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road paving and zoning requirements would have changed the rural nature of Wadley Farms No. 3. The cost water and sewer taps and pipelines would have been in the millions of dollars. This option is considered to be too expensive and not desirable. The discussions with the City of Westminster proposed that the HOA's three FHL shares be used by the city at Standley Lake and, in return, the HOA would receive a greater number of acre -feet of wastewater delivered into Big Dry Creek. A pumping plant would be constructed at the creek and a pipe run from the creek east to the Wadley Reservoirs across the railroad through 144th Avenue. No agreement was reached with Westminster. The pump station and on -going operating and power costs put the overall present value cost of construction and operation in excess of $1.6 million. An additional concern was the quality of water delivered from Big Dry Creek into the Wadley Reservoirs. The HOA considered purchase of shares in other ditch companies that could be diverted at Big Dry Creek. The application for a new junior water right on Big Dry was considered as well. Both of these options have the same costs for a pump station and pipeline as the Westminster effluent alternative, along with the negative water quality impacts on the Wadley Reservoirs. In addition, there would be the cost of purchasing the shares and pursuing a water rights decree through Water Court. Therefore, these alternatives are not considered to be feasible. The preferred alternative for the HOA is purchase of two additional FHL shares. The purchase price for the two shares has been negotiated at $800,000. The HOA has $80,000 of reserve funds available for payment of 10% of the purchase price and is seeking a loan of $720,000 at 3% annual interest cost from the CWCB a thirty-year term. The additional costs associated with the purchase of shares would bring the quarterly assessment for Wadley Farms No. 3 homeowners to $229 ($76.33 per month or $916 per year) for each lot for the first ten years of the loan and would drop to $220 ($73.33 per month or $880 per year), up from the current $125 per quarter. This is a reasonable assessment for both IIOA fees and irrigation water supply. The option of purchasing FHL shares is the most inexpensive and feasible alternative. The total average annual water availability for the HOA with 5 shares is 164.8 acre -feet, which compares with 128.5 acre -feet with 3 shares, for an increase on average of 36.3 acre - feet or 30.4 %. With ownership of three FHL shares, the average yield is roughly equal to the average annual demand, meaning that any single dry year will prevent the HOA from carryover storage for any subsequent dry year. Water use restrictions could be required in as many as half of the years unless the water supply is increased. Purchase of two additional FHL shares provides an average yield that allows for significant opportunities for carryover storage in both wet and average years, which will improve the HOA's ability to meet water demands in dry years. Based on the historic record, the mininnurn average annual water availability at the Wadley Farms No. 3 headgate in dry years, including both direct irrigation and reservoir storage deliveries, with 5 shares would be 85.2 acre -feet as compared to the minimum of 67.4 acre - feet which occurred with 3 shares in 1954. This equates to an increase in dry year yield of 17.8 acre -feet. Given that evaporation from the Wadley Reservoirs might range from 52.8 Wadley Farms No. 3 Water Supply CWCB Loan Feasibility Study Page 35