PROJ00202

• Contract/PO #: C153474
• Contractor Name: Oak Creek, Town of
• Water District: 0
• County: Rio Blanco
• Bill Number: XB 99-999
• Loan Projects - Doc Type: Feasibility Study

I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I

-33-

included an allowance for price increases for 1988 construction and en9i-
neering construction quality control services. The increase allowance for
engineering cost is 5 percent and is based on a survey of salary increases
over the past five years by the American Society of Civil Engineers (ASCE).
The increase allowance for construction costs is 4 percent and is based on
information obtained from discussions with a large construction management
company.

Interest During Construction - Pursuant to instructions from the ewCB
regarding the timing for the availability of matching funds, the financial
plan for the project provides that funding for 100 percent of project costs
will be secured by June 30, 1987, approximately one year before the start of
construction. Accordingly, there is no separate cost item for interest during
construction.

Bond Issue Expenses - The Town's bond counsel, Hanifen-Imfhoff, Inc., has
provided an estimated financin9 plan for a 1987 general obligation water bond
issue with a total par amount of $285,000. Based upon Hanifen-Imhoff's
financing plan, these funds would be used as follows:

Net Proceeds of Bond Issue
Final Design (1987)
Construction Costs (1988)

$ 32,500
232,500

$265,000

Bond Issue Expenses (1987)
Legal Expense
Issuing Expenses
Underwrit i ng
Miscellaneous

$ 5,000
2,500
9,975
2,525

$ 20,000
$285,000

Par Amount of Bonds

The expenses of $20,000 would be paid directly from the proceeds of the bond
issue. This amount has been included in the estimated total project cost.

Summary of Estimated Project Costs - A summary of estimated project costs
for the preferred Option 2 is given in Table 3. Included in this table are
estimated quantities, unit costs, source of the unit cost estimate, and amount
of Item A - Construction Costs; Item B - Engineering and Administration Costs,
Item C - Construction Cost Contingency; Item D - Projected Price Increase for
1988 Construction; Item E - Interest During Construction; and Item F - Payback
of CWCB Loan for Feasibility Report. The total estimated project cost
including all of the above items is $600,000.

V.2 Fund Requirement Schedule

The estimated schedule for completion of all work required for this pro-
ject, including the fund requirement schedule, is shown on Figure 11.
Indicated on the schedule are funding requirements from the CWCB, and
corresponding funds to be obtained from the sources including general obliga-
tion municipal bonds or 9rants.