PROJ00262

• Contract/PO #: C153769
• Contractor Name: Agricultural Ditch & Reservoir Co.
• Contract Type: Loan
• Water District: 0
• County: Jefferson
• Bill Number: SB 97-008
• Loan Projects - Doc Type: Feasibility Study

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The Ditch Company will not require 404 permitting because work will not be completed in a U.S. water-way,

and the proposed project will have no impacts on wetlands. The Ditch Company also believes that no

Environmental Assessment (EA) or Environmental Impact Statement (EIS) will be required.

Financial Plan

As mentioned previously, the total estimated project cost is $598,000. Funding for the project has been

sought from several sources including Consolidated Mutual, and developers in Denver West. An agreement

is complete with Stevinson in Denver West for a contribution of$220,000 to help fund the pumping station

at Lena Gulch. The Ditch company has also received a contribution of $81 ,000 from Westar, a subdivision

near the Midway Reservoirs, and is expecting a contribution of $30,000 from Coors Brewing Company

(Coors) to help fund the modifications to the existing dropout structure. In addition, the Agricultural Ditch

Company has negotiated with Consolidated Mutual to provide the pumping station at East Reservoir in

exchange for certain considerations from the other shareholders in the Ditch Company. The estimated value

of Consolidated Mutual's contribution is approximately $100,000. The total contribution toward the project

is expected to be $431,000 depending on Coors contribution, leaving approximately $166,000 to be financed.

Due to the uncertainty in the final cost of the project and the amount that will be financed by other entities,

the Ditch Company has determined that the maximum loan amount required to complete the project will

consist of a $300,000 loan from the Colorado Water Conservation Board (CWCB). The Ditch Company

Resolution to apply for the CWCB loan and the CWeB loan application are included in Appendix D. The

Ditch Company has requested that they be approved for a $300,000 loan; however, the final loan amount will

most likely be less depending on the final cost of the project.

The financial condition of the Ditch Company is solid at the present time. The Ditch Company has no

outstanding loans or financial obligations except the current operating expenses, and is not in default on any

of its obligations. The Ditch Company's Financial Statements for 1994, and 1995 are found in Appendix

E.

The Golden Canal and Reservoir Company has 1354.7 inches with an annual charge to users of$68 per inch

through 1996. The Agricultural Ditch Company has a total of 8000 inches with a current annual assessment

of$43 per inch. Table I presents the budgeted operations and maintenance costs for 1997 with and without

the project, which shows that an increase in the annual assessment or user charge will not be necessary to

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I Bishop-Brogden Associates, Inc.