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

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2030 is around 2.7 million gallons per day (mgd). This 2030 peak demand represents less than 4% of EWEB’s current 80.5 mgd. capacity. The pipeline is being designed to pump up to four mgd. Initial service levels would have the pipeline supplying 150 million gallons per year to Veneta. Late in 2009, USDA-Rural Development (RD) representatives contacted the City, relaying the fact that significant funding, both in the form of grants and loans, have become available through the American Recovery and Reinvestment Act (ARRA), and that RD was looking for large infrastructure projects to disperse the funds as quickly as possible. They were very interested in the pipeline project in particular, and encouraged the City to submit a Preliminary Engineering Report (PER) by early February 2010. The City has contracted with Murray, Smith and Associates to compete the PER which includes very detailed engineering, environmental, and cost analysis of the proposed pipeline and potential alternatives. The PER and related reports were completed and submitted by the February 1, 2010 deadline. If awarded, the City will be working through various aspects of the project including purchase contracts, rate studies, and full construction design through the fall of 2010. We believe that partnership with EWEB represents the best route to achieving water security at the lowest cost for the City over the long term. DLCD and Lane County have voiced no opposition to the project and this partnership provides a regional solution to a regional problem that will benefit both EWEB and the City of Veneta for years to come. It should be noted that this proposed partnership is not expected to alter the City’s UGB or growth rate as described in the recently adopted 2030 Coordinated Population Projection, nor is it expected to result in significant changes to the City’s adopted Comprehensive Plan beyond those necessary to incorporate the pipeline into the Utilities Element and Public Facilities Plan. Our long range vision remains the same, to provide a secure supply of water to our residents and businesses at the lowest possible cost. Summary Points  10 mile pipeline from EWEB facility at Terry Street to Veneta Water Treatment Plant on E. Broadway  Project is the culmination of two years of discussions with EWEB  Hydrological and geological conditions limit groundwater availability for Veneta. Access to Federal storage reservoirs requires years of Federal action  ARRA funds present a unique opportunity to obtain grants, drastically lowering the cost of the project  Project will not increase growth, but will provide water security for years to come