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<br />4. If the deal does go through, Veneta will maintain a secondary source of water. What <br />is it? <br /> <br />As outlined in the water purchase agreement with EWEB, Veneta will continue to operate and <br />maintain their existing system as the secondary water source. <br />5. In EWEB's certification, what does "25% certification" mean referring to the third <br />water right? <br />EWEB’s third water right is not certificated. In other words, while the amount of water under <br />that water right permit has been “set aside” for EWEB, the utility must move toward perfection <br />(putting the water to beneficial use) of that water right or it will lose the right to use that water <br />in the future. Failure to certify a water right permit or make reasonable progress toward <br />certification can result in the loss of the permit – and the right to use any of the water under <br />that permit in the future. <br /> <br />In order to move toward certification, municipal water rights applicants are required to <br />prepare a plan that identifies when they expect to be using the full quantity of water allowed <br />under each permit, and must describe the methods and assumptions used in determining <br />those date(s). This schedule must also include the expected schedule for certification of <br />each water rights permit. <br /> <br />The process of certification involves “proving up or perfecting” the water use allocated under <br />a given permit, as defined by the rules governing beneficial use. Under Oregon law, a <br />municipal water right permit may be partially perfected for not less than 25 percent of the <br />permitted total allowed under the right, and a certificate can then be issued. This allows for a <br />municipal water supplier to plan for increased capacity over time. Certification is the only way <br />to obtain conclusive evidence of the priority and extent of the appropriation of a water right. <br /> <br />6. If EWEB does sell water to Veneta, do the water rights to that water also transfer to <br />Veneta? <br /> <br />No, EWEB is the permit holder and the water right would still belong to EWEB. <br />7. In EWEB's memo and in the "Key Messages" it says that selling surplus water can <br />"reduce costs for EWEB customers". Does this mean a reduction in the monthly water <br />bill if water is sold to Veneta? <br />Not in itself. Treating and delivering water comes with high fixed overhead costs. Spreading <br />those costs over a wider retail and wholesale base helps lower per capita costs and will help <br />minimize the magnitude of future rate increases. <br /> <br />8. Eugene Code 9.8115 and 9.8121 seem to prohibit extensions of service out side of <br />the Urban Growth Boundary. What would make the proposed sale to Veneta an <br />exception? <br /> <br /> 2 <br /> <br />