CH2M
NIHILL,
engineers
planners FEB 24 1982
economists
scientists

22 February 1982



Mr. John Gallagher
City Manager
City of New Port Richey
320 East Main Street
New Port Richey, FL 33552
Re: Starkey Well Field Facilities Replacement Cost
Dear John:
In our letter to you of September 2, 1981, we included
information relative to the four construction projects
associated with the Starkey Well Field facilities and their
construction cost and time of construction.
At our recent meeting with Mr. Heath of the West Coast
Regional Water Supply Authority, the request was made of
CH2M HILL that we provide an engineering estimate of the
replacement cost for these facilities and to depreciate
these costs based on standard engineering practices.
The facilities basically fall into three categories with
associated depreciation time periods. These are:

1. Wells Projected life 100 years
2. Pipelines Projected life 50 years
3. Associated Well Field Equipment, including pumps,
motors, etc. Estimated life 25 years
To arrive at the estimated replacement values for the above
mentioned projects, we have utilized the Engineering News
Record (ENR) construction cost index and cross checked this
factor with our own construction cost estimates based on
recent project experience. The ENR index for 1972 (the
earliest project completion) was 1,761. The ENR index for
November, 1981 was 3,716. Utilizing this increase percentage,
we have estimated the following as replacement costs for the
subject projects:


Clearw.aer Ollice
BpriJl t %(c uin, C.L.cnUle. Suite 430. 1454 .. Hil ,i.s 19. woulh. Clearnaier. floridd 33516 81l. 531(4.54






Mr. John Gallagher
22 February 1982
Page Two CH2MIHILL



1. Project No. 121-71-06 (6" test well) installed
mid 1972. Original construction cost $2,492.
Replacement cost $5,258.

2. Project No. 121-71-01 (3 12" production wells
and 2 6" observation wells) installed mid
1974. Original construction cost $54,843. Replace-
ment cost $102,885.

3. Project No. 121-73-04 (Pumps, Piping and Appur-
tenances for three production wells) installed
in late 1974. Original construction cost $119,988.
Replacement cost $218,377.

4. Project No. 121-71-02 (Main transmission lines -
30") installed late 1973. Original construction
cost $145,299. Replacement cost $281,154.

In depreciating the above replacement cost figures, we
utilized the straight line method with the following results:

1. Project No. 121-71-06 -- Depreciated replacement
cost $4,758.

2. Project No. 121-71-01 -- Depreciated replacement
cost $95,168.

3. Project No. 121-73-04 -- Depreciated replacement
cost $43,570 for the pipeline portion (8"), and
$120,754 for the equipment, including pumps, etc.
portion.

4. Project No. 121-71-02 -- Depreciated replacement
cost $236,169.

The total of the above depreciated replacement costs amounts
to $500,419.

Should you have any questions concerning our above procedures,
please don't hesitate to give me a call.

Very truly yours,



J.Jackson Suddath, Jr.

'cc: 4ene Heath