|
<br />Tunnel Water Co.
<br />January 24-25, 2001,
<br />
<br />Agenda Item 10b,
<br />
<br />Alternative 4, bore a new tunnel, was ruled out due to cost.
<br />
<br />Alternative 5, rehabilitate the eastern % and parts of the western % of the tunnel, is now the
<br />preferred alternative of the TWC, This saves mobilization costs, and shortens the time to
<br />complete the overall project. The Company is using the existing $1,6 million emergency loan
<br />now, as work progresses on Phase 1 of the project. Funds from this additional loan (if
<br />approved) will become available around July 1, 2001, These funds will be used to complete the
<br />project by early summer 2001_ (Funds Irom the $1,6 million Emergency loan will be expended
<br />by about May 1, 2001, The Company understands that it will need to arrange lor short-term
<br />bank financing to cover the period May 1 through July 1, The Company also understands that if
<br />this additional CWCB loan is not approved, it will need to obtain alternative long-term financing
<br />to complete Phase 2 of the project.)
<br />
<br />Selected Alternative 5 involves construction of access roads and construction staging areas at
<br />both ends of the tunnel. For downstream access, a new road must be built up a steep
<br />mountainside, across USFS property, The cost of access will be a major part of the total project
<br />cost. The eastern 5,500 feet of the tunnel will be cleaned and stabilized, a temporary rail
<br />installed to facilitate construction and portions of the tunnel will be re-mined to establish
<br />sufficient width for construction equipment.
<br />
<br />Steel pipe liner will be installed along with shotcrete and rock bolts in various repair areas,
<br />Existing concrete lined sections will be repaired and stabilized, Once this is complete,
<br />approximately 800 cubic yards of rock will be removed from a 400-foot section where the
<br />collapse occurred, and that portion of tunnel will be rehabilitated.
<br />
<br />A temporary rail system will also be installed from the west portal, and repairs and bracing work
<br />will be completed on existing timbered supported sections, Portions of the west tunnel will be
<br />re-mined and rehabilitated with steel supports, A trash rack and steel door will be constructed at
<br />the east entrance, and the downstream dellection wall will be repaired,
<br />
<br />The implementation schedule calls for completion of financing arrangements in winter
<br />2000/2001, with formal approval and resolution by the TWC shareholders, Engineering design
<br />was finalized by RMC in December 2000. Construction began December 2000 and is
<br />scheduled lor completion in summer 2001,
<br />
<br />Financial Analvsis
<br />The total estimated cost of the project is $4,1 million. Staff is recommending that the CWCS
<br />Board approve an additional loan (Construction Fund Loan) of $2,08 million, so that total CWCS
<br />financing for this project becomes $3,68 million (90 percent of the estimated cost.)
<br />
<br />Alternative financing sources: The Company actively sought alternative financing, They were
<br />not able to obtain a grant from the NRCS to cover project planning or construction costs, The
<br />TWC also requested a loan from their bank, the First National Bank of Ft. Collins, but was
<br />turned down because the bank does not provide long-term fixed rate financing for agricultural
<br />projects, The bank will be able to provide short-term bridge financing for the period May 1
<br />through July 1, 2001,
<br />
<br />Loan rates for the TWC are calculated as a blended rate between the Agricultural, Municipal
<br />Average Income and Municipal High-Income rates, (The rate for the $1,6 million Emergency
<br />
<br />3
<br />
|