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<br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />e. Economic Analysis <br /> <br />A SUITlT\3.ry of the engineer IS oplnlon of probable cost for the <br />facilities to be built with CWCB and FHA I1Dney is shawn in Table <br />6. An analysis of the resulting average I1Dpthly rate is shawn in <br />Table 7. The projected average I1Dnthly rate for this alternative <br />is $3.18 higher than the ELCO alternative. HONever, after the <br />term of the service agreement for the treatrrent plant expires, <br />the rate will be reduced by $17.96 per I1Dnth. <br /> <br />To address the concerns of the Board for people on fixed incomes, <br />a preliminary rate analysis was rrade to detennine the miniIruJrn <br />I1Dnth1y charge that would have to be collected to cover the fixed <br />costs. That analysis is shawn in Table 8. A projected cash flON <br />using a rate of $35/I1Dnth miniIruJrn charge and $1. 65 per 1000 <br />gallons is shawn in Table 9 for total armual use by the Tawn of <br />33.96 aJ, 50.0 MJ, 75.0 MJ and 100.0 MJ. <br /> <br />Conclusions ana ReccmTEndations <br /> <br />This infornation was presented to the Town Board on June 15th, June 17th <br />and again on June 22nd. After a considerable arrount of discussion it was <br />felt that the North Poudre Alternative offered the follONing significant <br />advantages over the ELCO Alternative: <br /> <br />1. The town is paying for its awn water system and will not be paying <br />another entity forever for water with no guaranteed capacity. The <br />Town will control its awn destiny. <br /> <br />2. Although the projected rate is slightly higher than the ELCO <br />alternative initially, the rates will be reduced significantly after 8 <br />years when the plant becomes the property of the Town. <br /> <br />3. The plant will provide soft water to the Town. <br /> <br />4. The North Poudre Irrigation Co. has agreed to deliver water to the <br />Town at reasonable tenus and has shawn a willingness to work with the <br />Town by leasing property for a plant and tank for no additional <br />charge. <br /> <br />5. The plant will be guaranteed to be capable of producing water rreeting <br />the requirements of the Safe Drinking Water Act. <br /> <br />6. The plant will be warranted against defects in construction for 5 to 8 <br />years instead of the nonnal on year. <br /> <br />A proposed schedule to proceed with the project is shawn on Table 10. <br /> <br />Based on this, the Board decided to proceed with the North poudre <br />Alternative and directed TS & T to prepare the necessary infornation for <br />submittal to FHA and CI'lCB. <br /> <br />15 <br />