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Lake Arrowhead Water Association September 11-12, 2002 Agenda Item 12d. The Lake Arrowhead Water Association. Inc. LAWA is a non-profit water company registered in the State of Colorado. LAWA was formed for ... the purpose of enhancing agriculture by delivering raw water to its members for lawn and yard ., irrigation. The subdivision has 160 homes (96% built out) and 72 of these homes are members LAWA. LAWA has the power to take on debt and to pledge collateral for that debt. LAWA is not subject to TABOR. Water Rlahts LAWA owns water storage rights in the Lake Arrowh~ad Reservoir in amount of 200 ac-ft. State Engineer Records indicate the reservoir is typically ul/ed to capacity. Prolect Description Four alternatives have been given preliminary consid\9ration: 1. The no-action alternative. 2. Removal and replacement of the existing 24" outlet requiring a breach of the dam ($400,000). This alternative would also include the removal of a secondary 18" CMP, replacement of a damaged section of toe drain, and replacement of the asphalt surfaced county road. 3. Cured-in-place pipe (CIPP) lining of a portion of the 24" outlet combined with open cut replacement of the damaged portion of the 24" outlet and toe drain ($200,000). 4. CIPP lining of the secondary 18" CMP conduit and rehabilitation its intake and outlet structure. Concrete grouting and abandonment-in-place of the existing 24" CMP outlet ($100,000). The toe drain would al!\o need to be repaired with this alternative. Alternatives 2 through 4 are being evaluated as part of the feasibility study, and none can be ... ruled out at this time. Because the Lake Arrowhead Pam is a critical structure, the LAWA .. wishes to take a conservative approach, and assure adequate funding to complete the project. They have thus based their loan request upon Alternative 2, which is considered to be the worst-case scenario. The no-action alternative is unacceptable since it means that the dam would need to be breached and the reservoir remain empty. The Selected Alternative will be completed in accordance with plans and specifications approved by the Sate Engineer. The implementation schedule calls for completion of financing arrangements and final engineering design in fall 2002. Construction will be completed by spring 2003. Financial Analvsis The total estimated cost of the project is $400,000, aM the applicant is a private water association serving a developed subdivision with a m~dian household income close to the statewide average. Staff is recommending a 30-year ;Small Project Loan in maximum amount of $300,000 (not to exceed 75% of the actual project cdst). The lending rate would be the CWCS Municipal middle rate of 4.25%. ' Table 1 is a summary of the financial aspects of the project. A CWCB Small Project Loan of $300K would have an annual payment of $19,667 (i~cluding the 10% reserve requirement) at the loan terms of 4.25% for 30 years. This represent$ $98 per acre-foot, based on a reservoir ... storage capacity of 200 acre-feet.; .. 2