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I I I I I I I I I I I I I I I I I I I Collateral As security for the CWCB loan the LID can pledge assessment income, water rights, and land. Economic Analysis The economic benefit of the project is considerable. The value of the water rights available in the Prewitt Reservoir for irrigation and augmentation based on a recent auction value is estimated to be $2,968/acre foot. With 24,600 acre feet of usable storage in the Prewitt Reservoir (at the current restricted level), this brings the total value of water rights at $73,012,800. The Logan Irrigation District's share of the water rights would be over 40 million dollars. Without the spillway in place the percentage reduction in storage is unknown, but if it is assumed the Prewitt would be reduced by an additional 10%, this results in a loss of over 7 million dollars in available water rights. The safety to the community of Merino and surrounding area with the addition of an adequate ~pi~-is also considerable. As mention earlier, the construction of the spillway is also the first ste~ in regaining full storage capabilities which would add an additional 3,700 acre feet of stO'rage;/which would increase the Prewitt Reservoir water rights value by almost 11 million dollars. Using an estimated total project cost of $337,095 (to cover construction of the emergency spillway and all appurtenances, construction supervision, and up to $30,645 in cost overrun), the project cost/benefit ratio not including the safety consideration is $181 $0.34 or 52.9. Social and Physical Impacts The project will have no significant social impacts, since it will assure the continued operation of a currently existing reservoir system. The project will have minor physical impacts, once construction is complete. The new spillway structure will be near the location of the current outlet structure. Conclusions 1. The Logan Irrigation District is an irrigation district formed under the Irrigation District Law of 1905 with the ability to enter into a contract with the CWCB for the purpose of obtaining a Construction Fund loan. 2. Rights-of Way easements are adequate for the construction of this project. 3. The project would provide for the continued delivery of irrigation water to landowners and shareholders and is the first step in recapturing restricted storage. 4. The total estimated cost of the project is $337,095, 10% of this cost will be absorbed into the maintenance and operation of the system. The LID is applying for a loan in the maximum of 90% of the total project cost or $303,385 from the CWCB Construction Fund. 5. The project is technically and financially feasible. Logan Irrigation District Emergency Spillway Feasibility Study March 30, 2006 Page 12 of 12