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considered in this study which may make a joint system financially feasible though some would need to <br />be upsized. Reducing the length of interconnections by removing the City of Columbus from the joint <br />utility is likely to reduce the annual repair and replacement costs for a joint utility under Option 2 and for <br />Columbus itself under Option 1. <br />The main difference between Options 1 and 2 is the distribution of repair and replacement costs for <br />watermain. This difference may be insignificant if maintenance costs are distributed according to city <br />population. However, fully developed communities with aging watermain will have disproportionately <br />higher maintenance costs in the near term under Option 1 than the newer cities with larger populations <br />and newer systems. Under Option 2 the growing communities would end up subsidizing watermain <br />repair and replacement costs for the older cities with smaller populations if costs are distributed by <br />population. This is an incentive for older cities with little forecasted development to join the joint utility, <br />and ultimately leads to mutual benefit for all cities involved—growing communities benefit by obtaining <br />access to the older cities' supply and storage as they continue to develop. In return, they purchase <br />access to those assets and help to fund the repair and replacement of aging infrastructure in the <br />smaller cities. This mutual benefit would be reduced if distribution infrastructure is not jointly owned as <br />in Option 1. For this reason, Option 2, joint ownership of the entire water system, is likely to be more <br />equitable for all cities involved than Option 1. <br />9.3 Benefits of a Joint Utility (Option 1 and 2) <br />9.3.9 Future Watermain Efficiencies <br />For the distribution system, the joint system would need specific locations of large watermain installed <br />to facilitate interconnections and combine the separate distribution systems that now exist. It is <br />assumed that the majority of this cost would be fully paid for by developers per current policies of the <br />growing cities. Some larger diameter connecting watermains needed to access existing infrastructure in <br />fully developed communities may be shared trunk main costs that cannot be fully billed to developers <br />but should still allow for real savings. Creation of a joint utility is not expected to provide a cost savings <br />in large trunk watermain, but the total amount of large diameter looped watermain installed within each <br />community should be reduced to some extent. The reason for this is that each community would <br />typically have a large diameter main looped around its perimeter to ensure adequate fire protection to <br />the fringes of the community. Two communities bordering each other would each have larger diameter <br />mains running roughly parallel to each other in relatively close proximity. If the communities are joined <br />together, only a single main would be needed to accomplish the same level of fire protection. The large <br />diameter main would continue across community borders rather than turning to follow a border thus <br />reducing the need for parallel mains. Furthermore, when looking at member cities, the amount of <br />required additional watermain could be reduced if the City of Columbus is not included in the joint utility <br />or if the communities were realigned based on proximity and existing interconnections to other large <br />communities such as the City of Blaine. <br />9.3.2 Supply and Storage Savings <br />Additional advantages of a joint system include the ability to share water supply and storage under <br />Options 1 and 2. As each city is currently required to provide firm well capacity to meet peak demand, a <br />joint system would eliminate the need for up to seven (7) future wells and generators. Furthermore, <br />wells could be sited in areas with greater productivity, to target certain aquifer capture zones, or areas <br />with less connectivity to surface contamination. <br />For example, Hugo is anticipated to need 5 additional wells before 2030 due to expected development. <br />Figures A9 and Al depict the bedrock geology and location of impermeable clay layers. In Figure A10 <br />it can be seen that although Hugo has relatively productive wells, the clay layer is spotty within Hugo's <br />Joint Water Utility Feasibility Study 32 <br />