BOARD00561

• Board Meeting Date: 3/24/2003
• Description: CF Section - New Loans - Glenn D. Toyne - Well Augmentation Project
• Board Meetings - Doc Type: Memo

.

.

.

Glenn D. Toyne - Well Augmentation Project
March 25-26, 2003

Agenda Item 24d

Selected Alternative 3, Construct a recharge pond filled using a recharge well was selected as the
desired alternative. This alternative would consist of drilling one well to pump water into a recharge
pond in winter months when there is not a call on the river. Water from the pond would have a
delayed return to the river in summer months when GOT has depletions that need to be offset with
augmentation water. The recharge well, drilled within 100 feet of the South Platte River, would
pump up to a combined maximum rate of 7.8 cfs producing up to 3500 acre feet annually. The well
would pump to the recharge pond through 6700 lineal feet of 15" buried PVC piping. The recharge
pond will be constructed partially above ground, using berms on two sides, with a maximum height
of 7 to 8 feet, and water depth of 5 to 6 feet. An additional augmentation well will be located in the
vicinity of the recharge pond. This will be used to return water directly to the river using the piping
in reverse, thereby returning "stored" groundwater to the river when necessary. This is a drought
management tool currently being used by GASP with approval from the State Engineer to help
provide augmentation water during the most severe drought situations. An added benefit of
developing the recharge ponds would be wildlife habitat enhancement.

The total project cost is estimated to be;

1.
2.

Planning and design costs
Construction (w/Contingency)
TOTAL

$ 2,000
113.000
$ 115,000

The project schedule, following CWCS approval, will be to complete design and start construction in
early April 2003. The project is planned to be operational by the end of April 2003. Pipeline
construction has already begun using GDT funds.

Permits- GDT expects to be exempt from Corps of Engineers 404 permitting, but will confirm this
with the Denver office. The recharge well and some piping will be located on land owned by Dave
Toyne. An easement for right-of-way for the well and pipeline have been agreed to verbally and a
formal easement will be granted. GDT will provide CWCS with copies of the recorded easement
when it is available.

Financial Analvsis

The total estimated cost of the project is $115,000 and water is to be used exclusively for
agricultural purposes. Staff is recommending a loan for a maximum amount of $ 75,600
(approximately 66% of estimated project cost) for 30 years at an interest rate of 2.75%. GDT and
Platteview Ranches, Inc. have sufficient cash assets budgeted to cover their $39,400 share of the
project.

Alternative financing sources: GOT investigated alternative financing at a local bank but found
that low rate long-term financing was not available for this type of project.

Table 1 is a summary of the financial aspects of the project. A CWCS Small Project Loan of
$75,600 would have an annual payment of $4,107 (including the 10% reserve requirement) at the
loan terms of 2.75% for 30 years. This represents an annual loan cost of $1.17 per acre-foot,
based on an average annual recharge diversion of 3500 acre-feet. GOT anticipates that its loan
payment can be offset with savings in GASP assessments and revenue generated from the lease of .
excess augmentation credits from the project.

Page 3 of 6