C150274 Feasibility Study - Laserfiche WebLink

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Executive Summary The Yuma County Water Authority Public Improvement District ("YCWA PID") is a public improvement district which is to be formed by the Yuma County Water Authority subject to ratification by an election of the electorates within Yuma County, Colorado scheduled for November 4, 2008. Assuming a positive outcome to the election, the YCWA PID will be formed prior to the CWCB's next board meeting which is currently scheduled for November 18, 2008. The purpose of the YCWA PID is to address an imminent threat to the economic viability of a significant area within Yuma County and to assist in the State of Colorado's compliance with its obligations under the Republican River Compact by purchasing the Water Rights (as defined in Section 2.2 of this study). The North Fork Water Rights Purchase (sometimes referred to in this document as the "Transaction") is part of a settlement of a lawsuit brought by certain surface water right owners on the North Fork of the Republican River in Colorado (as defined in Section 3.1 of this study). YCWA PID has agreed to purchase the Water Rights from the surface owners, subject to a successful election to ratify the formation of YCWA PID and issue bonds and/or incur other debt to pay for the Water Rights. The Republican River Water Conservation District ("RRWCD"), acting by and through its Water Activity Enterprise ("WAE"), has agreed to lease the Water Rights for 20 years (the "North Fork Lease") for a one-time, upfront lease payment to the surface owners of $5 million if the above described election is successful and the closing of the Transaction occurs. YCWA PID is seeking a loan of $9.5 million from the CWCB Water Project Construction Fund to help fund a portion of the remaining $15 million purchase price for the Water Rights. YCWA PID will raise the remaining portion of the purchase price through a public bond sale. Purchase of the Water Rights, along with the other covenants to be effected by the closing of the Transaction, are necessary conditions to the settlement of the surface owner's lawsuit which seeks to redraw the boundaries of the Northern High Plains Designated Ground Water Basin. If the settlement is not concluded and the surface owners prevail, the litigation could result in the curtailment of 1,338 irrigation wells (plus commercial and municipal wells) in Yuma County, Colorado. The curtailment of this many wells which would have a severe impact on the local economy as more specifically described in this study. In addition, the curtailment of wells would threaten the ability of the excluded well owners to pay use fees that are the source of revenues that will be pledged to repay the CWCB loan for the Republican River Compact Compliance Pipeline to be constructed by the RRWCD WAE. Thus, another benefit of the North Fork Lease is to ensure the ability of the RRWCD WAE to repay the CWCB loan for the Compact Compliance Pipeline. An additional benefit of the Transaction is to assist the State of Colorado in complying with the Republican River Compact by reducing the consumptive use charged to the State of Colorado under the Republican River Compact Administration's ("RRCA") accounting procedures over the next 20 years by approximately 2,500 acre-feet per year. The North Fork Lease will supplement the Republican River Compact Compliance Pipeline and will reduce the amount of ground water that will need to be 12368\1 \1204400.5