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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 />Point-of-Connection and MeterinQ <br /> <br />As urban areas develop within the canal service area, a point-of-connection (POC) is <br />typically made to the transmission pipeline of the system. From this point-of-connection, <br />the developer would design and install, to the canal company's specifications, a <br />distribution system to provide irrigation water to all desired areas or points of connection <br />(parks, open spaces, streetscapes, schools, and residential lots). The concept of the <br />secondary system is for the canal company to maintain and manage the primary <br />transmission system, while the water users develop and maintain the distribution system <br />needed to supply water to users; or the canal company may manage the entire system <br />as well. In the case of a new development, the distribution would be designed by and <br />paid for by the developer, not the canal company. <br /> <br />Figures 3 and 4 show conceptual POC details for a raw water connection at a residential <br />lot or at other discrete open space areas such as parks or streetscapes. Secondary <br />water supply that is delivered to a POC can either be metered or un-metered, as shown <br />in Figures 3 and 4 respectively. Whether or not the POC is metered will ultimately be <br />determined by the canal company, as it provides the foundation for the canal company <br />to develop revenues from water fees. <br /> <br />There are real implications in the decision to meter or not to meter customer water use in <br />a secondary supply system. An aspect of the revenue generated from a project will in <br />part depend on the rates that are charged for water use, whether they are flat in the case <br />of no meters or use-based in the case of meters. <br /> <br />A preference for metering or not metering is primarily dependent on the site specific <br />conditions and goals of the project. There are also sound institutional or political aspects <br />to the question. The perceived benefits and drawbacks of each method should be <br />weighed accordingly. The following examines some of the issues associated with <br />metering or not metering secondary supply systems. <br /> <br />Aqua Engineering, Inc. <br />November 17, 2004 <br /> <br />Canal Modernization Study <br />-8- <br />