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2Q 2016 Quarterly Report to Council

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Western Cary Water Storage Tank Projected completion date: Spring 2018 Green Level West Rd. Water Line - Phase 1 Projected completion date: Summer 2016 Cary Parkway SW Water Line Extension Projected completion date: Winter 2017/2018 Kilmayne Water Storage Tank Projected completion date: Winter 2017/2018 The Town is operating under the IBT Certificate issued in March 2015, which will accomodate all of our forecasted water resource needs through the year 2045. In June 2015, the City of Fayetteville and Fayetteville's Public Works Commission filed a petition against the NC Environmental Management Commission (EMC) and the Department of Environment and Natural Resources (now the Department of Environmental Quality - NCDEQ). The petition contests the decision to issue the 2015 certificate. The Towns of Cary and Apex are interveners in the ongoing legal case, on behalf of the state. An administrative hearing on the petition was held in June 2016. The Town submitted its application to the NC Division of Water Resources (DWR) individually for Round 4 Jordan Lake water supply allocations, on the basis of the Triangle Regional Water Supply Plan developed by the Jordan Lake Partnership. The regional Plan concluded there is enough water to satisfy the regions needs for the next 50 years, including downstream water users along the Cape Fear River, even in the event of droughts as severe as any recorded during the past 80+ years. The state allocates storage to units of local governments. Following the review of applications, DWR presented recommendations, then received public comments on the recommendations until May 2016. DWR will next prepare its final recommendations to the EMC with a final decision expected in late 2016 or early 2017. Jordan Lake Water Supply Allocation Status Inter-basin Transfer (IBT) Status

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