Agenda - 08-30-2011 - 1a - Laserfiche WebLink

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4 $2,500. Funding for-these costs is included in the FY 2011-12 budget. The JLP is also likely to hjre a consultant for use by each interested partner to complete the necessary Jordan Lake allocation applications. NCDWR charges annual fees to hold an allocation of water supply from Jordan Lake. These fees vary depending on the size of the allocation, as well as whether or not the allocation is actively being utilized (Level 1 allocation) versus a future allocation (Level II) such as Orange County currently maintains. In 2010, NCDWR assessed an annual charge of $2,471.54 for possessing a Level II allocation of 1 MGD of Jordan Lake water. Funding for continuation of this amount was included in the FY 2011-12 budget, with the expectation that future increases would occur after this fiscal year. The allocation fees vary from year to year as a result of the enabling legislation, and in fact the current regulations contain a deadline of 2012 meaning the calculations used to determine the annual cost may change after next year. Future costs to maintain a .Level II allocation may rise, and will probably be at least $2,5001MGD annually. Level I allocation fees to maintain a 1 MGD allocation -are estimated to be approximately $45,000 annually. Finally, the future utilization of Jordan Lake water will require the development of a_substantial amount of new infrastructure in Orange County. While the details- of this infrastructure are currently unknown, it is certain that the installation of this infrastructure will- require- significant capital. Some of this infrastructure is included. within .the planned upgrades in the FY 2011-16 CIP. RECOMMENDATION(S): The Manager recommends that the Board discuss and consider the information presented and provide direction to staff concerning the future provision of potable water in Orange County and involvement in allocation requests and future projects and initiatives.