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K. SELECTED CAPITAL IMPROVEMENT PROGRAM <br />The Town does not have the financial resources at the present time to fund the <br />complete $3.3 million Alternative 1 project present herein. The project presented <br />in this section is scaled back to a project that can be afforded by the Town. <br />The water tank can be delayed for a couple years and the pump station and day <br />tank can be replaced with a new replacement well utilizing a variable speed <br />pump. The capital program would be as shown below: <br />Item Unit Quantity Unit Cost Total Cost <br />5.5 Mile Pipeline LF 29,040 24.50 $711,480 <br />Well, Pumps, Vaults & Structures Ea 1 200,000.00 200,000 <br />Subtotal $911,480 <br />Contenginces 15% 136,722 <br />Subtotal 1,048,202 <br />Engr, Legal & Admin 15% 157,230 <br />Total Alternative 1 $1,205,432 <br />The next section of this report will identify the various funding sources that will be <br />required to purchase the new well and construct a new well and 5.5 mile pipeline <br />to transport the water to the Town's existing water tank. <br />L. FUNDING OF THE WELL AND WATER SYSTEM IMPROVEMENTS <br />A financial plan has been developed that demonstrates how this project will be <br />funded. A summary of the costs and funding sources are as shown in the table <br />below. <br />Funding with CWCB Loan and DOLA Grant <br />Project Component Project Cost EI Grant Loan Town <br />Purchase Water $1,116,800.00 $1,008,000 $112,000 <br />Phase 2, Pipeline & well $1,205,400.00 $500,000 $705,400 <br />Loan Cost $10,000.00 $10,080 <br />TOTALS $2,332,200.00 $500,000 $1,018,080 $804,000 <br />The Town desires to borrow $1.018 million from the CWCB, obtain a grant in the <br />amount of $500,000 from the Colorado Mineral and Energy Impact Assistance <br />Program. The Town will provide $$804,000 of its own reserves to complete this <br />project. Currently the reserves are at $1,044,000 and the phase 1 construction <br />will reduce the $1,044,000 by $240,000, leaving $804,000 for the Town's share <br />in funding the Phase 2 project. In addition, the Town projects additional revenue <br />over the next three years through the sale of 60 taps, 20 taps per year and this <br />will result in an additional $410,000. <br />Feasibility Study - Keenesburg, CO <br />1/23/2009 9 <br />