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<br />. <br /> <br />. <br /> <br />. <br /> <br />Tunnel Water Co. <br />September 25.27,2000. Agenda Item 11. <br /> <br />Selected Alternative 3 involves construction of access roads and construction staging areas at <br />both ends of the tunnel. For downstream access, a new road must be buiit up a steep <br />mountainside, across USFS property. The cost of access will be a major part of the total project <br />cost. <br /> <br />Rock will then be removed from a 400-foot section where the collapse occurred, and that <br />portion of tunnel rehabilitated. Other critical repairs will also be completed. <br /> <br />The implementation schedule for Phase 1 calls for completion of financing arrangements in fall <br />2000, with formal approval and resolution by the TWC shareholders in November 2000. <br />Engineering design will be finalized by RMC in December 2000. Construction will begin <br />December 2000 and is scheduled for completion by May 2001. <br /> <br />The TWC will also apply for a Construction Fund loan in Nov 2000 or January 2001 to complete <br />Phase 2. <br /> <br />Financial Analvsis <br />The total estimated cost of the project is $1.77 million. Staff is recommending that the CWCB <br />Board approve an Emergency Loan of $1.6M (90 percent of the estimated cost.) <br /> <br />Alternative financing sources: The Company actively sought alternative financing. They were <br />not able to obtain a grant from the NRCS to cover project planning or construction costs. The <br />TWC also requested a loan from their bank but were turned down because the bank does not <br />provide long-term fixed rate financing for agricultural projects. <br /> <br />Shares of the TWC are owned by two shareholders; the WSSC (300 shares) and the WRCC <br />(150 shares.) The WRCC shareholders are agricultural. However, the WSSC shares are split <br />between agricultural and municipal ownership: <br /> <br />Table 2: WSSC Share Ownership and Blended Interest Rate <br /> <br />Shareholder Rate Category Year 2000 Rate # Shares WSSC Rate x Shares <br />Aqricultural Aqricultural 4% 291 1164 <br />Ft. Collins Municipal 5% 26 130 <br /> Averaae Income <br />Thornton Municipal 5.5% 283 1556.5 <br /> Hiah Income <br />Totals 600 2850.5 <br />Blended rate for WSSC Blended Rate = 2850.5 / 600 shares 4.75% <br /> <br />Table 3 shows the blended rate for the TWC, based on a rate of 4.75% for the WSSC and a <br />rate of 4% for the WRCC: <br /> <br />3 <br />