LEGISLATIVE RESEARCH CENTER
File #: 20-3428    Version: 1
Type: Contract Status: Passed
File created: 2/27/2020 In control: County Manager's Office
On agenda: 3/16/2020 Final action: 3/16/2020
Title: Vote on a request to approve the Siler City Chatham County Water Purchase Agreement 2020 and authorize the County Manager to execute the same
Indexes: Comp Plan Goal 3: Promote a compact growth pattern by developing in and near existing towns, communities, and in designated, well planned, walkable, mixed use centers., Comp Plan Goal 4: Diversify the tax base and generate more high-quality, in-county jobs to reduce dependence on residential property taxes, create economic opportunity and reduce out-commuting., Comp Plan Goal 7: Provide infrastructure to support desired development and support economic and environmental objectives., Comp Plan Goal 8: Become more resilient by mitigating, responding and adapting to emerging threats.
Attachments: 1. Water Purchase Agreement - Siler City and Chatham County - Feb 2020
Title
Vote on a request to approve the Siler City Chatham County Water Purchase Agreement 2020 and authorize the County Manager to execute the same

Abstract
Action Requested: Vote on a request to approve the Siler City Chatham County Water Purchase Agreement 2020 and authorize the County Manager to execute the same.

Introduction & Background: Chatham County receives a portion of its treated water supply from the Town of Siler City and a portion of its water supply from the City of Sanford, each pursuant to separate water purchase agreements. The current water purchase agreement between the County and Sanford allows the County to purchase up to 1.5 million gallons per day (mgd) from Sanford. This agreement was entered into with the intention of the County retaining 500,000 gallons per day to serve customers within the County's distribution system, while the remaining 1mgd would be reserved for the Town of Siler City. The 1mgd reserve for Siler City recognizes the future water supply needs of the Town, owing to present and forecasted growth demands within the Town. Though the County and Town share a treated water interconnection, the current water purchase agreement between the County and the Town provides for the purchase of Siler City water by the County. The current agreement does not provide for the purchase of treated water by Siler City from the County. The proposed agreement will enable the sale and purchase of treated water to and from Chatham County and the Town of Siler City. Where possible, the proposed agreement was drafted to follow the contours of the agreement that the County has entered into with the City of Sanford. This was done with acknowledgment that any changes in the Sanford agreement, as may transpire from time to time, will have corresponding impacts on the agreement that Chatham County has with Siler City. This approach also secures equitable cost sharing between the County and Siler City in consideration of expenses associ...

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