Agenda - 01-20-2011 - 7b - Laserfiche WebLink

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Attachment 2 Request to Clarify Certain Language in the WSMPBA December 9, 2010 Page 2 natural or manmade disaster, or other unforeseen circumstance. Purchasing water also reduces (unbudgeted) revenue losses that result from a declared Water Shortage and would have to be recovered through subsequent rate increases; avoids higher customer bills from surcharges imposed during a declared Water Shortage; and lessens the hardship and inconvenience to customers who have already reduced their water use through diligent and ongoing conservation efforts; and 2. Providing additional flexibility and redundancy in the event of critical facility failure, extreme weather, or other unforeseen/ emergency circumstances. The Long-Range Water Supply Plan also recommends that OWASA work cooperatively with the local elected boards to amend the 2001 Water and Sewer Management, Planning, and Boundary Agreement -only as needed - to resolve any unnecessary constraints on access to our Jordan Lake allocation and to ensure a reliable and sustainable water supply for the future. In its present form, we believe the WSMPBA may be construed as impeding OWASA's access to Jordan Lake by its broad prohibition of all cross jurisdictional water transfers except in times of emergency. In fact, our Long-Range Water Supply Plan identifies OWASA's Jordan Lake water supply allocation as an important insurance policy for times of special need, but some of those circumstances may not qualify as "emergencies" under current language of the WSMPBA. The purpose of the proposed clarifying language is to avoid any future misunderstandings or disagreements that might impede the timely access to our Jordan Lake allocation, and to provide greater certainty for OWASA's water supply planning and management efforts. We recommend that the WSMPBA be clarified with the addition of the following language as anew Subsection 3 to Section VILA (Emergency Water Transfers), and that this language also be added to the existing text of Section VII.B (Non-Emergency Water Transfers): "These provisions do not apply to the treatment of and transfer of water available through OWASA's Jordan Lake water supply storage allocation for use by OWASA customers. Nothing herein shall be construed to prevent OWASA from entering into agreements as necessary to provide for water transfers to afford OWASA access to its Jordan Lake allocation. " Because any change to the WSMPBA requires approval by all signatory parties, we respectfully request that you support the proposed clarifying language. We have experienced the two worst droughts on record since the WSMPBA was first adopted in 2001; and also since that time, the necessary infrastructure has been put in place to treat and deliver water to OWASA customers from our Jordan Lake allocation via Cary and Durham. Full access to that allocation will further reduce our community's risk to water supply shortages, and that access is vital to OWASA's overall mission. 8