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Joint Use of Jordan Lake Water Supply September 7, 2007 Page 2 from Chatham County, Durham, and the NC Division of Water Resources. UNC Institute of Government and Triangle J Council of Governments staff helped. facilitate those discussions, which included the possibility of establishing a Jordan Lake water authority as the lead agency for developing additional water supply facilities. Neither the discussions nor the proposal to create a special authority were pursued. In 2001 the Towns of Carrboro, Chapel Hill, Hillsborough, Orange County, and OWASA entered into a Water and Sewer Management, Planning and Boundary Agreement, which includes a requirement that any non-emergency water transfers from OWASA to locations outside of its designated "long-term interest area" (e.g., to Chatham County) must first be approved by the elected boards of Carrboro, Chapel Hill, and Orange County. 4WASA-Owned Property at Jordan Lake and Expected Use of Storage Allocation OWASA awns approximately 125 acres of land adjacent to US Army Corps of Engineers property south of Highway G4 on the western side of Jordan Lake in the Pea Ridge - Seaforth Roads vicinity (please see attached map). The property is close to the preferred site of a western water supply intake recommended in a 1991 OWASA-commissioned engineering report. The Corps of Engineers has indicated that this would. likely be the only other intake site allowed at Jordan Lake in addition to the Town of Ca1y's existing site north of Highway 64 (also shown on map). Although OWASA owns property near the lake, neither we nor any other entity own or have a claim to the intake location within the lake itself. OWASA pays an annual fee to reserve a Level II allocation for 5 percent of Jordan Lake's water supply storage capacity. This is expected to yield an average of 5 million gallons of water per day. Because we regard our allocation as insurance against unforeseen problems with our existing supply sources, it is unlikely that OWASA would commit to snaking its allocation available to another utility on anon-interruptible basis. Jordan Lake represents a secondary supply option that could supplement oiu- long-term needs if current plans for water conservation and reuse do not provide the expected savings and future demand reductions. It is unlikely that OWASA will develop any Jordan Lake facilities on our own, due to the high capital costs (more than $40 million for a water intake, pumping, and transmission pipeline) and the relatively short duration (~15 years) for which we currently anticipate a potential need for additional water. Our use of Jordan Lake will likely be snore feasible by collaborating with other entities, such as Chatham County, Durham, and/or Cary, in a joint venture or partnership of some kind. A number of treated water interconnections (pipelines) currently exist among the water utilities in our vicinity. In most cases, treated water can be moved in either direction between these systems, although the actual transfer capacity depends on pipe and pump