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<br />Cost Estimate <br />The estimated cost of this project is $388,799, as shown in the cost estimate table, <br />Appendix C. <br /> <br />Implementation Schedule <br />Once funding is obtained, construction on the transmission line from the Hoyer Well will <br />begin immediately, and will take approximately one month. <br /> <br />Upon approval of the well permit for the Thomas/Kusel Well, that well will be drilled <br />and the transmission line constructed immediately. <br /> <br />Permitting <br />All permitting has been granted for the Hoyer Well. The well permit for the Thomas/ <br />Kusel Well has been filed, and is now being processed. Easement agreements are in <br />place for all of the transmission lines. <br /> <br />Institutional Considerations <br />Entities that are, or may be, involved in the design, construction and fmancing of the <br />project include: <br />Town of Akron - financing and project management <br />Colorado Water Conservation Board - financing <br />Charles F. Leaf, Ph.D., P.E. - design <br />Quality Irrigation and Construction - well drilling <br />Masters Excavating - construction oftransmission lines <br /> <br />The Town of Akron will be the lead for financing, design and construction of the project, <br />and will be the entity entering into contracts and agreements necessary for completion of <br />the project. <br /> <br />Financial Analysis <br />The Town of Akron and the Colorado Water Conservation Board will be the two entities <br />involved in financing the estimated project cost of$388,799. The Town of Akron is <br />applying to CWCB for a loan of $349,799, 90 percent of the project cost. The Town will <br />provide $39,000 in cash match, or ten percent ofthe project cost. <br /> <br />The Town of Akron will cover any costs that exceed the estimated project cost. <br /> <br />The Town of Akron is requesting a 30-year loan from the CWCB at an interest rate of <br />3.75%, resulting in annual payments of$19,325. The current water rates are sufficient to <br />support a loan payment ofthis size, and no rate increase will be necessary to complete <br />this project. The Town has budgeted the $39,000 needed for their portion of the project, <br />and the money is in place in reserves for that purpose. <br /> <br />Credit Worthiness: The Town of Akron has an existing REA loan in its Water Fund. <br />The loan, originally in the amount of $480,000 has three years left at a cost of $49,920 <br />per year. This loan is through Y-W Electric Association, Inc., P.O. Box Y - Akron, CO <br /> <br />7 <br />