PROJ00237

• Contract/PO #: C153400
• Contractor Name: Larkspur, Town of
• Contract Type: Loan
• Water District: 8
• County: Douglas
• Bill Number: SB 79-537
• Loan Projects - Doc Type: Feasibility Study

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valves, and chlorination e'l.uipment is approximately $45,000. The present

worth of 20 years of 0 & M costs is similar to Alternative 2 at about $16,000.

The total present worth of this Alternative is about $61,000, not counting

the costs of leasing the water or buying the well from the owner.

Establishing a fair purchase price for the well or a long term lease

rate for the water will be somewhat difficult. A steel cased water well is

normally assumed to have a design life of about 25 years. Two of the wells
are 14 and 18 years old now. Their remaining useful life may only be 7 to
II years. One approach to establishing a fair price might be to assume a
useful life of 25 years, depreciate the cost of a new similar well over the
estimated life and then determine a one time purchase price based on the
remaining undepreciated value.
The remaining value of each well would have to be calculated individually,

and then a lease rate for the water could be determined based on the actual

production for the remaining life of the well. The minimum remaining value
would probably be on the order of $10,000 for a well 12 years old.
Alternative 5 consists of drilling and completing a moderately deep well
in the Dawson-Arkose formation. A review of the State EngL'1eer's records and
the records of a local well driller shows at least six wells located in Sec-

tions 4 and 9 south of Larkspur completed in the Dawson-Arkose. Depths range

from 300 feet to 486 feet with most of the wells at about 350 feet.

Discussions with four of the well owners reveal that the well water is

good 'l.uality with none of the iron concentrations found in shallower wells

in the area.

The 1976 Ground Water Resources report by the Department of Natural

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