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relatively small amount of additional capacity that OWASA would no longer need after the expanded quarry is developed. A more viable scenario might be to obtain supplemental water through a paztnership with neighboring utilities, such as Durham, Cary, or Chatham County, who already have developed - or plan to develop - water supply facilities at Jordan Lake. One option would be for OWASA to buy in to the construction or expansion of facilities could ,jointly serve two or more entities. We would then receive treated water directly through our existing intercomnection with Durham. Contractual agreements could be appropriately structured to guazantee a desired amount of water under specified terms. (Any such agreements would be subject to local approval per the Water and Sewer Management, Planning and Boundary Agreement to which OWASA is a pazty along with the Towns of Carrboro, Chapel Hill, Hillsborough, and Orange County.) A special study is currently underway tlu-ough the UNC Water Resources Research hrstitute's Urban Water Consortium to analyze the overall treatment, transmission, and interconnection capacities needed for OWASA, Durham, and Cary to meet their long-term demands with supplemental water from .Jordan Lake. The study will also outline a range of potential terms and agreements that might accomplish that goal. Conservation, Demand Management and Improved Water Efficiency In April 2005 OWASA's Board of Directors adopted a Goal and Objectives ,for OWASA's Long-Teem Water Conservation and Demand Martagernet¢t Program. For dre first time, this policy identif es conservation as a key element of our overall water supply planning process and commits to the creation of a long term conservation and demand management prograzn. Highlights of the policy include: Overall Goal: "To develop, fund, and implement acost-effective water conservation and demand management program that will meet our community's long-term water supply needs (tlu-ough 2050) by making the highest and best use of our local water resources and eliminating the need for costly new water supply sources azrd facilities." For Water Supply Sources: "To assure that amiual average day raw water demand does not exceed the reliable capacity of OWASA's existing and plazmed supply sources (Cane Creels Reservoir, University Lalce, and the Stone Quarry Reservoir), where "reliable capacity" is the estimated yield of the system under extended periods of low streamflow conditions, such as those that recur approximately once every .30 years, or under more extreme conditions, such as those of the 2001-2002 "drought ofrecord." For Treatment, Storage, and Distribution Facilities: "To manage peals day treated water demands in ways that will allow the deferral of major capital projects, such as expansion of the .Tones Ferry Road Water Treatment Plant and associated finished water pumping and storage facilities." OWASA - [4'nter mid Server Cnpnctty lmplicatians aJ /ucreused Development Densit)+ Page l0 oJ2/