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Castle Pines Metropolitan District Agenda Item 29b <br /> May 9,2014(Updated May 23,2014) <br /> Page 5 of 7 <br /> THIS LOAN ARE THE UPFRONT COST OF STORAGE, ENGINEERING,AND CONSTRUCTION RELATED TO THE <br /> FEDERAL AND STATE REQUIRED MITIGATION. THESE COST TOTAL$145.5 MILLION($7,063/ACRE- <br /> FOOT).THE REALLOCATION PARTICIPANTS ARE RESPONSIBLE FOR A PRO-RATA SHARE BASED ON <br /> THEIR STORAGE ALLOTMENT. SEE TABLE 2 FOR A SUMMARY OF THE REALLOCATION COST. <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 a goal of increasing <br /> the permanence and reliability of its water supply. Currently, the District relies solely on non- <br /> tributary groundwater, a non-renewable water source. There is a general concern in the south metro <br /> area about the life expectancy of these aquifers. The Chatfield water will be utilized by the District <br /> through an exchange on East Plum Creek authorized in water court Case No. 04CW308 or by <br /> pipeline. No additional water right acquisitions will be needed to use the Chatfield storage space but <br /> additional infrastructure will be needed to divert out of East Plum Creek and into the District's <br /> system. The improvements consist of alluvial wells, surface points of diversion, and storage as <br /> decreed in Case Nos. 04CW292, 04CW293, and 04CW308 as well as pipelines and pump stations. <br /> The District plans to construct these improvements in the future and they are not a part of this loan <br /> request. <br /> Of the 20,600 AF of storage to be reallocated, the District will directly receive 785.6 AF and, <br /> through the South Metro Water Supply Authority, indirectly receive 1.1 AF, for a total storage <br /> space of 786.7 AF. This represents 3.82%of the total reallocation. Therefore the District's Project <br /> cost is approximately $5,560,000 ($145,500,000 x 3.82%). The Project is expected to develop an <br /> average yield of 325 AF per year for the District from junior water rights. Successful completion of <br /> the Project would result in the District securing renewable water rights that on average would <br /> supply 30%of its average annual water demand and 20% of its projected maximum annual water <br /> demand. <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 />