C150187 Feasibility Study

• Contract/PO #: C150187
• Contractor Name: Young Creek Reservoir Company
• Contract Type: Loan
• Water District: 40
• County: Delta
• Loan Projects - Doc Type: Feasibility Study

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SMITH WILLIAMS CONSULTANTS, INC.

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The preferred alternative, Alternative No. Based on reliability, ease of placement, level of effective
treatment and cost; Alternative NO.2 (HDPE lining of the rehabilitation) has been selected as the
preferred alternative. The construction phase should be quicker than CCL and HDPE offers a high degree
of protection in the basin areas required rehabilitation. General Layout and Details for the preferred
alternative are included in Appendix C; Figures C2.1 and C2.2. A summary of construction cost, for the
preferred alternative is included in Table C.2 in Appendix C. Appendix C also includes general layouts,
details and costs for the other alternatives considered.

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Implementation Schedule

Smith Williams Consultants, Inc. is expected to complete the final design by mid-August 2004.
Construction is expected to begin early January 2004 and to be completed by mid-October 2004.

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Permitting

All easements and rights of access have been arranged for. The Young Creek Reservoir Company
expects to be exempt from 404 permitting due to the fact that all construction is occurring within their
jurisdictional footprint including borrow source generation. In the event that borrow has to be generated
outside of the jurisdictional footprint, a temporary use permit with the U.S. Forest Service will be attained
to use previously disturbed borrow areas for fine-grained materials required for construction and for
generation of riprap. Other materials to be used will be imported from off-site approved sources.

Institutional Considerations

Entities that are or may be involved in the design, construction, and financing of the project include:

· Young Creek Reservoir Company: Financing and Project management
· Smith Williams Consultants, Inc.: Design and Construction oversight
· Colorado Water Conservation Board (CWCB): Financing and Construction

The Young Creek Reservoir Company will be the lead for the financing, design, and construction of the
project and will be the entity entering into contracts and agreements with the various parties supplying
services.

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Financial Analysis

Financing will be a combination of a CWCB loan for $195,400 and a term loan from Surface Creek Bank
for the balance. The Young Creek Reservoir Company will cover any costs that exceed the estimated
project cost. Based on discussions with your office, the standard agricultural lending rate for a 30-year
term at $195,400 would be 2.5 percent resulting in annual payments of $9,335.70. To this would be
added $ 933.57 per year for the first ten years to fund the emergency reserve account, for a total annual
cost of $10,269.27. Table 2 is a summary of the financial aspects of the project. Annual assessments
will increase from $100 per share up to $290.20 per share to ensure debt repayment to the CWCB, to
cover estimated operational expenses of $3,000 per year and to maintain and annual cash reserve of
$3,000. This represents an annual assessment increase of $190.20, or $17.19 per acre-foot based on
average annual storage within Young Creek Reservoir 1-2 and 3 (1012.38 Acre-feet).

Young Creek Reservoir 1-2
Reservoir Rehabilitation Feasibility Study
September 2004

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C:IDocuments and Seltin9slbljlLocal Seltings\Ternporary Internel FileslOLK7BlYoung Creek Feasibility Sludy(Rev 2) .doc

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