Laserfiche WebLink
<br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />The draft BBA feasibility study provides an estimate by the District of the value of the <br />assets being-acquired, The analysis was, doneby cons.ervatively estimating the amounts of . <br />water the EDWD would purchase in each year of the next 30 years and the price of the <br />water under the terms of the 1983 MOA between the District and Vidler. The present <br />value of the total annual payments for 30 years was calculated using a 5.00 percent <br />discount factor, The resulting present value was $3.40 million. The cost per acre-foot for <br />94 acre-feet of conswnptive use plus the five acre-feet of storage water amounts to about <br />$34,000. <br /> <br />Using comparable sales information from 1998, BBA estimated the purchase price of <br />augmentation water in the Dillon area at about $39,000 per acre-foot. Escalated for <br />inflation at 3.00 percent in the last three years, the year 2001 cost would be about $42,000 <br />per acre-foot. An evaluation by BBA of water available to lease in the Dillon area <br />indicates a present value of $55,000 per acre-foot. <br /> <br />CWCB Instream Flows <br /> <br />In an MOA dated October 25, 1988 between Vidler and the CWCB, Vidler agreed not to <br />oppose a nwnber of the Board's instream flow filings in the Blue River Basin. In return, <br />the Board agreed to allow Vidler and its designees to utilize 19 acre-feet of storage in <br />Dillon Reservoir, directly or by exchange in the Blue, Swan and Snake Rivers, The <br />Board reserved the right to file a statement of opposition to any application involving the <br />Dillon water to ensure the terms and conditions of the MOA are met. The EDWD is <br />aware of and will comply with the applicable terms of the CWCB MOA. <br /> <br />Vidler has filed a plan for augmentation in Case No, 97CW305 involving a portion ofthe <br />19 acre-feet mentioned above. This augmentation plan may include the 5 acre feet of <br />Dillon water conveyed to EDWD in the December 2000 Purchase Agreement. The <br />CWCB has filed a statement of opposition to this augmentation plan, pursuant to the <br />MOA, to ensure instream flow water rights are not injured. <br /> <br />As mentioned above, the December 2000 Purchase Agreement between EDWD and <br />Vidler includes 5 acre-feet of the Dillon water and an interest in the plan for <br />augmentation as part of the conveyance to EDWD. The EDWD is not currently a party to <br />the pending augmentation plan application and does not intend to obtain water under that <br />augmentation plan. The EDWD understands that CWCB loan funds may not be used to <br />purchase an interest in the plan for augmentation. <br /> <br />Loan Reauest <br /> <br />The EDWD is requesting a 30-year loan for $2.55 million, which represents 75 percent of <br />the $3.40 million purchase price of the assets to be acquired. Since median household <br />income (MHl) figures are not available for the District, the unweighted average MHI for <br />the two nearby communities of Dillon and Frisco was used to estimate the MHI for the <br /> <br />3 <br />