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<br />G.M.S. Land and Cattle. LLC <br />January 22-23, 2003 <br /> <br />Agenda Item 199 <br />(Updated January 28, 2003) <br /> <br />Water Riahts <br />The GMSLCC holds a water right to fill the Giffin #1 and #2 reservoirs with a decree date of <br />1970 and an appropriation date of 1948. The water right is from Lone Tree Creek to store a <br />total of 139.5 acre-feet, with a refill right (dated 1965.) In normal years the reservoirs can be <br />filled and refilled as allowed by these decrees, <br /> <br />Proiect Descriotion <br />Three alternatives were analyzed in the feasibility study: <br /> <br />1) The no-action alternative, <br /> <br />2) Rehabilitate the dams ($85,000) <br /> <br />3) Rehabilitate the dams and dredge out the reservoirs ($223,000) <br /> <br />The "no-action a/ternative" is not acceptable since it means the reservoirs will not be able to <br />store the full decreed water rights, Alternative #2, "Rehabilitate the dams ($85,OOO)"would <br />ensure the dams meet State Engineer safety requirements, but reservoir capacity would remain <br />inadequate. Alternative #3, "Rehabilitate the dams and dredge out the reservoirs ($223,000)" is <br />the preferred alternative since it provides for full storage of water rights, while meeting safety <br />requirements for the dams. <br /> <br />Selected A/ternative 3 consists of the following: <br />Excavate and backfill the upstream slope of each dam, then place bedding material and rock <br />riprap. Any trees will also be removed, and the voids backfilled with compacted material. A total <br />of 105,000 cubic yards of sediment will be excavated from the reservoirs. <br /> <br />The implementation schedule calls for completion of financing arrangements and final design in <br />January 2003. Construction would be completed by March 2003, <br /> <br />Financial Analvsis <br />The total estimated cost of the project is $223,000 and the borrower is a farming/ranching <br />corporation that intends to use the water for agricultural purposes. The CWCS agricultural <br />lending rate would apply to this borrower. GMSLLC has requested a $200,000 loan at 2,75% for <br />30 years, This loan wouid represent about 90% of the total project cost. <br /> <br />Tabie 1 is a summary of the financial aspects of the project with a $200,000 CWCS Loan, The <br />annual payment would be $10,865 (including the 10% reserve requirement) at the loan terms of <br />2.75% for 30 years. This represents $39 per acre-foot, based on total reservoir storage capacity <br />(including refill) of 279 acre-feet. <br /> <br /> <br />Table 1. Financial Summa <br /> <br />$223,000 <br />$200,000 <br />$10,865 <br />$39 <br /> <br />Credit worthiness: The GMSLCC has an existing loan in amount of $300,000 with Community <br />First Sank, for which all payments have be'en made as agreed. Table 2 shows the Financial <br />Ratios for the GMSLCC and indicates 2 ratios in the strong category and 2 in the weak category <br />with the $200,000 CWCS loan in place. <br /> <br />2 <br />