BOARD02039

• Board Meeting Date: 7/20/2004
• Description: CF Section - New Loans - Pinewood Springs Water District - New Reservoir and Raw Water Pipeline Construction and Water Rights Purchase
• Board Meetings - Doc Type: Memo

Pinewood Springs Water District
July 20-21.2004

Agenda Item 14e

The selected alternative, Alternative No.3, Crow Lane Reservoir #1 (35 foot high dam), involves
the construction of a new 51 acre-foot reservoir with outlet works and emergency spillway meeting
State dam design requirements. This will require acquisition of approximately 4 acres of land. The
other major raw water components of the project will include a new pump station, about 5500 lineal
feet of 6" PVC draw and fill transmission piping, modifications to the infiltration gallery, and
purchase of CST water shares.

The total project cost by each raw water project component is as follows:

1. Reservoir Construction
2. Land Acquisition
3. Pump Station, Pipeline & Appurtenances
4. Infiltration Gallery
5. Water Rights Purchase
6. Administrative and Legal Fees
7. Engineering and Project Inspection
8. Prior Planning Expenditures to DMP
TOTAL

$ 585,000
235,000
640,000
65,000
1,000,000
18,000
106,425
62.380
$2,711,805

PSWD expects to secure its financing by August/September 2004. The Treatment Plant expansion
will be completed by October 2004. Final design, engineering and State approval will be completed
by December 2004, and construction is expected to begin in Spring 2005 and be completed by
December 2005. An Environmental Study is nearing completion, after learning that mitigating
efforts may be needed for the Preble Jumping Mouse habitat. No permits have been applied for at
this time but PSWD has been in contact with the Corps of Engineers and the U.S. Fish and Wildlife
Service. Purchase of water shares will be on the open market, and is dependent on the
acceptance of PSWD into the NCWCD. The petition process has been initiated and will be filed on
July 12, 2004.

Financial Analvsis

The totai estimated cost of the raw water portion of the project is $2,711,805, and PSWD qualifies
for the Municipal Middle Income interest rate. Staff is recommending a loan for a maximum
amount of $2,033,850 (75% of estimated raw water project cost) for 30 years at an interest rate of
4.00% per annum. In addition, PSWD has obtained a direct loan from the Drinking Water
Revolving Fund (DWRF), through the CWR&PDA, for $875,625 for the treatment plant expansion,
distribution line replacement, as well as a portion of the raw water costs. PSWD will cover any
costs that exceed the estimated project cost.

Project funding sources for the entire raw and treated water project are shown in Table 1.

Table 1: Proiect Fundina Sources
Funding Source Amount

CWCS Loan (Raw Water)
DWRF Loan
PSWD Fundino
Total

Page 4 of 7

$2,033,850
$ 875,625
$ 199,625
$3,109,100

%
ParticiDation
65.4%
28.2%
6.4%
100%