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<br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />Phased Development <br /> <br />Strategic phasing is a crucial component to the economic feasibility of developing <br />secondary supply systems. It is anticipated that the development of secondary supply <br />systems will occur in phases over extended periods of time in order to meet <br />developmental priorities and to work within feasible budgetary frameworks. As each <br />phase is developed, the water storage facilities, pumping systems and secondary supply <br />transmission piping network should be constructed or extended to provide point-of- <br />connections to developments. <br /> <br />Secondary supply systems must be developed in a way that matches the timetable for <br />developing water supplies for the secondary system. It is important that the potential <br />problems of both excess capacity and inadequate capacity are avoided during the <br />construction of any given phase. <br /> <br />The success of phasing will depend on the revenue generated from the system relative <br />to the costs of capital improvements. Hook up fees and water rates should be sufficient <br />to assure adequate revenue to cover the costs of this capital project, within each phase <br />of development. <br /> <br />Aqua Engineering, Inc, <br />November 8,2004 <br /> <br />Canal Modernization Feasibility Study <br />- 26- <br /> <br />