C150159 Approval Letter - Laserfiche WebLink

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Orphans Wells of Wiggins LLC November 19-21, 2003 Agenda Item 8f (Updated November 21, 2003) Selected Alternative 3 consists of the following: . Drill a recharge well within 100 feet of the South Platte River. Well capacity will be in the range of 4.5 and 9 cfs, depending on subsurface conditions. ($70,000) . Drill an augmentation well 5 miles south of the South Platte River. Well capacity will be about 6.7 cfs. ($70,000) . Construct a 24-inch pipeline, 5 miles in length, between the recharge well and the augmentation well. ($528,000) . Construct 23 new recharge ponds with small earthen dams, on non-irrigated farm ground. Three of the ponds will be constructed off the new pipeline. The remaining ponds will be constructed off three different ditch systems (the Sijou, Riverside, and Weldon Valley Ditches). ($230,000) · Engineering, surveying, easements, well site land purchase, contingency, and miscellaneous costs will be included. ($255,000). The implementation schedule calls for completion of financing arrangements and final design in Fall 2003. Construction would be completed in Fall-Winter 2003/2004 Financial Analvsis The total estimated cost of the project is $1,153,000 (including engineering costs), and water is used for agricultural purposes. Staff is recommending a Small Project loan in maximum amount of $1 ,037,700 (90% of the total project cost.) The recommended loan terms are 30 years at 2.5%. Table 1 is a summary of the financial aspects of the project with a $1,037,700 CWCS Loan. The annual payment would be $54,536 (including the 10% reserve requirement) at the loan terms of 2.5% for 30 years. This represents $9.10 per acre-foot, based on expected annual well diversions of 6,000 acre-feet by the Company shareholders. The Company's cost share will come from a one-time special assessment of the shareholders. Table 1. Financial Summary Proiect Cost $1,153,000 Number of Shareholders 31 CWCS Loan Amount $1,037,700 CWCS Loan Pavment (includes 10% reserve) $54,536 Current assessment income $0 New assessment income needed with CWCS loan $54,536 New assessment income needed: CWCB loan and O&M costs ($75,000) $129,536 Sudaeted assessment income (35 Quarter sections at $4,000 per Quarter) $140,000 Annual total cost per acre-foot (average well diversions 6,000 ac-ft.) $21.59 (Note: An additional $300,000 in engineering and legal expenses will be incurred by the Company during the first 3 years of operation, in order to get the augmentation plan approved by water court. These expenses will be paid by Company shareholders through special assessment. ) 3