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q <br />C. Develop a program for future service, based on one or more of the <br />following concepts: <br />1. Continue joint operation under a revised <br />agreement. <br />2. County proceed with water supply and/or treatment <br />and/or sewage treatment facilities as a County <br />enterprise, making capacity then available to the <br />City, obviating or reducing the need for capital <br />expansion on the City's behalf. <br />9. RATES AND CHARGES <br />A. Bulk Water Sales <br />At the end of each City fiscal year, the total cost of pr6ducfhg treated <br />water during the preceding year will be determined from the City's <br />fiscal audit report. <br />The total yearly cost will consist of the sum of the following items: <br />1. The debt service (principal and interest payments) on a <br />`\ <br />principal sum as calculated below on the City's invest- <br />ment in water production and treatment facilities. <br />2. Operation and maintenance costs for water production <br />and treatment. <br />3. All other costs and/or investments reasonably attributable <br />to the expense of the production of treated water. <br />The total yearly cost will then be divided by the total volume of treated <br />water produced during the period of the audit report, to establish a unit cost. <br />The unit cost multiplied by 110% will establish the monthly charge for <br />water purchased by the County during the next year,, except that when the next <br />year's cost has been established, the total charge for water purchased during the <br />year will be adjusted to the actual cost plus 10% for the preceding year. and the <br />County will be credited or debited accordingly. <br />For the purpose of e§tab7ishtng a principal sum for annual debt service com- <br />putations, the value of the City's water supply and treatment facilities will <br />.SAN 4 114 <br />W1 <br />