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

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As indicated on the fund requirement schedule, the Town of Oak Creek is
requesting a total low-interest loan of $297,000 from the ewCB, and will
obtain the remaining $303,000 of the project costs through other sources.
Eighteen thousand dollars ($18,000) from the CWCB is required by approximately
Oecember 1, 1986 to pay 50 percent of the cost of this feasibility study.
Final design work would begin on July 1, 1987; therefore, $32,500 from the
CWCB will be required at that time to pay for 50 percent of that work, as well
as other engineering work in 1987 and 1988 to select a contractor for the pro-
ject. The remaining $246,500 from the CWCB will be required at the be9inning
of construction work, scheduled for July 1, 1988.

V.3 Operation, Maintenance, Replacement, and Emergency Operatin9 Fund

For purposes of this project feasibility study, annual operation, main-
tenance, and replacement costs have been projected at a constant annual amount
of $60,000, based upon actual costs of approximately $50,000 for the year
ended December 31, 1985 plus a contingency factor of 20 percent. The data
upon which this estimate is based are contained in "Statement 6, Statement of
Revenues and Expenditures - Budget and Actual for the Enterprise Fund-Water,"
which is located on page 25 of the Comprehensive Annual Financial Report,
December 31, 1985 (given in Appendix B) for the Town of Oak Creek, prepared by
Albaugh & Lee, P.C. Based upon interviews with Mr. Albaugh and with Ms. Nancy
Crawford of the Town, we have deleted expenditure line items for depreciation,
"operating transfers out," and capital outlay from Statement 6 in arriving at
the projected annual O&M cost amount of $60,000, shown in Table 4.

The Emergency Operating Fund shown in Table 4 would be utilized to
finance extraordinary costs beyond the scope of normal operation, maintenance,
and replacement costs; or could also be used to make all or part of the annual
CWCB payment in a year when such extraordinary costs were incurred. Pursuant
to instructions from the ewCB, the amount of the fund shall be equal to one
scheduled annual payment on the CWCB loan, which is to be accumulated in 10
equal annual installments.