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Company. A summary of the costs for the two alternatives, including the engineering fees and contingencies, is shown in the following table. TABLE 1 TOTAL PROJECT COST SUMMARY ITEM ALTERNATIVE 1 _ ALTERNATIVE 2 1. Construction Cost $ 1,821,078 $ 2,729,777 2. Contingency @ 15% $ 273,162 $ 409,466 3. Engineering Fees $ 225,000 $ 275,000 4. Land Acquisition $ 309,360 $ 309,360 5. Total Project Cost $ 2,628,600 $ 3,723,603 6. Cost Per Acre Foot $ 6,100 $ 7,012 THE SELECTED PROJECT Alternative 1 has been chosen by the Platte Valley Irrigation Company Board of Directors. This alternative was chosen based on the cost and the ability to store in excess of the 300 acre-foot decree they have obtained for the reservoir. The cost of this alternative is less than the current value of CBT or other water that may be available on the market. There are no major impediments,other than the cost, and this alternative has a high probability of success and can be accomplished by local contractors experienced in dam construction. FINANCIAL PLAN The PVIC plans to apply for a$2,365,000 loan from the Colorado Water Conservation Board small projects fund. The remainder of the project will be paid for with funds raised by assessments and also with cash the company has available in an existing cerificate-of-deposit and money market account. Based on a$2,365,000 loan at an interest rate of 2.25% for a 20 year term, the required capital for the project during the years 2007 and 2008 when the project is designed and construction completed is as shown in Table 4. The funds required in 2008 includes the 1%loan origination fee of$23,650. The annual payments required to service the loan from 2009 through 2028 are also shown in Table 4 with the final payment shown as being paid from the current certificate-of-deposit. Platte Valley Irrigation-Feasibility Study Page 6