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<br />Page 2 <br /> <br />Discussion ensued about the need for a cooperative relationship and <br />benefit to both towns. This was generally more philosophical in nature <br />but important from the stand point that both groups expressed a desire to <br />"hammer out" a new arangement that was equitable to all. A suggestion <br />offered by Silver Plume called for an immediate increase in the payment to <br />Georgetown at a higher level deemed acceptable to both parties until a <br />specific rate could be determined and agreed upon. <br /> <br />The discussion then turned to the need to perform research work regarding <br />the actual costs of operating and maintaining the treatment plant, <br />establishment of a capital reserve fund for depreciation (replacement) and <br />an operational contingency fund for unanticipated repairs that must be <br />handled on an emergency basis. There was also mention of allowing credit <br />to Silver Plume for installation of the outfall line that is used by both <br />towns, but debt obligation is totally with Silver Plume. ~eorgetown <br />similarily has debt outstanding on the treatment plant and should this <br />also be considered in the monthly fee? This issue is a sensitive one <br />which could require extensive negotiation between the parties, Or, the <br />issue could be generally disregarded. There appears to be several reasons <br />to support the latter since: the matter is not considered in the current <br />agreement, both towns entered into the debt seperately without the consent <br />of the other town, both towns want to maintain ownership of assets and <br />assistance in debt payments would cloud this intention and finally, there <br />is a need to move forward in aimely way and history will pose a formidable <br />stumbling block if it is considered too strongly. <br /> <br />The meeting concluded with Georgetown committing to: <br />1. Conducting research into the costs of operating the plant over a 12 <br />month period of time, (This precludes the seasonality factor of plant <br />operations). An annual operating inflation rate should also be <br />determined. A standard measurement unit such as the Consumer Price Index <br />might be a legitimate yardstick for this purpose. <br /> <br />2. Developing an appropriate estimate of future, short-term capital <br />improvements and long-term depreciation costs which will serve to <br />determine the amount that needs to be assessed from both towns sewer user <br />fees to be placed in a capital reserve fund. (While consideration of <br />replacement costs for the outfall line was not discussed as related to the <br />establishment of the capital reserve fund, it probably should be included <br />too) , <br /> <br />3. Performing a cost analysis of emergency type plant repairs over the <br />last few years, an operational contingency fund should also be <br />established. <br /> <br />Both towns will get together as soon as possible following the completion <br />of the research work to review the data collected. The information will <br />be used to determine the new user fees to be charged and will be <br />incorporated into the amendment of the intergovernmental agreement. Jerry <br />Buckley will contact Mary Dobyns when the research work is completed to <br />set up the next meeting date. <br /> <br />-.\~- <br /> <br />~ P <br />'5'./"". ....., <br /> <br />-< (~~...,~..~ <br /> <br />,..... -t'L-t "fi.--- tl~ f\.r <br />~ oLc-u <br /> <br />!.o. """"-<"'-'n <br /> <br />4. C....S;~r L. <br />Oll:'C~~ <br />uf= It-S I ~ IoH'l ;-u..t-. <br />