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<br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />Currently the Windsor Reservoir Company, because of physical restrictions in Douglas <br />Reservoir and in Dry Creek below the reservoir, can't use a large percentage ofthe water sfored <br />in Douglas Reservoir. This project would eliminate those restrictions and allow the Reservoir <br />Company to utilize the remaining water stored in Douglas Reservoir. The value for the increased <br />efficiency and conservation-of existing water rights is estimated to be $100,000 on an annual <br />basis. <br /> <br />An indirect benefit of the project is to considerably lessen the cost offuture transportation <br />linkages by removing or downsizing flood conveyance structures beneath roadways. Projects <br />which are programmed for reconstruction to accommodate additional traffic include East Vine <br />Drive, Lemay Avenue, College Avenue, and State Highway 287. These transportation linkages <br />are critical for emergency response and evacuation purposes because Dry Creek flood flows <br />literally divide the northern sector of the urban area from the southern. <br /> <br />According to national statistics the number one killer from flooding is from people in vehicles <br />trying to navigate flooded streets. The estimated value of one life is $2.2 million according to <br />the Federal Emergency Management Agency. To be conservative, the prevention of a life lost <br />due to flooding was not included in the benefits calculation of the project. Ifit was, it could be <br />estimated the life of a person of 70 years and an interest rate of 7 percent, the annualized benefits <br />of preventing that loss oflife would be $155,000. <br /> <br />The annualized benefit of the ability to move irrigation water down Dry Creek has been <br />estimated by the Larimer-Weld Irrigation Company to be $100,000. (See Appendix i.) <br /> <br />On average it costs $111 (in 1994 dollars) annually to administer a flood insurance policy. A <br />reduction in the number of properties needing flood insurance would be a direct benefit of the <br />project. It is not known how many insurance policies are currently in place in the Dry Creek <br />floodplain or how many future policies would be insured in the future. The economic benefit for <br />the over 800 existing or unknown future structures in regard to the reduction in the <br />administration of flood insurance policies was not quantified. Some lending institutions are <br />hesitant to issue loans to floodplain properties. The premium for flood insurance and the cost to <br />meet floodplain regulations can have a large financial burden on the property owner. <br /> <br />There are over 800 structures currently located within the Dry Creek floodplain. Damage caused <br />by a 100-year flood on Dry Creek is estimated to be $13,854,814 million in current dollars to <br />these structures. Average annual damages of $1,099,547 are estimated for the project that would <br />be designed for a 100-year event. The proposed project would eliminate these damages because <br />flood flows would be contained in the facilities constructed with the project. The annual benefit <br />to the Larimer Weld Irrigation Company of the ability to transfer irrigation water in Dry Creek is <br />estimated to be $100,000. The total annual benefits of the project in terms of direct benefits and <br />damages foregone are therefore estimated to be $1,199,547. <br /> <br />The estimated cost of the project is $5.437 million. Assuming a project life of 50 years and an <br />interest rate of7 percent, the annualized cost of constructing the project is estimated at $389,900 <br />per year. Considering the annual benefits and costs, the benefit-to-cost ratio for the project is <br />3.08. <br /> <br />11 <br /> <br />