needed to do some work on Little River Lake and we pulled the lake down intentionally for some of that work, and you can see that flat line on the curve there where we were doing that work and the lake level just held steady while we were doing that. But Lake Mickey continued to fall and meet the needs of the city, and so it reached pretty low levels. But we were able to meet all the needs of the city during that period of time, and we did get to stage two of our water conservation ordinance, which is a voluntary conservation, but we didn't run out of water. Some of our potential future water supply we have in planning is the 10 million gallons per day from Jordan Lake. We have been looking at Teer Quarry as a possible storage facility that could yield us three to five million gallons. All of the water didn't get allocated from Jordan Lake, so there is the potential we might get additional allocations from Jordan Lake in the future. We have been acquiring land since about 1989 around Lake Mickey for the possible future expansion of Lake Mickey by either raising that dam or building a new dam. That's probably our most expensive alternative. It's not easy to raise an existing dam. The current dam is about 80 feet tall, and the new dam would be probably 120 feet tall, so it is not going to be a cheap dam to build when we have to build it. There is the possibility of a reservoir on the upper flat as well that could either combine with the expansion of Lake Mickey or substitute for the expansion of Lake Mickey. We don't have any land acquired for that, and most of that would be in Person County, so there is an issue of 6 interlocal cooperation to get that lake to become a reality. As part of our Upper Neuse Basin Study recently, we did realize that that upper flat lake could provide some water quality benefits for Lake Mickey, so there might be some reasons for doing a lake above Lake Mickey just to provide water supply and water quality benefits. And then we have a very, very long-range study we are doing with Raleigh, Cary and Granville County, looking at Kerr Lake as a possible future water supply. If you can imagine what the inter-basin transfer issues were with Jordan Lake and multiply that by a factor of about 10 or 100, I'm not sure which it would be, that's not going to be a simple task to accomplish. Virginia Beach worked on it for about 20 years, I think, before they finally accomplished theirs. It won't come without a lot of work. One of our most pressing concerns is that I don't want to repeat last year. I hope we're not going to repeat last year, but we're certainly not planning any more work on Little River Lake, so we're not going to be pulling the lake down for anymore maintenance. Because they are not full yet, we are concerned about the coming year. This is a shot I threw in for your benefit of what Little River looked like on January 9, 2002. This is the very upper end of it near 501 bridge. It looks pretty bad at that point. Our most pressing concerns really deal with the feasibility of the Teer Quarry and the permitting and construction of that. We included that in our Jordan Lake allocation request, and that was considered by the State. And I think they assumed we would be able to accomplish that. So that's part of the reason why we didn't get but 10 million gallons when we requested 20. So it's pretty important to us to have the combination of Teer Quarry and Jordan Lake. So we have a feasibility study underway on that, and we just don't have any permits yet. So we still have to work on that part. Assuming we can get all the necessary permits, we could develop that as a water supply. And then Jordan Lake allocation and how best to accomplish that, we've had some discussions with Chatham County as a possible partner in developing Jordan Lake. And we've had some discussions about partnering with OWASA and Chatham County on the development of Jordan Lake. We could do some interim things, possibly, with Chatham and with Cary to initially get some of the water from Jordan Lake through a pass through their system. So there are some short-term things that we could do. Long term, we're probably talking about another water supply intake and water treatment facility on Jordan Lake to meet our long-term needs there. And then, of course, the feasibility of upper flat and Kerr Lake alternatives. Whether those are possible or not, we don't know. So that's basically the water supply situation in Durham. I'd be glad to answer any questions that anybody might have at this point. I forgot to mention we are interconnected with Hillsborough, OWASA, Cary, and Orange Alamance through Hillsborough. And we have contracts with Orange Alamance, Hillsborough, Cary, Morrisville, and Chatham County. We also have a direct connect with Chatham County. We are working on a contract and interconnection with Raleigh. We don't have that yet, but we're talking about it. We also have discussions underway with-Granville County on a possible interconnect with them. So pretty soon we'll be interconnected with everybody on all sides. Ed Harrison: He.asked about the slide before the lake level graphs. Is there a relationship in terms of sums between the reuse column and the projected demands of conservation, and can you talk about each of those, why the amounts are about where you think they are? Terry Roland: Well, I can't vouch for the math. That's right out of our Jordan application. Well, it's pretty obvious they don't add up, but I can't explain why they don't except for rounding possibly. That's the only explanation I have there. That was one of the requirements that as we looked at our projected needs, we did have to look at the potential for conservation and reuse, and we're assuming a six percent reduction in the total demand due to conservation. You have to keep in mind, we've had a pretty strong conservation program underway in Durham for quite a long time now, and so given the magnitude of these numbers and the fact that the State has enacted low-flow toilets and shower heads and a lot of the other things that were sort of the low hanging fruit in the past for conservation, we think that even six percent is pretty optimistic in terms of what we might be able to achieve. But we hope to be able to achieve those levels. The reuse is really a function of our ability to capitalize and build that system. The biggest problem with the reuse system is building the distribution system that it takes to get that water to the customers. Ed Harrison: Is it programmed yet? Terry Roland: It is not programmed in our CIP right now. We've sort of been waiting on some big industry to come along that needed the water and they would help us with the capital side of that. So we haven't programmed that. Given the current budget situation, we are not likely to program it until things get better. Don Cox: Terry, your scenario of activating the Teer Quarry—what are your plans for filling that? Terry Roland: Well, we have three potentials there. Because of its location, Teer Quarry is, adjacent to our raw water line that comes from Lake Mickey and Little River. It's interconnected to both. So, 7 potentially we could take water, and it's also adjacent to our raw water intake, I forgot to mention that. We do have emergency raw water intake on the Eno River that we can take up to five million gallons a day from the Eno as long as the flow is above 30 CFS from March through June and 10 CFS the rest of the year. We're not taking water from the Eno right now because of the low flow and the time of the year. But we have taken some water from there this year. We have that potential. As a part of the permitting, we would probably get a permit to withdraw greater volumes from the Eno during high flow periods. We could fill that reservoir from Lake Mickey, Little River, or from the Eno. Our planning is looking at that potential from all three. Like this year, Lake Mickey filled up and overflowed. Little River is still not full. So, in that case, we could have been pumping some water from the Flat River into Teer Quarry even though there might not have been any flow in the Eno River, because there was water still available in the Flat River. Normally, though we would expect to fill that quart'during high flows, whether they be in the Flat, Little, or Eno Rivers; and then pump it down in low flow periods. Ed Kerwin: When do you invoke mandatory conservation? At what supply inventory do you start requiring restrictions in irrigation and that type of thing? Terry Roland: We don't have a magic level because it is very dependent on the time of year when that occurs. We've never gone to mandatory conservation but one time in my 28 years with the city and that was before Little River Lake was completed. We have gone to stage 11, or voluntary conservation, several times in the past, but we've gone to mandatory only once. Mainly because, when we go to mandatory, we start impacting people's lives pretty dramatically and their ability to make a living, so we don't do that unless it's really pretty serious. But we have a model that the University of North Carolina at Chapel Hill helped us prepare that we use to evaluate our water supply and what the probabilities are of sustaining the current demand and we track that constantly. And we use that really as our tool to determine when we need to go to higher levels of conservation. It depends on where we are in lake levels and what time of year. The earlier in the year that we're at lower levels, then the sooner we would have to enact more stringent conservation. The current levels that we're at right now, the model is predicting average daily demands, we're still at 100% meeting our demand. Now, you have to understand, and sometimes people forget this when they see the levels at Lake Mickey and Little River go down, the reason we have those lakes is to draw them down for water supply. If we never drew them down, we wouldn't need them. It's normal for those levels to go down and we really have to make that decision on a week to week basis. We did get approval from the City Council this year, a change in our ordinance, which would allow the City Manager to make that call so we could enact more stringent stages of conservation a little more quickly. And that's not just for a drought situation, but some other emergency—either a disaster or whatever. We could get in a situation where we would need to go to stringent levels of conservation up to and including the complete shut down of some customers and we hope we never have to do that. We will do what we have to do to keep everybody with water. Chair Jacobs: We know that the Durham staff is working with the Orange County staff about possible changes in the urban growth boundary. Could you just explain a little bit about—we know it comes into Orange County—but what's involved and how do you structure water rates for customers who are outside your boundaries? Terry Roland: We only have two classes of customers, and that is inside and outside the city. We also have our bulk customers. Inside and outside the city, if they are Durham City customers, the outside customers pay double the inside rates. The urban growth boundary was started in about 1974 by the city as a way to manage growth, and I think it's served the city well. The boundary has been amended several times over those years as the city grew and grew out to the boundary that existed. It's always been established sort of in terms of how those areas could best be served with water and sewer. That's been used to help determine where the boundary was. But it was also a growth management tool so that we didn't have a lot of leapfrog type of development. And so it's served the city well in that regard. Inside the urban growth boundary, but outside the city, water lines can be extended, but there is no city participation in that. Inside the city water line extensions, the city may participate in that if they choose to. It sort of depends on the project and what the circumstances are. But outside the urban growth boundary, if a developer wants to extend the water system within the urban growth boundary, then that extension is all at their cost. We do allow extensions outside the urban growth boundary for public health reasons. Those have to be certified by the County Health Department as a certifiable public health problem. We also allow extensions outside the urban growth boundary to serve schools and industries, but that takes special action of the City Council to allow for extension outside the urban growth boundary. And then, of course, we do allow extensions outside the urban growth boundary for interconnections with other utilities basically allowing those customers to take 8 advantage of financing the capital facilities charges that we would charge a normal customer through their rate. The rate that they would pay, with the exception of OWASA, who has an agreement that predates these agreements that we have now. That's a multiplier, depending on whether it's a committed contract or an uncommitted contract. It's 1.2 times the inside rate or 1.45 times the inside rate is what our current agreements are calling for. I think the OWASA agreement calls for an average of the Durham and OWASA rates. D. City of Mebane—Darrell Rusell I've heard some comments a little earlier about working relationships between governmental entities. Well, it can happen. For those of you who do not know, the City of Mebane and the City of Graham jointly own and operate Graham Mebane Lake and Water Treatment Plant. Mebane's interest in that is a 1/3 ownership, Graham's is 2/3. They have been married since 1974. 1 will say that that arrangement has been very beneficial to the city over the years and the founding fathers. I think that's proved to be a very wise decision because it has allowed Mebane and Graham to both have adequate water supply for the past 25 years. And it looks like hopefully for another 20 years as well. The Mebane water supply is located on Back Creek Watershed. That is in Orange County and Alamance County. It is a WS2 rated watershed. The Graham Mebane Lake has a 20-year safe yield of 12 million gallons per day. So Mebane's ownership of that would be four million gallons per day. The Graham Mebane Water Treatment Plant is currently a 6 mgd plant, but it is undergoing an expansion and upgrade currently to double the capacity. Completion is anticipated hopefully within eight months. So with that time, Mebane's capacity then would be four million gallons per day in the water plant as well as four million gallons per day in the reservoir itself. Mebane's current water demand on an average basis is probably 1.2 mgd. We have had some peak days of 2.5 mgd. The projected water requirements for the year 2015 is 3.96 maximum day. So, as you can see, the projected maximum day demand pretty much equals what their capacity will be. Mebane does have two interlocal agreements —obviously with the City of Graham and they also have an agreement with Orange Alamance Water System to sell and buy water on an emergency basis. Mebane is projecting a 2015 population of around 11,800. Their 2000 population is 7,914. They do anticipate continued growth in that corridor along 1-85/1-40. We've talked about challenges today. I think all of us are seeing the challenges of being able to provide adequate water at reasonable rates. This last project that Mebane undertook, they borrowed $5,400,000 and they had to increase the rates by 50%. Maybe that's pretty low, I haven't heard what Hillsborough is going to. Based on their projected usage, it does appear that Mebane is in pretty good shape for another 15 or 20 years. But certainly, you always have to start thinking for the next round. So I would say that is a challenge for Mebane to start looking at. I'll try to answer any questions. Chair Jacobs: Could you talk a little bit about the annexation study that you are doing? Darrell Russell: Yes, we are currently looking at a number of areas around Mebane in terms of what may qualify for annexation and that study is nearing completion. I anticipate it being in the city's hands next month sometime. Chair Jacobs: So does Mebane envision that as the basis for a growth boundary? Darrell Russell: That has not been determined. Robert Wilson: I don't think so. What we've had in the last year and year and a half are some areas that have requested water and sewer services, which we have discussed with you and Orange Alamance also. And in these areas, we wanted to look to see if they would qualify for annexations to service water and sewer. Our policy is something like Durham's, we do not extend water and sewer services at the City of Mebane's cost—inside or outside. Water is extended at the cost of the requester, whether it is a subdivision or a resident needing water. So the study we're doing now is a study of areas that we have been requested to look at by Council to see if water and sewer service could be extended and at what cost and is it feasible by cost to get it to those areas. I've had a conversation with engineers who have indicated to me that some of the areas will not qualify for annexation under the general statutes. It is not what the City of Mebane would like to do or the residents in some of these areas would like to do, but as you know, as you grow in population, annexation gets a little more restricted. So some of these areas won't qualify for the annexation anyway, but if they were to be annexed in those areas and water and sewer to be extended, or water as we're talking here, it would be at the cost of someone to get it there— property owners, cost assessments, tap fees, and things of this nature. The cost for an individual, if it were to be annexed, the cost for an individual to get water and sewer in Mebane based on assessment costs and tap fees is somewhere around $7,000 based on a 100-foot lot. That doesn't include getting from the meter to the house. That's an extra $1,200- 9 1,400. Once the annexation study is done, the City Council will look at that and have public hearings and determine, by cost I do believe, whether it is feasible to put the water and sewer in those areas. As we all know, water and sewer costs when you annex an area 100%. 1 think it is probably about half and half if you really come down to dollar per dollar. So there is a financial cost in running water and sewer in areas. So, as far as doing our study, it is not a study for boundaries for growth. Our agreement that we have with Orange Alamance Water System indicated we do a 20-year plan growth area several years ago with the City of Graham. And in those areas, if water is needed, we would subsidize water based on growth areas. So that's our agreement with Orange Alamance Water System. Orange Alamance Water System has helped us in the past and given us water. We do work well with those folks, and hopefully anybody; and I think everybody in this room would say, If we can service someone that needs water, we will try to do so to the best of our ability." But it really comes down to dollar figures. The way the economy is, our reimbursements this year from the State are going to be zero, next year is going to be zero,-so we need to look at other means of raising monies. E. OWASA— Ed Kerwin This year is our 25th anniversary of operation. The utilities were separate systems owned by the two towns and the University. The University and towns got out of the utility business 25 years ago when OWASA was formed. We are governed by a nine-member appointed board of directors from Chapel Hill, Carrboro, and Orange County. The OWASA board has the last say with respect to policy, rates, borrowing money. Some of the slides you are going to see will show the high points of a 50-year comprehensive master plan that was just completed. It didn't take us 50 years to get it completed, it took us three years. But we've looked at 50 years into the future and started to project how much water and sewer will be expected of us and what facility improvements we'll need to put in place to meet that. The real key assumptions in our master plan is our service area boundaries will not change, that we're not going to be a wholesale provider of water or sewer service, and that the growth trends we've seen in the past 20-25 years would continue in the future. Here is our service area in red, essentially the towns of Chapel Hill and Carrboro. Our water supply comes from three sources - Cane Creek Reservoir, University Lake Watershed, and a stone quarry, currently being mined. Thirty years from now the mining will stop and during those times when University Lake and Cane Creek are full and overflowing, some of that water will be diverted to the stone quarry reservoir for storage and become part of the overall supply system. The County and OWASA have been very proactive in protecting the watershed. In the current system of University Lake, Cane Creek, and the small existing quarry reservoir, we've had a 30-year safe yield of about 15 million gallons a day, and that should be adequate for the next 20-25 years. But we do have a long-term interest in retaining our Jordan Lake allocation, and I'll talk a little bit more about that in a few minutes. He distributed copies of the PowerPoint presentation. The green dots represent the raw water or pumped, and you can see over time that we've been a very predictable utility or service area as far as growth —2-3% growth of water for the last 25 years, if we went back to day one for OWASA. And then these lines represent how we expect to grow. The center line is what's expected, and then we have a low growth/high growth scenario. The lakes have a safe yield of 15mgd, but we have to improve the size of the pumps and the pipes to get it all there when we make those improvements over the next five or six years. Here we are with a safe yield of about 15 million gallons a day, and if you go over here and find a green line, how we expect it to grow, that takes us to the year 2030. However, if we grow higher than what's expected or, when the key assumptions change and now we're providing water to another entity or something like that, then this all changes, of course. And this is the basis on which we believe we have justified hanging on to some of our Jordan Lake allocations. Currently our allocation is 10 million gallons a day. We have asked it to be reduced to five, and we've justified that based on this uncertainty in the future within the next 20-30 years of perhaps having a deficit. We have talked to Durham and Chatham about collaboration in Jordan Lake. A likely scenario for us to consider in the future is buying finished water from Durham, if we are in the situation makes much more sense for us rather than building our own conveyance system from Jordan Lake. And then in the future, you see this safe yield jumping up to about 20 million gallons a day, a little over 20 million gallons a day, and that's when we think the quarry reservoir will be online. And so, if all goes well, we should have enough supply in Orange County, given those assumptions, to meet our needs for the next 50 years with some uncertainty here. The dark blue line is our annual average daily demand. The other lighter colored line is the peak day demand. And you can-see that the peak day demands have been increasing, and this is just depending on the weather. If you look back here, this is 1999, and you can see we had a peak day of over 15 million 10 gallons a day where the annual average was a little over 8 million gallons a day, almost twice the annual average. So this is something that is of particular interest to us because of course the water plant has to be sized to meet that peak day demand. The water treatment plant has a current capacity of 15 million gallons a day. Within one week, it will be 20 million gallons a day with the completion of two new filters and other improvements that are planned. So, by the end of the month, our capacity will be up to 20 million gallons a day. And you can see that's none too soon because the projected peak day demand, we are at that capacity now. So with that improvement, the capacity of the water plant,again with the assumptions that we're serving only within our service area, should be good for another 15 years. A couple of words about conservation and demand management. We have implemented a new rate structure. We went from a uniform rate, every thousand gallons they're charged with the same, to a rate where from May through September each year, the commodity charge for water has increased a lot. And then from October through the following April, the commodity charge goes down a lot. Seventy percent of our residential customers under this rate structure, adding up 12 months of bills, will be little change. But for the smaller percentage of the customers that use a lot more water in the summer than they do in the winter, they are going to see a higher bill. And that's sending a price signal to those customers to conserve, hopefully. The Towns of Carrboro and Chapel Hill have implemented and OWASA has sent to Orange County for their approval a new Conservation Demand Management Ordinance. A law that doesn't have the authority to require conservation, you have to get that authority through the towns. And we have approved now, in March, for the two towns, a new ordinance. There are three triggers in the ordinance. If the total system's supply gets to 125 days, we go to mandatory conservation. If the supply system gets down to 75 days of storage, we go to a single day a week irrigation. And then below that, we're in a real emergency, and it would be essential use only. We are going to pick up the pace with respect to our public information education program to encourage and promote conservation. On the water distribution side, the keys here are renewing and replacing the basic infrastructure. And the last part about what's our biggest challenge, there are many, but keeping up with the capital improvements that are needed is just going to be key. One of the things that we're doing now is, with a consultant, we're developing a model looking at our water pipes. There are a lot of things that can affect how long a water pipe will last in your system—how old is it, the soils, what is it made of, etc. We're developing a model that will help guide and predict our replacement program for water lines in the future. And I think this is good information that we look forward to sharing with our utility neighbors. On the wastewater side of our business, the real key there is making sure the inflow infiltration doesn't overwhelm the sewer system. If it hasn't rained for a year and a half, this hasn't been much of an issue for any of the utilities, but when we do get the rain, then we're reminded of the importance of doing that. Like most utilities, we're doing special studies, we're looking at the system and making sure we're repairing what needs to be repaired. Easement maintenance of course is key to that as is an effective program to keep grease out of the system. Thirty to 50% of sewer overflows are caused by grease, and this is a matter of growing concern. The solid red line is the capacity of our Mason Farm Wastewater Treatment Plant. It is currently here at 12 million gallons a day. We are in a pre-design study right now for the next round of improvements at the plan that will take it up to 14.5 million gallons a day. The real high blue dots here are peak month flows at the wastewater plant, back in the days where we got a lot of rain—Hurricane Fran, Dennis, Floyd, all those tropical storms. Last year's peak month flow was quite low. Here are our projections in the future, and you can see we're needing to improve the capacity of the plant soon and that's why we're under design. That next round of improvements should last us to 2013-2014. For our biosolids, we have a very successful land application program. We have gone through a new process at the wastewater plant that produces class A quality product. Reclaimed water is something that is not happening now in the OWASA service area, but we are looking at our next door neighbor, the golf course, possibly using them for irrigation there. Current drought, Terry talked about the lake levels and it is exactly the story you're going to hear from us. Right now we have a 220-day supply remaining. And certainly that's adequate, that's good. But Cane Creek, our largest reservoir, is 6.5 feet down. In the 12 years of existence, this time of year, the second lowest it's ever been is only a foot down. That's scary stuff. This is something of increasing concern and we certainly appreciate the fact that we have a new conservation ordinance in place and we feel that our timing on the seasonal rates has been good. If everybody washes their car tonight, maybe it will rain tomorrow. Emergency response, we do have emergency interconnections with Durham, Hillsborough, Chatham County, and I just can't stress the importance of having these. And certainly we've been very , 11 fortunate to have good neighbors that have helped us more than we've been able to help them in the past. What we're doing now is part of mutual aid and sharing resources and information and that type of thing. Barry mentioned the Shearon Harris facility. Another good example of what seems to be a lack of information. And together, the more we can learn in knowing how to respond that's certainly going to be key. Challenges and uncertainties, aggressive capital improvements. The leaders in the water and sewer industry across the country say an aging infrastructure is the number one concern. A lot of our CIP is in place to address just that. These aren't big numbers for Durham, I don't think, but for our utility these are big numbers. In the next five years, we're expecting to spend $94 million, and over the next 15 years, $260 million. And a lot of that is replacing and renewing aging water and sewer pipes for our system. At the wastewater treatment plant, we may have to remove nitrogen from the effluent infuser, so that's something that is part of a special study right now and we're paying very close attention to. And then there are so many things to monitor such as water consumption, the growth in the area, the assumptions we made in the master plan and projections and keeping that up to date. With that, I'll stop and answer whatever questions you may have. Chair Jacobs: Could you talk a little about how your seasonal rates work and also about how you came up with the methodology for charging based on square footage that didn't cost you revenue? Ed Kerwin: The seasonal rate, we hired a consultant, and we're happy to share that report with anyone. We looked at a number of different conservation rate structures, and what the OWASA board selected was the seasonal rate. We are projecting that there will be three percent reduction in demand because of this rate structure. On May 1St, our commodity charge went from $2.90 for a thousand gallons to $4.08. It went up a lot and it's going to stay there through September. Then the commodity charge is going down to $2.16, much lower than it had been at the uniform rate. And again, based on our study and looking at assumption patterns, about 70% of our residential customers, when they add up 12 months of bills, the annual bill will be the same and maybe even a little less. But for those customers that use a lot more in the summer for irrigation or other purposes, they are going to be paying higher rates. The bill will look higher from May through September and they'll be higher over the year because they won't make up those savings in the off-peak because they consumed most water during the peak. So that's the principle of that seasonal rate. Question: Ed, I don't mean to put you on the spot, but the University uses a lot of water for evaporative cooling, does this rate apply to them as well? Ed Kerwin: We have the same rate for all of our customers, including and especially the University. The University has 250 different accounts with us. And like dorms, they're going to be getting a break because a lot of their water is used when it's cheaper. But the other customers such as cooling or irrigation, those bills are going to be higher. When the University looked at it as a whole, they concluded that it was fair and reasonable and necessary that OWASA do this. In fact, a representative of the University spoke at the public hearing last year in support of making this change, even knowing that some of their accounts are really going to see it and other accounts where there is actually some benefit. And for those accounts that see that impact, they'll have added incentive hopefully to find ways to further reduce or reuse or recycle or seek other methods. Bill Strom: One of the early slides you put up, you showed your service area boundary. Given that Carrboro, Chapel Hill, and Orange County have an agreement in place that restricts annexations, my impression is that this is a pretty firm service boundary for you that OWASA can't really anticipate that that service boundary is going to change. Can you talk about if that is an opportunity or a challenge and how that's affected all the long-range planning that you've done and just sort of share the experience of that reality with everybody here. Ed Kerwin: Well, with this red line setting and establishing our service area, it really removed a lot of uncertainty from our plan because we didn't have to wonder how big of an area we might serve in the future. It was clearly defined. And over the next 50 years, the projections are that there will essentially be a doubling of the number of customers in our service area. I think the towns' and the County's plan went out 25 years. We try to stretch it out twice that long, making certain assumptions—working with the planning staff, and the towns, and the County—because new water resources just don't happen overnight. They can take 20 years sometimes to put in place. But for the utility, it really simplified and removed a lot of uncertainty about how big of an area we will have to meet in the future. And the towns and the County pretty strongly agree with that defined area and with the new water and sewer boundary agreement that Barry mentioned, it also talked about if there are failing systems or other health issues in the area surrounding the service area, there is a collaborative process to go through of how to address that need. 12 Bill Strom: Has there been any unanticipated consequences on the financial side? Has that affected your ability to borrow money or bonding, anything like that? Ed Kerwin: Not at all. In fact, last fall we closed on a $35 million revenue bond and we enjoyed a very favorable AA+ rating. Barry had also asked about one of our fees. Our connection fee, something akin to a capacity charge or connecting charge, for a single-family home our fee is based on square footage. And for a smaller home, that can be quite large. What we did is we looked at homes built a certain year and then we looked at, "OK, they've been customers of ours now for two or three years. Is there a relationship between how much water people use and the size of the home?" And what we found is there is a fairly strong predictable relationship that smaller homes use less water than larger homes. So we designed a connection fee, or an availability fee where smaller homes pay less than larger homes. Now, fees aren't cheap, they are based on what it actually costs us. For instance, a home that is 1,300 square feet or less, the water connection fee is $700. If the home has 3,800 square feet, it takes $4,300 for that same connection. That's quite a spread. Chair Jacobs: And it's revenue neutral for you. Ed Kerwin: It is, it's based on cost of service. It wasn't subsidizing for a certain class of customers. It's worked out well, and again, we're happy to share what we did with anyone if that's of interest. Chair Jacobs: And just let me add that I particularly asked that question because we read about the concerns about trying to provide service to those who are least able to pay, this is a defensible way to help them hook on to the systems. And so we wanted to make sure that OWASA shared that information. Thank you. Robert Wilson: Barry, they didn't consider in any assessments other than just the cost of that water line. You don't have a right for assessments do you? Ed Kerwin: No, our board can assess. What I think I heard your policy is that the benefiting party pays the full cost. For instance, if there's an unsewered neighborhood that wants public sewer, we can assess them and make that improvement. Although the two towns do contribute, I think Chapel Hill, for instance, will contribute up to $4,500 in an assessment project to help defer the cost to encourage people to get off septic tanks and hook to the public system. The OWASA board is empowered to do the assessment. In fact, our most recent one was putting in five hydrants in the ??wood subdivision on 54 west. That's a very small project, and those folks have been assessed, and their savings in their homeowners insurance for having fire hydrants will pay the $25 assessment back in one year. Terry Roland: Do you have a fixed fee, availability fee or something that is right off the top before you charge for per gallon of water? Ed Kerwin: Yes, we have a monthly service fee and then the commodity charge. The monthly service fee for sewer and a commodity charge. There wasn't any change in the sewer side, nor was there a cap placed on sewer. It's just the commodity charge for water. Terry Roland: Is that fee variable depending on the size of the meter? Ed Kerwin: Yes. Chair Jacobs: Since we are running a little ahead of schedule, I thought we might ask Chatham County to take the opportunity to share its concerns and I'll recognize Commissioner Pollard. I know she has some staff members here. F. Chatham County—Commissioner Margaret Pollard Yes I do, and I'm sure Ron Singleton our Public Works Director will carry forth for us. But there are a couple of things, and I'm sure Commissioner Bob Atwater will have comments as well. I would like to mention just a couple of things that are policy issues that concern the board and I think we've made some progress toward and that is that right now we are in the middle of refining our land conservation and development plan, and there is a plan to tie our water policy and our land use policy in some reasonable way. The other thing, I think we really have paid close attention and will be paying even closer attention to the protection of the watershed. That's been on our agenda for a number of years, and there was discussion last year that this year we would have an Erosion Control Officer, because I think that really does determine to a large extent, erosion control determines to a large extent the water quality. But since the budget situation is such, I'm not sure that we'll be able to carry forth with this goal this year or not, but that's certainly in our plans. But I think one of the most important things that Chatham County has done to bring ourselves inline with meeting our water supply needs was the hiring of Ron Singleton who really has provided staff leadership 13 to our water board as well as the Commissioners in helping us to think through some of the issues of water supply and distribution that I think that's got us to the point where we are now. Commissioner Bob Atwater: I really can't improve on that much at all, other than to say that I think we have an increasing awareness of protecting the watershed. In the first instance, it's the right thing to do. But a number of other opportunities are presented in terms of some of these formula based approval processes at the State level for water allocations that we're rewarded in that area by protecting the watershed and it's always nice to be a good neighbor as well. Commissioner Pollard: Ron, you might want to mention our water conservation policy as it relates to pricing our water. I know we've done some thinking along those lines. Ron Singleton, Chatham County Public Works Director: I'm not sure what Hillsborough's per unit charge is, but the last time I looked, I think ours was the highest normal charge in the area. That stems from the fact that, Orange Alamance was talking about how their system is strung out, we've got water systems strung out all the way from Governor's Club in the northeast to the Bennett in the southwest. I have about eight people that manage the whole system, and if people are working up in Governor's Club and we have a line break in Bennett, it takes them about 45 minutes just to get down there. We have a 3 mgd surface water plant drawing out of Lake Jordan. We share the Cary/Apex intake right now. We've had problems in the past with being able to get as much water out of the Cary/Apex arrangement as we needed to supply our plant. But we have an agreement in place now that allows us to, in the short term, for the next five years, to draw up to our full 3 mgd capacity. And the agreement also spells out that we're to build our own raw water pumping station that will use the Cary/Apex intake lines themselves, and that will give us capacity immediately up to 10 million gallons a day with the option of expanding those facilities even further than that. The Cary/Apex intake is sized pumping wise for 50 million gallons a day, but the intake lines that actually go out into the lake are capable of handling about 88 million gallons a day. So we're going to take advantage of that excess capacity and build our own raw water pump station and line to our plant. Our plant was designed for relatively easy expansion to 6 million gallons a day, and right now our maximum day that we've hit is around 1.4 million gallons a day, so we have a little bit of wiggle room, but we're already doing some pre-planning and have some numbers in our capital improvement budget for expansion, with the first expansion to the plan probably in the next five to seven years. The majority of our customers that we serve are in the north Chatham system served off the water treatment plant, but we also have two other separate systems in the County—one that's based in the Moncure area where we buy bulk water from the City of Sanford. We also have water out in the southwest part of the County where we buy bulk water from Goldston Gulf Sanitary District and also from Siler City. And those of you on top of what's going on in the region realize that Siler City is having their own problems with water supply, so one of our concerns right now is being able to get Jordan water into the other parts of the County. Our top priority project on our capital improvement list is what we call our p-ridge connector line, which would bring Jordan Lake water south through the Moncure community and hook up with that system, and then head west with it and hook up to the southwest system, which would enable us to pump Jordan Lake water throughout our system. It would also take some pressure off of Siler City until, they're under a program now to expand their surface water reservoir, but it hasn't been approved yet, and even when it's approved it's probably three or four years out being constructed. So we're looking at doing something to help out in that regard. Like I said, our standard water rate for residential customers is $4.86 per thousand gallons. That's a pretty significant rate from what I've seen. Pat Davis shared with us some preliminary numbers on a study he's doing. As far as in-town rates go, I think that was the highest rate in the area. When you compare with out of town rates, we're still up there in the top 20%. We also have an availability fee that's based on meter size. Ed's basing theirs on building size, but we base ours on meter size with the assumption that when the meter size goes up, the requirement to supply goes up. For our standard 5/8 % inch connection, that's $1,750. Ed Kerwin: Ours goes up based on meter size too. Our tiered approach is the single-family home type service. Beyond that, it's like you, it's based on the size of the meter what the connection fee is. Question: Ron, is your bulk rate for raw water or finished water? You said you were buying bulk water from two sources. Ron Singleton: Oh, we buy finished water from Sanford, Goldston Gulf, and Siler City. And we buy bulk raw water from Cary/Apex. We pay a small charge to Cary/Apex for using their facility. And we are interconnected with Durham and we have a water contract with them. We also have an interconnection in place with OWASA on 15-501 with meters in place. John, I have the contract for that on my desk. When we get our facilities in place to where we can pump water to other parts of the County, we will in effect be 14 connecting Siler City and Sanford to the group that's in this room. If you think about it, there's the possibility of pumping water from Sanford or Siler City all the way to Zebulon and Wake County if you activate all the agreements in between. We're all in this together, we're all getting interconnected and dependent on one another. We're very interested in watershed protection and what's going on upstream, especially with the efforts in OWASA and Durham, because the portions of those areas drain into the New Hope arm of the lake, and that's where we draw our water from and that's where the major problems have been with algae growth and taste and odor problems on a seasonal basis. I think I saw the figures at some point that 70-80% of the storage of the lake is in the New Hope arm, but 70-80% of the flow comes down the Haw River arm, so that leads to some slow water into upper reaches of the lake. And Cary/Apex just spent$60 million on a new ozone treatment system to alleviate their problems, but Chatham County can't afford even a portion of that. We're hoping that, through controls, being able to keep from having to spend a whole lot of money for seasonal taste and odor problems. Chair Jacobs: Ron, could you just update us a little bit on the conversations between OWASA, Durham, and Chatham about the possibility of an additional intake? Ron Singleton: We've had some discussions in the past, we haven't met recently about it, but about a western intake'on the west side of the lake. When Cary/Apex was given the intake on the east side of the lake, the State said at that point that they would only permit two intakes on the lake, one on the east side and one on the west side. We've been in discussion with OWASA and the City of Durham about long- term construction of a western intake and treatment plant. Mr. Speaker: Before we can do much with that, we've got to get an allocation, at least from Durham's perspective. But we're hopeful. We are recommended for 10, and that's what I included in my presentation, but it's not a done deal yet. Chair Jacobs: Thank you. And I should mention that Orange County has had and hopefully will have a one million-gallon allocation from Jordan Lake. One of the justifications that we gave was the need for and lack of adequate water supply in central Orange County. And we specifically mentioned Orange Alamance and Hillsborough. So the interconnectedness, at least in our long-range planning, plays a role in how we might access that water. Question: Did I understand you to say Orange Alamance would participate in that? Chair Jacobs: Well, we just identified the need. We didn't say that it was going to happen, but we identified the need and the utility providers that were having difficulty meeting their water needs. And I also took the liberty, since we're still running a little bit ahead of schedule, Reverend Umstead is here along with the other People for Progress. And I asked him to just take a few minutes to show us on the map where the neighborhood is that we're talking about. I used to serve on the OWASA board also, and so from time to time, all water providers have a neighborhood come to you that needs service that wasn't really planned to get service, or maybe wasn't planned to get service when they think they need the service. So it turns out that this particular community doesn't fit in anybody's service area right now. Rev. Umstead, if you want to just share with us a little bit the nature of the problem and the size of the community and just maybe show us on a map, not everybody knows Orange County. Rev. Umstead made a presentation and showed where they live and asked that they be considered for water and sewer. (NOTE: He did not speak into a microphone so not all that Rev. Umstead was recorded. ) In summary he said that they are not begging, but we're trying to make you aware of the plight of our community. Our community sits right between 40 and 85 and 70 and Southern Railroad. One of the areas where industry and commercial business would love to get their hands on. Orange County supplies water up to a certain point and Mebane supplies water up to a certain point. Buckhorn Road seems to be the barrier between the two. All we're asking is that you consider us and our community. We're not asking for nothing, except what we need. Chair Jacobs: Thank you Rev. Umstead. And for those of you who drive along 1-85, especially on Sunday, you'll know the exit, the Buckhorn exit, because the traffic backs up on both exit ramps coming and going. There's a huge flea market right at that intersection. In case you didn't know where Buckhorn Road is, you do now. Omega Wilson, president of the People for Progress spoke. He said that they received a small grant to study the failure of septic tanks and are looking at three primary communities in the Mebane ETJ. This study is being done to-take a look and address the problem with facts and figures because we have had difficulty in getting this issue on the table with the City of Mebane. We know there is a major issue here and 15 we also know that this issue has not been officially addressed. We hope Alamance County and Orange County will take a lead role to address these issues. Chair Jacobs: Thank you, and we have had a similar conversation with Alamance County Commissioners as we've had with all the other entities here and we hope to be working with them on that issue along with the issue of our disputed boundary with Alamance County in the near future. At this time, I'll ask Don Cox, who introduced himself and his dual roles in Orange County, to give us a presentation on the groundwater perspective, and then we'll take our break. When we come back, Pat Davis from Triangle J will give us a regional overview, and then Dr. Moreau will moderate our discussion. 3. ORANGE COUNTY GROUNDWATER PERSPECTIVE— Don Cox With about 40% of our population depending on groundwater, the County Commissioners recognized that our comprehensive land use plan should address the protection of groundwater. In the fall of 1991, the County Engineer, Paul Thames, called me to ask me to participate and chair a new water resources committee. At the moment I was on the phone with him, I was watching a well-drilling rig renovating an improperly constructed well at my house. So I bought into this groundwater resources program pretty heavily then. We submitted the committee's final report last year. The considerations of the recommendations of our report for inclusion in the County land use plan are just now beginning. This study was a cooperative effort with the U. S. Geological Survey. They cost shared 50% with us and there were three main topics—the threats to groundwater, quantity of groundwater, and the quality of our groundwater resources. To determine the present and future threats to groundwater, the majority of the existing wells in the County were located by GPS systems, and all new wells that are being constructed are being located at that time, and we're updating our database and records whenever that happens. That will let us know where the wells are in the County. And all identified underground storage tanks, landfills, and any other identifiable threat locations are also in that database and will be kept up to date. So if there is a spill of some kind, we'll know which location, we'll know how many wells and what their proximity are to it, and hopefully that database will serve us well in the future. We also emphasize and do continue to emphasize the importance of following the State guidelines and sealing, or filling, abandoned or unused wells to avoid their becoming a conduit for groundwater contamination. This needs to be an ongoing effort and some landowners may need financial assistance to comply. With regard to the quantity of groundwater, a study done by using stream gauge measurements to determine stream base flows of groundwater to surface streams, soils maps, geologic structures, typography, and land use, or estimates of groundwater yields and the recharge area requirements were made for all sub- basins in the County. From this, the average groundwater yields and recharge areas needed can be estimated. The groundwater quality study sampled numerous wells across the County. These wells were located in all major hydro-geologic formations in every river basin. They were sampled for a wide range of naturally occurring minerals, manmade chemicals, petroleum residues, and radon gas. As expected, a lot of the wells showed high iron and manganese and radon in the known granite structures. We found very little fertilizer, pesticides, and petro-chemical residues in the sample. So at this point in time, as of two or three years ago, all of the sampling showed excellent water quality. But folks who have higher iron know they have to deal with that. A question: Why should the public water service suppliers be concerned about groundwater issues? Sustainable groundwater resources maintain the base flows to surface streams, which support reservoir levels and maintain stream water quality and ecology. Perhaps the biggest reason is to avoid the emergency need to extend public water supplies to areas which have become non-sustaining in groundwater availability or quality. What can you do to help Orange County and its groundwater sustainability efforts? Your support for informing the public about the importance of lot sizes and restrictions which preserve the groundwater resource. These may need to include well head protection, impervious surface limits, undisturbed recharge area preservation, well replacement locations, septic system drain fields, and reserve drain field areas. Those are some of the issues. It's not going to be a popular thing to discuss about raising minimum lot sizes in certain sub-basins in the County. But when you consider the cost of a little bit of additional land versus 10 or 15 years down the road of having no water at your house, that's an interesting tradeoff. Chair Jacobs: One of Orange Alamance's practices is to dig large wells. Do we have any understanding of the relationship between a utility digging a large well and the effect on neighboring smaller wells that provide service for individual lots? _ 16 Don Cox: I'm not technically able to answer that. Obviously wells close by would be impacted with large draw downs. I understand that one of their high yielding wells is right on the banks of McGowan Creek where their water treatment plant is. So that may be pulling surface water into it. Perhaps Dr. Moreau could address that later in his comments. 4. DINNER At this time, there was a break for dinner. 5. REGIONAL WATER RESOURCE OVERVIEW_Pat Davis=Triangle J Council of Governments Pat Davis said that Region J is a seven county region that includes Orange, Durham, Chatham, Lee, Johnston, Wake, and Moore Counties. According to the 2000 census, the population was just under 1.2 million people. Orange County's population was just under 120,000 or 10% of the region's population. Based on a number of studies that have been done on the local, regional, and State level, the growth and development decisions that have been made have had some impact on our water resource conditions, both quality and quantity. And, of course we've had low flow conditions. This map shows in red and pink, before Moore County joined TJCOG, water bodies that the State considers impaired. In other words, not meeting any uses. So within the region there are about 90 stream miles that cannot support their designated uses. And 202 miles are rated as only partially supporting their intended uses, meaning there are some signs of decline and we need to look at how we might restore these waters to support the designated uses. The result of our independent and collective decisions in the region have led to those ratings, and as a result we've seen the State and others take action with respect to determining that steps are needed to protect or restore water quality. An example is the Neuse River Basin and Water Quality Rules that were put in place by the State Environmental Management Commission back in 1996. That was done in response to the fish kills and declining water quality conditions. So the State imposed land use restrictions, point source discharge controls, education outreach requirements on local jurisdictions and the agricultural community in order to try and restore conditions. And in the Cape Fear Basin an emerging issue is Jordan Lake nutrient loading. The southern half of Orange County is in the Jordan Lake watershed. The Jordan Lake watershed has shown signs of elevated nutrients. And there is concern by the State and some others that if those conditions continue to worsen then recreational use, aquatic habitat, and drinking water supply uses will be impaired. Other issues include inter basin transfers. We see it on a small scale within Orange County. Durham has had an inter basin transfer from the Neuse Basin and from the Cape Fear basin. And you've probably heard recently about the issue of inter basin transfers for the Cary/Apex folks as they want to get water out of Jordan. And certainly in recent events, the whole issue of emergency response and preparedness is certainly at the forefront. Region J's population is projected to grow by about 38% by year 2020. Orange County's population is projected.to grow by a similar percent to around 167,000 by the year 2020. So as that additional growth and development occurs, there could be corresponding increases in threats to our water resources, quality or quantity. How do those declining conditions affect you at the local government level? Well, first of all, your local land use plans or planning strategies all have goals and objectives relating to resource protection, sustainable wide use of our water resources, protection in the natural environment, etc. If we see impairment within the region, that means we're not accomplishing those goals and objectives with respect to water resources. We also may base State mandated regulatory actions such as total maximum daily load and what's gone on in the Neuse Basin. All of this certainly is going to affect the cost of doing business, whether it be utility service provision, point source wastewater treatment methods, the cost incurred with reviewing and approving new development activities, and increased costs of resource maintenance and upkeep of maintaining best management practices that you are required to do as a result of the restoration and protection measures. We do an analysis, a survey of water and sewer utility rates and fees within the region and we get 100% response rate. We're compiling these results. What this graph shows, it's a benchmark on showing the monthly combined water and sewer charges for a typical single-family residential customer using 6,000 gallons per month of water. Rates and fees are under increasing pressures for a number of reasons. So we need to think, "How do we minimize the cost of business to our respective customers and residents within our jurisdictions or utility service areas?" I'll start to switch a little bit to some supply issues on a regional scale. One question that folks might have is does the region have enough water to meet projected demands and for how long. In 1997, the region's water supply systems that our local government owned had an average daily demand of 116 million 17 gallons per day. The manmade water supply reservoirs within our region had a combined safe yield of 167 million gallons per day. Now, keep in mind that in addition to the manmade reservoirs, our region uses a number of river withdrawals. Based on local water supply plans, the region's water supply utilities are projecting that the region's average daily water demand in the year 2020 will be around 220 million gallons per day. We already know that another 62 million gallons per day exists in Jordan Lake, but it's not allocated to anybody in the region yet. If you look at the year 2020 projections and the additional supply alternatives, the expansion projects that are on the books, we could see existing and planned reservoir yields of 300 million gallons per day. In Orange County, on average, we get over 6,000 gallons per day through precipitation. If you look at year 2020 projected populations that number drops to below 5,000 gallons per day. We're relatively water rich. He was showing a map at this point. This just shows the portion and amount of the demand by system within the region and then the components of demand by system. What this points out is the region has a.number of independent service providers. These arrows show interconnections as of 1997 and how much water was being transferred as of 1997. Our challenge is how do we get it around where it's needed when it's needed in the amount it's needed and at an affordable cost. At the same time, the challenge is how to protect those resources in the long-term in the face of additional growth and development and associated impacts. This map just shows simply a skeleton network of the interconnections that exist in our region,from the water supply system standpoint. Unfortunately, the capacity of those system interconnections isn't all that great. In terms of long-term thinking, we need to look at the capacity of our interconnections and how the region is able to respond to different emergency situations. The issue under consideration now, spearheaded by Orange County and several other jurisdictions is Shearon Harris. Are we prepared in the event of some unforeseen very low risk but high impact situation that could occur? We are also working together in the area of watershed protection on a number of initiatives. And Orange County and the jurisdictions of Orange County have been at the forefront in some of that thinking, and Durham has as well. There have been good partnerships in the region. Are we at the level where we know we're going to have long-term protection of all of our resources? No. We certainly have room for improvement, but we're headed in the right direction, and believe me, we're quite a ways ahead of a lot of other places around the country, so we're fortunate. Essentially what this graphic shows is all the different water quality planning efforts and initiatives— watershed protection plans that are underway from water quality modeling efforts that are underway. There's a lot going on, a lot of positive and proactive thinking and involving a lot of interiocal collaboration and a lot of local funding as well. I would add that some of these projects aren't just involving Region J's partners. Some of these partnerships span across regions. We know that has to be the case if we're going to achieve protection in the long term. Some things to consider are that our demands are increasing, many of our facilities are getting older, our costs are increasing, and our conflicts are increasing. Case in point; stone quarry reservoir. Prior case in point in Orange County- Cane Creek Reservoir. Our projects take much longer than they used to. Our expectations of our customers are increasing, and we also need to be more proactive. Maybe we need to get more proactive instead of spending millions of dollars on restoration and getting out there and focusing on protection. And as part of our local land use planning processes, our site design processes, we are actually doing things that are more sustainable for the long term and more proactive. So in order to do that, we need to have more comprehensive assessment tools. There are a number of cooperative approaches within the region —system interconnection. Some of you may have been following what's going on with Raleigh in terms of actually merging their operations with Garner and other jurisdictions. They're moving ahead with what you might consider more centralized larger system approaches. That may not be feasible here. It's been looked at in previous studies. Orange County's Water Resource Task Force report of 1981, Long Range Water Management Task Force report of 1987, Orange County Water Supply study in 1987. Orange County has been there in looking at these things. Hopefully through discussions like this, we can consider different ways of doing things so that, not only do we meet the needs of our utility customers, but we also protect the natural environment, and we make better decisions from a local land use planning and growth management standpoint so that we truly can achieve sustainable resources management and also hopefully reduce costs to customers and increase reliability. Bill Strom: Pat, in your role with Triangle J, is there a formal committee or role that you play there that could start to bring this group together on a regular basis? 18 Pat Davis: There are a couple of things that are ongoing. One is there is Smart Growth Committee that is looking at land use planning, growth management strategies, and how we grow and develop in order to achieve more of our goals and objectives and do that in a sustainable way. The Smart Growth Committee is an important point. Anyone who is interested in that committee certainly can come let me know and I'll be sure that you get added to that distribution list if you're not already. Another committee is the Water Resources Advisory Committee. Those committees are open to suggestions or requests from member governments around the region as to potential topics to discuss and consider. There's a long list of actual projects that have been undertaken through those community efforts. As information, there will be a joint meeting of the Smart Growth Committee and the Water Resources Advisory Committee on May 23`d at the Raleigh Durham Airport. This will be the first joint meeting of those two committees. Then there's also the board of directors, an executive committee in which the jurisdictions that are members of Triangle J appoint delegates to use that forum. Barry Katz: You showed a slide of the streams in the Triangle J area. Just looking at that slide, it seems to me that the greatest area of impaired streams was in the Raleigh area right in Wake County, which also has the highest level of growth and development. Is it inevitable that poor water quality in streams goes along with higher densities or not? Pat Davis: I would say under traditional land use site development practices, and then also what we do once we develop land that there is that inevitability. At the same time, I'm optimistic that we can rethink the approach to help us avoid that same result. Barry Katz: There is an element of residences that you can perhaps work with. All those people that are residents in those areas are also consumers and travelers, etc. Can you actually manage the impact of people when you also consider the fact that they must buy food, they must drive, you know, the amount of impervious surface simply by having a high concentration of people seems to be almost impossible to overcome. Pat Davis: There is definitely a relation between the amount of impervious surface and population. 6. DISCUSSION —Dr. David Moreau Chair Jacobs_We've heard several references to Dr. Moreau. Now we actually get a chance to meet him. You can see that not only is he one of the foremost experts on water matters in the State, but Dr. Moreau is also Chair of the Environmental Management Commission. Dr. David Moreau: Well, I was asked to come and lead a moderated discussion of issues. I think many of those issues have been laid out. Dave Stancil has listed some questions that are on your program, and they're basically questions that have been raised here and are directly to the point. The question is, Are existing interlocal agreements sufficient to regionally protect scarce water resources? The follow up to that is, are we prepared for drought conditions? If not, what else should we do? I think you could add to that list, Are we prepared to deal with a major accident involving one of our systems? The scenario I worked with a student on was, What happens if a truck barreling down Interstate 85 careens off the Neuse River bridge, is carrying hazardous material, and ends up in the Raleigh water supply? We talk about terrorist actions, we talk about nuclear accidents. We had an incident here about 15 years ago on one December night about five days before Christmas. It was raining heavily and there was a cattle farm over near Wake Forest. It became evident to the farmer that the water was going to run over the dyke in his pond, in his manure holding pond. He went out to try to relieve it by twisting the valve and the valve stem broke. Eventually, the dyke failed and wiped out 20 miles of the Neuse River, right below the Neuse River dam. If that facility had been three miles west of there, it would have come right down on top of the Raleigh water intake. We can imagine these terrorist actions and other things, but there are a lot of things. I think when we started on the Cane Creek reservoir, we identified 18 dairies within that watershed. And there were some that had major concerns. The question we ask is this discussion about the interconnections. But if I go to you and ask you, 'What are you going to do in the case of this scenario or that scenario?" Are we prepared sufficiently to respond to that? What would we do? Beyond that is, if we're not prepared, then what should we do to get prepared? Because with the increasing development around here, the scenario we play out is not so rare, in fact there was a truck that ran off the Neuse River bridge. Fortunately it was carrying television sets, it was not carrying hazardous material. When they were paving over there on this side of the bridge and where they had the van where the Butner kids were killed, there was a whole string of accidents that occurred right there. Situations that were created with no design, but just created the circumstance where that could happen. 19 I think another issue that is before us is, Are we doing enough to protect the watershed around Jordan Lake? In the inter basin transfer decision, one of the conditions that was tied to that was that Cary and Apex adopt a protection program similar to those that were adopted for the entire Neuse basin. Should similar conditions be tied to the allocation of the water off of Jordan Lake? Should that be added as a condition on the allocation? What we hear here is a lot of very active local governments dealing with their water problems. We hear Durham and Raleigh are going to look at Kerr Lake. I understand that's a tough subject to discuss publicly. But in that process, are all of our interests being represented? If not all of our interests, then how do we shape the process to make sure that all of our interests are represented in that? Having been a veteran of the Virginia Beach wars, you see what happens when one local government takes the lead and others are playing games in the process about withholding supplies. If we're going that direction, and it clearly is not too early to get started on that, I think there's a question about how do we promote the reuse of these resources. Those are some of the questions I would throw out for discussion. And you may have other questions that you want to raise as well. Let's come back to the question of preparedness. How prepared are we? Ed Kerwin: Not very prepared, sir. The idea of an emergency certainly, I think is really different in people's minds than it was prior to September 11th, and there really isn't anything that is unimaginable anymore with respect to our services. So, from that point of view we're not as prepared as we need to be. We have in our capital project things to improve the capacity of the interconnections with the City of Durham, also with Chatham and Hillsborough. But, if we lost Cane Creek, I don't have a good plan that is validated by our neighbors that they'll be there to meet the needs. And certainly the spirit of good neighbors, I know that if somebody can help, they will. But we just don't have things thought through and in place where we know exactly how we would respond. And spending more time talking about that would be very useful. I know that was a subject on May 2nd quite a bit regarding one facility. But there are many situations like that that we certainly could be better prepared than we are. Dr. Moreau: And if I ask you for a protection plan, do you have a document you can hand me? Ed Kerwin: We have emergency management plans, we have drills, particularly with the towns and the counties. I feel like we're reasonable well prepared. But again, for what? I feel like we're reasonable well prepared for a hurricane better than we were for Hurricane Fran. Are we prepared if we lose 75% of our water supply? No. I feel like we've done a lot and we've improved a lot at a staff level with all of our neighboring utilities. We interact fairly regularly and talk about these things. But, have we talked about it enough? No. Is there more we should do? Absolutely. Dr. Moreau: I'm not trying to suggest that we've been derelict in that because I'm aware it's been a topic for a long time. I still worry about what happens if we had a major failure. What would we do? Terry Roland: I can speak about that a little bit from Durham's perspective. And it's the same problem OWASA has, I think, but just a little bit bigger. And that is that none of our interconnections are big enough to meet the total need. Our interconnection with OWASA is good for about 3-3.5 million gallons a day. Our interconnection with Cary is good for about five. Our interconnection with Chatham is probably good for two or three, but their treatment capacity is three, and they're using one and a half of that or so. Reality can't count much more on a million and a half there presently. Dr. Moreau: I remember the days when the Durham/OWASA interconnection was made and it was done in a really expedited fashion. Terry Roland: Certainly the line connections can be expanded pretty quickly. The problem is in the treatment and supply side. We're working on an agreement and a plan for interconnecting with Raleigh that would also give us some additional supply capability, but in all of the cases I think we're limited to whatever our neighbors can afford to give up in terms of supply. You can build a waterline pretty quick, but you can't build additional treatment capacity quickly, and you can't build additional raw water supply quickly. So that becomes the limiting element. Right now the limiting element is our interconnection. But if we build bigger interconnections; if we lost our whole system, we're running about 30 million gallons a day, and even if we had a big line interconnection with Raleigh, I doubt seriously they have that much excess capacity that they could meet that need. We would have to go to rationing which means 30 gallons a person per day which would be about six million gallons a day. So we could take our demand down from 30 million to six if we had to. It wouldn't be fun and it wouldn't be pretty, but we could do it. Then you could do some of the things with the interconnections we have. It would take a disaster of great magnitude to get to that. Ms. Speaker: I had a meeting about a month ago with the folks at Duke University, and their concern from their board was what kind of redundancy did we have in case there was this catastrophe. One of the advantages we have is that we do have two reservoirs, two water plants. So we have a redundancy that for 20 us is helpful. Again, are we prepared for the ultimate? Well, who is at this point? But we're probably in a little better shape than a lot of utilities because of the redundancy that we have. Yes, we really need that interconnection with Raleigh because they're the only ones with the capacity to help us out. Certainly we can improve our interconnections with everybody else as well. Terry Roland: Raleigh is interested in the interconnection as we are because they have the same problem and worse in that they only have one water plant. If they lose their one water plant, they would be in a lot worse shape than we would be. They are very interested in the interconnection as well. Dr. Moreau: They abandoned that Johnson plant, didn't they? Terry Roland: Their long-range plan is to build a new facility, I think, to develop those supplies that they used to rely on, they're going to redevelop those and redevelop another plant. So they will get some redundancy in the not too distant future as I understand it. But they don't have it right now. We actually got to test our redundancy during Hurricane Fran. I'll just mention that. Duke Power provides our power service, and 90% of the Duke Power grid system went down. We lost a lot of things, and we lost one of our water plants, but our largest plant stayed online by the sake of one power line between it and the main source of power. But we did stay up and running for that whole time, we never lost our water system during Hurricane Fran. We lost one waste treatment plant for about eight hours, though. North Durham went completely under water, well it took us eight hours to get it back online. Dr. Moreau: Let me ask if there are questions that you want to pursue. There were questions that were raised. Bill Strom: We are talking about hundreds of millions, maybe billions of dollars to build in redundancy, capacity, etc. One tool that we have that legislative and not necessarily taking that type of investment is land use planning. The notion of are we doing enough to protect Jordan Lake and our other upland watersheds is something that some of us as elected officials could deal with, but I'm sure curious to hear folks talk about that issue some more and address the nitrification concerns that Pat Davis talked about and see how we can certainly address those issues on a regional basis. Chapel Hill is doing some things, Orange County is doing some things, but it would be very interesting to see what folk's attitude is towards making a bigger investment through land use planning and protecting those watersheds. . Dr. Moreau: I think we've taken some very good steps on the upland reservoirs and protecting those areas, but what we see now is Cary and Apex moving westward and expanding into that direct drainage area into Jordan Lake. And with the Durham expansion in that direction, with South Pointe and all the other things that are going along with South Pointe that are going to follow, that whole area is really experiencing a very high level of development. I'm not sure that we have taken adequate steps to protect that area. We did minimally on the eastside of the lake with the conditions attached to the inter basin transfer. I don't think any conditions have been attached to any allocations, though. How would you react to that? Terry Roland: I'd like to speak to that because I guess I've been here too long. Because Jordan Lake and Falls Lake, watershed protection goes back to 1983 when those lakes were first being planned to be impounded. Pat Davis has been around that long and can talk about it. Triangle J played an important role in that process and we have, I think in North Carolina, as a result of that effort at Triangle J and the efforts of the region for watershed protection, one of the best watershed protection rules in North Carolina that covers the whole state now that exists in the whole country. We've been a leader in that in the whole country. As far as the City of Durham, we attempted to do a lot in that effort to protect not only Falls and Jordan Lake, but we kept the emphasis up for protecting our own upland supplies and the concern started out more with Falls and Jordan and we wanted to make sure that our upland supplies were protected and couldn't expect those other folks to protect our lakes if we weren't willing to protect theirs. So that's always the way we've looked at it. I think in the case of the City and County of Durham we probably provide more levels of protection for Falls and Jordan Lake than most of our neighbors with the exception of maybe Orange County. I think they've done just about as much or maybe more than we have. But I think Durham has really done a lot in that regard. Our buffer areas are as big or bigger than anybody's as far as what we call our protected area for Falls and Jordan Lake. They are bigger than the state minimum requirements. We have urban growth boundary limitations and lot size limitations that provide protection of that. In the long range perspective, we were always looking at Jordan Lake especially as a potential future water supply. So we have a keen interest in making sure that that's protected. As a result of some of that, we also, in expanding our two plants, we have two wastewater treatment plants, water reclamation facilities we call them; that we expanded in the 90's, and both of those were expanded with treatment capabilities well beyond permitted requirements at the time they were built. They're both capable of doing total nutrient removal, nitrogen and 21 phosphorus, biologically. They both have extra filters, ultraviolet disinfectant, they're state of the art water treatment plants, and we built those before they were mandated by any State regulations. So when the Neuse Basin rules came into effect, we were already able to meet those. I think with the Jordan Lake nitrogen requirements coming down the pipe, we're going to be able to meet those as well with our South Durham facility. The County is working on upgrading their plan and it doesn't have that capability yet. But they're working on a planned expansion for that to meet those nitrogen requirements. As far as the city is concerned, we've tried to look ahead and provide that level of protection for Jordan Lake particularly and Falls Lake as well. In the case of Jordan, hoping that we would someday be drinking that same water we discharge to. We have a particular interest in protecting that water I think that no one else probably will have. Because I don't believe anybody else will be in the unique situation of discharging into and drinking out of the same reservoir. Dr. Moreau: Would you send me a copy of that protection program for Jordan? I have not seen it recently. I'd be interested in that. One point I do want to make is that Ed Holland, you were Triangle J when that started. Ed was sort of a key staff person in that. I think there's some really good things that came out of that process for the region as well as for North Carolina. A lot of people have put a lot of effort into that. And I don't think sometimes some of the newer folks coming in know that history and don't realize where we've come from. We've come a long way. That's not to say we don't still need to do more. But we've done a lot. We just need to recognize that we've done that. It would be a lot worse if we hadn't done that too. Dan Okun: We need to prepare and learn what to do by looking at what they are doing in the western part of the United States. Growth is making the demands increase which we will have to pay for. We need to consider what is happening around the country. We could manage or reclaim our water for other uses. Water reclamation requires early planning. Make reclamation very economical. It can be done for small and large communities alike. We have state regulations for non-portable uses. Dr. Moreau: One of the questions is how do we initiate that process of water reuse. We've had a couple of aborted efforts, Motorola, I guess, was negotiating with Durham. Wasn't there a study on Meadowmont? Dan Okun: The best example is what Cary has done with a golf course using reclaimed water. It can be done if there is some initiative on the part of the communities and the engineers. We need to examine our options and get it in the early planning stages. Don Cox: One of the big problems is that there is no demand for reclaimed water. One way to create the demand is through the local subdivision ordinances. It would require local communities to say this is what you have to do to develop this subdivision. Dan Okun: Whenever there is a water shortage, people will use reclaimed water to water their shrubs and lawns. This is beginning to be done just because people must conserve water. Bill Strom: I wasn't on the Council in Chapel Hill when.it was discussed at Meadowmont, but it's not going to happen by the private sector necessarily. There's a legislative approach that's going to have to be taken in the communities by elected officials that think this is important. For example, Dr Moreau you mentioned Meadowmont, and a dual system was proposed and it was negotiated away because the developer took it away as other requests were made and the approval was negotiated out. It really does require some legislative will to change the paradigm. Chair Jacobs: As I recall, even the University was approached about it's golf course and decided to just suck water out of Morgan Creek rather than be part of doing something a little more creative. My question had to do with inter basin transfer. Could you just outline why we don't like inter basin transfer? My .understanding is the State sets a threshold of two million gallons per day where you raise the flag of concern. If it's something that we discourage, why talk about such a large amount? If it's less we shouldn't worry about it, or it's not worth regulating? How do we get to that? Dr. Moreau: Well, you have to agree on some sort of diminimus level. You're not going to regulate every little garden hose that crosses a ridgeline. And frankly, I don't know why two million gallons a day. It may have been just looking at what already existed in making that judgement. The real argument against inter basin transfer is one of water rights. There may have been others, but I remember Senator Roby Nash. When you start talking about running that water from Siler City to Zebulon, there was this proposal in 1957 to run water from the Yadkin River to Burlington—the so-called seven cities proposal. Senator Nash spent his lifetime in the legislature making darn sure that was not going to happen. The legislation that was written in some of the very cumbersome stuff that OWASA had to deal with in getting the permit for Cane Creek came out of that legislation that was very restricted on who could do that. The case on Jordan Lake was very political dealing with Senator Rand and the perception that the Cape Fear River in Fayetteville was going to 22 be dried up by this transfer. Eight million gallons a day was transferred against a minimum low flow in Fayetteville of 575 million gallons a day. The whole issue on Virginia Beach was a water rights, not only a water rights,but a perception that somebody is going to get something that's mine. There is an environmental argument that the mixing of these waters may have an adverse effect on the ecology. That's a more recent argument, I think that the real prevailing argument is one of, "You're taking something that belongs to me." Dan Okun: We made the law and shackled ourselves. Dr. Moreau: That's true, Dan, but it took a decision of the United States Supreme Court to give New York water out of the Delaware River. Your point is obvious but it still does not get around the fact that these are hard fought battles. The Virginia Beach case went on for 18 years. We have a problem in this state. I don't know exactly what the situation is on Person County, but there are laws on the books in this state that say you can't take water from one county, and I think these are county specific. That you can't take water from this county and build a reservoir in this county to use in some other county. Mr. Speaker: Actually, it doesn't deal with the water so much as it does the condemnation of land. That's the issue. One local government can't condemn land in another jurisdiction without that jurisdiction's approval. Which, in effect, says you can't build a water supply. Don Cox: You have to look at the impact of moving water from one basin to another. Does it make sense when you look at the impact of inter basin transfers? Dr. Moreau: That act was passed in '93. Prior to that, there was nothing. But that took a major effort to get that law changed in '93 to where there is a process for considering it now. Terry Roland: Actually, there was a law prior to '93, and the irony of it is that inter basin transfers were prohibited in North Carolina until the new law was passed, unless the river basins were solely within the State of North Carolina. And the only two that that condition exists on is the Cape Fear and the Neuse. According to Milton Heath, the reason that law was written the way it was written was so that Research Triangle Park could become a reality. It was served by Durham from Neuse Basin water, and it was discharging to the Cape Fear basin. If they hadn't made that change in the law, inter basin transfers would have been prohibited completely in North Carolina. It was prohibited except where the river basins were solely within the State of North Carolina. It wasn't until '93 that we changed it so that inter basin transfers could be done in other places besides between the Cape Fear and the Neuse. Prior to that I think that was the only place you could do it. Dr. Moreau: It had to do with the authority, if you were acting jointly, and that's where OWASA and everybody else, there were multiple jurisdictions involved in it and that's what triggered it. And that's what triggered the Randleman stuff. That law was written to stop the Southern Cities Project, the '57 law. And the power companies are the ones that did that because the only basins on which you can generate power in North Carolina are interstate basins. They wrote the law very cleverly that you can make the inter basin transfer so long as the basins were solely within the State of North Carolina. And the Neuse and the Cape Fear were the two basins, and you could not generate electricity on either one of them. That's the story I got. 7. NEXT STEPS Chair Jacobs: At the break I heard a lot of people saying they thought this was a good discussion and they got valuable information. But to just have a meeting and then walk away, although it's always good to be educated and to get to know people better. Just speaking as an Orange County Commissioner, I would like to see how we can get water with our sewer system. I'd like to make sure that our citizens have adequate water supplies so that when we do our comprehensive land use plan update that we can incorporate the plans of jurisdictions within our jurisdiction and that we can make sure, to the best of our ability that water and sewer provision follows the land use plan. I'll just put that out, I'd like to see how we can work toward those kinds of things. That's our self-interest. And we said at the beginning we wanted people to purpose their self-interest. That is what brings us together even though we're all altruists and care about water and our neighbors. I'm just real interested in how we can keep this conversation going. Margaret Pollard: I'd like to see us address, at some point, how do we prepare citizens for safe water conservation during a crisis? I think that just to have people conserve water without thinking about the public health implications with that might not be meeting our total responsibility. Dan Okun: Orange County has a Commission for the Environment and there is a committee on water resources. If anyone has water related activities or needs, they need to send it to this commission which will look at it. _ 23 Dr. Moreau: Barry, are you suggesting some sort of countywide, not just county boundary, but region that encompasses Orange and its immediate neighbors? I'm not talking about necessarily the Research Triangle region, but are you suggesting development of some plan for water and sewer services within this smaller region? Chair Jacobs: Well, after going and sitting down and having lunch with representatives from all of these different entities, it is clear that we all have issues. With all due respect to our own Commission, other governments may not want to come to our Commission. We need to create some place where we can — even if it's just to empower our staffs to brainstorm—to bring the plans, to bring the maps, to look at where we overlap, where we conflict, where we might be able to cooperate. I don't pretend to know or to dare tell someone else how they should do their business. It's clear that we're all just going in our own directions. So we need some agreement to keep working together, whatever that venue is. And it's always easy for an elected official to say, "I'm going to empower the staff to go do more meetings, and when they develop something we'll come back and talk some more." That's the vision I have. Terry Roland: Pat's already talked about the Water Resources Committee of Triangle J, and I realize there's some folks that aren't in Triangle J, but we could probably expand that invitation list to make sure that everybody that's interested participate in that process. That is the committee that worked on the watershed issue in the 80's, and that's probably the best existing mechanism we have for continuing with discussion, and it's a good place for it, I think. So we could use that committee to continue that discussion. Dr. Moreau: Well, clearly a lot of the information and considerations that go on there would be relevant here. It might take a subcommittee with expansion to include Orange Alamance. Burlington has lots of water over there. They have a lot of excess supply. And that hasn't been brought into this discussion. John Link: I think the idea of pursuing the TJCOG structure is good. I am interested in some kind of congruence. I want to look at it from a practical perspective of providing water and at the same time addressing the land use issues which have been brought forward. Ed Harrison: I got a lot of my post-graduate education in water resources at that committee, starting with seminars. I also met some of the first local government managers that I'd ever met that 1 didn't work for, and all of you are improvements over them. I think it's a place that managers could fit into. The committee has been sometimes in the past a little bit too much inside baseball. I think the more pragmatic questions that John is talking about really need to be talked about there. I think that because this involves local government decision-makers so much on so many levels, it really has to be a little less not technical. I thrive on the technical stuff, but I don't think that the local governments necessarily need to have all that. This set of presentations today has been nicely balanced in that regard. It's a committee that because the COG has been so busy with very important focus work, hasn't met quite as often lately. But I think we're seeing a reason to do it again. It could split off in geographic subsets if it had to. Also, I want to echo, as someone who has spent a decade on the Durham Environmental Affairs Board, there is very good thinking that can happen on citizen boards like that if you bother to ask them the right questions or let them think of the right questions themselves. Joe Phelps: It has been a good meeting. I agree that I think that we could meet again maybe in smaller groups and get more accomplished that way. I would like to say something. I did read the resolution sent by the Board of Commissioners, and you had something in here and I'll read it quickly for those who don't have it. It says, about three quarters of the way down, "Whereas, the environmental impact and financial cost associated with the development and construction of new reservoirs renders the development of new reservoirs and water supplies within Orange County unlikely." I don't want to restrict what we may decide today for someone 30 or 50 years from now of not ever building a reservoir in Orange County. That particular statement concerns me a little bit. I don't know what the intent of it was. I don't think Hillsborough is going to grow tremendously over the next 50 years, but I don't think at this point in 30 years we'll have enough water. So I don't want to proceed along those lines if that was meant to be that way. I'd be open to suggestions, but I don't think we should ever close the door on some future generation. Like John said, I kind of agreed with him. Everybody has a need for water here, and then Pat says that we have plenty of water and someone mentioned Burlington. I'm not sure about Burlington. They would probably sell water as long as they could, but they'll probably grow too and at some point quit selling water I don't want to restrict any furture governing body from doing what is necessary to provide water to our citizens. Chair Jacobs: I have a question for the folks from Mebane. Do you feel comfortable being part of this committee of Triangle 3 to work on some issues together even though you're not part of that COG? 24 Robert Wilson: Yes. I think that we all have the same interests here of water connections throughout. Contrary to what you've heard tonight, Mebane didn't deny anybody water. We're just like any other city, we have jurisdictions that we have to stay within. We try our best to work within those jurisdictions and serve people outside of our jurisdiction. But water, as we've all explained here, comes at a cost. And someone has to pay for that cost—you, Durham, Hillsborough, Mebane. There's an end where you can afford to extend your lines. We've met with the County of Orange. We've met with Alamance to service the folks of West End, Buckhorn Road area—outside of our ETJ, Buckhorn Road, Perry Hills. But the West End area, we're working with those folks to get water and sewer to areas in the counties or outside of our ETJs, water and sewer without getting mud on our face every time we go to meetings. I'd be more than happy to attend another meeting to try to come up with some reasonable concern of connections. Chair Jacobs: It soulds like we're at a good stopping point. We thank you for coming. Commissioner Halkiotis is not here, but in his stead, Commissioner Carey has kindly volunteered to make some closing remarks. 8. CLOSING REMARKS Well, there's no way in the world that I can be Steve Halkiotis tonight. But it occurs to me that we came here tonight and started out with self-interests in mind, and that's good, that's ok. But I think we've learned here tonight that all of our self-interests are intertwined with the interests of each other, and it behooves us to work together to try to meet the needs of all of our constituents. I think this has been a good meeting and I want to thank Barry and all of the staff and all of the other people who put this together because it's been very informative and I'm sure that something good will happen from this. But it depends on the willingness of all of you to work together to make that happen. So, on behalf of the Board of Commissioners, I want to thank you for coming tonight and encourage everyone to continue to work together regardless of the next forum that it's in. And I'm sure that Barry and Steve and others in the leadership positions, as they've been meeting with each of you, can decide on how best to proceed from this point forward. Thank you for coming. 9. ADJOURNMENT With no further items to discuss, the summit was adjourned at 8:30 p.m. Barry Jacobs, Chair Beverly A. Blythe, CIVIC Fiscal Year 2001 -02 Financial Update June 2001 — BOCC adopted fiscal year 2001-02 budget that included $3. 1 million in anticipated reimbursements from the State February 5, 2002 - Due to the State's fiscal crisis, Governor Easley declares "Fiscal State of Emergency" *He announced plans to withhold a portion of local government reimbursements, totaling $209 million, in fiscal year 2001-02 *The anticipated loss for Orange County was projected at $712,000 February 18, 2002 — Preliminary year-end estimates estimated a County budget shortfall of between $712,000 and $862,000 at the end of fiscal year 2001-02 *Staff indicated that the County could absorb the potential deficit through the use of fund balance June 30, 2002 — As indicated earlier, the shortfall was absorbed through the use of fund balance •Preliminary calculations projected year end fund balance to be about 9.6 percent of 2002-03 budgeted expenditures -Presentation of year end audit for fiscal year 2001-02 is scheduled for November 19, 2002 Board of Commissioners meeting S 10/21/02 Fiscal Year 2002-03 Financial Update Spring 2002 — Manager's Recommended budget for fiscal year 2002-03 anticipated revenues totaling $3. 1 million from State reimbursements that was due to the County. June 2002 — BOCC anticipated that the General Assembly would balance the 2002-03 State budget by withholding reimbursements due to local governments. •The Board adjusted the Manager's Recommended budget downward by $3.6 million to reflect the anticipated loss of state reimbursements and adjust the recommended tax rate from 4.5 cents to 2.5 cents.z7 September 2002 — The General Assembly approved the 2002-03 State budget. The approved budget: *Withheld reimbursements from local governments. •Reduced funding for certain State departments resulting in a "'trickle down" reduction to County departments — particularly human service related departments. •Authorized the Governor to make other, yet to be determined, funding reductions totaling $25 million to balance the State's budget. *October 2002 — General Assembly approved Senate Bill 1292 authorizing counties to levy a Third One-Half Cent Local Government Sales Use Tax effective no earlier than December 1, 2002. •Orange County BOCC approved the Resolution authorizing the new sales tax at its October 15, 2002 meeting. *According to estimates by the North Carolina Association of County Commissioners, anticipated additional revenue for Orange County for the current fiscal year are in the neighborhood of $1 .8 million. 25� tf' 71, ORANGE COUNTY INSPECTIONS Memo To: Assembly of Governments From: Orange County Planning Staff Date: October 24,2002 Re: Shaping Orange County's Future(SOCF)Report Following a unanimous vote of governing boards at the May 7, 2002, Assembly of Governments meeting, Orange County Planning staff was instructed to: Pursue a graphics specialist firm/company to: a. Prepare an abridged version of the report for a newspaper insert: and b. Do necessary style and format changes to the full 96-page report and publish it. Item "b"was accomplished by a college intern with Planning staff oversight this past summer and can be printed and distributed for review. Since it is an extensive color copy document, we will not produce it en masse until it is determined to be acceptable in this upgraded version. A few copies will be available at the October 30 Assembly of Governments meeting. Because of the widespread coverage it will receive as a newspaper insert, Item "a" will likely need professional treatment. Planning staff is making preliminary abridgements to the document, but it will be necessary to find suitable individuals/firms to handle this task (editing, layout, and graphics). Before proceeding further, we feel that a meeting to discuss the primary focus of the insert, distribution, number of copies, strategies, and desired outcomes is advisable. We would recommend a second meeting to bring in any input from the Mayors and Chairs, as well as Ellen Ironside and Jay Bryan from the Shaping Orange County's Future Task Force to get their input. A cost for preparation and publication of the report is unknown at this time. Questions related to number of pages(we have discussed eight in-house),color or black-and-white,ultimate distribution, and newspapers to be utilized need to be addressed. We have made calls to the three papers in Orange County concerning their distribution and determined the following: Chapel Hill Herald-25,000, Chapel Hill News-25,000, and the News of Orange County- 7,900. 11 1 A YYiQ !,b V-� TOWN OF CHAPEL HILL 306 NORTH COLUMBIA STREET CHAPEL HILL, NORTH CAROLINA 27516 OFFICE OF THE MAYOR (919)968-2714 FAX 919-969-2063 August 28, 2002 Mr.Barry Jacobs,Chairman Orange County Board of Commissioners PO Box 8181 Hillsborough,NC 27278 Dear Chairn o s: ,.� / At its regular business meeting on August 26,the Chapel Hill Town Council adopted the attached petition to initiate conversations with the Orange County Board of Commissioners and the Chapel Hill-Carrboro Board of Education about prospects for locating a third high school in the southern part of Chapel Hill. A third high school is needed in the district,as projected growth in the number of students will exceed existing capacity. It has been suggested that a logical location for this school would be the southern part of Chapel Hill, since our two existing high schools are on the northern edge of Chapel Hill. We believe that it would be productive for representatives of the Chapel Hill Town Council, School Board, and Board of County Commissioners to come together and discuss this issue. As a first step in the process, I will invite you to join me in exploring how such conversations might proceed. A member of our staff will arrange a telephone conference for this purpose. I look forward to talking with you soon. T i' ly, n C. Foy Mayor- KCF/wms Attachments AGENDA 017a(2) MEMORANDUM TO: Mayor and Town Council FROM: Council Member Flicks Bateman SUBJECT: Discussions About Location for Third High School DATE: August 26,2002 I ask the Council to consider starting conversations with the Chapel Hill-Carrboro Board of Education and the Orange County Board of Commissioners about prospects for locating a third high school in the southern part of Chapel Hill. BACKGROUND Our school district needs a third high school. We have received reports showing historical and projected growth in the number of high school students in our community, and we know that the capacities of Chapel Hill High School and East Chapel Hill High School are about to be exceeded. School officials are looking for a site for this needed school. It has been suggested that a logical location for this school would be the southern part of Chapel Hill, since our two existing high schools are both on the northern edge of Chapel Hill. Several sites have been under consideration by the School Board,but no decisions have been made. Although I did not support(and still do not support) a citizens group proposal to negotiate a land swap of Town owned park land for a school site, I believe that we can do more to assist in the process of locating a suitable school site in the southern area of our community. PROPOSAL I believe that it would be productive to bring the Chapel Hill Town Council, the School Board, and the Orange County Board of Commissioners (or representatives of these three bodies) together to discuss the possibilities. I suggest that the Mayor communicate with the chairs of the other two Boards to initiate this conversation. / ORANGE PERSON CHATHAM AREA PROGRAM INFORMATION REPORT ON MENTAL HEALTH REFORM PROGRESS Attached are three documents to illustrate progress made by the OPC Mental Health Reform Steering Committee in response to the statewide mandate for system reform. The Steering Committee is comprised of elected official representatives from the three counties, county management, consumer advocates, and OPC staff. 1. Breakout Group Feedback from the Public Forum Held by the Orange County BOCC on October 8 2. Draft Strategic Planning Document being developed by the OPC Mental Health Reform Steering Committee on the tri-county response to a phased implementation of system reform. (A final document will be presented for BOCC approval by the first week in December; all plans are due to the state by January 1.) 3. Copy of the resolution adopted by the BOCC on October 1St establishing its intent to maintain the tri-county partnership and create a strong governance structure for the new local management entity responsible for mental health oversight. Person and Chatham county boards adopted a similar resolution. Gwen Harvey-Orange County Forum Feedback.doc Page 1 Orange County Public Forum October 8, 2002 Breakout Group Feedback I. Child and Family Services (Priorities shown by#of votes in parentheses) • Get rid of some of the funding requirements that drive services. (2) • Funding for substance abuse should be tied to Child and Family services. (1) =::> Substance abuse services should be a part of Child and Family Services. • Have a seamless integration of mental health and substance abuse case. (4) Within court system —family, domestic violence,juvenile. => Reduce strict funding and categorization. • Do things that are preventive or pro-active. (2) • Agency access to mental health services; DSS, Police Dept. • Ensure that staff perform; better use of time—especially with scheduling i.e. courts. • Need better cross agency communication —public education, juvenile system. • Hard to move individuals into programs. (2) => Transitions such as 17 year olds to Adult Services (Seamless System)Adolescence to Adults 0-5 years to Adolescent System • Need mental health intervention in child care—to continue and/or expand. (3) • Preventive and pro-active programs are difficult to fund. (1) => Need to be easier to fund. • Not enough to simply deal with the child. Support and services needed for family members. (1) • Gaps with treating mother and child together—have some programs—not enough. (1) • Current system not family friendly. • Orange and Chatham has effective diversion program for youth (children with minor drug offenses)—do not need to replicate. • More coordination of service system => Systems need to be coordinated —same families —multi-agencies. • Relax confidentiality(look at how we can confer on children and families that are involved j with more than one system in a way that is effective and confidentiality not a barrier). • Team approach to services —"One-Stop Shop" model i.e. Child Planning Conference. (1) • Cross reference services • Outcome should determine who provides the services. Example—Smart Start. (1) • Need —must have funds to support collaboration —another level of prevention —can local monies be used for this. (1) • Current resources need to be fully utilized. • Commitment to outcomes—programs collaboration —outcome need not be seen as a threat. • Periodical reviews of services—qualitative and quantative outcomes. • Eliminate or reduce barriers around age and access to services. (2) How do you deal with State and Federal restrictions Gwen Harvey-Orange County Forum Feedback.doc Page 2 r II. DEVELOPMENTAL DISABILITY SERVICES (Priorities shown by#of votes in parentheses) The Ideal Developmental Disability Service System • Work , Live, Play, Retire in our community (5) • Increased Respite Services (4) • Increased spectrum of housing (group homes, co-housing, apartments) (6) • Greater communication with OPC and schools (1) • Flexible money and authority of person with DD over the money; services not tied to funding source (3) • Independent and not be hungry at end of the month (1) • Language user friendly—what is target pop? (3) • No waiting lists (2) • More professional ized staff—less reliance on for-profit providers (1) • Well qualified advocacy and CM so consumers and families know what is available (1) • More meaningful day treatment programs (2) • Not to be excluded by diagnosis or lack there of (3) • Transportation—Easy rider is overwhelmed (5) • Examine Medicaid eligibility requirements - if move from facility lose benefits (1) • Case management flexibility (2) • Support brokerage available (1) • Self determination (4) • Who is advising on high importance items–county commissioners (1) • LME needs to be a key advisor ( (1) • Active consumer and family advisory Committee (1) • Plan to serve aging consumers with DD (1) • Continue to have input from the public and interested individuals (2) • More Medicaid providers (1) • Funding for socialization training programs (2) • Support for families dealing with consumers with DD (2) • Day services–need an array of options (2) • Accountability for following through on what works–utilize the methods that work and use outcomes–clarify/define accountability–recognize the experts (1){rEACCH) • For low incidence disabilities draw from other counties/resources for support/service/training and people (1) • Voc Rehab–doesn't work-fix it. VR won't open case without identified long term SE funding (1) • Long term support for folks who want to work (2) • Crisis Services for folks with DD (3) • Education of hospital regarding crisis service for individual with DD–Autism (2) • Good system of medical providers trained to work with DD consumers (3) • Deinstitutionalization (1) • Self-advocacy (1) • Coordination/education with legal system and law enforcement (1) • Don't take money out of system, keep in system with deinstitutionalization (2) 2 Gwen Harvey-b ran,.g..e County Forum Feedback.doc Page 3 III. Mental Health Services (Priorities shown by#of votes in parentheses) • More consumer monitoring of services. • Move hands on treatment and less paperwork. • Billing problems need to be fixed so providers are paid. • Better community education with residents and employers. Advocacy on ongoing basis for adequate funding. (1) • Need list of agencies and resources that are available. (1) • Hub drop-in center—non-profit—for clients—staffed by consumers separate from OPC. (6) • Provide evidence based treatment. Example-family education and support. • Canada —several businesses staffed all by mental health clients—progressive skill levels. (1) • Expand case management to keep people from falling through cracks. • Mechanisms for client feedback and concerns. (1) • Continuation of program —like Club Nova—good meal, safe place to stay during the day— opportunity for work. (9) • Continue to support Clubhouse—work, community support. (2) • Get people out of rest homes, etc. (1) • Offer more Section VIII housing —closed list—waiting list for long time. (1) • Expand ACT Teams. (4) • Quicker and easier access to psychiatric care. (2) • Outreach to people who need services. • Need follow-up of psychiatric care. • Need less regulations, need simplicity. • Policy and procedures —notebook—very large and complicated —too much paperwork. • Access to affordable medications. (1) • Keep in place maintenance and recovery programs. • Partial hospitalization program. • Peer support program. (1) • House in community—for crisis—instead of hospital. (4) • Affordable, decent housing. (8) • Better transportation. (2) • Expansion of services—housing, transportation —for more traditional case management— basic needs. (3) • Respite for families—who keep at risk person in home—maybe be able to have a vacant space in group home for weekend. (2) IV. Substance Abuse Services (Priorities shown by stars"and underlined items) • Cuts clients out of service loop. • If not already in system . . . too bad . . . no hope. • Substance abusers cost most crime in community !!! • Clients need to be treated; cuts down on crime rate. • Will see increase in sexually transmitted disease rate 3 Gwen Harvey-Orange County Forum Feedback.doc Page 4 • Total cost ultimately will increase. • Aftercare cost to increase. ■ ** Cost a lot more to incarcerate. ■ 50% mentally ill have substance abuse problems. ■ Revolving door. • Lower risk clients will rise to top. ■ Communities need money for programs. ■ Develop less expensive services (i.e., Oxford House, Freedom House, supporting entities such as this.) ** • Don't forget need medical services support. • No services available for criminal justice system now either. • No services should to be eliminated. • Need more residential services and wrap around services ** Expansion service considerations for wrap around services—faith based organizations. Need systems in place to include family support services. ■ Biggest missing link is Prevention Services ** Prevention Services in school do not work, not research-based. Desperate need for housing. Courts beginning to give more attention to substance abusers. ■ Client Rights threatened anonymous counseling, privacy rights? By client from private sector. • Treatment Alternatives to Street Crime (comprehensive approach)—need more of these type services—clients are referred through court. • Accessibility to out patient treatment. ■ How is system going to look? V. Services to the Hispanic, Deaf& Hard of Hearing Community • How Hispanic community will be affected? Will it be harder to get services? • How to inform Hispanic community about services? How to get them to trust providers enough to take advantage of services? • Communication problems for Spanish speaking people. Need more interpreters of the same sex to talk about sensitive issues. • How to break down barriers in institutions? Example: Have same contact person for client at each visit. • Spanish speaking foster parents and respite care. • Need for community based service workers with sign fluency for children and adults. • Funding needs to be available for multiple care providers and interpreters if needed at same time. • Reimbursement rates should match fees of interpreters. • Funding for TTY or hearing aids regardless of income. • Funding for interpreters for Spanish and sign language. • More permanent bilingual onsite staff. • Education for doctors and health care providers. • Training in Spanish or signing for service providers. • Cultural training. • Spanish and deaf/hard of hearing should have same level of services as everyone else. • Spanish and/or deaf should have equal access to best health care practitioners without 4 Gwen Harvey-Orange County Forum Feedback.doc Page 5 interpretation being a limiting factor. ■ Create networks to accomplish goals. Deaf Adults ■ Sign-fluent direct services. ■ Need more home visits, mobile, develop trust. ■ Ability to address multiple disabilities. ■ Addressing basic needs first (independent living skills), then therapy. Deaf Children ■ 90% of deaf kids have hearing parents. Many parents are learning to sign at same rate as child. ■ Sign-fluent respite parents or any out of home care. VI. Qualified Provider Network (Priorities shown by underlined items) • Who establishes the provider network? • What qualifications? • Reimbursement levels? • There should be standards required for providers. • Movement of Funds—timely movement of funds from institutions to area programs service providers** • Barrier to providing services: --Small versus large providers --Audits /Cost I • Rules and regulations make it prohibitive for the small provider to succeed: --What incentives are there to become a provider? -- Increasing cost of insurance. -- Economy—credit more difficult to obtain. • How to market services to LME (OPC) ** • Provider relations. • More education/publicity to public about services and what's available • Control too restrictive—not LME; it's the State of North Carolina (reimbursement procedure). • How to develop a strong LME. ■ How can providers or potential providers be more involved in process and have input? '* VII. COMMUNITY AGENCIES & DEPARTMENTS 5 Gwen Harvey-Orange County Forum Feedback.doc Page 6 Can Local agencies provide services? • Who will local agencies make referral to? • Can local agencies provide services? • LME should avoid gate keeper role—additional block to vulnerable populations Accessibility? • Will services be more accessible? • Provide services where people are congregated (where they are receiving services) • Transportation • Jail population must be served • Schools are seeing increased need for mental health services–early intervention Building bridges and collaboration • Build bridges non-profits------------agencies • Require collaborative efforts by agencies Del nstitutionalization -more homelessness • Homeless persons and associated problems -depression, substance abuse Empowerment of vulnerable population in an ongoing fashion • Empowerment of vulnerable populations ongoing i i 6 Gwen Harvey- I. Planning - Rev Oct.doc Page 1 I. Planning I.I. The Local Business Plan demonstrates congruence with the Mission and Principles of the State Plan. Orange Person Chatham Area Program is a proven leader in the development of state of the art services and best practices to support citizens with disabilities. Our primary mission is to work in partnership with individuals with disabilities so that they may live i full and productive lives within the community. It is the intention of the current administration and the Commissioners of Orange,Person and Chatham Counties to continue this important work under the Local Management Entity Model. The OPC Board of Directors has been a primary partner in our work to fulfill this mission. We have been fortunate to include in our Board Membership, individuals who are nationally recognized in the fields of public policy and disability rights. In May,2000, the Area Board adopted and the LME hereby adopts the following Mission Statement: Our Mission is to work in partnership with consumers and their families so they can lead satisfying lives and become integral, valued and contributing members of the community. We will: ♦ Support individuals to make meaningful choices and to achieve their personal and family goals. ♦ Respect the dignity and diversity of those we serve. ♦ Ensure human and civil rights ♦ Serve individuals most in need. ♦ Make services readily available and as timely as possible. ♦ Assist individuals to secure and keep a home and a job. ♦ Recognize the importance and complex interaction offamilies ♦ Use natural supports such as family,friends, neighbors and community organizations. ♦ Use appropriate resources wisely by using no more or no less than what is needed. The OPC Mission Statement is both congruent with and reflective of the DHHS Mission, Vision and Guiding Principles. As an LME,we intend to be a responsible agent of the taxpayers by deploying public resources as efficiently as possible while supporting citizens with severe disabilities in their efforts to live as fully contributing members of the community. This Business Plan will describe an LME that will be both person centered and outcome focused. We will continue to work collaboratively with consumers,family members and community systems in order to maximize natural supports and minimize institutional dependence. Gwen Harvey- I. Planning - Rev Oct.doc Page 2 i As we move from an Area Program to a Local Management Entity Model,the way we serve the community will change significantly. Feedback from Community Stakeholders indicates that there are many people in target populations in need of additional services. It does not appear that a significant amount of our efforts are currently being misdirected toward serving those who do not really need our help. In a time where funds allocated to serve our neediest citizens will be depreciating considerably,it will be an ongoing challenge for the LME to prioritize and make the best use of these limited resources. Despite these challenges,we intend to move forward in implementing a vision that we feel will allow us to most effectively and efficiently serve those in need. A continuous planning process is a necessary step in order to implement our vision. We have an active Steering Committee that meets on a monthly basis. Members include a County Commissioner from Orange,Person and Chatham County,three county managers,the OPC Area Director,the OPC Board Chair and the chair of the Consumer and Family Advisory Committee.This group has provided important leadership in the planning process. They have facilitated the review of stakeholder input and have worked to prepare the community and Area Program for the impending system transformations and improvements. Once the LME is initiated,three groups will assume the primary planning role. The OPC Local Management Entity Board,County Government and the Consumer and Family Advisory Committee will continuously monitor the system and recommend changes.This will ensure that the goals described in both our mission statement and business plan are constantly being evaluated by the citizens we serve. We view the State Plan and its system reforms as an important opportunity to improve how we provide services to the people most in need.Although we anticipate challenges along the way,we look forward to promoting a fully person-centered,efficient and responsive system that the community will be proud to support. i I.2 LBP planning process meets state plan requirements L2.a There is a strength/weakness analysis including methodology for building on strengths and addressing and or ameliorating weaknesses. To accurately evaluate the relative strengths and weaknesses of the existing Area Program,management initiated an extensive evaluation.The first step in this analysis was to ensure that all stakeholders were given the opportunity to provide input into what they liked about OPC Area Program and where the system could be improved. Consumers, their families,local advocacy groups,staff,private service providers,public officials, local citizens,public agencies such as Department(s)of Social Services,public school systems,and Department(s)of Juvenile Justice,and hospitals have all been included in this process and their input make up findings of this evaluation. Gwen Harvey- I. Planning - Rev Oct.doc Page 3 i i An independent consultant created a written survey and conducted interviews. Staff stratified active OPC clients by age and disability group.The consultant prepared survey instruments specific to each age and disability group. Approximately 960 clients received the survey instruments.The consultant also conducted personal interviews with clients to allow for a more in depth exploration of relevant issues. Copies of the surveys and the consultant's full report are attached. In addition to the work of this consultant,management gathered data from other sources. Staff conducted numerous interviews and made presentations of the state plan to a variety of groups. Written surveys were sent to staff,community organizations and other stakeholders. Survey findings are attached. The local Consumer and Family Advisory Committee has met regularly since February of 2002 and has provided extremely valuable feedback on the strengths and weaknesses of the existing Area Program. Each participating county held public forums and County Commissioners held public hearings on this proposed business plan. Findings identify strengths that we plan to integrate into the new system as well as weaknesses that will require significant program modifications. For example, stakeholders generally identified case management as a program strength,but described problems related to service access, including crisis services. Our response is to create a system that will dramatically simplify program access,facilitate crisis response and build upon our strong case management services. This seamless system will not only help people to easily access services,it will also provide the crucial ongoing support required to prevent hospitalization. System details can be found in the Strategic Plan as well as Chapter IV(Service Management)and Chapter V(Triage,Assessment and Crisis). Stakeholders also identified several services they would like to see more of in the community.Respite Services,ACT Teams,and Supported Living programs were all identified as areas requiring resource development. Through the use of outcome driven utilization management and performance based contracting,we intend to create a provider network system that will encourage and reward the development of high quality services. Again,details can be found in the Strategic Plan as well as Chapters IIII (Qualified Provider Network Development)and Chapter N(Service Management). L2.b There is a policy establishing the local Consumer/Family Advisory Committee (CFAC) and assuring opportunity for meaningful involvement of consumers and families by requiring: Recognition of the contribution of consumers through their unique perspectives and abilities Establishment of a non judgmental environment Timely advance notification of actions proposed Establishment of Consumer and Family Advisory Committee Policy attached L2.c There is a statement attached attesting to consumer/stakeholder involvement consistent with the State Plan, which is representative of the broader population of the Gwen Harvey I. Planning - Rev Oct.doc Page 4 i i i locality with the confirmation by the CFAC. See attached statement L2.d There is a resolution of the governing body accepting/approving the LBP as submitted. See attached resolution LZe There is a separate report submitted by the local CFA C. See attached report I.3 The LBP incorporates a 3 year strategic plan for the initial implementation that: ❖ Identifies a V,2"d, and 3'1 year implementation strategy ❖ Contains goals,objectives and activities ❖ Identifies timeframes and responsible party(individual or entity)for each goal and objective ❖ Provides evidence of ongoing planning effort i ❖ Attaches a policy requiring long-range planning methodology that meets State Plan requirements (Tactical&Strategic Planning Policy is attached) ❖ Addresses steps necessary to transition individuals now in services who do not meet target population criteria to other community resources as necessary ORANGE PERSON CHATHAM LOCAL MANAGEMENT ENTITY STRATEGIC PLAN L INTRODUCTION: THE STRUCTURE AND FUNCTIONS OF THE LOCAL MANAGEMENT ENTITY We propose a strong LME model that will act as a local governmental unit,organized under the statutory authority granted the counties, and covering Orange,Person,and Chatham counties. We envision a public process that includes both the local government and citizens in the allocation of care and in the evaluation of its results. We intend to minimize the portion of public dollars that is spent on administration to ensure that maximum resources are available for consumer services. We will use these resources to target services to the consumers who are most in need and then build upon our track record in providing best practices to ensure the best possible result. The LME Service Delivery System will directly provide Triage,Assessment and Crisis Services,Crisis Services, Case Management Services(for complex cases only)and Psychiatry(for the purpose of short term assessment and crisis intervention only). It has been suggested that LMEs could also act as a service provider for early intervention Gwen Harvey-I. Planning - Rev Oct.doc Page 5 services. OPC is currently evaluating the feasibility and benefits of including this service as a core service component. All remaining services will be contracted out to our network of private providers. These systems will work very closely with a Collaboration and Advocacy Unit whose primary function will be to foster positive working relationships with other community agencies and organizations. The LME Administrative System will be structured to maximize the efficient use of resources. It will house the Qualified Provider Network Unit,Core Service Management, Service Authorization Unit,Finance and Information Systems,Quality Improvement and Human Resources. II. THE LME SERVICE DELIVERY SYSTEM The Triage,Assessment and Crisis Unit(TAC) All individuals,regardless of problem or disability group,will enter our service system the same way. Five Triage,Assessment and Crisis Units will be opened in convenient locations where citizens can receive assessment,referral and crisis related services. These same services can be accessed through a toll free 24 hour phone service. Additionally,people can access LME services through hospitals,key public agencies and qualified providers will receive training and information regarding how to help people access LME services. In addition to providing access and referral services,the TAC Unit will also provide crisis related services. Immediate crisis intervention counseling and brief crisis intervention follow-up will be available as well as the mobilization of emergent resources as appropriate. These may include: • Psychiatric assessment and medication evaluation; • Community-based crisis stabilization,which may include brief residential placement or in-home supports to preserve community living; • Determination of need for hospitalization when the level of need is more intensive than community alternatives can appropriately offer;and facilitation of such hospitalization; • Diversion from state hospitalization for persons with mental retardation; • Mobile crisis response,providing crisis assessment,intervention and supportive services in-home or elsewhere in the community. • respite care(in and out of home); If services are needed on a long term basis the TAC Unit will refer consumers to appropriate service providers. The Case Management Unit The essence of LME operations will be to expend resources by means of the person- centered service plan and to evaluate the results of these expenditures. This makes case management a critical part of local LME operations,as it forms the basis of the I I Gwen Harvey- I. Planning - Rev Oct.doc Page 6 relationship between the individual with a disability and the public system. When a person is in need of complex and/or long term services,the principal relationship between the individual and the system is negotiated through the case manager. We feel this role is best played by the LME. A decision tool will be developed or adopted in order to determine who needs case management at the LME level. Only cases that are deemed long term and complex will receive LME Case Management.All other cases will be referred to an array of qualified providers. The LME case manager will act as an advocate,negotiator of the service plan,service broker and service monitor. Outcomes and client satisfaction will to be monitored through a direct partnership with a consumer through the documented,written service plan. The Collaboration and Advocacy Unit This unit will continually work to improve, develop and enhance relationships between the LME and community organizations. Additionally,this unit will work to maximize consumer and family participation in collaborative efforts and will participate in needs assessment and program evaluation studies. Finally,the LME is involved in a number of special projects that are described in detail below.The Collaboration and Advocacy Unit will be charged with administering and overseeing these efforts. III. THE LME ADMINSTRATIVE SYSTEM We are designing an administrative infrastructure that will be efficient in both its use of resources and how it manages the service system. Finance,Information Systems,Quality Improvement and Human Resources will continue to provide the support and training necessary to keep the service system running. Additionally,a Core Service Manager will be responsible for overseeing the Triage,Assessment and Crisis,Case Management and Collaboration Units. The Qualified Provider Network Unit will be charged with managing the Private Provider system for the LME. Finally,a Service Authorization Unit will be designed to monitor service provider outcomes and to manage the utilization review process. IV.PILOT PROGRAMS The Area Program has a long history of involvement in pilot projects that demonstrate the principles of best practice. These include projects in supported housing,ACT Teams,the Transitional Employment Demonstration Project and the Mental Illness/Substance Abuse Pilot Project. We feel this history prepares us to take a leadership position as we enter this new era of service provision. We are requesting permission to pilot three changes to the State's plan for the LME system. I First,we propose a system that allows the LME to independently manage at-risk capitated funds. This authority will give the LME the necessary flexibility to meet the unique Gwen Harvey- I. Planning - Rev Oct.doc Page 7 needs of our community. We are willing to assume the risk associated with these decision making capabilities because we feel a strong LME is best suited to serve its citizens. i Second,we propose that the LME assume responsibility for utilization management for the region. The LME will maintain control of how provider contracts are managed and will authorize all expenditures of public resources. The LME will develop a competitive range of services available to the choice of the client. When services cannot be practically mounted without an exclusive contract,the LME assures a fair,competitive process for the selection of a vendor. Finally,our intention is to implement a system of performance based contracting that will tie financial rewards to favorable outcomes. This will be accomplished initially through the selection of critical indicators and the specification of financial incentives for the attainment of critical outcomes.This activity will not replace the use of any DMH developed outcome instruments nor the ongoing development of our local system of Utilization Management.This system will gather extensive data related to client outcome measures and resource costs. Profiles of individual and team providers will be developed in order to compare providers to their peers on a local,regional and(when available) national level. This proactive,broad-based approach will allow the LME to create a learning environment within the network which will shape more effective service strategies.The LME will devote its time and energy toward examining trends with the larger client population while clinicians and providers are empowered to work with people on an individual level.A more comprehensive system of performance contracting using more sophisticated outcomes instruments and standards will be developed over time and will replace the initial few indicators used in performance contracting. V. THE ROLE OF CONSUMER&FAMIL Y AD VISOR Y COMMITTEE(CFAQ As an Area Program,we have a twenty-year history of consumer involvement in an advisory and decision making capacity that goes far beyond state mandated requirements. Consumers have consistently played an active role in a variety of areas including membership on the Client Rights Committee and the Area Board. In keeping with this long standing practice,we look forward to a productive working relationship with our Consumer Family Advisory Committee. The Committee's duties and responsibilities shall be consistent with the principles of the State Plan. These include,but are not limited to: • advising and commenting on the LME's local business plan and planning effort • reviewing and submitting a separate report to the Division on the LME's local business plan and planning effort • providing recommendations on areas of service eligibility and service array,including identifying gaps in services • assisting in the identification of under-served populations • providing advice and consultation regarding the development of additional services and new models of service Gwen Harvey- I. Planning - Rev Ocf.doc Page 8 • monitoring service development and delivery • reviewing and commenting on state and local service budgets • observing and reporting on the implementation of state and local business plans • participating in all quality improvement activities,including tracking and reporting on outcome measures and performance indicators • ensuring consumer and family participation in all quality improvement projects at both the provider and LME levels In addition,CFAC will have representation on various LME committees.This will allow for the participation in policy development,consumer survey development and outcome system design and analysis. CFAC will also help gather and provide ongoing needs assessment service evaluation data. Finally,they will be responsible for assisting in the identification of training needs and for providing relevant training to LME staff. VI SPECIAL PROJECTS The Area Program is involved in a variety of special projects that we intend to continue as a Local Management Entity. It is our feeling that these ventures represent important collaborative efforts that will ultimately promote positive outcomes and best practices. These programs will be administered through the Collaboration and Advocacy Unit of the LME. Examples of some of these projects are described below: Clinical Trials Network The Area Program has been a participant since the Fall of 2000 in the North Carolina node of the National Institute on Drug Abuse(NIDA)Clinical Trials Network. The Network was established by the National Institute on Drug Abuse to test and disseminate innovative approaches to treating substance abuse in the community. The Regional Research and Training Center for the Network is the Duke Clinical Research Institute. OPC is one of four Area Programs participating. The LME is committed to continuing this participation,enabling clinical trials to be implemented within its service system and provider network,thereby enhancing the quality of its substance abuse treatment practices and furthering the development of treatment nationwide. Project Odyssey The Developmental Disabilities Department of OPC Area Program is in the third year of participation in the NC Self-Determination Demonstration Project. OPC was selected to receive one of the four grants in North Carolina to implement the principles and practices of Self-Determination for persons with developmental disabilities.These principles require that individuals with developmental disabilities be given control over how public funds for DD services and supports are spent. The pilot projects have worked to change the service system to put people with disabilities and their families in charge of their own lives. Our goal has been to provide the person with a disability the responsibility of deciding what services are needed and direct their own service purchases using public Gwen Harvey- I. Planning - Rev Oct.doc Page 9 i monies. The project has made funds available to hire "support brokers"who are accountable to the participant with developmental disabilities. The support broker assists in planning and coordinating the needed services as identified in the person-centered plan and individual budget. System of Care Grant In 1999,OPC received a federal System of Care Grant to develop community-based services for children with serious emotional disturbance and their families. Child and Family Teams and interagency collaboration are core components of the system of care approach.The existing Orange and Chatham Community Collaborative and a Person Community Collaborative serve as the local management structure for the System of Care project. Involved with OPC in this Collaborative are parents of children with serious emotional disturbance,Family Advocates,Department of Social Service staff,Juvenile Justice,local schools,Guardian ad Litem,community agencies(including. Chatham Together and the Mental Health Association)and interested community members. The Collaborative has many responsibilities including budget oversight for the grant, identifying and coordinating services and resources across child serving agencies, identifying training needs and exploring resource development opportunities. In 2001,the System of Care project for OPC initiated a resource project involving community partners, families and private foundations to explore the pooling of public funds and acquisition of private funds in order to expand the continuum of services for children with serious emotional disturbance. Deaf Services In FY 2000 the OPC Area Program was approached by the State Division of MH/DD/SAS,Adult Mental Health Section,with a request to consider taking on the coordination and delivery of services to the deaf and hard of hearing for part of the North Central Region. The Area Program agreed to this request and at the end of that fiscal year hired two coordinators, one for Adult Services and one for Child and Youth Services. These positions serve the OPC catchment area with direct therapy and case management services. They also provide consultative services and limited direct service to Durham, Alamance,Caswell,Vance,Granville, Franklin,Warren,Rockingham and Randolph counties. In addition to individual client services,the Coordinators work collaboratively with the area programs and other service and community providers to access resource/service needs and develop therapeutic,vocational,recreational,and social services for the deaf and hard of hearing throughout the area. They also serve as advocates and educators in obtaining and enhancing access to services and improving the quality of a range of services. They do outreach case finding,coordinate specialized services, including interpreter services and provide linkage to the State Coordinator for Deaf Services. A consequence of the establishment of these coordinator positions has been a dramatic increase in the accessing of these specialized services,as consumers needing them have Gwen Harvey- I. Planning - Rev Oct.doc Page 10 been identified. From an initial 5,the caseload has grown to nearly 50. Continuation of these functions will be assured by the Regional Coordinator positions,as employees of the LME. Due to the special access needs of deaf and hard of hearing consumers,the Regional Coordinators will work closely with the Triage,Assessment and Crisis unit and Case Management unit of the LME.The coordinators will provide access, crisis,case management and special therapy functions where possible and will assist the unit staff when they are providing service directly to consumers. The LME will also establish contracts with other LME's in the region. This will ensure Medicaid reimbursement for services provided by the Regional Coordinators to consumers who reside in other catchment areas. VII.DIVESTITURE AND TRANSITIONISSUES A transition plan and checklist will be developed to help LME staff to identify current consumers who do not meet the target population eligibility requirements. Appropriate community resources will be identified and LME staff will provide individuals with the necessary information and referrals. LME staff will work to ensure individuals are transitioned in a thoughtful and appropriate manner. Community resource information will be compiled into a list that will be available to all staff and will also be made available on the LME website. This list will be updated on a regular basis and will include contact information for accessing: health services, financial support,self-help and advocacy services,faith-based services,homeless support services, Alcoholics Anonymous support,and all other appropriate resources. The LME will divest from its current role as service provider gradually over the course of the next three years. Programs that spin off from the OPC system will be supported as much as possible during this transition. We are currently examining specific ways of helping these new agencies create the necessary infrastructure they will need to succeed, while ensuring the integrity of free access to a diverse qualified provider network. We will be exploring additional divesting options that may include contracting out current services,transferring current functions to existing agencies or assisting in the creation of new entities. A detailed divesture plan is being written and will be completed during the first quarter of fiscal year 2004. Gwen Harvey- I. Planning -'Rev Oct.doc Page 11 LOCAL MANAGEMENT ENTITY THREE YEAR IMPLEMENTATION PLAN Goal One— The Service Delivery System: The LME will work to maximize client choice and accessibility while maintaining service integrity during the j building and implementation of the Core Service System and the Qualified i Provider Network �bect ,e A�tiitte lroecec�3 Re�flrllble \ % Ciaplr+ n Pa Core Services: • Finalize core service First Quarter Management Analysis of the current structure and FY 2004 Team service structure is content complete and the • Continue to analyze design and initial service delivery implementation of the data. new core service units • Finalize Target population is underway. Eligibility system. • Develop implementation plan with process and dates Core Services: • Ensure TAC,Case First Quarter Management The implementation of Management and FY 2005 Team the first phase of core Collaboration and services is complete Advocacy Unit are and all essential fully functional functions are in place • Begin to gather relevant baseline data. • Modify new system s needed. Gwen Harvey- I. Planning - Rev Oct.doc Page 12 Qualified Provider • Finish review of First Quarter Management Network: stakeholder and FY 2004 Team The analysis of current SWOT data provider network is • Evaluate needs complete. assessment data and make recommendations regarding any service gaps • Finalize decisions regarding which services to spin off and add to QPN. Qualified Provider • Ongoing meetings w tH'hird Quarter QPN Unit Network: potential QPN FY 2004 The initial Qualified members are Provider Network is in underway place. • Publish RFPs for unmet service needs. • Continue to build comprehensive service network. Qualified Provider • Outcome and other Third Quarter QPN Unit,QI Network: performance based FY 2004 Unit,UM Unit QPN related data is contracting data is being gathered, being gathered. analyzed and shared • Client's Rights, with providers in a incident review and meaningful way. other Q1 information is integrated into the new QPN system • Feedbackloops between the LME and the QPN are developed and modified as needed. Goal Two— The Administrative System: Develop an accountable, flexible and efficient organization designed to provide all the necessary supports required by the service system. i Gwen Harvey- I. Planning - Rev Oct.doc Page 13 bcl s Atvit>es, 'ro�ecte spdriie. ate .,. The LME Governing • Compile necessary First Quarter County Board the LME qualifications and FY 2004 Commissioners, Advisory Board is in conduct member Management place. search if necessary. Team Implementation of by- • Research various First Quarter Management laws and permanent options. FY 2004 Team, committee structure of • Create by-laws CFAC Chair CFAC is established. • Finalize committee LME Staff structure Liaison Continue to identify • Consolidation optionsFirst Quarter Management contract options for are considered and FY 2004 Team cost sharing. negotiated. • Consortiums are developed Merger or • Complete any First Quarter Management Consolidations necessary FY 2005 Team decisions are finalized. negotiations make final decisions. Information • Install Profiler syste First Quarter Management technology • Implement decision FY 2005 Team, infrastructure has been support tools. Information developed and • Continue report Systems Unit implemented development process An LME Financial • Continue to monit First Quarter Finance Unit, Management Plan is in and evaluate FY 2004 Management place. internal controls Team and audit trails. • Ensure compliance with all state and federal requirements. Goal Three—Pilot and Special Projects: Use the LME model to build upon the Area Program's long history as a proven leader in the development and implementation of pilot programs that demonstrate principles of best practice. Gwen Harvey- I. Planning - Rev Oct.doc Page 14 F_ I e ct��V e Pr�� eted,, Respo�n ibt� my n - Conpltion, Pe . c' Tate 3 Pilot a Service • Gain authorization Third Quarter Utilization Authorization System from the Division FY 2004 Management that will measure to implement pilot Unit client outcomes and program. reward providers who • Gather and finalize demonstrate positive baseline data • Determine outcome results. indicators to be measured. • Work with QPN Uni , MIS,QI and Contract Providers to ensure system runs smoothly. • Create and modify reports as necessary. The Implementation of • Gain authorization First Quarter Management performance based from the Division FY 2005 Team,Utilization contracting pilot will to implement pilot Management begin program. Unit,QPN Unit • Negotiate and finaliz performance criteria with QPN • Negotiate and finaliz reward criteria and feedback loops with QPN • See service authorization activities above At-risk capitation • Gain authorization First Quarter Management management pilot from the Division FY 2005 Team program is fully to implement pilot implemented. program. • Design reports or an additional requirements the Division deems necessary to accurately monitor pilot program. Gwen Harvey- I. Planning - Rev Oct.doc Page 15 I Goal Four — Transition and Divestiture Issues: Ensure that all clients are supported in a thoughtful manner during this time of significant change and that important programs are transitioned in a manner that maximizes their chance for success in the private sector. ®b� ve Act"iiv it�es Pr �eC>kes� 2espcusathle �c�ng eh I"artates ., dal e ,.,, A detailed Divestiture • Develop criteria that First Quarter Management Plan is completed. will determine FY 2004 Team which programs to divest • Determine specific timetable for divestiture. • Create support system to maximize opportunity for divested program success. A detailed transition • Develop First Quarter Management plan is complete. comprehensive FY 2004 Team transition checklist. • Complete list of appropriate community resources. • Train staff in appropriate identification and transition of individuals who do not meet target population criteria. • Ensure a thoughtful transition process that will match all non-target clients with community programs of their choice. Internal to external • Continue First Quarter Management service provision ratio Implementation of FY 2005 Team will be 40%:60% Divestiture Plan Gwen Harvey- I. Planning - Rev Oct.doc Page 16 Internal to external • Continue First Quarter Management service provision ratio implementation of FY 2006 Team will be 20%:80% Divestiture Plan There is 100% • Complete First Quarter Management divestiture of services implementation of FY 2007 Team Divestiture Plan RESOLUTION OF THE BOARD OF COMMISSIONERS OF ORANGE COUNTY,NORTH CAROLINA WHEREAS,N.C.G.S. §122C-115(a) requires each county in North Carolina to provide mental health,developmental disability and substance abuse services either through an area authority or a county program established pursuant to N.C.G.S. §122C-115.1;and WHEREAS, N.C.G.S. §122C-115.1 authorizes counties to enter into multi-county programs created through inter- local agreements pursuant to N.C.G.S. §160A-460,et seq.;and WHEREAS, N.C.G.S. §122C-115.2 allows the Board of County Commissioners or two or more Boards of County Commissioners jointly to establish an area authority with approval of the Secretary of the Department of Health and Human Services;and WHEREAS, the Boards of Commissioners of Orange County, Person County and Chatham County intend to form a three county public entity to serve as the local management entity("LME")for Orange,Person and Chatham counties;and WHEREAS, by January,2003, Orange County,Person County and Chatham County,through a mutually agreed upon entity, either an area authority or county program, will provide as a joint effort of the three counties, for the development, review and approval of a business plan for the management and delivery of mental health, developmental disabilities and substance abuse services with detailed information on how the area authority or county program will meet State standards,laws and rules ensuring quality mental health, development disability and substance abuse services, including outcome measures for evaluating program effectiveness. NOW, THEREFORE,the Board of Commissioners of Orange County by adopting this resolution establish its intent to form a three-county public entity to serve as the local management entity for the provision of mental health, developmental disability and substance abuse services in Orange, Person and Chatham Counties and, upon the formation of the three-county public entity,the three-county public entity will submit a local business plan in January,2003 as a joint effort of Orange,Person and Chatham Counties. This resolution having submitted to a vote, received the following vote and was duly adopted by Orange County this day of ,2002. Ayes 7 /Y ou/•�- l 9 � 0 ��lO h� ! Noes A .0 � � i^`yyyyyy1 4 jl iJ Triangle J Executive Committee Agenda — October 23, 2002 Agenda Item: Special Presentation Early Action Compacts A Presentation from the N C Division of Air Quality: Sheila Holman Background: At the Board of Delegates regular meeting of September 25, 2002 the board received information regarding the possibility that "Early Action Compacts" may become a strategy employed by the State of North Carolina in addressing air quality attainment standards related to transportation. In essence, the state is considering whether or not North Carolina should pursue the same strategy as being utilized in Texaag in order to effect more time and flexibility regarding attainment. Sheila Holman of the Division of Air Quality, and John Tippett of the Western Piedmont Council of Governments, presented reports on this topic to the Joint Region Forum at its October meeting. Attached to these agenda comments, for your information, are copies of the power point bullets from these presentations that include, among other items, particulars on the issue of compacts as of early October. As of the date of the preparation of these agenda comments, the state had not yet decided �- upon the use of early action compacts in North Carolina. Owing to the potential importance of such an action, and the short time line within which to act, this time on the agenda has been reserved to hear directly from Ms. Holman on the this topic and the state's current plans regarding compacts. Recommendations): It is recommended that the Executive Committee receive Ms. Holman for purposes of hearing a report on "Early Action Compacts." It is further recommended that the Executive Committee be prepared to consider any actions deemed appropriate in follow up to this report. It is understood that any action on compacts must be accomplished on or before the end of the calendar year. Staff Responsible for Technical Support: Anne Tazewell. t Protocol for Early Action Compacts Designed to Achieve and Maintain the 8-Hour Ozone Standard Purpose of the Compact Early voluntary 8-hour air quality plans can be developed through a Compact between Local, State and the Environmental Protection Agency (EPA) officials for areas that are in attainment (including no monitored violations) of the 1-hour ozone standard but approach or monitor exceedances of the 8-hour standard. These early action plans will include all necessary elements of a comprehensive air quality plan, but will be tailored to local needs and driven by local decisions. The Early Action Compact is designed to develop and implement control strategies, account for growth, and achieve and maintain the 8-bour ozone standard. This approach will offer a more expeditious time line for achieving emission reductions than the EPA's expected 8- hour implementation rulemaking, while providing "fail-safe" provisions for the area to revert to the traditional State Implementation Plan (SIP) process if specific milestones are not met. The principles of the tri-party Early Action Compact to be executed by Local, State and the EPA officials are: • Early planning, implementation, and emission reductions leading to expeditious and early attainment and maintenance of the 8-hour ozone standard; • Local control of the measures to be employed, with broad based public input; • State support to ensure technical integrity of the early action plan; • Formal incorporation of the early action plan into the SIP; • Deferral of the effective date of nonattainment designation and related requirements so long as all Compact terms and milestones are met; and • Safeguards to return areas to traditional SIP requirements should Compact terms and/or milestones be unfulfilled, with appropriate credit given for emission reduction measures implemented. Compact Requirements The Compact will address the following components: A. Milestones and Rewrting o In order to facilitate self-evaluation and communication with the EPA, the State and stakeholders, the Early Action Compact must include clearly measurable milestones for the development and implementation of the plan. Local areas will assess and report their progress against milestones in a regular, public process, at least every six months. Milestones will include, at a minimum: - Completion of emissions inventories and modeling; - Adoption of control strategies that demonstrate attainment; - Completion and adoption of the early action SIP revision; - Attainment not later than December 31, 2007; - Post-attainment demonstration and plan updates as outlined in Section E; o In the absence of achieving milestones, including attaining the 8-hour ozone standard on or before December 31, 2007, the area will be deemed in violation of the Compact and will be subject to the full planning requirements under applicable Clean Air Act (CAA) standard SIP processes including requirements defined as part of the EPA's 8-hour implementation rulemaking. Such an area will be subject to the same requirements and deadlines which would have been effective under the CAA and the EPA's 8-hour designation rulemaking had it not participated in this program, with no preferential delays or exemptions from the EPA. However,the area will receive appropriate credit in the standard SIP process for all emission reductions from measures implemented in this program. o if the area has had a nonattainment designation deferred and the area does not reach attainment of the standard by December 31, 2007, then the nonattainment designation will be effective immediately. If the EPA's implementation schedule also requires SIP's from areas on or before December 31, 2007,then a SIP revision demonstrating attainment by the new attainment date will be due for the nonattainment area no later than December 31,2008.The EPA will offer areas no extensions or delays of the applicable attainment date. B. Emissions Inventory o Modeling emissions inventories using the most current tools available will be completed for four recent episodes in order to support the early action plan. Emission inventories must include: - Recent episode reflective of a typical ozone season exceedance that meets the EPA episode selection guidance to ensure that representative meteorological regimes are considered; - MOBiILE6 data with link based Travel Demand Model (TDM) mobile data in urban areas; - NONROAD model data adjusted for local equipment populations and usage rates where information is readily available; Area source database when possible on local survey data. o A current inventory of 2000 or 2001 will also be developed over time to proceed with the development of the attainment test as described in EPA's draft guidance document. o Emission inventories will be compared and analyzed for trends in emission sources over time.This will improve an area's understanding of the trends in emissions in their community and will aid in verification of the accuracy of the inventories. C. Modeling o Emission inventories will be used to develop SIP quality modeling episodes that perform within the EPA's accepted margin of accuracy, including a base case and future case on or before December 31, 2007.Therefore, inventories must sufficiently account for projected future growth in ozone precursor emissions, particularly from stationary, non-road, and on-road mobile sources. o The State must carefully document modeling approach, and work will be supported and reviewed by the local area and concurrently reviewed by the EPA. o Quantifiable emission reduction measures will be integrated into the future case to produce one or more control cases. These control cases will be used to indicate the relative effectiveness of different measures and aid in selecting appropriate measures. • Prior to plan implementation the control strategies should be determined based on model results from a control case episode that shows achievement of the 8-hour ozone standard on or before December 31, 2007 through implementation of the control strategies. • The State will continue to develop other episodes as necessary to fully represent the variety of situations that typically contribute to ozone production in the area and to support the plan with the most current information and tools. Other episodes may also indicate necessary revisions to ensure that sufficient emission reduction measures are selected and implemented to continue to achieve target ozone concentration levels. D. Control Strategies • After all adopted Federal and State controls that have been or will be implemented by the attainment date of December 31, 2007, are accounted for in the modeling, the local area will identify additional local controls, as necessary, to demonstrate attainment of the 8-hour standard on or before December 31, 2007. These local controls will be specific, quantified, permanent and enforceable control strategies. All controls will include specific implementation dates, as well as detailed documentation and reporting processes. • Controls will be implemented as soon as practicable, but not later than December 31, 2005. • Controls will be designed and implemented by the community with full stakeholder participation. • All control measures will be incorporated by the state into the State Implementation Plan and submitted to the EPA for review and approval. In the event that areas wish to add or substitute measures after SIP submittal, plan modifications will be treated as SIP revisions and facilitated by the state. E. Maintenance for Growth • The plan must include a component to address emissions growth at least 5 years beyond December 31, 2007, ensuring that the area will remain in attainment of the 8- hour standard during that period. This future attainment maintenance analysis may employ one or more of the following or any other appropriate techniques necessary to make such a demonstration: - Modeling analysis showing ozone levels below the 8-hour standard in 2012; - An annual review of growth (especially mobile and stationary source) to ensure control measures and growth assumptions are adequate; - Identification and quantification of federal, state, and/or local measures indicating sufficient reductions to offset growth estimates. • The plan must also detail a continuing planning process that includes modeling updates and modeling assumption verification (particularly growth assumptions). Modeling updates and planning processes must consider and evaluate: - all relevant actual new point sources; - impacts from potential new source growth; and - future transportation patterns and their impact on air quality in a manner that is consistent with the most current adopted Long Term Transportation Plan and most current trend and projections of local motor vehicle emissions. • If the review of growth demonstrates that adopted control measures are inadequate to address growth in emissions, additional measures will be added to the plan. Local planning processes should prepare for this possibility. F. Public Involvement • Public involvement will be conducted in all stages of the planning and implementation process. • Public education programs will be used to raise awareness regarding issues, opportunities for involvement in the planning process, implementation of control strategies, and any other issues important to the area. 1 o Interested stakeholders will be involved in the planning process as early as possible. Planning meetings will be open to the public, with posted meeting times and locations. Plan drafts will be publicly available, and the drafting process will have sufficient opportunities for comment from all interested stakeholders. • Public comment on the proposed final plan will follow the normal SIP revision process as implemented by the State. • Semi-annual reports detailing, at a minimum, progress toward milestones, will be publicly presented and publicly available. Early Action Compact Requirements Local, State and the EPA Commitments Local Areas Local areas hold primary responsibility for the development and implementation of the local control measures, as well as for maintaining communication with all parties, including: • Participate with State in drawing up the Compact, which embodies the requirements described in Sections A-F, including a time line for milestones. • Completing and signing by all parties of the Early Action Compact no later than December 31, 2002. • Completing and adopting the local measures of the early action plan so that these can be included as part of the SIP no later than December 31, 2004. • Notifying parties as soon as possible of issues and developments, which may impact performance and progress toward milestones. • _ Notifying parties as soon as possible if Compact milestones will be missed or have been missed. • Notifying parties as soon as possible if Compact modification/termination is to be requested. State The state will assist in the drafting of the Early Action Compact and will provide support to areas throughout the planning and implementation process, including: • Development of emission inventories, modeling process, trend analysis and quantification and comparison of control measures; • Necessary information on all Federal and State adopted emission reduction measures which affect the area; • Technical and strategic assistance, as appropriate, in the selection and implementation of control strategies; • Technical and planning assistance in developing and implementing processes to address the impact of emissions growth beyond the attainment date; • Maintenance of monitors and reporting and analysis of monitoring data; • Support for public education efforts; • Coordinate communication between local areas and the EPA to facilitate continuing the EPA review of local work; • Expeditious review of the locally developed plan, and if deemed adequate, propose modification of the SIP to adopt the early action plan; • Adoption of control measures into the SIP as expeditiously as possible. The final complete SIP revision must be completed, adopted, and submitted by the state to the EPA by 2004. EPA The EPA will recognize the local area's and State's commitment to voluntarily adopt an early, substantive, enforceable and scientifically-based attainment plan with early implementation of control measures by becoming a party to the Early Action Compact developed in conformance with this protocol. The EPA will provide technical assistance to the state and local area in the- development of the early action plan. • The EPA will move quickly to review and.approve completed plans by no later than nine months after submission of the SIP revision by the state. When the EPA's 8-hour implementation guidelines call for designations, the EPA will defer the effective date of nonattainment designation and related requirements for participating areas that fail to meet the 8-hour ozone standard as long as all terms and milestones of the compact are being met,including submission of the early action SIP revision by 2004. • Provided that the monitors in the area reflect attainment by December 31,2007, the EPA will move expeditiously to designate the area as attainment and impose no additional requirements. • If at any time the area does not meet all the terms of this Compact, including meeting agreed-upon milestones,then it will forfeit its participation and be designated (or re- designated if necessary)according to the EPA's 8-hour ozone implementation guidelines.The EPA will offer such an area no delays,exemptions or other favorable treatment because of its previous participation in this program. • If the area violates the standard as of December 31, 2007, and the area has had a nonattainment designation deferred,the area will be designated nonattainment.The state will then subunit a revised attainment demonstration SIP revision according to the CAA and the EPA's 8-hour implementation rule,unless the 8-bour implementation schedule requires SIP's from 8-hour nonattainment areas before December 31,2008.In that event, a revised attainment demonstration SIP revision for the participating area will be due as soon as possible but no later than December 31, 2008.In no event will the EPA extend the attainment date for the area beyond that required by the CAA and/or the EPA's 8-hour implementation rule. • No area will be allowed to renew their Early Action Compact after December 31, 2007,or initiate a new compact if it has previously forfeited its participation. Early Action Compact Process Oct-Nov 2002 Conduct Initial Meetings with Local Agencies and the Public Nov-Dec 2002 Work With Local Agencies and EPA on MOA, Commitments, Schedule Dec 31, 2002 Submit Signed MOA's June 30,2003 Progress Report Due Jan-Aug, 2003 Identify Measures,Conduct Modeling to Assess Benefits of Measures Sept 2003 Select Measures,Begin Rule Adoption Process at Local and State Levels Dec 31,2003 Progress Report Due June 30,2004 Progress Report Due Dec 31, 2004 State Submits State Implementation Plan'to EPA for Approval Dec 31, 2004 Progress Report Due June 30,2005 Progress Report Due Dec 31,2005 Progress Report Due Dec 31,2005 All Measures Implemented Before Start of 2005 Ozone Season June 30,2006 Progress Report Due Dec 31,2006 Progress Report Due June 30,2007 Progress Report Due Dec 31,2007 Progress Report Due Dec 31, 2007 Evaluation of Whether Area Has Met 8- Hour Ozone Standard Dec 31,2007 Designation Effective if Area Fails to Attain Early Action Compact Process Oct-Nov 2002 Conduct Initial Meetings with Local Agencies and the Public Nov-Dec 2002 Work With Local Agencies and EPA on MOA,Commitments, Schedule Dec 31, 2002 Submit Signed MOA's June 30,2003 Progress Report Due Jan-Aug,2003 Identify Measures,Conduct Modeling to Assess Benefits of Measures Sept 2003 Select Measures,Begin Rule Adoption Process at Local and State Levels Dec 31,2003 Progress Report Due June 30,2004 Progress Report Due Dec 31,2004 State Submits State Implementation Plan'to EPA for Approval Dec 31,2004 Progress Report Due June 30,2005 Progress Report Due Dec 31,2005 Progress Report Due Dec 31,2005 All Measures Implemented Before Start of 2005 Ozone Season June 30,2006 Progress Report Due Dec 31, 2006 Progress Report Due June 30,2007 Progress Report Due Dec 31,2007 Progress Report Due Dec 31,2007 Evaluation of Whether Area Has Met 8- Hour Ozone Standard Dec 31,2007 Designation Effective if Area Fails to Attain