Res 1988-044 - Laserfiche WebLink

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3. The raw water cost would then be charged to the City by GBRA at their prevailing rate. It must be noted the cost for Canyon Lake surface water can and will go up as GBRA develops other maj or reservoir proj ects . These proj ects are not expected for some time, but in all likelihood will occur. Costs for the raw water could increase substantially. Current estimates project Canyon raw water cost could be in the range of 3125,000 to $175,000 per 1,000 acre foot. OWNERSHIP/OPERATIONS OUTLINE It is proposed that the City of San Marcos be a participant with a right to a fixed share of treated water production from the project, responsible for financing its pro rata share of capital cost, operational expenses, etc., as costs are incurred. As a participant, San Marcos would enjoy the benefits of receiving services at cost, being able to sell its interest, shar ing in profits generated by the sale of services to third parties, etc. The benefits to both participants will be lower per unit cost due to economies of scale and an increased capability to act as a regional purveyor of a critical resource. OWNERSHIP LAND New Braunfels will identify and purchase sufficient land to locate facilities which can treat up to 17,000 acre feet of surface water. San Marcos will pay New Braunfels for its pro rata share of the cost of the land following the execution of this agreement and upon closing of the property by New Braunfels. In this connection, efforts will be made to negotiate a land purchase