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<br /> I <br /> I. PROPOSED CONSTRUCTION AL TERNA TIVES <br /> I The following is a description of each altemative considered, an explanation of the methods used <br /> to determine its capitalized cost and benefits and drawbacks associated with the alternative. For <br /> I comparison sake a 60 year time period was considered to develop the capitalized cost for each <br /> alternative. <br /> I ALTERNATIVE A <br /> Descriotion <br /> I This a1temative includes maintaining the current lift station in place. Exhibit 2 illustrates the <br /> existing lift station and tributary sanitary sewer network. <br /> I Capitalized Cost Calculation <br /> I The City realizes costs associated with daily and periodic maintenance as well as periodic capital <br /> improvements to the lift station throughout the life of the facility. Maintenance costs include <br /> labor costs for City staff, electricity and spare parts. Actual amounts utilized in the cost <br /> I comparison are based upon current wage rates for City maintenance personnel and historical <br /> electrical utility and spare parts costs provided by City staff. <br /> .e In addition to the annual maintenance costs described above, we have assumed that a complete <br /> new lift station would be constructed in the first year of the analysis and that the pump station <br /> pumps and controls would be replaced at year 30 of the analysis. Costs shown below do not <br /> I include potential City liability costs which may result from a failure at the lift station and <br /> subsequent property damage. <br /> I Monthly Maintenance Cost <br /> City Staff 12 HrlMonth @ $25.00/Hr = $300.00 <br /> Electricity = $150.00 <br /> I Spare Parts = $ 75.00 <br /> Total Monthly Maintenance Cost = $525.00 <br /> I Annual Maintenance Cost (1998) = 12 Months*$525.00/Month = $6,300.00 <br /> . New Lift Station Cost (1998 dollars) = $60,000.00 <br /> PumplContro1s Replacement Cost (1998 dollars) = $30,000.00 <br /> I Capitalized Cost For Alternative A = <br /> New Lift Station Cost $60,000.00 <br /> I + Maintenance Cost*[(l+i)^n1-1j/[i*(I +i)^n1j $6,300.00*(22.6235) <br /> + Pumo Reo1acement*(l!(! +i)^n2)* $30.000.00*(0.3012) <br /> ,- Total Capitalized Cost for Alternative A $211,564.05 <br /> *where the annual interest rate, i, is assumed to be 4.0%, the useful life of the station, n1, <br /> is = 60 years and the pump replacement would occur at n2 = 30 years <br /> I 3 <br />