Laserfiche WebLink
<br />e <br /> <br />e <br /> <br />9. Houston's role in managjng the allocation of water capacity from the <br />proposed upgrade is limited to ensuring that only water capacity available is <br />allocated, and acting as the "aCcountant" in terms of water capacity. <br />Participants will determine the value of all water capacity rights bought and <br />sold. This is discussed later in this Report. <br />10. Much discussion regarding the proposed Operating Advisory Committee. <br />Houston has agreed that Participants elect chairman. Additionally, any <br />contracts that Houston will be see!dng reimbursement from Participants will <br />include one or more representatives from the Advisory Committee as non- <br />voting observers. The representative(s) would report back to the full Advisory <br />Committee. ' . <br /> <br />The Contract, as revised, should be acceptable to the Authority. The timetable anticipates <br />signed contracts back to Houston by March 1, 2000. <br /> <br />COSTS <br /> <br />Costs associated with the new contract are found within four basic components, and are <br />summarized on Table 1. <br /> <br />Table 1 - Costs <br /> <br />DESCRIPTION <br /> <br />COST PER GALLON <br /> <br />UpgradelRepair Existing Facilities <br />Upgrade from 80 MGD to 120 MGD <br />Additional Pumping Capacity <br /> <br />$0.078247 <br /> <br />Excess Capacity (proposed by Houston) <br /> <br />$0.319612 <br />$0.128900 <br />$0.566317 <br /> <br />The first is the upgrade and repair of the existing facility to comply with current <br />regulations, as well as modernization of certain components, especially electronics. <br />Additionally, several improvements to the existing design that are not associated with the <br />proposed expansion are included in these costs. The current estimate for the <br />repairlupgrade is $0.078247 per gallon of capacity, or $563,378 for the 7.2 MOD owned <br />by the Authority. This cost is paid regardless of participation in the proposed expansion. <br /> <br />The second component is the cost of upgrading the plant from 80 MOD to 120 MOD. <br />These modifications are needed to establish a firm. capacity of 120 MGD. Only those <br />Participants that desire additional capacity will pay these costs. Additional Production <br />Capacity will cost an estimated $0.319612 per gallon. <br /> <br />3 <br />