2000 01-17 Special Called Workshop Meeting

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9. Houston's role in managing the allocation of water capacity from the proposed upgrade is limited to ensuring that only water capacity available is allocated, and acting as the "accountant" in terms of water capacity. Participants will determine the value of all vyater capacity rights bought and sold. 'This is discussed later in this Report. 10. Much discussion regarding the proposed' Operating Advisory Committee. Houston has agreed that Participants elect chairman. Additionally, any contracts that Houston will be see!~ng reimbursement from Participants will include one or more representatives from the Advisory Committee as non- voting observers. The representative(s) would report back to the full Advisory Committee.. The Contract, as revised, should be acceptable to the Authority. The timetable anticipates signed contracts back to Houston by March 1, 2000. COSTS Costs associated with the new contract are found within four basic components, and are st~*nm~*+~~d on Table 1. Table 1-Costs DESCRIPTION Upgrade/Repair Existing Facilities Upgrade from 80 MGD to 120 MGD ; Additional Pumping Capacity Excess Capacity (Proposed by Houston) COST PER GALLON $0.078247 $0.319612 $0.128900 $0.566317 The fast is the upgrade and repair of the existing facility to comply with current regulations, as well as modernization of certain components, especially electronics. Additionally, several improvements to the existing design that are not associated with the proposed expansion are included in these costs. The current estimate for the repair/upgrade is $0.078247 per gallon of capacity, or $563,378 for the 7.2 MGD owned by the Authority. This cost is paid regardless of participation in the proposed expansion. The second component is the cost of upgrading the plant from 80 MGD to 120 MGD. These modifications are needed to establish a firm capacity of 120 MGD. Only those Participants that desire additional capacity will pay these costs. Additional Production Capacity will cost an estimated $0.319612 per gallon.