PROJ00337 - Laserfiche WebLink

Home Browse Search

. Financial Analysis It has been estimated that segment 1 of the replacement of the treated water transmission will cost approximately $55,500.00, $55,500.00 amortized over a 30 year period at 4% interest will require an annual principle and interest payment of $3,210.00. In the last two months the Town of Hotchkiss has fixed five leaks on the treated water transmission line in the general area where the line is proposed to be replaced in segment 1. The leaks were fixed at an average cost of $150.00 per leak counting labor and materials, should the leaks continue at the present rate the ,town will spend $4,500.00 per year maintaining the lower portion of the treated water transmission line. Based on the above estimates the replacement of the lower portion of the treated water transmission line benefit to cost ratio would be 1.40 to 1.00. In 1980 the Town of Hotchkiss paid approximately $3,000.00 for electri- cal power that was delivered to the water treatment plant, it has been calculatod that approximately $960.00 of the electrical power costs were used to provide power for the 40 horsepower backwash water pun~. Since a 15 Kw generating unit is not large enough to provide power for the 40 horse- power backwash water pump, the power to operate the backwash water pump will still be purchased from the Delta Montrose Electric Association, the balance of the electrical power required by the plant could be generated by the 15 Kw unit amounting to an annual savings of $2,040.00 in electricity costs. To borrow $35,750.00 through the Colorado Water Conservation Construction Fund over a 30 year period at a 4% interest rate will require annual payments of $2,040.00. Based on the above estimates the installation of a hydro- electric plant on the Hotchkiss raw water line would provide a benefit to cost ratio of 1.00 to 1.00. . The idea of harnessing energy from raw water lines to supply the energy required to operate a water treatment facility should be considered innova- tive and the Town of Hotchkiss should request that the Colorado Water Con- servation Board provide a grant to fund 30% of the actual construction costs of the hydroelectric plant as a prototype hydroelectric plant to encourage other water users to follow suit. In the cost estimates for the hydroelectric power generation the cost of transformers were not considered as an analysis showed that by using larger wire with a greater power carrying capacity was less expensive than the purchase of transformers. The 15 Kw hydroelectric turbine will be con- structed to provide 220, three phase electricity without the need of trans- formers. 7