Agenda - 04-17-2001-9g - Laserfiche WebLink

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Jordan Lake Water Supply Allocation January 2001 Page 5 of 6 Haw Would This Allocation Be Used? It is anticipated that the 5 MGD allocation would be used to offset the potential water supply shortfall that may occur if service area demands exceed the 14.3 MGD capacity of the planned improvements to OWASA's raw water conveyance system before the 3 BG Quarry Reservoir can be put into service. OWASA proposes using its Jordan Lake allocation as a temporary supplement to offset that deficit until the expanded Quarry Reservoir can be placed in service in or about 2035. The most feasible means by which OWASA could use this allocation would be through potable water interconnections with the City of Durham and/or Chatham County. Rather than pumping raw water through a lengthy pipeline from Jordan Lake to OWASA's treatment plant in Carrboro, or pumping treated water from a new plant on the western side of Jordan Lake in Chatham County through a new transmission line to OWASA's service area, it appears to be more feasible to obtain treated water directly through the Durham or Chatham County system. This assumes, of course, that Durham su~ecessfully obtains its own Jordan Lake allacation and develops the necessary withdrawal, treatment, and transmission facilities to use that allocation. According to Durham staff, this scenario might evolve solely through Durham's own efforts or through an interlocal or regional partnership. The other assumption inherent to this scenario is that OWASA would be party to a satisfactory long term agreement with Durham and/or Chatham County that guaranteed to OWASA the fixture availability of specified amounts of treated water. What About OWASA's Existin Investments in Jordan Lake? OWASA owns a 125-acre parcel in Chatham County adjacent to Corps of Engineers property on the west bank of Jordan Lake south of U.S. Highway 64. This land cost $550,000 in the early 1990s. Additionally, OWASA has paid a total. of $148,933 in annual fees for its existing 10 MGD allocation. Current payments are between $19,000 snd $20,000 per year. Other Jordan Lake expenditures have included approximately $60,000 in construction costs for pipe casings placed under U.S. Highway 64 several years ago and approximately $25,000 for an intake siting study conducted in 1992. It is expected that some of these assets, especially the land and the intake siting analysis, would be useful in negotiating appropriate water supply agreements with Durham and/or Chatham County. Durham staff have indicated. interest in using OWASA's Jordan Lake property for a water treatment plant, but have not evaluated this extensively. OWASA would be entitled to a pro-rated reimbursement of previous allocation payments made to the State if the EMC adjusts the present 10 MGD allocation downward. 14 Except for the pipe casement under Highway 64, it appears that the full value of OWASA's Jordan Lake assets could be recovered or reinvested.