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Page 2 W &S Rate Study Committee Minutes 8/22/91 wastewater systems, and they looked at the possibility of doing an advance refunding of the existing debts at the same time as the sale of new bonds, and looked at the total cost at the same time. Mr. Reed said that what happens on the advance refunding is we will be able to save money, because those debts outstanding is at a higher interest rate than it is today, so they looked at the analysis two ways, one being doing an advance refunding and issued a new debt, or issued a new debt and left the old debt as is. Mr. Reed said the first sheet of the handout shows the impact of both of those items. The fourth column from the left is the total system debt with no advance refund. Mr. Reed pointed out that the figures for 1992 was for a part of a year. The last column on the right is the annual savings or loss between those two numbers, makes the end result a positive $278,000.00 benefit to the City to do the advance refunding. Mr. Reed stated this was the most favorable way was to go with the advance refunding. Mr. Reed said this is one of the components that makes up the City's total cost that has to be recovered from all customers for the debt service, and the customers pay according to the demand upon the system. Page two of the handout list out some of the major projects that are going to be accomplished with the bond sale that is going to take place in late 1991, and another one in early 1992. Mr. Reed said that the Engineering Firm along with the City Engineering Staff are recommending that the line between Pat Mayse Lake and the Water Treatment Plant be paralleled with another line at a cost of $5,050,000.00 to take care of the construction and engineering on this project. Mr. Reed told the Committee the actual size of the line has not been determined at this, it could be a 30 -inch, or as much as 42 -inch line. Mr. Reed said there was only one line coming from Pat Mayse Lake to the treatment plant, and it carries approximately 80 -85% of the water that the City uses. Mr. Reed stated that not only do we need additional supply for that particular facility, this would provide additional backup if something happened to that line, because if it blew out, the entire city and all industry would have to shut down, in order to provide water for the residential customers of the city. Herb Campbell, Director of Utilities, told the Committee that during the summer time approximately 6 -8 million gallons of water was pumped from Lake Crook, and eight million gallons would be the maximum that could be pumped from Lake Crook for a very short period of time, then we could supplement that by adding portable pumps. Mr. Campbell also said that the capacity from Pat Mayse Lake was 14 million gallons a day, and on peak days we are at capacity. The Water Treatment Plant modification of the next major project due to more stringent water treatment standards imposed by the EPA which will become effective June 1993. Total cost of this project is $3,976,000.00 for construction and engineering. Mr. Reed told the Committee if these improvements are not made, the City will not be able to meet the standards with the present plant, what it does is decreases the amount of water you treat because you have to be more critical in the treatment process, so the City will loose some volume if the expansion is not done.