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Center of Colorado Water Conservancy District Agenda Item 29d <br /> May 9,2014(Updated May 23,2014) <br /> Page 5 of 7 <br /> TABLE 2: REALLOCATION COST SUMMARY <br /> Task Cost <br /> Cost of Storage $16,300,000 <br /> Federal Required Mitigation $107,100,000 <br /> State Required Mitigation $8,900,000 <br /> Subtotal $132,000,000 <br /> Contingency (10%) $13,200,000 <br /> Total $145,500,000 <br /> Borrower's Participation: The District is participating in the Reallocation with the intent of using <br /> the storage space to make releases of augmentation water to downstream senior calling rights, for <br /> storage of its upstream changed senior water rights, as a storage for a junior water storage right in <br /> Case No. 13CW3148, and as a structure to facilitate adjudicated exchanges of stored water to the <br /> District's upstream storage reservoirs located in Park County. No additional water right acquisitions <br /> or infrastructure improvements will be necessary for the District to utilize storage in Chatfield. <br /> Of the 20,600 AF of storage to be reallocated,the District will receive 131.3 AF, or 0.64% of the <br /> total reallocation. Therefore, the District's Project cost is approximately $930,000 ($145,500,000 x. <br /> 0.64%). The Project is expected to develop an average yield of 54.4 AF per year for the District <br /> from junior storage rights. The District plans to also fill its allotted storage using existing senior <br /> rights already adjudicated for storage in Chatfield. <br /> SCHEDULE:THE CORPS' RECORD OF DECISION(ROD) IS EXPECTED IN 2014.UPON THE SIGNED ROD, <br /> THE CORPS WILL COMPLETE NEGOTIATIONS WITH DNR AND ENTER INTO A WATER STORAGE <br /> AGREEMENT. DNR WILL ENTER INTO THIRD PARTY SUB-AGREEMENTS WITH THE REALLOCATION <br /> PARTICIPANTS. PROJECT ACTIVITIES WILL BEGIN WHEN ALL NECESSARY AGREEMENTS HAVE BEEN <br /> EXECUTED(ESTIMATED FALL 2014). REALLOCATION PARTICIPANTS EXPECT TO PAY IN FULL THE COST <br /> OF STORAGE AS WELL AS BEGIN FINAL ENGINEERING UPON PROJECT START. THE RECREATIONAL <br /> FACILITY MODIFICATIONS AND ON-SITE MITIGATIONS ARE EXPECTED TO TAKE 5 YEARS. OFF-SITE <br /> MITIGATIONS AND MITIGATION MONITORING ARE EXPECTED TO LAST 13 YEARS OR MORE. <br /> Financial Analysis <br /> The District qualifies for a middle-income municipal interest rate of 2.50% for a 15-year term <br /> (reduced from a 2.75%rate per CWCB Loan Policy#7). The District is limiting its loan request to <br /> $600,000 and a 15-year term in accordance with the ballot language that authorized this loan. The <br /> District will use cash reserves to fund its required match. Table 3 shows a summary of the financial <br /> aspects of the Project. <br /> TABLE 3: PROJECT FINANCIAL SUMMARY <br /> Total Project Cost (0.64% of Reallocation Cost) $930,000 <br /> Borrower Match $330,000 <br /> Project Loan $600,000 <br /> Project Loan(Including 1% Service Fee) $606,000 <br /> Project Annual Loan Payment $48,944 <br /> Project Annual Loan Obligation (incl. 10% debt reserve) $53,839 <br /> Project Cost per Acre-Foot of Storage (131.3 AF) $7,063 <br />