Southwest - Goodman Point Pipeline Environmental Assessment_Final Env & Eng Report

• Basin Roundtable: Southwest
• Applicant: Goodman Point Water Association
• Description: Goodman Point Water Association Environmental Report - Preliminary Engineering Report
• Account Source: Basin
• Board Meeting Date: 3/13/2007
• Contract/PO #: 08000000075
• WSRF - Doc Type: Final Deliverable Documents

C Annual Operating Budget

1. Income
Once constmcted, Goodman Point will be located in an area designated as outlying area
by MWC. The existing water rate schedule for outlying areas from Montezuma Water
Company is shown below.

Table VII-4: MWC Monthly Rates for Outlying Areas

Meter Size
5/8" x %"

1 "

Monthly Base Rate Charge
$18.50
$40.00
$60.00
$135.00
$210.00
$385.00

%"

1-1/2"

12"
3"

The usage rate per 1 000 gallons of water is $3.15 regardless of meter size.

A base rate charged to each tap subscriber is developed to cover costs associated with
operation and maintenance, insurance, loan repayment, cash reserve, and replacement of
terminal assets. A breakdown of each of these costs is described in detail below.

2. Operation and Maintenance Costs

Operation and maintenance costs include the power costs associated with operating the
system and maintenance costs. Power costs in the area are $0.0919 per kilowatt hour.
Estimated annual power costs are $5,400 to operate one pump 24-hours a day. The VFD
on the booster pumps require approximately 2 times the power that a standard 5 hp pump
would require. This is reflected in the estimated annual power costs. This is a
conservative estimate and actual pump operating costs will be less.

Maintenance costs include regular maintenance on the tank and pumps and distribution
system repairs. Labor costs include those for reading meters, collecting samples, regular
operation of valves and hydrants, and emergency response. Total maintenance costs are
estimated at $18,500 annually and were estimated by the Montezuma Water Company.
MWC will be solely responsible for the operation and maintenance of the distribution
system, pump station, and tanks once constmcted.

The total annual operation and maintenances costs are thereby estimated at approximately
$23,900 per year. These costs will be recouped by MWC through customer rate charges.
Insurance costs are estimated at $3,000 annually, which will be divided up equally among
customers and included in assessed customer rate charges.

3. Debt Repayments
The proposed project will be financed through a combination of USDA Rural Utilities
Service grants and loans. It is anticipated that 75% of the project will be funded through

Goodman Point Water Association - Preliminaty Engineering RepOli

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