Agenda - 06-02-2004-9c - Laserfiche WebLink

Browse Search

the Flint Fabrics plant would lessen the need to charge the current high utility rates. At least theoretically, with stabilized fixed casts (personnel costs, the already incurred capital casts far plant expansion, reservoir, etc.) and the less significant incremental costs (power, treatment chemicals, maintenance) applied to a higher quantity of sales, rates could decline somewhat, The committee and the Town have recognized that there will be significant increases in water consumption as the Town moves to serve approved new development (Waterstone, Churton Grave and others). The committee and Town have also recognized that increased consumption from these sources will develop incrementally over a period of years. Therefore, the Water and Sewer Advisory Committee has conceived a strategy that it believes could provide rate relief to all classes of ratepayers in the short term. Specifically, the committee has proposed that the Town relax the restrictions on water consumption during dry periods to take advantage of its additional water supply, the cost of which has already been factored into its rate structure, This could provide a significant short-term financial benefit to the Town (which has estimated a net income loss of approximately $400,000 [water and sewer revenues less treatment casts] during the 2002 drought) as well as address the concerns of those have complained about the inconveniences caused by severe water restrictions. In accordance with the recommendations of the Hillsborough Water and Sewer Advisory Committee, the Town now proposes to modify its Drought/Water Conservation Ordinance as necessary to relax the current restrictions on water use during dry periods (essentially periods of low natural flow in the Eno River), The proposed modifications would impose voluntary restrictions when the Town's water supply/storage falls below 180 days of total supply (West Fork and Lake Orange). Mandatory water restrictions would be imposed when water supply/ storage falls below 150 days total supply and rationing would be implemented when water supply/ storage falls below 90 days total supply. The potential effect of the recommended ordinance provisions on the Eno system can be most clearly evaluated in light of how these provisions might have affected water use during the 2002 drought, Under the Town's current drought ordinance, mandatory water use restrictions were in effect for the three month period of mid-July to mid-October 2002, Under the current County drought ordinance, mandatory water use restrictions applicable to Hillsborough customers would have been in effect for the four month period of mid-June to mid-October 2002 (The Town and County reached an agreement whereby the County drought enforcement actually followed the less stringent Hillsborough ordinance restrictions in exchange for the Town releasing additional water into the Eno so that the County was able to conserve the water supply stored in Lake Orange. When the Town ordinance did initiate mandatary restrictions, the Town's subsidization of Lake Orange releases was terminated), Given a) the Town's current unrestricted average daily water demand and b) the 2002 water storage situation in the West Fork Reservoir (which had never been completely filled [approximately 70% of maximum capacity] since its completion) and in Lake Orange, it is possible that Hillsborough could have avoided imposing mandatory water restrictions far all but about two weeks of the drought period, Had the reservoir been filled to capacity at the onset of Eno withdrawal restrictions and had Hillsborough not made supplemental water releases (approximately 1,5 mgd for four weeks) referenced above, it is conceivable that the Town could have completely avoided imposing mandatory conservation restrictions on its utility customers. Town of Hillsborough staff has indicated that the proposed water conservation/drought ordinance is not the be-all/end-all of water use policy, For example, staff has specifically noted that a circumstance where there are 150 days of water storage remaining in May is a far more serious situation than one where 150 days of storage remain in October. The supposition being