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Not in itself. Treating and delivering water comes with high fixed overhead costs. <br />Spreading those costs over a wider retail and wholesale base helps lower per capita <br />costs and will help minimize the magnitude of future rate increases. <br /> <br />8. Eugene Code 9.8115 and 9.8121 seem to prohibit extensions of service out <br />side of the Urban Growth Boundary. What would make the proposed sale to <br />Veneta an exception? <br /> <br />EWEB's sale of water to Veneta is not an exception to Sections 9.8115 to 9.8121 as <br />those Sections do not apply to EWEB's sale of water to Veneta. Rather, those <br />Sections apply to extensions of water (or sewer) service to individual properties. One of <br />the approval criteria, for example, is that the “applicant has entered into an annexation <br />agreement on forms provided by the city pertaining the property proposed to be served <br />or will enter into such an annexation agreement as a condition of approval.” Wholesale <br />delivery of water to another municipality couldn’t qualify under this provision because <br />those properties could not annex to Eugene. Other requirements in those sections also <br />assume that the extension of water (or sewer) service is for individual properties – for <br />example, by requiring notice of the application to be provided to owners of properties <br />located within 750 feet of property to be served. <br /> <br />Section 2.212 also specifically notes that “extension of water service or sewer service” <br />shall be processed as provided in section 9.8115 to 9.8121 of the code, but does not <br />state that those provisions govern the extension of “water” outside city limits. Instead, <br />the city attorney believes that section 2.212 requires that such an extension of “water” <br />outside city limits (for example, to a special district or municipality) be approved by <br />Council resolution. <br /> <br /> 3 <br />