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<br />There are, at present, a large number of variables to deal with for any financial projection. <br />Staff has attempted to identify those variables, which show the greatest likelihood of <br />determining fmancial feasibility in the following scenarios. <br /> <br />. <br /> <br />The Best Case Scenario assumes that PMRCA will add 3 residential taps per year for <br />the next ten years. It also assumes that RMI will purchase 3,300 gallons per day from <br />PMRCA at $0.01 per gallon for treatment and sale to the Red Cedar gas processing <br />plant. PMRCA would charge $125 pcr month per dwelling unit for both raw water as <br />well as in-house water supplies obtail1ed by individuals at the RIO plant and hauled to <br />the residences. <br /> <br />The Worst Case Scenario assumes that PMRCA will remain at 13 rcsidential taps for <br />the next ten years. It also assumes that RMI will purchase 3,300 gallons per day from <br />PMRCA at $0.015 per gallon for treatment and sale to Red Cedar. PMRCA would <br />charge $170 per month per dwelling unit for both raw water as well as in-house water <br />supplies obtained by individuals at thc RIO plant and hauled to the residences. <br /> <br />The Best Case Scenario indicates a revenue swplus for PMRCA in each of the ten years. The Worst <br />Case Scenario, with no new taps sold by PJ\.1RCA, indicates that the project would be marginally <br />feasible. <br /> <br />These projections are presented here for review and discussion only recognizing that many of <br />the variables in the analysis will not be better defined until further discussions have taken place <br />between PMRCA, RMI and the CWCB staff as well as in discussions yet to take place <br />between RMI and Red Cedar. <br /> <br />. <br /> <br />Three-Party A~:reement and Contract <br /> <br />Following this Board meeting and further discussions with PMRCA and RMI, we will begin <br />drafting a three-party agreement. Elements of the agreement will include (as a minimum): <br /> <br />· acknowledge each party's financial participation in the raw water project (detailed terms <br />set forth in CWCB/PMRCA contract amendment and PMRCA/RMI agreement, both of <br />which will be incorporated by reference into the three-party agreement), <br /> <br />· set forth RMI's obligation to construct and operate RIO plant (this also might be more <br />detailed in agreement between RMIIPMRCA), <br /> <br />· establish RMI's responsibility to operate, maintain and insure RIO plant, <br /> <br />· describe water sale arrangement between RMIIRed Cedar, <br /> <br />4 <br /> <br />t <br />