Agenda - 08-31-1999 - 1 - Laserfiche WebLink

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n~~yy 15:05 CHATHAM CIIUNTY MANAGERS OFFICE -~ 9196443064 Coasnlting Engneers MEMORANDUM TO: Chatham County FROM: Hobbs, Upchurch & Associates, P.A. N0.686 P002~004 290 S W. Broad Street Southern Pines, N. C. 283$7 (910) 692-5616 DATE: July 21,1999 RE: Letter from Orange Couttry requesting an update on water supply from Jordan Lake The following discpssion addreaQea issues raised in a July 15,19491etter front, the Orange County Manager to Mr. Charlie Home. a. Cheuha~ County's cttrnettt arrangement for obtaining Jordan Lake Waur throtegh the CaryJAprx intake jacilitiss. Currently, Chatham County has a water purchase contract with the Town of CarylApex that allows the County to purchase up to I.0 MGD of raw want averaged over a month period The contract terms indicate that Chatham County's purchase cannot exceed 1.0 MGD on a monthly average. TypicaAy, Chatham County experiences seasonal demand increases in the North Chatham System and additional eapaetty is required to meet the increased demand. The Iowa of Cary has provided some latitude for increacirig the County's allowable raw water purchase as outlined in the water purchase contract, This amount may increase in 100,000 gallon iacremerrts and must be requested in writing. Chatham County has requested increases several times over the last few years, however, Cary has declined to grant the County a perrnaneat increase. Cary has permitted the County to temporarily increase its withdrawal by several hundred thousand gallons a day with the stipulation that it can be reduced at any Gitne. b. The probltms and shortcomings of that arrangrrereea ones oa ersaessmerit ojthe Sterte's ability to e,~`ee:t a satisfactory solution to those probtitas. State and federal governtnent organizations charged with Jordan Lake regulation and oversight have worloed under the assumption that intakes on Jordan Lake will operate as regional facilities without any centralized support or incentives. Tlu Corps of Engineer's Jordan Lake master plan was designed assuming that there would be two regional intakes: The Jotdar- Lake allocation process was designed and has been implemented assuming that allocation holders would be able to access their allocation through regional facilities. Unforhmaoely, the existing regulatory framework does not include any assistance to local governments wishing to participate in a regional facility. The lack of any centralized oversight has resulted in a "first cots, fast served" system that favors large financially secure utilities at the expense of smaller less capital rich utilities. Cary/Apex's intake facility was initially promoted as a regional intake in which Chatham County would be a welcome participant, however, in the past few years, Cary. has expressed an increasing reluctance to partnering with Chatham County, especially on a long term permanent basis. The regulatory bodies and oversight bodies that promoted the intake as a