23a - Laserfiche WebLink

Home Browse Search

Ogilvy Augmentation Company Agenda Item 23a September 9, 2008 Page 4 of 7 Table 1 Greely Irrigation Company Sha res Available for Purchase Seller # of Sale Consumptive Cost Cost Shares Price Use (ac-ft) per per Share Ac-Ft Union Well 1.0 $55,000 10.3 $55,000 $5,340 Augmentation Group Hoshiko Farms, Inc. 2.0 $100,00020.6 $50,000 $4,854 SLW Ranch Company 3.0 $150,00030.9 $50,000 $4,854 TOTAL 6.0 $305,00061.8 $50,833 $4,935 The market value of GIC shares is generally accepted based upon recent sales transactions. The above tabulated cost per share is similar to recent sales transactions for GIC shares. An appraisal, dated May 5, 2008, for the subject water rights wa s submitted with the loan feasibility study. The appraisal valued the six shares at $300,000; wh ich is $5,000 less than th e total sale price. Project Description The Augmentation Company is seeking a loan to fi nance the purchase of 6.0 shares of GIC, develop a storage reservoir, develop a recharge facilit y, construct up to 15 measurement structures and associated instrumentation, and pur chase and install 17 flow meters, all in an effort to support its augmentation plan. A range of alternatives were considered for the augmentation project including: #1 - No Action Alternative - Under this alternative, the Augm entation Company could potentially operate its wells for a short period of time utilizing water leases, as it has done for the past several years. However, a permanent augmentation plan cannot be obtained if no action is pursued. Ultimately, member’s wells could be forced to discontinue operation as a result. #2 - Purchase of the Water Ri ghts and Construction of a Recharge Reservoir: Alternatives 2 and 3 both include the purchase of wate r rights and the implementation of measurement structures, both of which will be necessary to obtain a permanent augmentation plan. Additionally, this alternative includes the construction of a recharge reservoir under the Ogilvy Ditch system to facilitate the winter augmentation obligations. The recharge reservoir will be operated by delivering water available pursuant to the newl y purchased water rights through the Ogilvy Ditch and into the recharge facility. Winter recharge credits woul d occur subsequently. Th is alternative is less expensive than that of Altern ative 3, but it also provides less flexibility in the augmentation operations as the recharge accretions are somewhat uncontrolled after the water is delivered to the aquifer. For this reason, Alternativ e 2 is not the pref erred alternative. #3 - Purchase of the Water Righ ts and Construction of a Rec harge Reservoir and 50 Acre-Ft Reservoir: Alternative 3 is similar to Alternative 2, w ith the exception that it also includes a 50 acre-foot lined storage reservoir located near the end of the Ogilvy Ditch system. The lined storage