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and implement a Cascade conservation management plan that provides a mandatory base conservation <br />program that functions to reduce both average and peak demands and may establish a charge or <br />assessment to fund development and implementation of the program. Members may implement <br />additional conservation programs. The Board may adopt wholesale charges in addition to normal <br />Demand Share charges to encourage resource conservation. The Board may also provide or contribute to <br />additional local conservation programs that are not offered to all Members, and these local programs may <br />be locally funded or funded by Cascade. Members that fail to comply with base programs as set forth in <br />Cascade's conservation management plan may be required to assume a disproportionate reduction in <br />water supply or to pay penalty charges, or both. <br />Section 7.3 Shortages and Emergency. <br />Section 7.3.1 Shortages. Members must respond to water shortages in a collective, <br />shared fashion under a Cascade Shortage Management Plan adopted by the Board. Resources must be <br />shared in a manner that reduces the risk of severe shortages to each Member. Cascade's Shortage <br />Management Plan may include without limitation, a definition and classification of shortages, a shortage <br />contingency plan including mandatory programmatic actions among all Members in the event of <br />shortages, allocation of authority for determining and responding to shortages, and a communications and <br />outreach program for the public. Members shall not be required to implement Cascade's Shortage <br />Management Plan in areas not served by the Supply System. <br />In the event of shortages, Cascade shall reduce or halt Interruptible Supply before invoking the <br />Shortage Management Plan with respect to all Members with a Full Supply Commitment. However, the <br />Board may, by 65% Dual Majority Vote, continue service in the amounts it deems appropriate to one or <br />more Members receiving Interruptible Supply. <br />The Board may require that Members failing to comply with mandatory shortage management <br />programs implemented under Cascade's Shortage Management Plan assume a disproportionate reduction <br />in supply or pay penalty charges, or both. <br />In the event of a Cascade -wide water shortage, Members with Independent Supply may, without <br />penalty, decline to participate in the shortage management program for that shortage by foregoing all <br />supply from Cascade for the duration of the emergency or shortage. <br />To avoid shortages resulting from emergencies or the inability to develop sufficient supplies, the <br />Board may, by 65% Dual Majority Vote, establish moratoria on connections or additional commitments <br />for future water services by the Members. A moratorium may be discontinued by a Dual Majority Vote <br />of the Board. <br />Section 7.3.2. Emergency. The Board shall include in Cascade's Shortage <br />Management Plan policies and procedures for addressing short-term disruptions of water supply, <br />transmission or water quality, and it may delegate to the chief executive officer authority to address such <br />disruptions according to such policies and procedures. <br />Joint Municipal Utility Services Agreement 17 March 28, 2012 <br />