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<br />. <br /> <br />. <br /> <br />1. State Funding Approach-~This approach assumes that a <br /> <br /> <br />Cache la poudre proiect would be authorized and funded <br /> <br /> <br />by the Colorado General Asembly through the Colorado <br /> <br /> <br />Water Conservation Board construction fund. Costs for <br /> <br /> <br />short term financing will not be included. <br /> <br />The Contractor shall assume a reasonable <br />schedule of pre-construction and construction <br />activities beginning with the initiation of planning <br />and feasibility studies in mid-1983 and terminating <br />with the on-line date of the project. Expenditures for <br />all activities will be staged and escalated for <br />inflation at a rate of eight percent per year <br />throughout the planning and construction period. <br /> <br />The annual amortization requirement will be calculated <br /> <br /> <br />assuming interest computed on the total of all capital <br /> <br /> <br />expenditures at an annual rate of five per cent over a <br /> <br /> <br />period of forty years. The contractor will display and <br /> <br /> <br />discuss, in the draft final report, the staged, <br /> <br /> <br />escalated schedule of expenditures, the annual <br /> <br /> <br />amortization r.equir.ement, and the annual cost of. <br /> <br /> <br />operations and maintenance as well as an average annual <br /> <br /> <br />cost for replacement computed as of the on-line date of. <br /> <br /> <br />a project. <br /> <br />-6- <br />