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<br />l'iope Ditch Company <br />January 24-25, 2005 <br /> <br />Agenda Item 18a <br /> <br />Proiect Description <br /> <br />The purpose of this project is to provide a replacement well for the Wiesner Subdivision. Four <br />alternatives were considered for the project including: <br /> <br />1 . No-action alternative <br />2. Chemically clean the well again. ($5,000) <br />3. FRAC the well. ($8,000) <br />4. Drill a replacement well. ($170,000) <br /> <br />Alternative 1, No-action alternative - This was considered unacceptable since it means the HOC <br />could not deliver water to its users. <br /> <br />Alternative 2, Chemically clean the well- This was ruled out because it would be a short-term <br />solution that would not last more that a month or two. In 1997 and 2001, the well underwent a <br />vigorous chemical mechanical cleaning process in an attempt to recover the original production with <br />little success. <br /> <br />Alternative 3, FRAC the well- The FRAC procedure uses an explosive to knock off mineral <br />deposits and corrosion. This option was ruled out as it could cause the well to collapse, and a new <br />well would be required. Several well experts advised against using this method for cleaning the <br />well, as the piping is galvanized and very corroded. <br /> <br />Alternative 4, Drill a replacement well- This was selected since it would be the least disruptive <br />and the best plan for the future. <br /> <br />Annexation to the City of Thornton was investigated several years ago, but not considered an <br />option because of the prohibitive cost (approximately $25.000 to $30,000 per house.) <br /> <br />Selected Alternative 4, Drill a replacement well- The project involves drilling a 950 foot <br />replacement well with steel casing, and installing a new 25 gpm pump and piping for the well and <br />piping and electrical connections to the pump house building. <br /> <br />The Total Project cost is estimated to be: <br /> <br />1. <br />2. <br />3. <br /> <br />Well Drilling <br />Pump & motor. piping & connection <br />Engineering/Contingency (25%) <br />TOTAL <br /> <br />$ 114,000 <br />22,170 <br />33,830 <br />$170,000 <br /> <br />The well drilling and connections will take approximately 4 to 6 weeks to be fully operational, with <br />proposed completion planned by mid-May 2006. <br /> <br />Financial Analvsis <br /> <br />The total estimated cost of the project is $170,000. HOC qualifies for the Municipal Middle Income <br />interest rate, and staff is recommending a maximum loan amount of $153,000 (90% of the <br />estimated project cost) for 30 years at an interest rate of 3.75%. HOC will pay the 10% local share <br />($17,000) of the project cost from its cash reserve funds. HDC will cover any costs that exceed the <br />estimated project cost. In December 2005, HDC began assessing its members a special <br />assessment of $40 per month for capital projects, including allowance for CWCS loan repayment. <br /> <br />Page 3 of 5 <br />