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I J Upper Arkansas Water Conservancy District November g. 2004 Page 3 014 Agenda Item 14c . The District chose alternative 4 since it will satisfy all the needs for continued use of the facility including enlarging the spillway to meet the Inflow Design Flood for a Class 1 dam, Rehabilitating the outlet pipe will provide for an additional 50-year design life. The new outlet pipe will take advantage of 67 acre-feet of dead storage below the current outlet elevation. The enlargement project will add 500 acre-feet of additional storage. The dam will be raised 15 feet and provide 7 feet of freeboard and allow for the routing of the IDF with 1-foot of freeboard. The footprint of the enlarged reservoir will inundate the access road and portions of the campground and parking lot. In addition, the access road from State Highway 30 will require extensive improvements for construction. Since the reservoir is located on Forest Service property, a NEPA study will be required. Total Project cost estimate is: TOTAL $ 334,000 2,975.850 $3,309,850 1. 2. Plan ni ng/Permitting/Eng ineering Construction The engineering design, environmental studies and construction related services are provided by Colorado River Engineering and Environmental Solutions, both of Rifle, Colorado. Construction is expected to begin in 2005, Financial Analvsis Table 1 shows a summary of the financial aspects of the Project. A CWCS Loan of $2,980,000 would have an annual debt service obligation of $167,240 ($152,040 for annual loan payment and $15,200 for the 10% reserve account) for the loan terms of 3.0% for 30-years. The debt service obligation . represents a cost of $153 per acre-foot to rehabilitate and expand the reservoir. Table 1. Financial Summary of Project Total Project Cost $3,309,850 CWCS Loan (90% of Total Proiect Cost)' $2,980,000 CWCS Annual Loan Pavment $152,040 CWCS Loan ObliQation (includinQ 10% debt reserve) $167,240 Annual Project Cost per acre-foot (based on enlarged 1095 AF) $153/ac-ft Creditworthiness: The District's Enterprise Fund currently has an outstanding revenue bond for $600,000 which will last until December 2014. The revenue bond was used to purchase the Lake Ranch in October 2004 for $1,200,000. The outstanding debt amount is $600,000 for the water rights purchase on this property. The revenue bonds require a pledge of revenues. CWCS will require parity with the existing loan. The District is not expected to have any additional debt service on this Project. .