PROJ00170

• Contract/PO #: C153481
• Contractor Name: Colorado River Water Conservation District
• Water District: 0
• Bill Number: XB 99-999
• Loan Projects - Doc Type: Feasibility Study

I I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I

The stabi 1 ity of the rai sed embankment dam was checked and found to meet
acceptable safety factor criteria. Abundant materials of suitable quality are
available from the required excavation of the auxiliary spillway channel to
raise the embankment.

The total estimated cost for enlarging Elkhead Lake Dam and Reservoir as
descrilJed is $1,338,845. This includes the cost of the feasibility study,
estimated constructi on cost, a constructi on conti ngency of 15 percent, the
cost of engineering and construction management, and allowances for escalation
and interest during construction. No land or water rights purchases are
expected to be necessary. The cost of any environmental evaluations, should
they be required, was not considered in the cost estimate,

After equitably determining the financial responsibility for the project
amongst the co-owners of the enlarged reservoir, it was determined that
$340,400 would be furnished by the CDOW and Colorado Ute. The $20,500 cost of
the feasi bil i ty study \~as sha red equally by the CWCS and CRWCD. The total
cost to the City, therefore, would be $977,945.

The uni t cost to the City for 2400 acre-feet of new storage at the enl arged
El khead Lake Reservoi r woul d be $407 per acre-foot, and the cost of 2300
acre-foot of firm annual yield would be $425 per acre foot. This would result
in an initial annualized cost per acre-foot of yield of $38. After the
non-CWCS porti on of the debt is reti red and the Emergency Operati ng Fund is
established, the cost would be reduced to $13 per acre-foot annually.

This cost compares favorably with the most likely alternative source of
available water, which is storage at the new Stagecoach Reservoir, which would
cost the City approximately $85 per acre-foot annually.

The proj ect costs allocated to the Ci ty wi 11 be fi nanced through the CWCS
Construction Fund and the municipal bond market. The CWCS will need to loan
$494,222 to the Ci ty. The City will repay the loan over 40 years at a fi ve
percent annual interest rate. The remainder of the project costs, $488,973,
could be financed through the municipal bond market over a period of 15 years,
at an annual interest rate of seven percent, A pay-out schedule through the

E-6