City Council Minutes 1992 07 06 - Laserfiche WebLink

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$500,000.00 and the cost for the connecting line would be reduced by about $500,000.00. They are better off to move the line and pay a higher pro-rata portion of that line, if there are more participants, than they are to stay to the east and be in a line by themselves. The way we've allocated these estimated construction costs, as well as the cost associated with the interim study, is we divide the pipeline up into segments. A segment is defined as that length of pipe starting at the Carter Lake outlet works and terminating at the first participant turnout, which happens to be to Berthoud and Johnstown. We look at the total cost of that segment and allocated the cost of that segment based upon each entities portion of the full capacity in that segment. The next segment goes from Berthoud/Johnstown over to a point where Longmont and Left Hand would turnout and we would do the same thing. What you find out is that you pay a higher percentage of the cost, if your flow capacity is greater. You also pay a higher percentage of the cost the farther you are from Carter Lake. The distance is measured along the pipeline. Howard: What's the minimum number of cities that have to be in this agreement to choose one routing over the other? Dreher: Probably one. Any one of them would be enough to change it. Dreher stated that they plan to make an informal submittal to Boulder County in mid-August to give them about a 30-60 day advance notice before their formal application in mid-September. Under Boulder County Statutes, they have 30 days to give them their decision, so they'll know the decision mid-October. By November 1, they're looking for entities to commit to the construction. For entities that enter into an agreement with them, they will work with them to develop a cash flow projection. If you enter into an interim agreement, they would expect no further cash payments from you in 1992. The next payments would begin to be due in 1993. 10