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~ GEl Consultants, Inc, 96006\REPORTS\fEAS\TEXT,NEW I I I I I I I I I I I I I I I I I I I 24 Feasibility Report for Dam Safety Modifications to DeWeese Dam April 22, 1997 should have a useful life of 50 to 100 years, Dam maintenance costs would not be expected to increase after construction, but could decrease since periodic patching of the crest concrete would no longer be necessary, For this report, we have assumed no net change in the Company's operation, maintenance and replacement costs for the dam as a direct result of the construction of the proposed dam safety modifications, 6.4 PROPOSED FINANCIAL PROGRAM Table 8 presents a potential financial program for completion of dam safety modifications at DeWeese Dam, In deriving this table, it has been assumed that the Company will proceed with development of Alternative No, I - Crest Replacement, according to the generalized implementation schedule described in Section 7,2, The information provided in Table 8 is to illustrate the financial feasibility of the propo~ed work using reasonable funding sources, It is not the only potential financial program available, but is used in this report to represent a conservative approach to project financing utilizing funds available from the CWCR The following assumptions were used in the development of the financial program presented in Table 8: 1. The total estimated project capital cost, including cost escalation during project implementation from 1997 to 1999 at 3,0 percent per year, is $839,100, 2. Project fmancing will be provided by a combination of a low-interest Construction Fund loan from the CWCB, with the remaining project capital costs paid directly by the Company, 3. The CWCB will finance 75 percent of the total project capital costs through a Construction Fund loan, The terms of the loan are assumed for this report to be 4.5 percent interest over 30 years, The total project capital costs will include Feasibility Study costs, final de~ign engineering, construction costs, and costs for construction engineering and administration; less a $5000 grant provided to the Company by the CWCB in 1996, 4, The Company will fund the remaining 25 percent of the total project capital costs, The Company's share of project capital costs will generally be derived from increased assessments to the shareholders, A portion of the Company's costs are assumed to be offset by a grant from Colorado Lottery funds. The CD OW has offered to support the Company's request for these funds to support the recreational benefits provided at the reservoir.