Laserfiche WebLink
<br />Lower Sacramento Creek Reservoir Company <br />March 15, 2005 (Revised March 24, 2005) <br />Page 3 of 4 <br /> <br />Agenda Item 14a <br /> <br />The augmentation water is stored from May through September and then released from October <br />through April to replace the depletions from the various augmentation plans. By 1984 it was obvious <br />that there was considerable leakage from the Reservoir and the loss prompted the Company to make <br />application to Water Court to receive credit for the leakage (84CW250 and 85CW465). The leakage has <br />been sufficient to cover the current winter depletions. <br /> <br />Proiect Description <br /> <br />The original purpose for the Project is to eliminate seepage loss in the Reservoir. The Company's <br />engineer, KRW Consulting, Inc. evaluated several alternatives. The alternatives are as follows: <br /> <br />1. The no-action alternative at this time. <br />2. Line the sides with PVC or clay ($235,000). <br />3. Line the sides with PVC or clay and install riprap armor ($618,000). <br />4. Line the sides and bottom with PVC or clay ($281,000). <br />5. Line the sides and bottom with PVC or clay and install riprap armor ($646,000) <br /> <br />Alternative 4 was selected, however during the site survey it was determined that the Reservoir <br />capacity is 26 AF instead of the decreed 37 AF as shown in the original construction plans. Due to this <br />discrepancy Alternative 4a was developed, which includes increasing the capacity to 35 AF. The <br />Company decided not to increase the storage to the decreed storage right of 37 AF. The expanded <br />Reservoir of 35 AF will cover all shareholder augmentation storage requirements except for MMRC. <br />MMRC can reduce their storage space required since it has not been committed to a specific <br />augmentation plan. This reduction in storage will also reduce the shares in the Company to 3500. <br /> <br />Alternative No. 4a, involves excavating material from within the high water level, preparing a suitable <br />bed for the 30 mil PVC liner, placing a protective coverlballast material, and replacing riprap where <br />necessary. KRW has submitted construction plans to the SEO for review. Construction is expected to <br />begin June 2005 and to be completed by August 2005. <br /> <br />Total Project cost estimate is: <br /> <br />TOTAL <br /> <br />$66,567 <br />349,017 <br />79.488 <br />$495,072 <br /> <br />1. <br />2. <br />3. <br /> <br />Planning/Permitting/Engi neeri ng <br />Construction <br />Contingency <br /> <br />Financial Analvsis <br /> <br />Table 2 shows a summary of the financial aspects of the Project for the current loan request. A CWCB <br />Loan of $371 ,300 will have an annual debt service obligation of $29,392 ($26,720 for annual loan <br />payment and $2,672 for the 10% reserve funding) for the loan terms of 3.75% for 20-years. The interest <br />rate was determined based on the median income for unincorporated Park County, which is <br />$51 ,900/household. This is in the CWCB middle-income category, which establishes a 4.0% interest <br />rate for a 30-year loan. The rate is reduced by 0.25% to 3.75% for a 20-year loan. The total debt <br />service obligation represents a cost of $840 per AF of reservoir storage. <br /> <br />Table 2. Financial Summary of Project <br /> <br />Total Proiect Cost $495,072 <br />CWCB Loan (75% of Total Proiect Cost) $371,300 <br />CWCB Annual Loan Payment $26,720 <br />CWCB Loan Obliqation (includinq 10% debt reserve fundinq) $29,392 <br />Annual Assessment for Project Only (based on 3500 shares) $8.40/share <br />Annual Project Cost per Acre-Foot (based on 35 AF of consumptive water) $840Iac-ft <br />