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e COST ESTIMATE The estimated cost to reconstruct the dam is shown in Table 4. The unit costs are rough estimates of costs found in non-urban areas of the state. An amount of 30% is added for contingencies, which is slightly higher than the normal 20% because the unit costs are not firm. Engineering and administration is estimated at 15% which includes: testing for designs, preparation of plans and specifications, construction observation, CWCB financing costs, and any necessary permitting. The land under and around the existing reservoir is owned by the Mormon Church. It is assumed that the 100 acres of land for the enlargement must be purchased for $1500 per acre. There are opportunities for land exchanges to reduce the acreage to be purchased but the more conservative assumption is used herein. The cost estimate is at an appraisal level and will change when plans and specifications are prepared. e The enlargement will require a 404 permit which will trigger endangered fish species consultation with US Fish and wildlife Service and wetlands impacts. This work should begin as soon as possible. FINANCING The cost for this work will require financing. The Reservoir Company would need to finance nearly the entire cost of the enlargement. Table 5 shows various financing terms. Option 1 is the standard rate as of December, 1993; the interest rate is based upon national interest rates. Option 6 is recommended because the cost per acre-foot is reasonable, realizing that this is less than the standard CWCB terms. The irrigators who receive water from the reservoir must be willing to pay the same amount each year, regardless if the water is available. If water for plans of augmentation, realizing the amount of water will be small, is sold for about $200 per acre-foot per year, the repayment ability is improved. Red Mesa Dam 14