C150205 Feasibility Study

• Contract/PO #: C150205
• Contractor Name: Veits Pipeline Company
• Contract Type: Loan
• Water District: 34
• County: Montezuma
• Loan Projects - Doc Type: Feasibility Study

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Table 2. Financial Summary
Project Cost
Estimated 30-year Loan Amount (25% of Project Cost)
CWCB Loan Payment Amount
Cfs of water to be carried on behalf of the Members
Annual Commitment for repayment per cfs of water to be carried
Annual Project Cost per acre-foot (based on 2051 acre feet)

$574,118
$143,529
$6,857
9.55
$718
$3.34

Since all other funding for the Project is in the form of grants, the Company would have
no other debt service on this project.

The Company was incorporated in January of 2004 for the purpose of undertaking the
Project. Therefore, the Company has no financial history. The Company has no existing
debt. The owners of the Ditch spent an average of $1,208 per year over the last 3 years
on maintenance and administrative costs associated with the Boss and Number Six
Ditches. Maintenance costs are expected to be about the same or less with the new
pipeline, and can be accommodated by Company assessments to Members pursuant to
the Bylaws. The Company checking account at the Mancos Valley Bank presently has a
balance of $xxx as a reserve for maintenance expences.

Credit worthiness. The Company has no existing debt. The Company's ability to repay
the loan is supported by the Funding agreement and the payment reserve account.

Loan Application. The loan application to CWCB for the Project financing is attached.

Alternative financing considerations. The Company has obtained approximately
$431,000 in cost share (grant) from the NRCS to cover 75% of the construction costs
plus an in-kind grant from NRCS for engineering design and construction inspection.
Long-term financing for the Company's portion of the construction costs ($143,529) could