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<br />- - ---~--- ~-"":'\? <br />, VL ,"'. JV." <br /> <br />-:,." ." <br /> <br />". <br /> <br />In all alternatives the construction costs,. ,refi'edt smap>,::- . . <br />differences from the Base City Plan,. however: the ;,operating ,.costs. <br />are significantly less (as much as 72 percent): ,when using the.'- <br />Desalting Plant. Savings in operating costs are-primarily>due <br />to a reduced delivery charge, reduced power. rates ,ande.reduced <br />operating staff. .. " . ' <br /> <br />Construction of the Desalting Plant and related delivery -system <br />was not staged. In some alternatives (~ and 4) the existing Main <br />street plant was shut down rather than utiliied.Asa result the <br />Present Worth of the construction costs do not show a consistent <br />decrease with larger Desalting Plant capacity. staging of the <br />Desalting Plant features would likely decrease Present Worth <br />costs. The option of leaving the existing 20 Mgal/d Main street <br />Plant in operation and making all further expansions using the <br />Desalting Plant should be evaluate. <br /> <br />As stated earlier these savings reflect only the increase in <br />Desalting Plant operating costs. The delivery charge to be <br />negotiated will reduce the savings to the city. <br /> <br />other issues that would need to be addressed include: <br /> <br />Authorization for providing Desalting Plant water to the City. <br />Public Law 93-320 appears to contain sufficient authorization, <br />however Solicitor review would be required. <br /> <br />"",.. <br /> <br />Assuring continuous treatment. The City has expressed concern <br />over whether Reclamation could assure the continuous treatment of <br />their supply if Congress does not providing operating funds for <br />the Desalting Plant. <br /> <br />Water delivery/repayment contracts require the standard article <br />"contingent on Appropriation or Allotment of Funds" which <br />states: "The expenditure or advance of any money or the <br />performance of any obligation of the United states under this <br />contract shall be contingent upon appropriation or allotment of <br />funds. Absence of appropriation or allotment of funds shall not <br />relieve the contractor from any obligation under this contract. <br />No liability shall accrue to the United states in the case funds <br />are not appropriated or allocated." <br /> <br />While the "contingency clause" would need to be contained in the <br />contract there are options that could be explored for providing <br />greater assurance of a continuous supply in the event of cut- <br />backs in appropriations or allotment of funds. One option would <br />be to collect the funds through the Contributive Funds Act. Under <br />this Act if Congress held back funds, the operating funds being <br />collected from the city would go directly to financing the <br />continued operation of the portion of the Desalting Plant needed <br />for their supply. <br /> <br />The specific assurances between the city and Reclamation could be <br />