26a

• Board Meeting Date: 11/19/2008
• Description: CF Section - New Project Loans - Center of Colorado Water Conservancy District - James Tingle Reservoir
• Board Meetings - Doc Type: Memo

Center of Colorado Water Conservancy District Agenda Item 26a
November 10, 2008
Page 3 of 4

Project Description

The James Tingle Reservoir is an off - channel reservoir to be constructed adjacent to Michigan
Creek. The l ocation is critical in order to m aintain historic return flows as decreed in C ase No.
05CW111 . The Project is fully designed, approved by the SEO, permitted, and under construction.
The design was completed by Deere & Ault Engineering and t he construction contract was awar ded
to Cat Lake Construction .
Since a Reservoir is necessary to fully utilize for augmentation year r ound to
maintain historical return flows only two alternatives were considered:
1. The no - action alternative
2. Construc t James Tingle Reservoir
Alternative No. 1 No action alternative was considered unacceptable because without the
Reservoir , t he District could not fully utilize its water right for municipal and industrial use under
Case No. 05CW111 .
Alternative No. 2 - The James Tingle Reservoir was determined to be the most cost effective and
ideal location for a new reservoir . In addition to the Reservoir , the District will rehabilitate the
Randal l and the Session d itches. The Randal l Ditch will be repaired to prevent washouts and leaks.
The Sessions Ditch will need to be improved since it will be used to fill the new Reservoir.
Construction contracts have been awarded and completion of the Project is expected by January
2009.
Project Cost Estimate

Engineering $560 ,000
Construction cost ( w/10% contingency) $2,900,000

Randall & Sessions Ditch Rehab. $105,000
Total $3,565,000

Financial Analysis

Table 1 shows a summary of the financial aspects of the loan request. The District is responsible
for 1/7th of the Project costs . The District s interest rate is based on a m iddle income m unicipal rate
of 4.0%, and reduced 0.5% for a 10 year loan ( per Policy # 7 ) to an interest rate of 3.5%.
Table 1. Financial Summary

PROJECT/LOAN
Total Project Cost $ 3,565,000
th
Cen tennial ontribution ( 6/7 ) $3,0 56 ,000
th
Center of Colorado 1/7 ) $509 ,000
CWCB Loan Request ( approx. $450,000
CWCB Loan (Inc luding 1% Service Fee) $ 454,50 0
CWCB Annual Loan Payment $ 5 4 , 6 0 0
CWCB Loan Obligation (including 10% debt reserve funding) $ 6 0 , 1 00
Project cost per Acre - Foot (based on 400 AF of new stora ge ) $ 8,900 /AF
Annual Cost of Loan per A cre - F oot (based on AF) $ 280 /AF