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near the connection point s to pump water from the Minneapolis water distribution system to the elevated water tower and distribution system in St. Anthony Village. These booster stations would require the acquisition of property for their construction. The total estimated cost including contingency and indirect costs, is shown in Table 3 along with the O&M costs over a 20 year life cycle. A detailed cost estimate for Option 3 can be found in Appendix D. Table 3: Option 3 Estimated Costs Estimated Capital Cost Finance Cost (4% Interest) Estimated Annual O&M Cost (3.5% Inflation Rate) 20-Year Cost of Purchasing/ Producing Water Total 20-Year Cost $9,480,300 $4,471,200 $4,487,800 $17,472,000 $35,911,300 Current Minneapolis Water Rates The Minneapolis Water bulk water rate was $2.73 per 1,000 gallons purchased in 2015. The City of St. Anthony Village water rates are in a tiered system ranging from $2.98 to $4.97 per 1,000 gallons depending on the volume of water used. The City would need to purchase approximately 320 million gallons per year from Minneapolis Water. This would add an additional cost to the utility of approximately $873,600 per year or $17,472,000 over 20 years. By r emoving the current chemical and pumping costs that are being paid by the City to operate its existing water treatment facility and wells on a daily basis, the City could save approximately $39,800 per year in chemical costs, $53,120 in filter media replacement costs, and $86,990 per year in pumping costs. These cost savings would be minor in comparison to the costs to maintaining the City’s entire water system. Therefore, the City would still need to charge its customers about the same current water rates in addition to paying the Minneapolis bulk water rate while continuing to operate and maintain its existing water system. The M inneapolis Water bulk rate includes some funding for future capital improvements and maintenance. Minneapolis Water uses a 10-year pro forma rate model in which the rates are set in advance and increased between 2.5 to 4.0 percent annually, depending on t he timing of the utility’s planned capital improvements. The proposed rate increase for 2016 is 3.99%. 3.4 Option 4: Purchase Water from St. Paul Regional Water The fo urth treatment option analyzed was to purchase water on a whole sale basis from St. Paul Regional Water Services (SPRWS) through a connection with the City of Roseville’s water distribution syst em. The City of Roseville receives its drinking water from SPRWS through the Dale St. Reservoir. 1,4-DIOXANE PROJECT FEASIBILITY REPORT CITY OF ST. ANTHONY VILLAGE WSB PROJECT NO. 3183-00 PAGE 12