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" John Perou1is & Sons Partnership September 24-25, 2001 Agenda Item 16b. (Updated September 26, 2001) The John Peroulis & Sons Partnership The JPSP is a General Partnership registered in the State of Colorado consisting of 6 members of the Peroulis family, The Partnership was formed for the purpose of engaging in general investment and management activities involving ranching and farming, The JPSP has the power to take on debt, to pledge collateral for that debt, and is not subject to TABOR Water Riahts The Partnership owns water storage rights in the Martin Cull Reservoir in amount of 250 ac-ft. State Engineer Records indicate the reservoir was used to capacity during the period 1997 through 2000, (The reservoir was not used in 2001 due to the storage restriction,) Except for the year 2001, the Partnership has consistently exercised the Martin Cull storage right, filling the reservoir during the winter and spring and discharging during the irrigation season, Proiect Description Three alternatives were analyzed in the feasibility study: 1, No Action 2, Reconstruction of the upstream slope and repair of the outlet ($150,000 estirnated) 3. Complete darn reconstruction ($350,000 estimated) Alternative 3, Complete dam reconstruction, was ruled out as it would increase the cost of the project significantly as well as increase the time required to complete construction, with little added benefit. Aiternative 2, Reconstruction of the upstream slope and repair of the outlet was the alternative with the least overall cost that was a permanent solution to the problem. This alternative will allow full reservoir storage and is considered the preferred alternative, The no- action alternative was considered unacceptable since it would mean that the reservoir could not be filled and used for irrigation by the Partnership, Selected Alternative 2 consists of repair and reconstruction of the upstream slope of the dam, The upstream end of the outlet will be rebuilt with a new intake structure and control valve, The downstream end of the outiet will be extended to accommodate a blanket drain and support berm along the toe of the dam, The spillway will be modified to comply with State Engineer requirements, The implementation schedule calls for completion of financing arrangements and final engineering design in fall 2001. Construction will be completed in fall-winter 2001, Financial Analvsis The total estimated cost of the project is $150,000, and the water is used primarily for agricultural purposes, Staff is recommending a 30-year Small Project loan in maximum amount of $100K (approximately 67% of estimated project cost.) Alternative financing sources: The Partnership actively sought alternative financing but was not able find competitive funding elsewhere, They requested a loan from their local bank but were turned down because the bank does not provide long-term fixed rate financing for agricultural projects, 2