PROJC02281 ‎(2)‎

• Contract/PO #: C150223
• Contractor Name: Keenesburg, Town of
• Contract Type: Loan
• Water District: 2
• County: Weld
• Loan Projects - Doc Type: Approval Letter

Town of Keenesburg
March 21-22, 2006
Agenda Item t7c
Transporting the Roggen well water to the Town would require two lift stations. The estimated cost
of this alternative is approximately $2.6 million. This alternative would bring additional water
quantity to the Town for future growth, but would not result in a significant improvement in the
Town's current water quality.
Selected Alternative 2, Purchase PV Water- The selected alternative is the purchase of 139.6
AF of well water rights in the Lost Creek Groundwater Basin, construction of a new replacement
well with a variable speed pump, construction of 5.5 miles of 8" transmission pipeline to the Town,
and completion of the water blending facility at the Town's existing water tank.
The Total Project cost is estimated to be:
1. Water Rights Purchase $1,116,800
2. Construction -Pipeline, Well, Structures 911,480
3. Engineering 157,230
4. Contingency (15%) 136,690
TOTAL $2,322,200
Schedule -The purchase of the water rights is expected to occur with the next 90 days, and the
overall project is expected to be completed in late 2007.
Financial Analysis
The total estimated cost of the project is $2,322,200. The Town qualifies for the Municipal Middle-
Income interest rate, and staff is recommending a maximum loan amount of $1,508,000 (65% of the
estimated project cost) for 30 years at an interest rate of 3.75%. The Town will pay the 35% local
share ($814,200) of the project cost using existing reserve water funds.
Table 1 is a summary of the financial aspects of the project. A CWCB Loan of $1,508,000 would
have an annual payment of $93,038 (including the 10% reserve requirement) at the loan terms of
3.75% for 30 years.
Table 1. Financial Summary
Project Cost $2,322,200
Number of Existin Water Ta s 461
CWCB Loan Amount 30 ears $1,508,000
CWCB Loan Pa ment includes 10% reserve - Be in 2007 $93,038
Current Monthl Water Rate Avera a $22
Future Total Monthl Water Cost w/o DOLA rant $30
Monthl Per Ta Cost of CWCB Loan $16.82
Annual Loan Cost per Acre-Foot (based on aver. 139.6 ac.-ft. delivery) $666
Table 2 shows the Financial Ratios and indicates overall average to strong ability to repay the
$1,508,000 CWCB loan, with the increased water rates.
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