Information on the Chatham County “water deal”

Date: Tue, 18 Dec 2012 21:12:26 -0500
From: Donna Kelly
Subject: RE: water deal?

Aqua NC approached the county about long-term plans to purchase water from the county to supply customers in the northeastern portion of the county.The proposal was discussed at the Nov 19^th BOC work session. Aqua NC currently provides water to almost 900 customers in the county and also services about 2300 wastewater connections.They provide water and wastewater systems for developments.Some of their water is provided from wells but they also purchase some water from Chatham County and Pittsboro.If they purchase water from the county they are responsible for all necessary infrastructure required to tap into existing county water lines.

The primary driver of this request from Aqua NC’s view is the proposed expansion of Colvard Farms for which they currently provide water and wastewater service.They also see the potential to serve customers on the east side of the lake.The driver from the county’s view is to provide a possible water supply for residents east of the lake.This could give developers an option to avoid Cary annexation in order to get water.Although it will be at least a couple years before they would need the water they need to know that they can get water before they start any serious work on infrastructure.

Since the request for water is for the northeast portion of the county the water would most likely come from our existing contract with Durham.Actually, although the existing Colvard Farms development is in Chatham, the proposed expansion will extend into Durham County.During the discussion the question was raised about the 751 project in Durham.Aqua NC has had discussions with them and there might be a connection there in the future.Further discussion made it clear that our contract with Durham does not allow us to sell water back into their service area so the first step was to clarify their service area and ensure that any proposal did not violate our contract.We also don’t want to damage our relationship with Durham since they are a partner in the future regional water treatment plant.

It became clear during the discussion that there were a lot of potential pitfalls to the whole proposal and it may prove to be unfeasible rather quickly. It was decided to start work on a contract to make sure all bases were covered and to see what was feasible from both the county’s perspective as well as Aqua NC’s. At this week’s BOC meeting there was a brief discussion that Durham has made it clear they do not want water sold back to their area.There will most likely be an update by staff at the January meeting.

Although it would be nice to be able to offer another option for water east of the lake, I’m not too optimistic this will work out at this time but we’ll find out more in January.

Donna Kelly

Pittsboro

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Date: Mon, 17 Dec 2012 08:04:06 -0500
From: Karen Crowell
Subject: water deal?I was dismayed to read in the news this week that Chatham County Board
of Commissioners are in the process of drawing up a contract to sell
water to a private utility company.  The water isn’t in Chatham County;
we purchase it from Durham.  So why would we want to re-sell it to Aqua
NC? Apparently the developers of  proposed 751 South are desperate to
find a source of water for their development and Durham has already
turned them down, saying that extending city water lines to their
location would be too expensive.  Aqua NC hasn’t come right out and said
they would use the water we sell them to supply 751 South, but it was
described as the likely outcome.I just drove by Jordan Lake yesterday and the lake is rimmed with brown
from receding water lines.  It hardly seems like we are so well supplied
with water that we are in a position to  sell it outside our county. Is
this a wise use of our resources or just an easy way to make a quick buck?

Karen Crowell
Pittsboro, NC