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<br />.' <br /> <br />Larimer and Weld Irrigation Co. <br />Ju\y23-24.2oo2 <br /> <br />Agenda Item 19a <br /> <br />would remain unchanged thereby precluding improvements in operational efficiency. Adding gates <br />to the old structures is not feasible due to the condition of structure walls and lack of steel <br />reinforcing. <br /> <br />Selected Alternative 3, Replacement of all checks with new concrete structures and automated <br />control gates. was chosen as the desired alternative. This alternative consists of total replacement <br />of the existing structures with new concrete structures, incorporation of energy management <br />features to control downstream erosion, and utilization of Obermeyer pneumatically operated gates <br />to check and control the ditch. The gates can be programmed to hold a certain backwater <br />elevation or a certain discharge over the gate. Gate operation is automatic with power supplied by <br />photo.voltaic collectors through storage batteries. Gates are opened and closed by a 12-volt DC <br />powered air pump which inflates a durable rubber bladder on the downstream side of the gate to <br />raise and lower the gate. <br /> <br />This alternative has the advantage of providing more control of the ditch as far as head and flow, <br />increases safety to the ditch riders by eliminating stop logs, and decreases cost of operation by <br />reducing manpower. The new structures are expected to require little maintenance over the life of <br />the loan and would have a longer life span than the repaired structures in Alternative 2. <br /> <br />Total Project cost is estimated to be: <br /> <br />1. <br />2. <br />3. <br /> <br />Construction Cost <br />Engineering Fees @ 12% <br />Contingency @10% <br /> <br />TOTAL <br /> <br />$1,054,600 <br />126,552 <br />105.460 <br />$ 1,286,612 <br /> <br />The implementation schedule calls for completion of financing arrangements and final engineering <br />design in summer 2002. Construction will begin starting in fall 2002 and be completed in spring <br />2003. <br /> <br />Financial Analvsis <br /> <br />The total estimated cost of the project is 51,286,612, and LWIC water is used exclusively for <br />agricultural purposes. Staff is recommending a 3D-year maximum amount of 51,000,000 <br />(approximately 78% of estimated project cost) for 30 years at an interest rate of 2.75% . <br /> <br />Alternative financing sources: The Company has investigated alternative financing with the <br />Farmer's Bank in Eaton, Colorado. The bank indicated they would consider a loan for the <br />company after review of their financial status. The loan would initially be one year revolving line of <br />credit, prime plus 1 Y2 percent, floating, with an up front loan fee of Y2 percent. The loan could be <br />renewed as needed or converted to a permanent mortgage. <br /> <br />Table 1 is a summary of the financial aspects of the project. A CWCB Small Project Loan of <br />51,000,000 would have an annual payment of 554.323 (including the 10% reserve requirement) at <br />the loan terms of 2.75% for 30 years. In order to reduce the short-term impact on company <br />finances and to stabilize assessment levels, the LWIC has decided to obtain one-half of their <br />project obligation, 5143,306, in the form of a short-term line.of-credit loan for 5 years at 5.75% <br />interest. With both loans this represents an annual loan cost of 50.99 per acre-foot, based on an <br />average annual delivery of 90,000 acre-feet, decreasing to 50.60 per acre-foot in 2009 when the 5- <br />year line-of-credit loan is paid off. <br /> <br />Page 3 of 6 <br />