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<br />,..). <br /> <br />3 <br /> <br />The Corps Cost Estimate <br /> <br />The contractor has chosen to only consider a baseloe.d ol'eration <br />of a Foothills plant so as not to imply any operating restrictions on <br />the Denver Hater Department. Thus, the Corps peaking analysis has <br />been ignored. <br />The Corps Table 3 sholls the average million gallon (mg) unit <br />cost of Strontia Springs (SS) at 40.21 and of mouth of canyon (HC) at <br />52.1~. The MG-SS difference is 11.91 or 0119/mg. The Corps 1982 <br />present worth (PH) of this differenc.e amortized over 75 years is 77 <br />million dollars. The 1978 PI., of this amount is 61 million dollars. <br /> <br />((119xJ9,255)/.0608)x.792=61 <br /> <br />An Alternative Calculation <br /> <br />The MC,SS cost difference ,nll be recalculated substituting the <br />five questioned assumptions (challenges to the Corps factors). The <br />method is in two parts, capital interest and amortization (1&11.) and <br />operation, maintenance and replacement expenses (OM~~). <br /> <br />A. Capital Cost Portion <br />Corps estimates from <br /> <br />Table 3 (i;1000) <br />ss <br /> <br />169,924 <br />o <br />169,924 <br />220,052 <br />1981 <br /> <br />17,538 <br />o <br /> <br />13,277 <br />1982 <br /> <br />Item <br />Construction Cost <br />Aurora portion <br /> <br />9% construction cost increase" <br />bonds floated at start of year"':: <br />25 year bonding I&A <br />25 year Aurora I&A <br />Corps 75 year 1&11. <br />Foothills operational in year <br /> <br />.. <br /> <br />MC <br /> <br />110,340 <br />22.770 <br />133,118 <br /> <br />187,963 <br />1982 <br /> <br />12,419 <br /> <br />2,562 <br /> <br />11,185 <br />1983 <br /> <br />.;:. continues into construction (:33 for :3 years, t.'iC for 4 years) <br />."Of no construction loan <br /> <br />The contractor f011l1d no \lay to implement <br />(there simply arc no 75 year mlli1ici/al bonds). <br />Denver ,m.ter bonds axe typic'Llly 25 ye~,x bonds. <br />boncl undeI"\iTiters contacted both SU[;[;8steu that <br /> <br />a 75 year amortization <br />The outstanding <br />Two Denver ffilU1icipal <br />a 6% rate is available <br /> <br />00698 <br />