Agenda - 11-18-2014 - 6a - Laserfiche WebLink

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13 1 Craig Benedict said presently this is in the application and study stage. He said staff 2 has decided it is important to be at the table as part of the partnership to make sure the growth 3 areas of Orange County and its municipalities are spoken for. 4 He said the next phase is to decide how to accomplish this if the applications go 5 through. He said the Board has developed inter -local utility agreements with Mebane and 6 Durham, and these will be looked at again. He said one of these needs to be established with 7 the Town of Hillsborough. 8 Commissioner Gordon asked if Hillsborough stopped paying for their allocation. 9 Kevin Lindley said he is not sure if Hillsborough had an allocation in the past, but they 10 are applying for a 1 million gallon per day allocation in this round. 11 Commissioner Gordon said it is her recollection that Hillsborough had an allocation in 12 the past and then stopped paying for it. 13 Chair Jacobs said this is his recollection. He said Orange County has been paying for 14 years for getting an allocation, and Hillsborough stopped and is now eligible for another 15 allotment. He said it seems to him that the money the County has paid should be applied by 16 the state toward the County's ability to get additional allocation. 17 Commissioner Gordon said it is not clear that you actually get an allocation at level two. 18 She asked for clarification on how this works. She said it does not look like the 1.5 million will 19 meet the needs out to 2060. She asked if there will be any consideration of the fact that the 20 County has paid in the past. 21 Craig Benedict said staff has looked at all of their available land and have come up with 22 ample projections for water needs in the economic development zones. He said they believe 23 that the 1.5m total will be enough for Hillsborough and the Eno. He said the city of Mebane 24 has millions of gallons of existing infrastructure and treatment capacity to serve that 2,000 acre 25 area that is part of the inter -local agreement. 26 He said there is a prioritization given those paying level one. 27 Kevin Lindley said if you convert a level two to a level one, you pay $90,000 in 28 capitalization cost, and then annual payments remain the same. He said you have to convert 29 from a level two to a level one. 30 Commissioner asked if you have to use the water within a certain time frame if you 31 convert to a level one. 32 Craig Benedict said yes. He said prioritization is given to level one, but there is a 33 reserve for level two applicants within the application program. 34 Kevin Lindley said everyone has projected all of their demand through 2045, and some 35 of this will be level two, and some will be level one. He said the regional plan shows that all of 36 these demands can be met if the plans stay the same. 37 Kevin Lindley said there will be future rounds to allocate the remainder of the lake. He 38 said this application justifies why the County is asking for addition allocation when they have not 39 used their current allocation for 20 years. 40 Commissioner Pelissier said during the drought years ago she recalled a discussion 41 about the state not allocating all of the water. She asked if there has been any further 42 discussion of this. She thought the allocations were based on good years. 43 Kevin Lindley said there have been recent models that show that the demands can be 44 met without exhausting Jordan Lakes supply in the 30 year time period. 45 Craig Benedict said the reason the study plan has gone on for 5 years is because there 46 was uncertainty about the water level in the lake based on droughts that have occurred. He 47 said additional analysis has been done over the last 10 years, which has delayed the 48 application process. 49 Commissioner Pelissier referred to attachment A and asked about a service area in the 50 northern part of the map.