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<br />1 <br />1 <br />] <br />1 <br /> <br />I <br />I <br />I <br />.J <br /> <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />) <br />I <br /> <br />7-5 <br /> <br />Present Worth Analysis <br /> <br />For each of the 5-year measures, a simple present.worth analysis was completed. The <br />analysis used an adjusted interest rate of 3 percent to account for low inflation levels and low <br />real interest rates. The total cost to the District for all of the proposed new measures is <br />estimated to be about $144,000. This accounts for all of the cost and benefit factors described <br />individually above. What is not accounted for is the mitigation of costs for additional water <br />supply and for future expanded facilities to meet this need. <br /> <br />The conservation measures are calculated to save about 73 million gallons or 220 acre- <br />feet of water per year. The current purchase price for an acre-foot of firm yield supply is about <br />$5,000 based on analyses by District staff. Therefore, for a present worth cost of $144,000, the <br />District could offset the future purchase of $1.1 million of finn yield supply. In addition, the <br />District would also eventually benefit from not needing facilities to handle the incremental <br />impact of the 73 million gallons of diminished annual water demand. <br /> <br />Of course, these are initial estimates and need to be verified through pilot studies and <br />actual full scale implementation. However, the results do suggest the overall viability of <br />conservation to the District. The measures directed at new development will be able to continue <br />until build-out with similar compounded savings. The measures directed at existing development <br />will level off either within the 5-year period, or shortly thereafter, due to the fact that the <br />potential market will have been. depleted by that time. <br /> <br />Qualification of Evaluation <br /> <br />The most current available data were used to perform the evaluations, but existing data <br />are not always an accurate indicator of future conditions for the following reasons: <br /> <br />· Different districts and municipalities enact measures in different ways. <br />Rarely are sirtlllat measures m -different cOniniumties identical. - - - . <br /> <br />· Some communities embrace the concept of conselVation more than others. <br />The results of the customer survey indicate that a good level of acceptance <br />should be achieved within Highlands Ranch. <br /> <br />· Varying weather patterns, climate, soil types, and existing landscaping <br />practices will impact the level of outdoor conselVation. <br /> <br />. The quality of original fixtures, be they conserving or not by design, will <br />impact their failure rate, tendency to leak, and long term life. Good <br />quality fixtures, whether conselVing or not, will be more acceptable, <br />retained by a larger segment of the population, and have less tendency to <br />leak. <br /> <br />21-6657 <br />