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M M & ff V <br />d. Other contracts with utilities <br />As noted above, the formal designation of a Chapel Hill - Carrboro <br />service area would 'not preclude OWASA from entering into <br />contractual arrangements to assist other utilities in operating <br />treatment plants, for example, with full recovery of OWASA's costs <br />for adding personnel, etc. <br />Such contractual assistance arrangements would not need to involve <br />any change in existing jurisdictions or their policy decisions <br />related to water and sewer matters. <br />However, the caveats about preserving OWASA's overall system <br />capacity should be reflected in any of these agreements. <br />IV. Watershed and Water Quality Protection <br />Background <br />In 1988, OWASA engaged the firm of Camp Dresser and McKee to study <br />the University Lake watershed and the potential effect of <br />alternative development scenarios on the quality of water stored in <br />the lake. <br />This study led to revision of local zoning, subdivision and land <br />use ordinances to limit the effect of future growth and stormwater <br />run -off on water quality. <br />OWASA staff has begun a process of identifying and ranking critical <br />lands around the reservoirs as a basis for purchase of future <br />purchase of fee simple and conservation easement interests in <br />watershed land. <br />In recent budget deliberations, the OWASA Board has indicated it <br />will allocate $205,000 annually (a $100,000 increase) over the next <br />five years for watershed land acquisitions. As noted in the <br />December 5, 1991 joint meeting with OWASA.,_ the Authority recently <br />acquired a conservation easement in Cane Creek watershed at a cost <br />of $500 per acre. <br />OWASA also plans a study of the Cane Creek reservoir and watershed <br />in 1992 -93 to parallel the University Lake study in 1988 -89. <br />Comments and Recommendations: <br />We commend and support OWASA's actions and planning to acquire land <br />around the reservoirs and their tributaries as a water quality <br />protection measure. <br />The Cane Creek watershed study will be an important step in <br />planning the protection of our community's largest water storage <br />asset (3 billion gallons /10 million gallons per day). <br />19 <br />