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Town of Firestone Agenda Item 14a <br /> November 16-17, 2016 Board Meeting (Updated November 17, 2016) <br /> Page 4 of 5 <br /> reusable effluent, and the cost is within the market range for storage in this area. The Town has <br /> contracted to purchase the lined storage from LG Everist Inc. for $2,800 per acre-foot. <br /> As part of the development of the Carbon Valley Resource Pit, the Town will construct: 1) an inlet and <br /> pump station on the St. Vrain River to deliver water to the pit, 2) a pump station to deliver water from <br /> the pit back to the St. Vrain River, and 3) a delivery system from the Last Chance Ditch to the pit. <br /> Water Rights Purchase: The following water rights and will be acquired with this project: <br /> Rural Ditch Shares: 1.41 shares of the Rural Ditch Company are included in the contract for the <br /> purchase of the Carbon Valley Pit. This water is expected to produce an average yield of 105 acre-feet <br /> per share annually. <br /> Lower Boulder Ditch Shares: The Town has also submitted a letter of intent to purchase a number of <br /> Lower Boulder shares. The Lower Boulder Ditch has preferred shares and common shares, the <br /> difference being that the preferred shares have a high priority for deliveries. Many cities and counties <br /> have bought these shares and transferred them for municipal use. This water is expected to produce an <br /> average yield of 34.5 acre-feet per share annually for the preferred shares, and 11.5 acre-feet per <br /> share annually for the common shares. <br /> TABLE 1: PROJECT COST <br /> Task Cost <br /> Carbon Valley Reservoir Lined Storage $ 3,057,600 <br /> Carbon Valley Reservoir Delivery/Outlet Infrastructure $ 4,982,750 <br /> Non-Potable Water Rights: Rural Ditch Company shares $ 424,800 <br /> Non-Potable Water Rights : Lower Boulder shares $ 1,578,000 <br /> TOTAL $ 10,043,150 <br /> Permitting: Anticipated permitting includes a Weld County Floodplain Development Permit, a no-rise <br /> certification through a LOMR/CLOMR process, an Individual 404 Permit, wetland and cultural resources <br /> surveys, and other miscellaneous construction permitting. <br /> Schedule: <br /> Purchase Carbon Valley Reservoir Infrastructure December 2017 <br /> Begin Design of Carbon Valley Reservoir Infrastructure March 2017 <br /> Complete Design of Carbon Valley Reservoir Infrastructure March 2018 <br /> Start Construction of Carbon Valley Reservoir Infrastructure May 2018 <br /> Complete Construction March 2019 <br /> Financial Analysis <br /> The Town qualifies for a high-income municipal interest rate of 2.60% 30-year term. The Town is <br /> seeking a 20-year term, allowing a rate reduction of 0.25% per Financial Policy#7. The Town's interest <br /> rate for 20 years will be 2.35% per annum. Table 2 provides a summary of the Project's financial <br /> aspects. The Town will pay for its contribution using available cash on-hand. <br /> • <br />