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2~~ Hillsborough have adopted a waterline agreement to address the extension of a waterline along U.S. Highway 70 between the two communities. The agreement permits connections along its entire length. The current Land Use Plan has a recommended goal or policy that no connections would be permitted within the ~-~ areas that are designated Rural Residential. On July 14, the Orange county ~ ' Planning Board considered the proposed agreement and made several ; recommendations. They requested that the two parties be contacted to seek revisions to the agreement which would permit connections only in designated 10 and 20-year transition areas in accordance with the Land Use Plan or in situations where emergency services are needed. The second recommendation was that Orange County contact the City of Durham for the purpose of seeking revisions to ids Urban Growth Boundary which are consistent with the 10 and 20 year Transition Areas of the Orange county Land Use Plan. The third recommendation had to do with Section ll being revised to clearly define the limits for the transmission of water. from Hillsborough to Durham and that such limits be based in part on the limits for withdrawals from the Eno River. The Planning Board asked that if these recommendations could not be secured that several policies be approved at this time. These are listed below in the motion. Meetings have been held with the City of Durham and Hillsborough and they agreed to revise the agreement to be consistent with the Orange County Land Use Plan. On July 27, the Durham City Council addressed the County's concerns in the revised agreement which indicates that the City "will allow new development only in conformance with the adopted land use plan of Orange County". When the Town of Hillsborough acted on the agreement on August 10, it did not include a similar provision within the agreement. Tn the revised agreement, capacity has been defined to mean "the capacity of the Town of Hillsborough to supply water to the City of Durham from the Eno River in light of any applicable restrictions in effect at that time. These restrictions refer the withdrawal ordinances that the County or ~` the City may have adopted. Since the Hillsborough Town Council has chosen not to recognize the County's Land Use Plan, the staff is recommending that the two policy recommendations of the Planning Board be approved by the Board of Commissioners. Commissioner Hartwell asked that the phrase "established district" be clarified and Collins indicated that "established district" means the same as 10 and 20-year transition areas and the Land Use Plan recognizes that transition areas are Either consistent or to be consistent with water and sewer services. Motion was made by Chair Marshall, seconded by Commissioner Carey to approve the Planning Board recommendation to adopt the following two policies: (1) That Orange County immediately establish as a matter of policy that it will not approve any development project to be supplied with water and/or sewer unless located in a water/sewer service district incorporated into the Land Use Plan and appropriate ordinances, following public hearing and citizen comment. (2) That, except in emergency situations, Orange County neither fund nor support extensions of public or private water/sewer services outside service areas adopted as part of the Land Use _ Plan. Furthermore, where county funds are used, in whole or ~ . in part, to finance extensions of such services, it shall retain some authority to determine the disposition of utility services provided. VOTE: UNANIMOUS.