C153833 Feasibility Study - Laserfiche WebLink

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I i I I I I I I I I il I I I II I I I I II I COLLATERAL The North Poudre Irrigation Company owns reservoirs, land, and water rights that can be used as collateral to secure the loans, NPIC would like to use the structures and lands surrounding each of the projects as collateral, but is open to any fair and equitable resolution to the collateral issue as related to this and past projects funded by the CWCB. INSTITUTIONAL CONSIDERATIONS The North Poudre Irrigation Company has applied to borrow $1,107,264 from the Colorado Water Conservation Board Construction Fund. This loan is in addition to the $500,000 loan previously approved, The requested loan tenn is 20 years at a rate of 4,04 % (based on 54 % of stock ownership being municipal and industrial and 46% ownership being agricultural), The loan from the CWCB is contingent upon CWCB approval, and the successful negotiation of a contract between the CWCB and the North Poudre Irrigation Company, OPINION OF FEASIBILITY The selected alternatives are technically and financially feasible, There are no significant roadblocks that would keep the North Poudre Irrigation Company from successfully completing the projects. Calculation of a Benefit to Cost Ratio for the four projects is difficult and somewhat misleading because a portion of the projects are mandated by state regulations. Specifically, all of the spillway work is required by State regulations, which NPIC must meet to continue to store water and to prevent possible future lawsuits. Likewise, if the embankments at the NPIC #6 Outlet Ditch Project continue to encroach upon the access road and neighboring fannlands, NPIC loses the ability to maintain the ditch and risks lawsuits from neighboring landowners, This ditch provides the only conveyance structure for releasing water from Reservoirs #6, and #5, NPIC Reservoir #4 is currently under restriction due to deterioration of the outlet works and inadequacy of the existing spillway, Without the proposed project. restrictions on storage will increase until eventually no storage is allowed. If further restrictions are placed on water storage levels continue NPIC would likely lose the income from fishing lease with the Colorado Division of Wildlife, Indian Creek Reservoir is not currently under storage restrictions, but has an April 2001 deadline for bringing the spillway into compliance, The drainage basin for this reservoir is large and complex. Conversations with Mike Cola of the SEO indicate that if the spillway issue is not resolved. a comprehensive analysis of the basin would be completed and potentially NPIC could be ordered to breach the dam if results of the study indicate that the dam would overtop under PMF conditions, Benefit/Cost Ratios for the projects have been calculated using the storage yields associated with each project. The "Benefit" of the project is the cost of replacing the water lost if the projects are not completed, Currently water may be acquired through rental at $25/acre-foot, subject to availability. It is anticipated that the rental rate will increase as the demand for water increases in the future, Calculations have been made using the Average Yield for the past 30 years and also using the Safe Yield of the past 30 years. The Average Yield is defined as the average maximum storage for the reservoir and the Safe Yield is defined as the lowest storage in the past 30 years, Plots of water storage used to detennine the Average and Safe Yields each of the reservoirs may be found in Appendix H, Page 25