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<br />Board Resource Statement <br />October 15. 1996 <br /> <br />337~1 <br />3. <br /> <br />C. <br /> <br />and to imposing water use restrictions, when necessary, in the <br />same manner as imposed inside Denver. <br />For current distributors who do not sign the new contract, the <br />Board reserves the right, pursuant to the contracts of these <br />distributors, to impose a tap allocation program and water use <br />restrictions that may be different than those imposed within <br />Denver. <br />As required by the Charter, rates and charges for Distributors <br />outside the city wil!' differ from inside-Denver rates, and will be <br />designed to fully reimburse the people of Denver for the cost of <br />furnishing the service, plus a reasonable return. <br />The Board also has contract obligations for fixed amounts of <br />treated or raw water to suburban entities who are not Distributors. <br />The Board has adequate water resources and options, including <br />opportunities for conservation, reuse and development of its water rights. <br />to fulfill its obligations, including service for the CSA through build-out. <br />Nevertheless, the Board recognizes that cooperative arrangements with <br />entities outside the CSA may benefit customers within the CSA. <br /> <br />4. <br /> <br />5. <br /> <br />IV. Future Strategy <br /> <br />A. No single resource strategy is sufficient to meet the Board's water service <br />obligations, and each strategy has its own environmental and other <br />consequences. The Board intends to invest in and manage a diverse <br />portfolio of resources to meet its future needs and minimize risks. The. <br />Board will pursue opportunities that increase supply through <br />conservation, reuse and water rights development, either alone or in <br />cooperation with others. <br />B. When meeting future water needs, including development of cooperative <br />projects with others, the Board will pursue resource development in an <br />environmentally responsible manner. <br />C. The Board acknowledges that its treatment, transmission, and <br />distribution system will need to be maintained and expanded as growth <br />occurs in the Board's service area and as federal regulatory requirements <br />change. <br />D. For the foreseeable future, the Board will maintain a safety factor of <br />30,000 acre feet to protect against risks the Board faces in meeting its <br />customers needs. Potential risks include: <br />1. catastrophic events <br />2. unexpected build-out demand <br />3. lower than expected yield from programs, projects, or existing <br />facilities <br />4. a longer than anticipated drought <br /> <br />V. Near-Term Strategy <br /> <br />Page 2 <br />