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Fiorida Consolidated Ditch Company <br />May 17-18, 2017 Board Meeting {Updated May 22, 2017� <br />Page 4 of 5 <br />Agenda Item 27a <br />The Company selected Alternative 2 because of the lower cost and it will provide the most benefit to <br />the to the major agricultural producers along the lateral. The major Project components of Selected <br />Alternative 2 indude: a pipeline ranging from 27 inches at the beginning to B inches at the end; an <br />intake pond for sedimentation; replacement of the Short Lateral; and an extension referred to as the <br />Seal Extension. There are additio�al water users along the atignment that could opt in to the Project <br />prior to construction if they choose to receive pressurized water. <br />TABLE 2: PROJECT COST <br />7ask Cost <br />Materials (pipe, etc.) 51,600,000 <br />Cons[�uction {mobiliza[ion � earthwork) $400,000 <br />Engineering (design and construction management) $400,000 <br />Contingency $400,000 <br />TOTAL $2,800,000 <br />Permitting: The Environmental Assessment (EA) conducted by CDOT for the Highway 550 Widening <br />Project does not consider the proposed alignment of the Ness Lateral to be within any jurisdictional <br />we[land area for the portion of the Project within the CDOT limits. Sections of the Hess Lateral <br />outside of the extent of the EA were reviewed and are, in the Company's engineer's opinion, are not <br />associated with a tributary that feeds the Ftorida or Animas River. The Company's engineer expects <br />the Project will be exempt from 404 permitting due to agricultural water use exemptions. Air quality <br />permits may be necessary due to material screening and land disturbance operations and will be <br />obtained prior to construction, if necessary. A Stormwater permit will be obtained before <br />construction. The environmental review found no adverse effects to threatened and endangered <br />species. <br />Schedule: Final design and permitting efforts are scheduled to begin in the fatt of 2017 and are <br />expected to take one year. Construction will likely begin in the fall of 2018. <br />Financial Analysis <br />Table 3 provides a summary of the Project's financial aspects. The agricultural interest rate of 1.8095 <br />was used after evaluating the sharehotders along the lateral. <br />7ABLE 3: FINANCIAL SUMMARY <br />Total Project Cost 52,800,OQ0 <br />CDOT Funding 5950,000 <br />WSRF (Approved September 2015) �'� S775,000 <br />CWCB loan Amount $1,075,000 <br />CWCB Loan Amount (Including 1% Service Feey $1,085,750 <br />CWCB Annual Loan Payment 547,156 <br />CWCB Annual Loan Obligation (15L Ten Years) 551,871 <br />Current Assessment per share $37.50 <br />Approximate average annual loan cost per user along lateral �Z� 51,150 <br />