20 ‎(3)‎

• Board Meeting Date: 3/18/2008
• Description: CF Section - Changes to Existing Loans - Pinewood Springs Water District - System Rehabilitation Project
• Board Meetings - Doc Type: Memo

Another contributing factor to the cost overrun to the project was the construction of the pump house.
• The original estimate of $185,000 to construct the pump house was based on a design pumping rate of
50 gallon per minute (gpm). During final design a 20-day fill rate was determined to be necessary to
give the District the ability to work with the up and down cycles of the river. This resulted in
significantly increasing the pump rate from 50 to 450 gpm. The increased pump rate changed the pump
requirement from 1 - 15 horsepower pump to 2 - 20 horsepower pumps, but on the plus side created a
beneficial backup system not originally accounted for. Additionally, the electrical configuration
changed dramatically to accommodate the additional pump and increased horsepower. Finally, the
originally planned pump house was upgraded to a concrete/wood framed structure to properly house the
pump facility components. These changes resulted in an increase of approximately $200,000 to the
project.
Other miscellaneous items contributed to the overall increase to the project as well, such as: rock
excavation, materials, seepage control, engineering, testing, legal fees, etc. However, the reservoir
construction and pump house as described above, were the two main contributing factors to the overall
cost increase to the project.
Water Rights
The increased cost of approximately $1,347,700 to complete the construction elements of the project has
greatly reduced the District's ability to purchase CBT water shares. The District is in the process of
joining the Northern Colorado Water Conservancy District (NCWCD), so they may purchase available
CBT units for downstream exchange. Assuming the District obtains a minimum of $400,000 in grant
and land sales, they would have $251,000 in available funds to purchase water. NCWCD shares are
currently selling for approximately $9,000 per share, which would allow the District to purchase
approximately 28 shares. Assuming an average allocation of 0.7 acre-feet per share, the 28 shares could
yield approximately 20 acre-feet. This amount, combined with the District's Culver Irrigation Stock
that provides in dry years 16 acre-feet annually, could provide for a total potential water availability of
36 acre-feet. In wet years the District would be able to pull more water from the Little Thompson
River when downstream senior calls have been met, which would allow the District to operate without
interruption. In dry years the District may have to lease additional water in addition to the CBT shares
and Culver Stock to efficiently operate their system. The District has investigated a number of different
lease options for 2008.
Financial Analysis
Project funding sources for the system rehabilitation project are shown in Table 2.
Table 2. Proiect Funding Sources
•
Funding Source Amount %
Partici ation
CWCB Loan (Raw Water) $2,783,875 69%
DWRF Loan $ 875,625 22%
PSWD Funding (Grant/Land) $ 400,000 9%
Total $4,059,500 100%
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Flood Protection • Water Project Planning and Financing • Stream and Lake Protection
Water Supply Protection • Conservation Planning