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Mr. Tarver feels that the growth rate needs to have the growth broken out as to retail, commercial, and residential. Mr. Tarver asked how full were the storage pools during the five days of full capacity pumping. Mr. Lawson explained that a model needs to be developed to answer that question. Mr. Tarver would like to have an answer to that question. Mr. Tarver inquired how much the system will cost to build. Mr. Lawson believes it will cost $13 million. If they can dump into the stream while they are doing the work, the cost would decrease to $11.5 million. If they cannc~: clump to the stream, they must construct the project over 36-hour periods during the summer. That is as long as the system can be shut down. It will take three years to complete. Mr. Tarver asked what the rate increase would be to cover the $13 million repair cost. Mr. Lawson believes it would be a three percent increase. Again he noted that if only the repair work is completed, it would be a 7% rate increase. If the debt is blended into the replacement program, the rate impact could be decreased by half (3%). If two-thirds of the growth materializes, the rate increase would be approximately 16% (worst case). Mr. Tarver inquired if that rate could be reduced some by increasing the connection charges. Mr. Lawson agreed that the present number of connection fees should be able to decrease the 16% to 7%, the wet weather problems would be solved, and the new pipe would last fifty years instead of a slip-line pipe that would last thirty-five years. He feels this is a very relevant point. He qualified that there needs to be updated engineering reports. General discussion ensued regarding the number of years required to pay the construction debt. Mr. Pico clarified that what he believes is being stated is that we are at the point where an agreement and a decision must be reached fairly soon between EBDA and LAVWMA because that is the only feasible alternative to putting a moratorium on growth. Mr. Lawson noted that an agreement does not mean a commitment to a project. It allows LAVWMA to continue the next phase of the planning. Ms. Acosta advised that staff is not ready to make a recommendation for Council's action. Staff will have a report ready before the next LAVWMA meeting. Mr. Pico inquired when the issues of EIRs, etc. will be handled. Ms. Acosta feels that would be done after the counter proposal was made. In response to Mr. Tarver whether City Counsel would agree to discussing policy issues with the public but discussing money issues in closed session, Mr. Rousch will have to respond personally. The Council agreed that before the next LAVWMA meeting, they will meet again to discuss this item. 04/18/95 -17-