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.� <br />�� � <br />Agenda Item 10c <br />Penrose Water District <br />November 13-15, 2006 <br />The Total Project cost is estimated to be: <br />Water Rights Purchase <br />Water Rights Acquisition Costs <br />Water Rights Change/Augmentation Plan <br />Construction — Return Flow Obligation <br />Construction — Well Field* <br />Construction — Pipeline* <br />Construction — Brush Hollow Enlargement* <br />General — Administrative & Legal <br />TOTAL <br />1. <br />2. <br />3. <br />4. <br />5. <br />6. <br />7. <br />8. <br />* Includes engineering, 20% contingency <br />$1,400,000 <br />378,100 <br />600,000 <br />706,000 <br />1,591,400 <br />3,873,300 <br />1,071,200 <br />110.000 <br />$9,730,000 <br />(non-CW CB) <br />Schedule — The purchase of the water rights occurred in July 2005. The Water Court application <br />was filed in February 2006, with an anticipated court date in late 2008. N an d�pipel ne w d <br />are currently in process. Reservoir enlargement would occur in 2007-08, <br />construction in 2008-09. The overall project is expected to be completed in January 2010• roval will <br />necessary County, State and Federal permits will be obtained. State Engineer's Office app <br />be required for the dam modifications. <br />Financial Analvsis <br />S The total estimated cost of the project is $9,730,000. The District qualifies for the Municipal Low - <br />Income interest rate, and staff is recommending a maximum loan amount of $8,757,000 (90% of the <br />estimated project cost) for 30 years at an interest rate of 3.25%. The Enterprise will pay the 10% <br />local share ($973,000) of the project cost, through an Agreement with the District, from retained <br />earnings that are non-tax based, or a combination of these reserve funds and a future DOLA <br />Energy and Mineral Impact Assistance Grant (EMIA), generated through mineral lease revenues. <br />Table 1 is a summary of the financial aspects of the project. A CWCB Loan of $8,757,000 would <br />have an annual payment of $461,334 (not including a 10% reserve requirement) at the loan terms <br />of 3.25% for 30 years. In lieu of pledging an annual reserve of 10% of the annual payment for 10 <br />years, the Enterprise will est he l �D str C omaetained earn ngs hat a�e n�ontax bas �e� onset, <br />through an Agreement with t , <br />Table 1. Financial Summary <br />Project Cost <br />Number of Existing Water <br />� <br />CWCB Loan Amount (30 years) <br />CWCB Loan Payment not including 10% reserve) — Begin 2011 <br />Current Total Monthly Water Rate (Average) — 2005 <br />Future Total Monthly Water Cost — Begin 2010 <br />Monthl Per Ta Cost of CWCB Loan <br />Annual Loan Cost per Acre-Foot (based on aver. 339 ac.-ft. del <br />$9,730,000 <br />1700 <br />$8,757,000 <br />$4_ <br />$31.75 <br />$41.00 <br />$ 22 .61 <br />$1,360 <br />Page 5 of 8 <br />