Agenda - 05-19-1992 - Laserfiche WebLink

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18� M M M ff V Comments and Recommendations: a. Emergency crater sales We support emergency water supply agreements of the type doveloped through the Triangle J Council of Governments in 1987. These agreements can benefit all parties, and we note that OWABA customers have benefitted substantially in the past from the City of Durham's and the Town of Hillsborough's willingness to share their water supplies during shortages here. Continuation of reciprocal emergency sales agreements with Durham and Hillsborough therefore may be regarded as a moral obligation for OWASA. b. Non - emergency water sales Because of the substantial expense and effort necessary to, acquire adequate water supplies for our community, however, we believe that any future water sale agreements for non - emergency purposes must protect the long -term capacity of the Cane Creek, University Lake and stone quarry supplies to meet the needs of the Chapel Hill - Carrboro urban services area. Because of the legal potential for court decisions precluding the termination of a water sale agreement, we would recommend that any non - emergency water sales be based on plans for the utility buying OWASA water to obtain permanent water sources through a plan of action and a time frame reflecting capacity of OWASA's present water supplies and projected future demand. C. Chatham County request Chatham County has requested OWASA's assistance through a water sale agreement for the period until the County has its own water supplies. Actions by the State . have required Chatham County to seek a supplemental interim water supply, in part because the additional water to be available through in_ agreement with the Town of Pittsboro will be for a limited amount. We recommend the Council discuss the principles summarized above with Chatham County representatives as a potential basis for reaching agreement. When Chatham County provides a more specific proposal, we believe it should address the concerns that a non - emergency sale agreement might be continued by a court decision after expiration of the agreement, and that a plan for permanent water supply from other sources could be a basis for an interim water sale agreement. We recognize that selling water to Chatham County would have advantages in generating revenue such as for acquiring additional land around the Cane Creek and University Lake reservoirs.