HomeMy WebLinkAboutItem 3: EWEB Water Rights
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UGENE ITY OUNCIL
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Public Hearing: Eugene Water & Electric Board Water Rights
Meeting Date: June 9, 2010 Agenda Item Number: 3
Department: Central Services Staff Contact: Brenda Wilson
www.eugene-or.gov Contact Telephone Number: 541-682-8441
ISSUE STATEMENT
This public hearing is to provide the Eugene City Council (council) an opportunity to hear from the
public on Eugene Water & Electric Board’s (EWEB) water rights issues and the proposed sale of water
to the City of Veneta.
BACKGROUND
Late last year, EWEB informed the City Manager about EWEB’s interest to sell water to Veneta in order
to certify part of EWEB’s third water right and to help ensure that the water in this water right would be
available to Eugene residents in the future when needed. In mid-April, EWEB and the City of Veneta
signed a water-sale contract. EWEB then submitted the contract to the Lane County Circuit Court for
validation.
On May 12, 2010, the council was presented with background information on the water sale and the
court process. While the council appeared to support the certification of EWEB’s third water right,
many questions were raised about the sale and the certification/perfection of water rights in general.
Accordingly, the council directed staff to schedule (1) a joint meeting with the EWEB Board of
Directors before the council takes up this issue for decision; (2) a public forum, with EWEB’s
involvement, in order to provide information to the public about the proposed sale of water; and (3)
following that forum, a public hearing on EWEB’s proposed sale of water to Veneta. In order to provide
more time for the process directed by the council, EWEB filed for a 30-day extension of time in which
to file an appearance in the validation case. The deadline to do so is now June 30, 2010.
A public information forum was held on June 8, 2010, in the Council Chamber. Presenting information
about EWEB’s water rights and the sale of water to Veneta were Brenda Wilson, Intergovernmental
Relations Manager for the City of Eugene; Brad Taylor, staff engineer for EWEB; and Ric Ingham, City
Manager for Veneta. After the panel presentation, the floor was opened up for questions and comments.
At least three people commented that the certification of the water right and the sale of water to Veneta
were actions they would support. Gary Wildish stated he thought it was a “win-win” situation with
others in the audience nodding.
Jan Wilson, attorney for the Western Environmental Law Center noted that she was representing the
three interveners in the contract validation process. She asked several questions regarding EWEB’s
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water rights and plans for certification. She later followed up with questions about instream water
rights, the protection of endangered species, and conservation efforts being undertaken by the City of
Veneta.
Charles Biggs asked questions about the size and capacity of the proposed pipe, whether pumping would
be required and who would pay for it. He also inquired about how much the grant would cover and
what amount would be required to be paid by the citizens and whether there were limitations in the
contract for the water to Veneta. He later followed up with questions about the cost of the water to
Veneta, how often and by whom the rates were set and who would pay for the pipe.
A copy of the minutes will be provided to you as soon as we receive them from the City Recorder’s
office.
RELATED CITY POLICIES
Section 44 of the Eugene Charter sets out the Eugene Water & Electric Board functions. It states, in
part:
“(1) The power of the city to generate, collect, and distribute electricity, steam, and
other kinds of physical energy is hereby vested in the Eugene Water & Electric Board
(the Board).
* * *
“(3) The board shall maintain and operate the water utility and the electric utility of the
city, subject to control by the council of extension of water service.”
COUNCIL OPTIONS
No action is required at this time; however, options will be provided at the time of City Council
deliberations and action scheduled for June 28, 2010.
CITY MANAGER’S RECOMMENDATION
As this is the public hearing for this item, no recommendation is suggested at this time. A
recommendation will be provided for the City Council deliberations and action scheduled for
June 28, 2010.
SUGGESTED MOTION
None at this time. A suggested motion will be provided at the time of City Council deliberations and
action scheduled for June 28, 2010.
ATTACHMENTS
A.Fact Sheet
B.Frequently Asked Questions Sheet
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FOR MORE INFORMATION
Staff Contact: Brenda Wilson
Telephone: 541-682-8441
Staff E-Mail: brenda.s.wilson@ci.eugene.or.us
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Frequently Asked Questions
Veneta wholesale water supply agreement
Q: Why does EWEB want to sell water to Veneta?
A: Two of the three water rights EWEB holds for the McKenzie are perfected, meaning EWEB and its
citizen-owners hold those rights in perpetuity. The utility must demonstrate to state water authorities that
it can put the volume granted under the third water right to beneficial use within a reasonable time frame.
The predicted population growth and water usage within the city in the next 50 years will leave EWEB
short of certifying that third right. Selling surplus water to wholesale customers such as Veneta will help
EWEB obtain “partial certification” for the third water right. Such a certification would preserve EWEB’s
ability to access 25 percent of the water granted under the permit.
Q: If EWEB does sell water to Veneta, do the rights to that water also transfer to Veneta?
A:
No, EWEB is the permit holder and the water right would still belong to EWEB.
Q: Will this agreement raise my rates?
A:
No.
Treating and delivering water comes with high fixed overhead costs. Spreading those costs over a
wider retail and wholesale base helps lower per capita costs and minimizes the magnitude of future rate
increases. The cost differential to treat and deliver 60 million gallons a day versus 55 million gallons a
day is marginal. The economies of scale EWEB has achieved in delivering wholesale water to utilities
and water districts reduces per capita costs for all customers. Under the contract, the city of Veneta would
be responsible for funding and building the 10-mile interconnection between its system and EWEB’s
water system – primarily using county roads.
Q: What happens to Eugene residents if there is a water shortage?
A:
In times of water shortage or drought, city of Eugene customers would have first priority to the water.
The contract requires Veneta to maintain its existing wells as a secondary source of water in case of an
EWEB water shortage or curtailment.
A: Why is EWEB now deciding to sell surplus water?
Q:
The utility has been supplying surplus wholesale water to districts and utilities for several decades.
Current wholesale customers include River Road and Santa Clara water districts, and the Willamette
Water Co., and amount to about 8 percent of total sales. The utility has been working toward finding ways
to perfect the third water right since 2004. Veneta’s need for water fits well with EWEB’s need to perfect
the third water right and guarantee supply for future Eugene residents.
Q: Where does EWEB get its water?
A:
The utility’s sole source of water comes from the McKenzie River. McKenzie River water is
exceptionally pure and cold because of its spring-driven source high in the Cascades.
Q: How will climate change affect water supply in the future?
A:
Overall, the McKenzie River is less subject to climate change than many neighboring river systems
because of its spring-driven source and the large volume of water stored in that system. Most climate change
scenarios indicate that the McKenzie River will be subject to lower late summer flows due to shifts in snowfall
patterns. The research indicates total volumes of water into the McKenzie system will be roughly equivalent
for various climate change scenarios, however the timing of the recharge to the spring system will change.
Updated June 8, 2010
Q: How much water does Veneta use per day now?
A:
The projections for 2010 usage outlined in Veneta’s Water Master Plan are as follows:
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Average daily demand is 0.90 million gallons a day
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Peak season demand is 1.1 million gallons a day
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Maximum daily demand is 2.3 million gallons a day
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Peak hour demand is 2.9 million gallons a day
Maximum daily use for Veneta during the hot summer months is 2.2 million gallons a day (mgd), while
the city’s wells can produce just 1.69 mgd. Right now, Veneta can’t meet demand on its maximum use
days without drawing down its storage reservoirs. Because those reservoirs are meant for emergencies,
such as a fire, additional capacity is needed. Veneta estimates that by 2030, it will need 4.3 mgd.
Q: If this deal didn't go through, what is Veneta's "Plan B"?
A:
Veneta’s adopted 2009 Water Master Plan projected that they would continue to rely upon
groundwater sources (wells) to meet Veneta’s immediate needs through 2020. However, the plan noted
that groundwater development alone was not likely sufficient to meet Veneta’s long term needs.
Q: Could Veneta draw water from Fern Ridge Reservoir or the Long Tom?
A:
Fern Ridge Reservoir is operated by the United States Army Corps of Engineers (CORP) as a flood
control basin. Municipal water supply is not an approved use for this body of water. Even if it was, the
quality of this water is poor due to high summer water temperatures combined with nutrient rich influents
from local feeder streams. This quality of water is very difficult to treat and the product water often
contains undesirable taste or odor.
Aside from having no available water for appropriation, the Long Tom River is a poor quality source of
water. The Long Tom experiences low flows during the period of highest water demand for the City of
Veneta. It was estimated in the Veneta Master Water Plan that during periods of low flows, the City of
Veneta would need to appropriate approximately 65% of the water in the Long Tom to meet peak
demand. That amount of water is not available in this water source even if Veneta could purchase a water
right from another water right holder.
Q: What happens if the third water right is not certificated?
A:
Failure to certify a water right permit or make reasonable progress toward certification can result in
the loss of the permit – and the right to use any of the water under that permit in the future. That amount
of water would then be available ‘on the market’ for re-appropriation to other public or private entities
who apply for a permit from the State.
In order to move toward certification, municipal water rights applicants are required to prepare a plan that
identifies when they expect to be using the full quantity of water allowed under each permit, and must
describe the methods and assumptions used in determining those date(s). Under Oregon law, a municipal
water right permit may be partially perfected for not less than 25 percent of the permitted total allowed
under the right, and a certificate can then be issued. This allows for a municipal water supplier to plan for
increased capacity over time. Certification is the only way to obtain conclusive evidence of the priority
and extent of the appropriation of a water right.
Updated June 8, 2010