PROJ00504

• Contract/PO #: C153334
• Contractor Name: Henry Waneka Mutual Reservoir Company c/o City of
• Contract Type: Loan
• Water District: 6
• County: Boulder
• Bill Number: FSA
• Loan Projects - Doc Type: Feasibility Study

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4 - The service connection fees and service charges were assumed to escalate
at an 8 percent annual rate with a change in rates occurring every fourth
year. 16 the. kate-6 Me not .{ylCJleMed by thi6 aJnoluU: M the annual opVta-UOM
and mai.ntenartC'-e C.MU Me lMgVt than anuc..<.p<U:e.d, then beneMt/c.o-6t ka-UO w.<.U
be keduc.ed. We thVte6Me kec.omme.nd that the pltojec.t C.O-6U be monaoked c.Me-
6uUy to M-6cUte that the. kevenuu w.<.U c.ovVt the eXpeMe-6.

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C. Discussion

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The recommendation for construction of the enlargement to Waneka Reservoir

Dam is based in part upon the revenues generated from the sale of the additional

water. The growth in the City of Lafayette has exceeded the recommended tap

allocation for this study. If the growth were to significantly decline, then

all or portions of the project costs could have to be borne by the present water

users or other means acceptable to the City. Once the allocated taps are issued,

the project can be supported by the revenues generated from the water sales.

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The Enlargement alternative increases the capacity of the reservoir to
the approximate physical limitations. Therefore, there will not be any future
phases to this project. However, the City is in need of more raw water storage
and other alternatives for increasing the storage in addition to the expanded
capacity of Waneka should be considered.

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The deficit annual values identified in Table-II for both alternatives

in the years 1983 and 1984 are due to the project costs occurring before

sufficient revenues are generated by the water sales. These deficit values

can be eliminated or reduced by increasing the bond issue amount. However,

both the benefit/cost ratio and the surplus funds will be reduced, but not

sufficiently to change the project feasibility or recommendations.

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The enlarged Waneka Reservoir is expected to maximize the yield of the City's

water rights, preserve the historic irrigation consumptive use levels, and in-

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crease the consumptive use from the use of additional supplies captured during
high runoff periods. The increase in storage for the Enlargement alternative was
assumed to be distributed in accordance to the proportion of o,,,,ership in the HWMRC
If an agreement can be arranged between the HWMRC and the City of Lafayette to
allocate the additional storage entirely to the City, then the extra taps would
increase the revenues and improve the financial status of the project.

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