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effluent was expected to greatly increase the oxygen demand within the reservoirs, <br />thereby stressing the fish, causing algal blooms, and creating odor and aesthetic problems <br />with the lakes. <br />There might be some impacts to the aquatic environment of Big Dry Creek due to <br />diversion of treated effluent out of the stream arising from a reduction in water quantity, <br />but likely no change or an improvement in downstream water quality. There could be <br />temporary impacts to creekside and roadside wetlands areas during construction of the <br />pipeline and pump station. <br />Obtaining Other Water for Delivery from Big Dry Creek <br />The HOA considered purchase of shares in other ditch companies that could be diverted <br />at Big Dry Creek. The yield from these shares could be used in addition to the current <br />yield from the HOA FHL shares. The application for a new junior water right on Big Dry <br />was considered as well. Both of these options have the same costs for a pump station and <br />pipeline as the Westminster effluent alternative, along with the negative water quality <br />impacts on the Wadley Reservoirs and comparable effects on stream and wetland areas. <br />In addition, there would be the cost of purchasing the shares. <br />Shares in the Lupton Bottom Ditch Company were considered. The cost would have <br />been in the range of $600,000 to $800,000. There would also be costs for pursuing a <br />water rights decree through Water Court proceedings for either a change in place of use <br />for the Lupton Bottom shares or the new water right, estimated to be in the range of <br />$100,000. Therefore, these alternatives are not considered to be feasible even though they <br />might result in a sufficient increase in water supply arnount and reliability to meet the <br />HOA goals. <br />Purchase of Additional Shares in the FHL Company <br />This is the preferred alternative of the HOA, but has been difficult to pursue because of <br />the limited and highly competitive market for purchase of FHL shares. The rare <br />opportunity to purchase two FHL shares, a portion of which has been leased by the HOA <br />for many years, has come about due to the death of the shares' owner and the desire of her <br />heirs to settle the estate. The HOA is pursuing this opportunity at this time because a <br />similar situation may not present itself in the future. <br />The purchase price for the two shares has been negotiated at $800,000. The HOA has <br />$80,000 of reserve funds available for payment of 10% of the purchase price and is <br />seeking a loan of $720,000 at 3% annual interest cost from the CWCB for the remainder <br />of the purchase. This loan is expected to be for a thirty year term. This makes the option <br />of purchasing FHL the most inexpensive and feasible alternative for expanding the <br />Wadley Farms No. 3 water supply. <br />Wadley Farms No. 3 Water Supply CWCB Loan Feasibility Study Page 24 <br />