C150273 Feasibility Study

• Contract/PO #: C150273
• Contractor Name: Ogilvy Augmentation Company
• Contract Type: Loan
• Water District: 0
• County: Weld
• Loan Projects - Doc Type: Feasibility Study

1. Purchase the required water rights from stock holders in the Greeley
Irrigation Company.
2. Purchase, install, and monitor measuring control structures on the wells
operated by the Ogilvy Augmentation Company.
3. Construct aone-half acre recharge facility for augmentation water delivery.
4. Construct a 50 acre-ft lined storage reservoir to store augmentation water for
winter release
9.0 FINANCIAL PLAN
The OAC plans to apply fora $999,765 loan from the Colorado Water Conservation Board (CWCB)
small projects fund. For purposes of this analysis, an interest rate of 2.5 percent and a term of 30
years is assumed. The remaining portion of the project that is not funded by the CWCB loan will be
paid for with funds raised by assessments and also with cash the company has available.
Table 11 summarizes the required capital for the project during 2008 and 2009 and the annual
payments required to service the loan from 2010 through 2038. The final payment is shown as being
paid from the certificate-of-deposit. The required 1% loan origination fee of $11,109 is not shown in
Table 11.
TABLE 11
FiilVn RF.ni1iRF.MEI~1T SCHEDULE
Year QAC PartiGipatioa/
Annual Payitients CWCB 90% Loan
2008 $ 55,185 $496,665
2009 $ 55,900 $503,100
2010 - 2038 $ 47,766
2039 Final Pmt Made From CD
For 2008, the project costs will include $27,000 for the Feasibility Study, $387,205 for the purchase
of the water rights from the GIC shareholders (includes price for water rights, engineering, legal, and
loan interest for water rights), $80,600 for the Measurement Structures and Devices, $12,000 for
Engineering associated with the Recharge Reservoir design, and $45,000 for engineering design of
the storage reservoir for a total of $551,850. An additional expense to OAC is the 1% loan
origination fee of $11,109 which is not included in Table 11 as a cost for 2008. The cost for 2009,
when the construction of the storage reservoir and recharge reservoir takes place, includes $30,000
for engineering inspection and testing and $68,000 for construction of the recharge reservoir,
Feasibility Study of the Ogilvy Augmentation Company Page 18
Well Augmentation Project