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<br />.,. <br /> <br />. <br /> <br />WcJ:V~' ~ :J;7s ZJ <br /> <br />. <br /> <br />A detailed evaluation by WestWater Engineering using both monetary and non-monetary <br />factors indicated that the non-pressure pipeline (Alternative 1) was the preferred <br />alternative. <br /> <br />The project will consist ofthe installation of about 4.2 miles of 12-inch diameter ductile <br />iron pipe (Alternative 1) generally following the alignment of Cottonwood Creek from the <br />Town's main raw water storage reservoir to the vicinity of the water treatment plant. The <br />pipe will be installed in an existing access road which runs through the narrow, rocky <br />Cottonwood Creek Canyon. <br /> <br />The project cost per acre-foot of firm system yield is given in Table 3. The firm yield was <br />estimated by Hydrosphere based on certain assumptions regarding a four-year hydrology <br />sequence and other operational factors. <br /> <br />Table3. Project Cost per Acre-Foot of Firm Yield <br /> <br /> <br />$1,242,000 <br />1,760 <br />$706 <br /> <br />. <br /> <br />Permitting <br />Most of the pipeline route passes through lands administered by the Bureau of Land <br />Management (BLM). A right-of-way permit will be required from BLM which, in turn, <br />will entail the preparation of an environmental assessment (EA) by the Town. Work on <br />the EA is expected to begin and to be completed in 1998. <br /> <br />Financial Summary <br />The Town is requesting an additional authorization of $172,000 based on Board funding <br />of75 percent of the total project costs. The additional loan amount was calculated in the <br />following manner: <br /> <br />Total amount eligible at 75 percent of $1,242,000 <br />Less previous authorization <br />Less feasibility studv grant <br />Additional Authorization <br /> <br />$931,500 <br />-$750,000 <br />-$9.500 <br />$172,000 <br /> <br />Staff has reviewed financial data for the Town's Utility Fund for the years 1994 to 1996 <br />and finds that operating revenues and operating expenses are essentially in balance in each <br />of those years. Debt service coverage is adequate due to the transfer of county sales tax <br />revenues to the Utility Fund. The sales tax transfer has also resulted in a cash reserve of '-k J <br />about $1.4 million in the Utility Fund. Existing long-term debt includes a general "..,7 ('t(Y/ :J <br />obligation bond issue to be retired in 2000 and a Construction Fund loan with a balance of <br />$283,500. The Town is current on both obligations. <br /> <br />. <br /> <br />3 <br />