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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: June 2, 2004 <br />Action Agenda <br />Item No. R. ~ <br />SUBJECT: Proposed Modification of Hillsborough Drought/VVater Conservation Ordinance <br />DEPARTMENT: County Manager PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): <br />County Engineer's Report <br />Draft Ordinance (Hillsborough) <br />Water and Sewer Advisory Board <br />Recommended Water Conservation <br />Requirements <br />INFORMATION CONTACT: <br />Paul Thames, Cnty. Engineer, ext 2300 <br />TELEPHONE NUMBERS: <br />Hillsborough <br />Chapel Hill <br />Durham <br />Mebane <br />732-8181 <br />968-4501 <br />688-7331 <br />336-227-2031 <br />PURPOSE: To present information related to proposed revisions to the Town of Hillsborough <br />Drought/Water Conservation Ordinance for BOCC review and provide comments as per request <br />by the Town. <br />BACKGROUND: Orange County and the Town of Hillsborough have a partnership relationship <br />in the effort to provide and protect the water supply for a sizable percent of the population in <br />central portion of the County., The County and Town are bath signatories of the Eno River <br />Capacity Use Agreement; operate reservoirs in the northern part of the County; release water <br />from the reservoirs into the Eno River and manage the resources therein to promote the most <br />effective use of water for both consumers and the environment. However, situations and <br />conditions that have arisen or changed in the last several years (closing of Flint Fabrics, <br />construction/development of expensive infrastructure, prolonged and severe draught, etc.) have <br />impacted the Town's revenue situation with respect to its water and sewer utilities. The Town's <br />need to overcome the effects of lost utility revenues consequent to the closing of Flint Fabrics <br />(+/- 40% of demand), the imposition ofdrought-driven water conservation measures, and <br />significant expenditures for reservoir development and other capital improvements has driven <br />Hillsborough's utility rates upward to the current levels. <br />Several years ago, the Town Board created a citizens' Water and Sewer Advisory Committee. <br />This committee has been charged with: 1)investigating/evaluating Town utility issues, practices <br />and policies in light of complaints from the Town's water and sewer utility customers as to high <br />utility rates, unequal rates charged to in-town and out-of-town customers, and stringent water <br />use limitations during dry periods; and 2) recommending (to the Town Board and staff) <br />strategies to address problems and complaints. <br />The Water and Sewer Advisory Committee has concluded that increasing Town water <br />consumption and sales to the point of restoring or even exceeding that lost with the closing of <br />