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a <br />Agenda Item 17b. <br />November 24, 1997 (Updated December 3, 1997) <br />Page 2 <br />BLOA wants to protect their existing irrigation water right by putting it to beneficial use. <br />The system will cost $1.2 million to construct, or about $3500 for each of the 350 homeowners. <br />The $900K CWCB loan will have a payment of about $60,000 per year ($171 per year per <br />household or $14 per month per household), and the Association would have to fund $300K in <br />cash ($850 per household.) The Association is seeking a grant from another source to help fund <br />their $300K portion for the project. <br />The average yearly residential water bill for potable water is expected to remain fairly constant, <br />once the new raw water irrigation system is installed. The raw water irrigation system will cost <br />the homeowners an additional $14 per month in assessments paid to their Association, once the <br />one-time fee of $850 per household has been paid. Operation and maintenance costs for the new <br />system are expected to be paid from the current $45 per month assessment. There will also be <br />the added advantage that the new system will allow irrigation of portions of parks and open space <br />that were previously either not irrigated, or irrigated with hauled water at great expense. <br />The new irrigation system will have a capacity sufficient to irrigate �AA 31 acres, with a rotation <br />schedule that allows watering every other day. The system will provide about-0�AA 62 acre feet of <br />water per year for irrigation. <br />The service area for the BLOA is primarily residential, and lies generally 7 miles north-west of <br />Basalt, about 1 mile west of El Jebel, and about 6 miles south-east of Carbondale. All these <br />towns had a Median Household Income that was greater than 110 % of the Statewide MHI for <br />1990. A loan to the BLOA should thus be at the "High Income" rate for a municipality, to be set <br />by the CWCB on November 24, 1997. <br />The Association has had an initial homeowners meeting to discuss the project, and its cost. The <br />Homeowners were in favor of the project. A formal vote is set for December 4, 1997, at which <br />time the Association is seeking consent to borrow, and to raise assessments by $14 per month to <br />cover debt repayment. <br />BLOA has scheduled construction to start in spring 1998, so that the project can be completed by <br />fall 1998. A portion of the project will be constructed by the time CWCB Staff can complete the <br />lending contract, about July 1998. A loan to the Association should allow refinancing of portions <br />of the project already completed. <br />COLLATERAL <br />The BLOA receives monthly assessments from its Association members. The CWCB will take a <br />security interest in this stream of revenues. The BLOA can also pledge water rights as collateral. <br />