BOARD02367

• Board Meeting Date: 5/23/2005
• Description: CF Section - Changes to Existing Loans Stromberger Land & Cattle Company, Well Augmentation/Recharge Project
• Board Meetings - Doc Type: Memo

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Lower Logan WelIs Users managed well depletions for all their members, and it provided
augmentation water to allow their members to continue pumping their welIs. The Lower Logan
Well Users recently received their conditional water decree for their augmentation plan in January .
of2005.

In the fall of 2002, the Strombergers hired the services of Brent Nation, P.E., of Nation Engineering
Services, to complete a feasibility study to construct a well augmentation/recharge project. This
study was completed in November of 2002, and it identified a new water right to be acquired up to
35 cfs with an average annual yield of 6,500 acre-feet.

Below is a brief summary of the major project elements and their estimated cost as presented in the
original feasibility study:

I. Drill Recharge/Augmentation Wells
2. Wells and Installation
3. 5280 ft. 18-inch PVC Pipeline
4. 14,405 ft. 2 I -inch PVC Pipeline
5. Pipeline Installation
6. Electricity for Wells
7. Excavation Recharge Ponds
8. Contingency
9. Planning, Surveying, and Design

$63,000
$105,000
$38,500
$151,500
$29,500
$ I 4,500
$3,000
$50,000
$5,000

Total:

$460,000

The estimated total cost of the project at the time of construction was $460,000, as summarized
above. During construction of the project, however, various line items experienced cost overruns.
These various cost overruns are summarized in detail on the attached spreadsheet prepared by the
Stromberger Land and Cattle Company.

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The project has been completed and is currently operational. The total cost of the completed project
is $525,517, which is $65,517 more then the original cost estimate, or approximately 14.2% more
then the originally scoped proj ect.

The main reason for the cost overrun was increasing 7,000 ft. of 21-inch pipe to 24-inch pipe. The
pipe size was increased to 24-inch to maximize the 10,000 GPM output achieved at one of the
..- --.. recharge wells. at-the river:-- The increased pipe size resulted in larger valves and. fittings along the
7,000 ft. of pipe, which was at a higher cost as well. The increased capacity of the welI, with the
increased pipe size, alIows the Strombergers to maximize their acre-foot pumping output to the
recharge ponds during critical times when there is no call on the river.

Based on the additional costs as presented above, the Stromberger Land and Cattle Company is
requesting a loan increase of $59,000, which meets their available collateral for the project as
discussed in more detail below. The remaining additional construction cost to complete the project
is being covered by the Strombergers.

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