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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 awn and operate Graham Mebane Lake and Water Treatment Plant. Mebane's interest in that is a 113 ownership, Graham's is 213. They have been married since 1974. I 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 da anticipate continued growth in that corridor along I-8511-40. 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 far 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 cast 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 da ar the residents in same of these areas would like to do, but as you know, as you grow in population, annexation gets a little more restricted. So same 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 cast of someone to get it there -property owners, cast 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- 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 casts when you annex an area 100%. I think it is probably about half and half if you