C150223 Feasibility Study

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

The information presented in this study follows the general format discussed with
the CWCB staff and as outlined in the CWCB's Guidelines for Financial
Assistance.
The relative locations of all facilities described in this report are shown on the
Water Line Alternatives exhibit as Appendix B.
B. STUDY OBJECTIVE
The following sections provide the necessary background information about the
Town's current and future water situation. In addition, information is presented
about the financial strength of the Town and its ability to service the debt, which
will be associated with the Phase II project.
More specifically, this engineering evaluation will include the following:
• Description of the project sponsor, anticipated revenues and current
operations.
• A summary of the existing water supply and the Laramie-Fox Hill water
quality issues.
• Future water supply requirements.
• Water system sizing necessary for transmission lines and lift stations.
• Description of alternative water supplies and water transport facilities
including piping, pump stations, and storage. These alternatives were
developed to determine the least cost alternative for the current expansion
and to develop alternatives for future expansions.
• Presentation of a preliminary cost opinion for the needed improvement.
• Financial analysis of the expected revenues that will be obtained from the
Town's water enterprise fund in order to service the debt.
C. PROJECT SPONSOR
The Town of Keenesburg is the project sponsor for Phase II. Keenesburg is a
Colorado statutory town and manages its water utility through an enterprise fund.
The Town relies on water sales, tap fees, and property taxes to fund operations,
maintenance and expansion of its system. A copy of the budget is included as
Appendix D.
The Town currently serves approximately 461 water taps and an estimated
population of 1100. Water customers within the Town are primarily residential,
with approximately 78 other taps, which include commercial, schools, and other
public type buildings. The base water rate was recently increased from $18.00
(4,000 gallons) to $22.00 (6,000 gallons) representing a 22% increase. Usages
in excess of the minimum 6,000 gallons were also increased utilizing a stepped
rate to encourage water conservation. Additional information pertaining to the
adopted rates is included in the ordinance.
Feasibility Study -Keenesburg, CO
1/23/2009 2