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<br />'''II Guenzi Farms <br />. j May 24-27, 2004 <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />Agenda Item 21 a <br /> <br />an individual's ability to provide their own augmentation coverage. Under the current situation the <br />Guenzis could be more vulnerable to curtailment in the LWU membership. The Guenzis do not find <br />this to be an acceptable alternative any longer. <br /> <br />Alternative 2, Purchase a senior water right for augmentation - The Guenzis could purchase <br />senior water rights out of Prewitt Reservoir for augmentation purposes. If enough water was <br />available for purchase out of Prewitt, the cost of this alternative would be well over $6,000,000. <br />This alternative was not financially acceptable to the Guenzis. <br /> <br />Alternative 3, Purchase a farm with existing recharge ponds and expand their recharge <br />capacity- This alternative would consist of purchasing a farm with existing recharge facilities. The <br />current ponds are filled from the Pawnee ditch. This project would involve drilling recharge wells by <br />the river and filling the same existing ponds with pipelines from the wells. The pipelines would <br />allow for the creation of new recharge ponds on the farm. The cost of this alternative is $368,250. <br /> <br />Selected Alternative 3, Purchase a farm with existing recharge ponds and expand their <br />recharge capacity - The Guenzi's plan is to pursue Alternative #3, with the intent of generating <br />approximately 2000 acre-feet of depletion credits. Features of this alternative are as follows: <br /> <br />1. Drill one new well and rehabilitate an existing well both for pumping water into recharge <br />ponds. The wells would pump up to a combined maximum rate of 12 cfs. This would <br />produce up to 2000 acre feet annually from the 2 wells. <br />2. The 3 existing recharge ponds currently filled from the Pawnee ditch will be purchased. <br />3. Two new recharge ponds will be constructed at locations to be filled by the recharge <br />wells. <br />4. Piping wil.l be used to convey water from the wells to the existing and proposed recharge <br />ponds. Piping will range from 21 to 12 inches in diameter. The piping will be buried. <br />5. Easements will be generated corresponding to all pipeline routes across the irrigated <br />portions of the farm. <br /> <br />The Total Project cost is estimated to be: <br /> <br />1. <br />2. <br />3. <br /> <br />Planning and Design <br />Land Acquisition/Easements <br />Construction & Contingency <br />TOTAL <br /> <br />$ 4,000 <br />119,500 <br />244.750 <br />$368,250 <br /> <br />The project will begin construction in Fall 2004 and finish in Spring 2005. All easements and rights <br />of way are being obtained. The Guenzis expect to be exempt from 404 permitting. This will be <br />confirmed with the Denver District, Army Corps of Engineers. <br /> <br />NRCS Funding - The Guenzis have applied for a grant from the NRCS for $35,000 to cover a <br />portion of the cost of the pipeline. In the event that NRCS funds are obtained they shall be used to <br />reduce the principal amount of the CWCS loan. <br /> <br />Financial Analvsis <br /> <br />The total estimated cost of the project is $368,250. Staff is recommending a maximum loan amount <br />of $331 ,425 (90% of the estimated project cost) for 30 years at an interest rate of 2.5%. The <br />Guenzis will pay the additional $36,825. <br /> <br />Page 3 of 6 <br />