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MEMORANDUM TO: Mayor and City Council FROM: Shawn Napier, City Engineer DATE: October 1, 2004 SUBJECT: Marvin-Jennings-Clardy Water Supply Corporation The Marvin-Jennings-Clardy (MJC) Water Supply Corporation (WSC) just recently received bids in order to replace an old 4-inch water line with a new 8-inch water line on F.M. 905 Southeast of Paris. The City of Paris was approached in April of this year about the possibility of upgrading the proposed water line to a City of Paris standard pipe (PVC C-900 DR-18) from a rural water pipe (ASTM D-2241 Class 200 PVC). This is an opportunity to upgrade the lines to a fire rated line (able to support fire hydrants). If we so chose we could also pay for a new meter and vault to be installed at the current city limit line on F.M. 905 at Echols Creek. If we did this we would have the opportunity to change the CCN (Certificate of Convenience and Necessity) from MJC to the City of Paris. In doing so we would gain 10 current customers and the prospect for additional new customers. The price for upgrading the water line is $1.15 per foot. This is the difference in the price per foot of the two kinds of water pipe. The distance from the current meter location to the proposed meter location is approximately 7,840 feet. The cost for upgrading the pipe is $9,016.00. The cost to install a new meter and vault at the current city limit line is $8,715.00. The attorney's fee for changing the CCN is estimated to be $2,000.00. If the CCN was transferred to the City of Paris the MJC water meters would be exchanged with City of Paris touch read meters. The cost to replace the 10 meters is $1,000.00. The price to the City of Paris for the total project would be approximately $20,800.00. We are in the process of getting water consumption numbers on the 10 water customers from MJC. The new line will be installed by MJC at no cost to the City of Paris. The MJC board meets October 12th to consider this matter. cc: Larry Shaw, Interim City Manager Larry W. Schenk, City Attorney Jon Clack, Director of Water Utilities Gene Anderson, Finance Director