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<br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />of 25 percent of the project costs. For a $400,000 project, this meant that a <br />special assessment of $1,850 would be required and the majority vote was to <br />proceed with the water rights purchase. <br />The one time assessment for the down payment and an annual <br />assessment of $500 to $600 are both reasonable. Savings on fire insurance <br />alone because of the existence of the centralized system could amount to more <br />than the annual assessment. Annual water bills of $400 to $500 are not <br />uncommon in Denver or its suburbs. <br /> <br />OPINION ON PROJECT FEASIBILITY <br /> <br />Considering the different alternatives and the desire of the CRPOA to own <br />its own augmentation water, the most feasible alternative is to purchase senior <br />surface water rights which would yield 84 acre-feet of consumptive use and then <br />use those rights to go to GASP for a Class C contract and to be included in the <br />GASP augmentation plan. By owning those rights then CRPOA maintains its <br />option to later proceed to obtain its own decreed augmentation plan through the <br />water court or to join with some other water user to seek a court decreed plan. <br />Should the CRPOA decide to discontinue service to its centralized water <br />system then the purchased water rights could be resold to recover the <br />investment costs. Should prices continue to rise for senior ditch rights then the <br />resale value should more than repay the CWCB loan and the initial assessment <br />by CRPOA to pay their share of the project. <br />I strongly recommend that CRPOA proceed to obtain a loan and purchase <br />the water because the rising cost to purchase water may soon make it infeasible <br />to own their own augmentation water. This alternative appears to be a sound <br />investment for CRPOA If CRPOA is unable to purchase water for augmentation <br />within the $400,000 total project cost, then they will have to depend on the <br />longevity of GASP and be susceptible to increased assessment costs from <br />GASP, conditions which may prevent the use of their well at some time in the <br />future. <br />q;~Lu !2,J99A <br />Date <br /> <br />, j)' <br />~'I/7--j/ Ii / <br />. ,...6U. CI_V)~L <br />Robert A Longen ugh <br /> <br />,q <br />