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<br />I <br />I. <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />Ie <br />I <br />I <br />I <br />I <br />I <br />I <br />I. <br />I <br />I <br /> <br />10. If required, perform additional model runs with adjusted pumping rates to the end to the <br />stress period. <br /> <br />5. 1 A Economic Analysis <br /> <br />Economic analyses will be performed to determine the cost of Denver Basin aquifer <br />groundwater production. An economic analysis will be performed for each well analysis. The <br />economic analysis will include the capital and operational costs of groundwater production over <br />the simulation period. The expected economic analysis period is 1997 to 2046. Costs related to <br />well installation, pumping equipment, electric power, operation, maintenance, equipment <br />replacement, well design and installation oversight will be included in the economic analysis. The <br />contractor will obtain and document current cost estimates for all capital, operation and <br />maintenance items. <br /> <br />A discount rate, a unit energy cost per Kwh, and an annual energy cost escalation factor <br />will be included in this analysis. An annual inflation factor will be applied to first year costs. A <br />spreadsheet will be prepared to calculate costs over the period. The spreadsheet will include a <br />row for each year. At a minimum the following values should be presented for each year of <br />operation: net present value factor, yield in acre-feet per year, pumping water level, well cost, <br />equipment cost, operation and maintenance costs (pumping costs and 0 & M fixed costs), total <br />annual cost, annual unit cost per acre foot, and present value cost. Total capital costs and total <br />unit costs on an acre foot basis should be presented in addition to total net present value costs and <br />net present value unit costs on an acre foot basis. <br /> <br />5. 1. 5 Report <br /> <br />A report will be prepared to document the assumptions, analyses and results of the Phase <br />2, No. 1 investigations. Graphs and figures should be prepared where applicable to explain the <br />results of the analysis. The report will include a discussion of domestic well production and the <br />potential effects of regional groundwater-level declines on production. <br /> <br />16 <br /> <br />HRS WATER CONSULTANTS. INC <br />