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Conduit Costs Correct
This case concerned the validity of various monetary charges imposed on the Southgate Water District (SWD) under a written participation agreement between it and the City and County of Denver. Under the agreement, Denver extended and enlarged its distribution facilities to supply treated water to an area outside city limits, part of which was serviced by SWD. One issue was the charge for conduits and the method by which costs were computed. The conduits were described in the contract as, and were built, “oversize,” in excess of SWD's needs. This allowed excess capacity in the system for Denver's sale to third parties. In computing the percentage of total cost to be paid by SWD, the estimated cost of a conduit to meet the capacity needs of SWD alone was computed first. This figure was then divided by the estimated cost of the oversize conduits to be built. This yielded an agreed percentage of the actual costs of the oversized conduit to be paid by SWD. SWD, maintaining this imposed charges in excess of its share of “actual costs,” sought a declaration that this method was invalid. The trial court ruled against SWD.
Conduit Costs Correct
This case concerned the validity of various monetary charges imposed on the Southgate Water District (SWD) under a written participation agreement between it and the City and County of Denver. Under the agreement, Denver extended and enlarged its distribution facilities to supply treated water to an area outside city limits, part of which was serviced by SWD. One issue was the charge for conduits and the method by which costs were computed. The conduits were described in the contract as, and were built, “oversize,” in excess of SWD's needs. This allowed excess capacity in the system for Denver's sale to third parties. In computing the percentage of total cost to be paid by SWD, the estimated cost of a conduit to meet the capacity needs of SWD alone was computed first. This figure was then divided by the estimated cost of the oversize conduits to be built. This yielded an agreed percentage of the actual costs of the oversized conduit to be paid by SWD. SWD, maintaining this imposed charges in excess of its share of “actual costs,” sought a declaration that this method was invalid. The trial court ruled against SWD.
Conduit Costs Correct
1994-11-01
1 pages
Article (Journal)
Electronic Resource
English
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