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<br />Part VI - Alternative Selection <br /> <br />In order to provide a reliable and safe drinking water to the residents of Goodman Point, <br />a water distribution system must be constmcted. Currently, water for both domestic uses <br />and fire protection must be hauled from Cortez to the Goodman Point area. This practice <br />risks contamination of the water during the loading, unloading, transport, and storage of <br />the hauled water. Therefore, the alternative of no action is unacceptable. <br /> <br />A present worth analysis was completed to evaluate the two alternatives. Current federal <br />discount rates were found to be 3% for a 20-year project. Present worth costs are <br />presented in Table VI-l below. <br /> <br />Table VI-I: Twenty Year Present Worth Cost Analysis for <br />Alternatives 2 and 3 at an Interest Rate of 3% <br /> <br />Alternative <br />Alternative 2 <br />Alternative 3 <br /> <br />Construction Costs <br />$1,785,465 <br />$2,040,469 <br /> <br />Non-Construction <br />$184,279 <br />$220,598 <br /> <br />Annual O&M <br />$22,820 <br />$25,700 <br /> <br />Total Present Worth <br />$2,310,177 <br />$2,644,829 <br /> <br />As shown in the present worth analysis, the total lifecycle costs for Alternative 2 are <br />nearly $330,000 less then those found for Alternative 3. Alternative 2 is therefore a more <br />economical alternative for the proposed project and is selected. <br /> <br />Goodman Point Water Association - Preliminaty Engineering RepOli <br /> <br />17 <br />