Laserfiche WebLink
<br />e <br /> <br />I. <br /> <br />. <br /> <br />FL Gill H20 LLC <br />March 16-17. 2004 <br /> <br />Agenda Item 25d <br /> <br />of Jackson Lake reservoir water will help assure that sufficient augmentation water is available. <br />The cost of this alternative is $127,500, and it is the preferred alternative. <br /> <br />Selected Alternative 3 consists of the following: <br /> <br />. Construct 4 new recharge ponds, including excavation and flow measurement/recording <br />equipment. <br /> <br />. Drill a 7,5 cfs recharge well within 100 feet of the South Platte River. Permit one existing <br />irrigation well for augmentation use. <br /> <br />. Construct a 15-inch diameter pipeline between the recharge well and a private irrigation <br />lateral owned by FGH LLC. This pipeline will be 3,500 feet in length. <br /> <br />. Purchase one share of Jackson Lake Reservoir water (net yield 6 acre-feet.) <br /> <br />. Install measuring devices on all features of the project. <br /> <br />The implementation schedule calls for completion of financing arrangements and final design in <br />Spring 2004. Construction would be completed in spring 2005. <br /> <br />Financial Analvsis <br />The total estimated cost ofthe project is $127,500 (including engineering costs), and water is <br />used for agricultural purposes, Staff is recommending a Small Project loan in maximum amount <br />of $114,750 (90% of the total project costs.) The borrowers are requesting a 20-year loan at <br />2.25%, which is a standard CWCS agricultural loan rate, <br /> <br />Table 1 is a summary of the financial aspects of the project with a $114,750 CWCS Loan. The <br />annual payment would be $7,907 (including the 10% reserve requirement) at the loan terms of <br />2.25% for 20 years. This represents $7.38 per acre-foot, based on expected annual well <br />diversions of 1,072 acre-feet. The Company's cost share will come from a one-time special <br />assessment. <br /> <br />Table 1. Financial Summary <br /> <br />Proiect Cost $127,500 <br />Number of members 3 <br />CWCS Loan Amount $114,750 <br />CWCS Loan Pavment (includes 10% reserve) $7,907 <br />Irriaated acreaae 910 <br />Assessment oer irriaated acre with CWCS loan $8.70 <br />Assessment oer irriaated acre with CWCS loan and $3.152 O&M costs $12.15 <br />Annual loan cost oer acre-foot (averaae well diversions: 1,072 ac-ft.) $7.38 <br /> <br />Credit worthiness: The FGH LLC is a new company and has no debt or history of income and <br />expenses. The Company has collected initial capital of $6,000 from its members. These funds, <br />as well as future assessments and CWCS loan proceeds will be used to construct the project <br />and pay O&M costs, (Note: Members of the GGH LLC previously paid GASP for augmentation <br />of their wells. These GASP dues can now be used to pay assessments to the FGH LLC.) Table <br />2 shows the Financial Ratios for the FGH LLC assuming the project is built. With the exception <br />of Cash ReseNes, all ratios are in the average category with the $114,750 CWCS loan in <br />place. <br /> <br />3 <br />