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Cammissianer Brown said that she had no idea that it was to a point where there <br />was a letter of understanding with the University. It is very specific with respect to rates and <br />long-term commitments. Mark Marcoplos said that it is an agreement to proceed together <br />based on the information and the research that has been done revealed that it would work. <br />Commissioner Brown said that the part that interested her was the rate increase and <br />impacts to the customers. She thought there should be a public hearing to explain this. She <br />said that it did not seem that there was a clear financial picture of what is going to happen. The <br />two things that interest her are to look clearly at the financial picture and the impact on OWASA <br />customers and the original agreement with the University, which na elected officials have seen <br />and that has long-term implications. She is concerned that some of the board members did not <br />think that the elected officials should look at the agreement. <br />Commissioner Brown asked if they had thought of doing an environmental impact on <br />Morgan Creek as they pull 900,000 gallons of water out of it. Mark Marcoplos said that the <br />issue has been discussed, but there is not one. Commissioner Brown said that there would <br />have to be a considerable impact an the creek. <br />Mark Marcoplos said that the actual cost of the treatment would not be known until it <br />is done on the scale. Commissioner Brawn said that she could not imagine that it would be so <br />speculative. She does not feel that this is a totally well put together proposal, except for the <br />engineering piece. <br />Commissioner Brown also said that it seems that there is not a picture of what the <br />long-range availability of water is going to be. She would like to know how much water is in the <br />County in terms of OWASA's ability to fulfill the needs. She would be interested in looking at <br />the sustainability of the water in the County instead of coming up with it, as it is demanded. <br />Patrick Qavis said that back in January 2003 they had an intergovernmental meeting <br />with local elected boards to talk about the water supply situation, and they introduced the idea <br />of reuse and it was overwhelmingly supported. They did not have revenue projections. As a <br />result of the reevaluation, they concluded that the safe yield was lower than was previously <br />thought. He said that the reuse project provides them with a much more cost effective <br />alternative than the traditional approach of finding more water from another resource that is <br />farther away. The board's budget and financial planning committee and the board itself <br />received and discussed a staff evaluation of financial issues and implications associated with <br />reuse. It is clear that there would be a water commodity charge increase of 8-9°~ over the <br />existing charge of $3.50 per thousand gallons. This equates to 3.5°!o mare than the typical <br />single-family residential water and sewer bill. This would be the initial financial impact. He said <br />that growth in potable water sales associated with new development will result in their water <br />sales coming back up to offset the reduction that would be accomplished through reuse. This is <br />how the revenues would get back up. He said that at no time has the board of directors said <br />that any cost of the reclaimed water system would be funded by potable water customers of <br />OWASA. The reclaimed water system would be funded solely from the rates and fees charged <br />for reclaimed water service. He said that the letter of understanding would be a binding <br />agreement to move forward to develop the system, but there will be a much mare detailed <br />contractual agreement later. <br />Commissioner Brown said that she wants them to be up front about their finances <br />before they get into a binding agreement. <br />Chair Jacobs suggested that on April 29t" at the Assembly of Governments meeting <br />that OWASA make a presentation to go over same of these issues. He said that he remembers <br />that OWASA has public hearings on rate increases every year. It was answered that this is <br />correct. <br />Cammissianer Halkiotis expressed commendation about the reclaimed water project. <br />He said that if you can wean the University off of potable water, then that is great. He agreed <br />with Commissioner Brown in that the public needs to know the financial bottom line. He said <br />