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INSTITUTIONAL CONSIDERATIONS No institutional considerations exist other than the proposed loan from the CWCB. OPINION OF FEASIBILITY The selected alternative is technically and financially feasible. There are no significant roadblocks which would keep The Highland Ditch Company, Inc. from successfully completing this project. The rehabilitation of this reservoir will secure the water rights in this reservoir and ensure the use of approximately 3,000 acre -feet of water which appears to be the yield on this reservoir based on the record of use. The current value of the water is approximately $103,000 per share of stock . The average expected rental rate is expected to be in excess of $50 per acre -foot over the 20 year life of the loan. At the current time the reservoir water level has been restricted to gage height 39 feet which reduces the storage by 1,237 acre -feet. A lower restriction is possible if the dam deteriorates further due to the internal seepage. The total delivery of water from this reservoir, that would be lost if it were taken out of service, would approach 3,000 acre -feet which can be seen the water storage summary in Appendix C. With this as a possible scenario, it is in the Owners' best interest to repair the dam to allow continuous full storage. Based on the value of the water as stated, the following cost analysis is presented. Total Project Cost Including Interest and the 11% Payment by the Company $33,827 x 20 years + $65,400 = $741,940 Using a rental rate of $50 per acre -foot for the water and the total project cost, Benefit /Cost = $50 x 1,237 A -Ft x 20 yrs _ $741,940 = 1.67 Using a the current value of the water at $2,173 per acre -foot and the total project cost, Benefit /Cost = $2,173 x 1,237 A -Ft - $741,940 = 3.62 Total Cost per Share of Stock $741,940 - 725.5 = $1,023 Cost Per Share of Stock Per Year $ 1,023 - 20 years = $51 Foothills Dam- 03.076 Page 9