The Orange Water and Sewer Authority Board of Directors on Thursday awarded nearly $7 million in contracts for construction of a reclaimed water system. Reclaimed water is highly treated wastewater that meets state standards for certain non-drinking uses.

The reclaimed water system will initially enable the water from OWASA's Mason Farm Wastewater Treatment Plant to be used instead of drinking water at several chilled water plants on the south side of UNC's main campus. The chiller plants help cool air and equipment in buildings on the main campus. The university is also designing its new genomics building to use reclaimed water to flush toilets.

When it goes into operation, the system will reduce the university's need for drinking water by an average of about 600,000 gallons per day, which equals about 7 percent of overall water demand in the Chapel Hill-Carrboro community and about 25 percent of the university's and UNC Hospitals' demand.

Reclaimed water use in the late spring, summer and early fall months will likely exceed 1 million gallons per day at times.

OWASA and the university estimate that in the long term, the reclaimed water system could reduce drinking water demand by 2 million gallons per day or more as the system is extended to serve additional campus locations.

Construction will begin in a few weeks, and the reclaimed water system will likely be in operation around March of 2009. Under an agreement between OWASA and UNC, the university will reimburse OWASA for local costs of design and construction and will pay future rates and fees to cover operating, maintenance and management costs of the reclaimed water system.

State and federal grants will cover more than $2 million of the design and construction costs.

"The construction of the reclaimed water system will be a milestone in managing our community's water resources and in extending our future drinking water supply," said Randy Kabrick, chair of the OWASA Board. "The planning, evaluation and design work we began soon after the 2002 drought will make reclaimed water use a reality within two years."

Carolyn W. Elfland, Associate Vice-Chancellor for Campus Services, said "The University is grateful to the North Carolina General Assembly for approving this innovative arrangement. We are pleased to be a partner in a project that will benefit the entire OWASA service area. After five years of joint effort, we are eagerly looking forward to the completion of the construction."

The OWASA Board awarded contracts Thursday night to two companies.

Park Construction Corp. of Morrisville will install more than 7,000 feet of 24-inch reclaimed water pipe from the Mason Farm plant to the southern campus (about $3 million). As part of the project, Park will also replace a major sewer line from the treatment plant to Manning Drive and north of Fordham Boulevard (about $4.9 million).

Haren Construction Co. of Etowah, Tenn., will install a 6 million gallon per day reclaimed water pump station and a 600,000 gallon storage tank at the Mason Farm plant (about $3.9 million).

The approved contract amounts were below the construction cost estimates by OWASA's design consultants.