C150319 Feasibility Study - Laserfiche WebLink

Home Browse Search

Feasibility Study for Various Infrastructure Improvements Fisher Ditch Company Executive Summary The Fisher Ditch is operated by the Fisher Ditch Company, which is responsible for diverting and delivering water from Clear Creek to shareholders along the ditch and appurtenant laterals. The Fisher Ditch Company (Fisher) has identified a number of critical infrastructure projects along the ditch which need to be addressed to maintain reliable water yields and deliveries to shareholders while maintaining affordable share assessments. The projects identified herein are intended to address aging/failing infrastructure and operatio ns/maintenance issues along the ditch. Fisher currently (and historically) derives the majo rity of its operating revenue from shareholders via share assessments. Other minor revenue sources include interest on savings accounts, crossing agreements, and other sources. Financia l reports for fiscal years 2009, 2010, and 2011 year-to-date are summarized in Table 1. Complete reports are provided in Appendix C. There are four separate projec ts to repair aging/failing infras tructure contemplated in this application (Figure 2). The projects are listed in order of importance to the continued efficient, reliable, and safe functioning of the ditch syst em. This feasibility study evaluated three alternatives for each project, with the basic parameters summarized below. lte A nativ nativ nativ rnative Project 1 Project 2 Project 3 Project 4 Notes Altere 1 No Action $0 No Action $0 No Action $0 No Action $0 Anticipated to result in infrastructure failure and/or company liability Altere 2 New gate, hoist and actuator $57,500 New 36-inch PE pipeline $127,680 Rehab. existing spillway $56,875 Fencing along top of slope $73,125 Alternative infeasible or more expensive than preferred alternative Altere 3 Rehabilitate gate $14,950 New 38-inch X 24-inch RCPE pipeline $142,440 New sand-out, gates and outlet pipe $105,625 New 1500-foot 48-inch PE pipeline $242,125 Preferred alternatives address issues while providing most value to shareholders The preferred alternative for all projects is one that the Fisher believes addresses the underlying infrastructure or maintenance concern while provid ing the most value to the ditch company. Cost opinions for the preferred alternatives for each project are summarized below. Project ID Total Cost ($)Loan Amount ($) Project 1 - Headgate rehabilitation $14,950 $13,455 Project 2 - Broadway piping $142,440$128,196 Project 3 - Sand-out gate $105,625 $95,063 Project 4 - Federal piping $242,125$217,913 Tota l $505,140$454,62 6 A conservative financial analysis has been prepared to show the projected revenue and expenses for the company over the loan period (A ppendix D). This analysis demonstrates that Fisher Ditch shareholders can repay the anticipated loan through reasonable special assessments. The projects identified by Fisher Ditch as a part of this loan application are necessary to ensure the continued reliable delivery of the company ’s water rights, preservation of reasonable operating and maintenance assessments, and safety of its system for users and others. The projects proposed are reasonably priced and can be completed in a straight-forward, workman- like manner by a qualified contractor. The Fisher Ditch company is in suitable financial condition to responsibly accept the loan obligation sought in this application and will be able to repay the loan without overburdening its shareholders. 1