C153808 Feasibility Study - Laserfiche WebLink

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I I I I I I I I I I I I I I I I I I I The engineering and legal costs to change the Excelsior Ditch water rights from irrigation to augmentation use is estimated to be $100,000. A Construction Fund loan of $100,000 was made by the CWCB to the Excelsior Ditch Company for head gate improvements. By agreement with the Excelsior Ditch Company AGUA's share of recent capital improvements made to the Excelsior Ditch (i.e., new river headgate, new trash rack, and new rated section on the wasteway with a stage-recorder) would be $33,000. The annual cost for repayment of $33,000 of the Excelsior loan (30 years at 3.75 percent) would be approximately $1,859 per year. Winter return flow obligations associated with the Excelsior Ditch have been estimated using the historical diversions, consumptive use and analysis of the timing of return flows using the State's Arkansas River Groundwater Accounting Model. Winter return flows are estimated to average 62 acre- feet per year. Assuming the winter return flow obligation is paid back to the Arkansas River by leasing $9.20 per acre-foot water from the Southeastern District, results in an annual leased cost of $570.40 (62 acre-feet * $9.20 per acre-foot). The present worth cost of leasing 62 acre-feet of winter return flow obligation water, assuming a 40-year project life and three percent discount rate, is about $13,200. The total cost of purchasing 1,007 shares of the Excelsior Ditch would be approximately $889,300 and is broken down as follows: Present Value Purchase Price $650,000 Assessments $93,100 Portion of Capital Improvement Costs $33,000 Leased Winter Return Flow Water $13,200 Engineering and Legal Fees for change of Use $100,000 Total $889,300 The total present worth cost per acre-foot of augmentation replacement credit is $1,183 ($889,300/752 acre-feet). -39-