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sewer service. Therefore, the only way to serve this part of the EDD is to work with Mebane. He said that perhaps they could work mare with Orange Alamance in the future to serve more of this area. He said that they were not snubbing Orange Alamance, but it is not a feasible proposal at this point. Planning Director Craig Benedict said that the purpose of this item was to review and act on an interlocal agreement between the City of Mebane and Orange County. The Utility Service Agreement would be for the Buckhorn/1-85 Economic Development District. The purpose of this agreement is to service this entire area with water and sewer service. The agreement defines the service area, who constructs the facilities, ownership and maintenance of the facilities (responsibility of Mebane), and service standards. The facilities will be built to the utility standards within Mebane. The planning standards for this area will remain within the jurisdiction of Orange County. Commissioner Gordon asked about where the People for Progress live. Craig Benedict said that they live along Buckhorn Road, north and south of I-85/I-40. He pointed out these areas on a map. Geof Gledhill made reference to a clarification of the agreement. He said that the agreement covers the construction of the water main and sewer outfall lines and lift stations and does not include construction of the rest of the system that might come with the development of the EDD. Presumably, this would be done by the private developers who would come in. Applications would be made to the City of Mebane for water and sewer service. There are two changes in the blue document pertaining to the Utility Service Agreement with the City of Mebane. One of them relates to the financial issues. The County has not yet received the grant funds and has not appropriated any money for the sewer system. The change covers the fact so that there is no misunderstanding. The other change is a result of a telephone conversation between him and Mebane's Town Manager. He indicated that Mebane would be agreeable to allowing connections to the existing homes and churches in the Buckhorn Road area without charging the homes with connection or impact fees. He said that the Mebane Town Council has approved this agreement, and it was broad enough to allow for the Manager and the Attorney to work through the details. Chair Jacobs said that he would like staff to work on how to apply standards for the Rogers Road community to the People for Progress group so they can be clear with people about what their responsibility will be and what would be provided othenrvise. He would like this to be brought back to the Board before anything is conveyed to the citizens so that there is no confusion. Commissioner Brown asked Geof Gledhill how this system operates in terms of expanding the service area. Geof Gledhill pointed out where the agreement covers on a map. Commissioner Brown asked about annexation ability of Mebane and Geof Gledhill said that there is no practical limit on voluntary annexation. There is a limit to involuntary annexation, which Mebane says that they do not do as well as satellite annexations. Commissioner Brown asked how much of this system could be used for annexation or other expansion of Mebane into Orange County. Geof Gledhill deferred to County Engineer Paul Thames. Paul Thames said that right now Mebane's sewer capacity for this area is 225,000 gallons a day. His expectation is that reasonable development of the EDD will consume the entire capacity. They can upgrade their infrastructure and treatment plant to increase the capacity. Commissioner Brown asked if it was possible to extend further south on Buckhorn Road. Paul Thames said that, from a utility standpoint, anything is possible with enough money. Commissioner Brown verified that any extension across the road would require a pump station. She is concerned that people on the other side will wonder why they are not connected to the system. Paul Thames said that density was more of a concern for sewer lines than for cablevision. A budget price for a gravity sewer line is $100 a foot. It is very expensive to provide sewer for an area that is sparsely occupied. He said that it was unlikely that there would be expansion in that direction. Commissioner Brown asked Craig Benedict about the number of lots that will be allowed in this residential area that could be used to expand it because this area has limited future residential land use. Craig Benedict said that there is one primary existing residential area. There is a potential far these existing 25-30 homes to be connected to the system one day. Commissioner Brown said that it is very important to make it clear why the line is not being extended further because there will be calls as to why it is ending where it is. Chair Jacobs said that they brought up these issues in the discussions with Mebane recently and they thought that having some success together with Mebane will make it easier to work toward a more formalized agreement about land use processes.