|
<br />Central Weld County Water District - Proposed Dry Creek Reservoir
<br />September 13-14, 2005
<br />
<br />Agenda Item 12b
<br />
<br />f
<br />
<br />Project costs are considerably higher that those estimated in the original study. The original study
<br />presents a total project cost of $10,500,00 while the total estimated costs are currently _
<br />$21,600,000. The cost increase is primarily due to the construction of the larger reservoir including WI
<br />the additional property acquisition required for the project. The total Project cost is estimated to be:
<br />1. Construction Mgt. $ 430,000
<br />2. Land Acquisition $6,670,000
<br />3. Legal Costs $60,000
<br />4. Construction Cost $14.440.000
<br />TOTAL $21,600,000
<br />
<br />Schedule - Final design was submitted to the SEO in February 2005, and they anticipate
<br />completing their review by September 2005, Construction of the project is expected to begin in
<br />October 2005 with completion by October 2006. All nine of the total property acquisitions are
<br />complete and ten of the fifteen partial property acquisitions are complete, The Districts have
<br />possession and use of the five remaining partial acquisitions.
<br />
<br />Permitting - The only deviation from the original study is the Army Corps of Engineers 404
<br />permitting process. During final design, wetlands, and alkali flats were discovered at the site. It
<br />was determined that the wetlands were isolated and, therefore were not considered waters of the
<br />U.S, This determination resulted in a non-jurisdictional wetland ruling. As a result, a 404 permit is
<br />not required. A Location and Extent approval has been obtained from Larimer County.
<br />
<br />Financial Analvsis
<br />
<br />The total estimated cost of the project is $21,600,000 in a 50/50 partnership with the L 1WD with
<br />each entity's share being $10,800,000. Previously, CWCWD's total share was $5,250,000, for
<br />which they were approved for a 75% loan of $3,937,500 with an interest rate of 4.15% per year for
<br />20-years. The CWCWD additional share of the enlarged reservoir project is $5,550,000, of which
<br />CWCB, under CWCB Policy #11, can now loan up to 90%, The District qualifies for a blended
<br />Municipal Middle/High Income Interest Rate. Staff is recommending a 20-year maximum amount
<br />of $4,945,500 (89%) at an interest rate of 3,70% per year. The District has budgeted the
<br />$1,312,500, (25% local match for Loan #1), and the $604,500 (11 % local match for Loan #2)
<br />needed for their portion of the project, and the money is in place in reserves for that purpose.
<br />
<br />.
<br />
<br />Table 1 is a summary of the financial aspects of the project. A new CWCB construction loan of
<br />$4,945,500 would have an annual payment of $389,728 (including the 10% reserve requirement) at
<br />the loan terms of 3,70% per year for 20 years.
<br />
<br />Proiect Cost (50% for CWCWD) $10,800,000
<br />Number of Water Taps 11 ,400
<br />Previous CWCB Loan #1 Amount (20 years) $3,937,500
<br />Previous CWCB Loan #1 Payment (includes 10% reserve) $322,948
<br />New CWCB Loan #2 Amount (20 years) $4,945,500
<br />New CWCB Loan #2 Pavment (includes 10% reserve) $389,728
<br />Current Monthly Water Rate (Average) $21-50
<br />Monthly per tap cost of both CWCB loans $5.20
<br />Annual Loan Cost per Acre-Foot (4.425 acre-feet - 50% of storaqe) $160.66
<br />Project Cost per Acre-Foot (4.425 acre-feet - 50% of storaqe) $2.441
<br />
<br />Table 1. Financial Summary
<br />
<br />Creditworthiness: The District's long-term debt decreased in 2004 due to refunding of their 1993
<br />Revenue Bonds. As of December 31, 2004, total long-term debt from two bond issues was
<br />
<br />.
<br />
<br />Page 4 of 5
<br />
|