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demand through the year 2020 without acquiring any of the 4.0 mgd capacity <br />• added to the South Rivanna plant. ACSA and the City have therefore agreed that <br />the additional 4.0 mgd capacity is required by ACSA, and that the entire cost for <br />that expansion of capacity should be allocated to ACSA. <br />3. ACSA agrees to pay all of the 1999 4.0 mgd South Rivanna Water <br />Treatment Plant expansion cost. As a result, the ACSA will be entitled to all of the <br />4.0 mgd plant capacity expansion. Concurrently with the expansion of the <br />treatment capacity at the South Rivanna Water Treatment Plant, RWSA made <br />operational improvements and changes to this plant. The total cost of the plant <br />capacity expansion and operational improvements and changes was <br />$7,869,251.00. RWSA, ACSA, and the City agree that $2,718,660.00 of this cost <br />• was for capacity expansion and $5,150,591.00 was for operational improvements <br />and changes. ACSA and the City have been paying the annual debt service on the <br />bonds sold by RWSA to fund this project through RWSA's urban water rate. <br />ACSA agrees to reimburse the City for debt service the City has paid on the <br />capacity expansion component of the total debt service. This amount will be <br />calculated by RWSA as of December 31, 2003 and will be paid by January 31, <br />2004. From January 1, 2004 forward ACSA will pay 100% of the debt service on <br />the capacity expansion component for the 1999 4.0 mgd plant capacity expansion <br />of the South Rivanna Water Treatment Plant. <br />4. ACSA and the City agree that RWSA's current Urban Water System <br />0 Plants' capacity of 21.7 mgd will be allocated 48% to the City (10.4 mgd) and <br />2 <br />