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The manner and extent to which these issues and topics are interrelated can be inferred <br />by and through general "statements of fact" as outlined below: <br />1. The Eno River Capacity -Use Agreement controls how much water can be drawn from <br />the Eno /Lake Orange system and under what conditions. <br />2. Other than a requirement for an instream flow release /contribution, the Capacity Use <br />Agreement does not control how much water can be drawn from the Eno/West Fork <br />Reservoir system. <br />3. Historically, the County and Town of Hillsborough water conservation /drought <br />ordinances have tracked fairly closely to one another and with the Capacity Use <br />Agreement, although the Agreement functions to limit how much water the utility <br />systems can use while the ordinances function to limit how much water individual <br />customers/ consumers can use. <br />4. The Town has very high water rates as a consequence of the combination of recently <br />incurred high dollar capital costs (West Fork Reservoir and water plant improvement <br />and expansion) and dramatically reduced water sales (loss of +/- 40% of water <br />sales /demand with closing of Flint Fabrics). <br />5. The Town hopes to bolster water demand (and generate lower water rates) by relaxing <br />the provisions of its own drought ordinance — applicable to half of its customer base - <br />and convincing the County to do likewise, at least to the portion of the County <br />ordinance applicable to the remaining half of its customer base (as opposed to the <br />portion of the County ordinance applicable to the Orange- Alamance customer base). <br />6. The Town or the Town's Water and Sewer Advisory Committee proposes that the <br />drought ordinance be modified whereupon voluntary water restrictions would be <br />implemented when it has less than 180 days of water supply remaining (counting water <br />supply from both the West Fork and Lake Orange reservoirs) and mandatory <br />restrictions would be implemented when it has less than 135 days of water supply <br />remaining (under the Town's current water demand rate, Lake Orange would be empty <br />or nearly empty before mandatory restrictions would be implemented). <br />7. The BOCC has historically placed a high value on water conservation as in accordance <br />with its general emphasis of environmental protection. The Board's concerns related <br />to water conservation have been raised to even higher levels as a consequence of the <br />recent severe drought. The BOCC has expressed deep concern and sympathy for the <br />Town of Hillsborough's out -of -town water customers who have complained to the <br />Board of the very high (double in -town' rates) water /sewer utility rates they pay. <br />Unfortunately, water conservation measures generally have the effect of increasing <br />water /sewer unit costs /rates in that a utility's high fixed costs (salaries, capital costs, <br />etc.,) must then be spread out over fewer units sold. <br />draft <br />