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analysis with the help of Carter Burgess in 2005 and 2006. This is leading to a integrated control system and an entirely new irrigation distribution system being installed in 2007. They anticipate a 15% demand reduction from these steps alone. ASC was not able to incorporate a lot of landscaping changes in this phase of the project due to the source of funds, but have produced conceptual designs for future improvements which could generate another 20% or more in water savings. The City was fortunate in that ASC has shared their study with us which will help in our future irrigation planning. The school district high school and middle schools are the biggest water consumers. Just a casual examination of their use patterns, with almost 70% of their use coming in the irrigation season, during much of which the schools are closed, makes it clear that the largest potential savings are for that irrigation use. While we have never conducted a water audit for the district, this should be a priority. We have been involved in the initial studies for a new combined elementary school and are in full agreement that a green building process to include water conservation will be a priority. The other major use groups that we have not examined in detail are our restaurant customers. Two of them are in our top 20 users. An audit of their use may well indicate water savings opportunities across the use group. We will be able to distribute this information to like users through direct mailings. Water Reuse Systems The City originally considered treating wastewater for irrigation needs as part of the 1993 Agro Engineering evaluation of our water rights and conducted a more detail study in 1999 (Conceptual Design Report — Wastewater Reuse, Richard P. Arber Associates, May, 1999). The overall findings were that while it was certainly technically feasible and probably affordable over time, it would not truly "save" water, and was in fact, probably not possible under our water decrees. Trans - mountain water can be used to extinction. Our water comes from the San Luis Valley confined aquifer and does not fall under these rules. In fact, our wastewater treatment plant effluent contributes to the delivery requirements under the Rio Grande compact. Even if we could use our water to extinction that would mean that the effluent no longer being returned to the Rio Grande would have to be replaced by another source. Distribution System Leak ID and Repair. While we have not had a formal distribution leak identification and repair program in place we have been looking at the amount of water billed versus the amount produced annually and focused on major changes to identify the reasons. The difference has generally been within the margins of meter accuracy so this was not seen as a major problem. Our lines are relatively shallow (5' to 6' bury) which means that major leaks become apparent quickly. We have also been systematically replacing our oldest lines which are cast iron over the past ten years, budgeting $200,000 to $250,000 per year for this purpose. Once we complete this phase we will move into the AC line replacement phase. This program was suspended in 2006 through 2008 because of the major capital demands placed on us by the design and construction of our new water treatment plant and the raw water collection and finished water distribution lines necessary to make that work. This program will be re- instituted in 2009. We will also add a leak detection City of Alamosa I Water Conservation Plan I May 2007 1 Page 16 of 29