C150278 Approval letter - Laserfiche WebLink

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Weldon Valley Ditch Company Agenda Item 26c Updated November 20, 2008 Page 3 of 4 Alternative 1- No Action: Leaving the flume in its current condition is not a viable option for the Company. The deteriorated condition of the flume indicates certain failure in the future. Alternative 2- Complete remedial repairs on the flume: This alternative consists of lining the existing flume with a new synthetic liner and repairing the damaged wooden supports that hold up the flume. The new liner would prevent further corrosion of the metal flume channel; however, this option would not address the problem caused by having a flume through a natural drainage. The cost of this alternative is approximately $50,000. Alternative 3 -Replace the existing flume with a siphon: This alternative consists of completely replacing the existing flume with a new 54 inch concrete siphon under the Cottonwood Draw. This would solve both the imminent failure problem associated with the flume and the obstruction problem caused by having a flume in a natural drainage. The cost of this alternative is approximately $150,000. Selected Alternative: The Company has chosen Alternative 3 that requires building a 54 inch concrete siphon spanning 250 feet under the Cottonwood Draw, installing a drain pipe for emptying the siphon, installing a concrete inlet structure with trash rack, and replacing the concrete outlet structure. The Project design is expected to be completed by January 2009. Construction is anticipated to begin in mid-January with completion by the end of February 2009. Financial Analysis Table 1 shows a summary of the financial aspects of the loan request. The Company is made up of 574 (90%) agricultural shares and 66 (10%) low-income municipal shares; therefore, a blended interest rate of 2.6% fora 30 year loan applies. TABLE 1 FINANCIAL SUMMARY PROJECT/LOAN Total Project Cost $150,000 CWCB Loan (90% of the Project cost) $135,000 CWCB Loan (Includin 1% Service Fee) $136,350 CWCB Annual Loan Pa ent $6,600 CWCB Loan Obli ation (includin 10% debt reserve fundin) $7,300 Number of Shareholders 65 Numbers of Shares 640 Annual Cost Per Share for Project $11/Share Annual Cost of Loan er AF (based on 36,000 AF avers a diversion) $0.20/AF Creditworthiness: The Company's current assessment is $125/share. Rates will need to be increased to $136/share to cover the new CWCB debt service. The Company has an existing CWCB loan for rehabilitation of its diversion structure. The original loan amount was $188,000.