Laserfiche WebLink
New Salida Ditch Company Agenda Item 2tib <br />Updated November 2Q 2008 <br />Page 3 of 4 <br />1. Take no-action; <br />2. Line the Ditch with a poly liner; <br />3. Install a pipe; <br />Alternative No. 1-The no action alternative was considered unacceptable due to the agreement <br />between the Company and CDPHE following the 2005 Ditch break. <br />Alternative No. 2 -The option to line the Ditch with a poly liner was eliminated due to the <br />difficulty in maintaining the Ditch with a liner. That area is burdened by heavy silt loading and flat <br />gradient. Cleaning out this material would be impractical and difficult to do without damaging the <br />liner. <br />Selected Alternative No. 3 -Installation of a high density polyethylene (HDPE) pipe was selected <br />because it was considered to be the most permanent fix to address the stability problem and the <br />most cost effective in the long term. Approximately 3,200 feet of 42 inch HDPE pipe will be <br />installed along the existing ditch profile. Construction will begin no later than February 2009 and <br />should be complete by late spring. <br />Project Costs <br />Engineering Cost $19,000 <br />Construction Cost $383,000 <br />Total $402,000 <br />Financial Analysis <br />Table 1 shows a summary of the financial aspects of the loan request. The Company qualifies for <br />the agricultural interest rate of 2.5% for a 30 year term. <br />Table 1. Financial Summary <br />PROJECT/LOAN <br />Total Project Cost $402,000 <br />CWCB Loan (90% of the Project cost) $362,000 <br />CWCB Loan (Includin 1% Service Fee) $365,620 <br />CWCB Annual Loan Pa ent $17,500 <br />CWCB Loan Obli ation (includin 10% debt reserve fundin) $19,200 <br />Number of Shareholders 14 <br />Numbers of Shares 400 <br />Annual Cost Per Share for Pro~ect $48~Share <br />Annual Cost of Loan er AF (based on 7,000 AF avera a diversion) $2.75; AF <br />Creditworthiness: The Company's assessments have historically been $SO,~share. Rates will need <br />to be increased by $48ishare to $98ishare to cover the new CWCB debt service. Additionally, the <br />Company will have to charge a special assessment of $100/share to provide for the 10% match for <br />the loan. The Company has an existing no existing debt. <br />