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<br />Association also has the power to set ass'essments to be paid by the membership, the power to create a lien
<br />if those assessments are not paid, and the power to foreclose a lien so created. The subdivision
<br />encompasses 160 acres, of which 55' acres are'irrigated. The subdivision is 93% built out, with houses on
<br />50 of the 54 lots, The CRPOA owns the irrigation well, the storage tank, and the deeded right,ofway for
<br />the distribution system. The Association would also own the senior water rights purchased for
<br />augmentation of the welL
<br />
<br />Proiect Description
<br />Five alternatives were analyzed in the feasibility study:
<br />
<br />1. The no-action alternative
<br />2, Rely on GASP to augment the well
<br />3. Purchase senior water rights for augmentation water
<br />4. Purchase water from another source for the centralized system
<br />5, Pumping of non. tributary wells
<br />
<br />Whi~e Alternative 3, purchase of senior water rights for augmentation water, has a significantly higher cost
<br />than Alternative 2, it is considered to be a far more reliable approach to continued use of the Association's
<br />irrigation well. Alternative 4 was ruled out because of its high cost, and Alternative 5 was ruled out
<br />because insufficient water could be pumped from the non-tributary aquifers that underlie the subdivision,
<br />The no-action alternative was unacceptable since it would result in an order from the State Division of
<br />Water Resources that pumping from the well cease.
<br />
<br />Selected Alternative 3 involves purchase of senior water rights that would be acceptable to augment the
<br />CRPOA irrigation welL The main sources are: the Burlington-Wellington rights, the Brantner Ditch, the
<br />. Fulton Ditch, and the Lupton Bottom/Lupton Meadows Ditch, The consumptive use for irrigation within
<br />the Columbine Ranches Subdivision is 84 acre-feet per year.
<br />
<br />The exact rights that the CRPOA will purchase have not been determined, and will depend on availability
<br />and purchase price, Regardless of the rights selected, they will need to represent 84 acre-feet of
<br />consumptive use per year. As an example, Fulton Ditch shares yield 1.7 acre-feet of consumptive use per
<br />share, and the per-share price is approaching $6,000, Approximately 50 Fulton shares would be required, at
<br />a total price of$300,OOO, In contrast, an adequate number of Burlington.Wellington rights would cost
<br />approximately $390,000,
<br />
<br />Selected Alternative 3 also includes a one-time engineering cost of $7,000 to evaluate the consumptive use
<br />of the shares to be purchased, and a one. time cost of $1 0,000 to install flow measuring equipment and
<br />hydraulic structures to route augmen.tation water back to the river.
<br />
<br />The implementation schedule calls for completion of financing arrangements in 1998/1999, with formal
<br />approval and resolution by the Association members in early 1999, (On October 17, 1998 the CRPOA
<br />membership voted to proceed with CWCB loan, and authorized the Association board to set assessments,)
<br />Closing on the water rights purchase would probably occur after the Construction Fund bill is approved
<br />(June of 1999,) However, due to rising prices, the association needs the flexibility to negotiate and
<br />purchase water rights in spring 1999, using short term financing,
<br />
<br />Financial Analvsis
<br />The total estimated cost of the project (water rights purchase, engineering, and hydraulic structures) is
<br />between $317,000 and $407,000, Staff is requesting that the Board consider a loan for up to 75 percent of
<br />the high cost estimate, not to exceed 75 percent of the actual cost. The estimated maximum loan amount is
<br />$305,250, and the estimated minimum loan amount is $237,750, The CRPOA will establish a one-time
<br />assessment of lot owners to raise the remaining 25 percent of the project cost. That assessment will be
<br />between $1,468 and $1,884 per lot
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