Item A: Eugene Water & Electric Board Sale of Water to Veneta

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ATTACHMENT A City of Veneta Veneta-EWEB Pipeline Project Status October 29, 2010 This memo provides an update on the Veneta-EWEB water pipeline project and builds upon the information presented in our letter submitted in January of 2010. Since that time, the following events have highlighted the timeliness and need for completion of this project. Groundwater Source Investigation/Water Resource Dept. Limitations In June of 2010, GSI Water Solutions Incorporated completed an evaluation of Veneta’s well field, including potential sites for additional exploration and development. Their evaluation included modeling of the location and thickness of water bearing strata in and around the Veneta UGB in an effort to predict where the City would be most likely to find water of sufficient quantity and quality to serve as additional potable supply. The result of this study are summarized most graphically in Figure 5 of that report. These results show a higher potential for water bearing geology in the far eastern portion of the UGB and extending to the east and northeast outside of the UGB. These areas are in relatively close proximity to our most productive well (well 9), and existing transmission and treatment facilities. Concurrent with this study, the City had applied for a water use permit from the Department of Water Resources for our newest well (well 12) located at the public works yard on Broadway Avenue. On January 8, 2010, the City received the Department’s preliminary analysis and response, reprinted in relevant part below: This determination severely limits the usefulness of this well by essentially precluding withdrawals during the summer months when irrigation is at its peak and water is most needed. We were also informed that these restrictions would apply to any well within one mile of the Long Tom River or Fern Ridge Reservoir. This determination essentially pushes the City out of areas where new well development is most likely to be productive, and into areas south and southeast of the UGB where groundwater quantity and quality are known to be limited. Well projections based on this scenario result in more wells with smaller yields, and larger transmission and treatment costs.