LHPS Canal Repair Project Cost Estimate and Alternatives

1. CACHE HIGHLINE WATER ASSOCIATIONCANAL PROJECT FINANCIAL ESTIMATE

2. CURRENT PROJECT ALTERNATIVES • Do nothing to repair Logan N. canal • Canyon Road routing to 600 East • Hwy 89 (400 North) routing to 600 East* • 1500 North routing to 900 East* • 3100 North routing to 1200 East* * Requires upgrades to LHPS canal

3. SELECTION OF ALTERNATIVES The final decision of which alternative will be constructed is to be made after the periods for public comment on the NRCS Planning Document and Environmental Assessment or Environmental Impact Statement have ended. All shareholders are encouraged to comment on the alternatives during that time.

4. CURRENT ESTIMATE The current cost estimate for the most expensive alternative (3100 North) is $28,575,000.00 and includes design, construction and inspection for the project. The cost sharing for this alternative is as follows; Agency Amount Percentage • Emergency Watershed $21,685,000 75.9% Protection Grant (NRCS) • Board of Water Resources $5,875,000 20.6% • Sponsors $1,015,000 3.5% (Canal Companies & Cities)

5. SPONSORS COST SHARE Cost sharing among the Sponsors for the most expensive alternative ($1,015,000) is estimated as follows; Agency Amount Percentage Cities (Logan, North Logan, $395,850 39% Hyde Park, & Smithfield) Logan & Northern Canal $314,650 31% Logan Hyde Park Smithfield $304,500 30%

6. The Sponsors’ share is the 15% match for the loan from the Board of Water Resources. This will be paid incrementally during the construction of the selected alternative. The cost breakdown based upon shares is as follows;

7. INITIAL COST PER SHARE Logan & Northern Canal $314,650.00/3,279 Shares = $95.96/share Logan Hyde Park Smithfield Canal $304,500/1,997 Shares = $152.48/share

8. ANNUAL COSTS PER SHARE Logan & Northern Canal $85,281/3,279 Shares = $26.01/share Logan Hyde Park Smithfield Canal $82,530/1,997 Shares = $41.33/share

9. BASIS OF COST SHARE The cost share percentages for the most expensive alternative are based on a study of benefits to each city and canal. The most expensive alternative offers the greatest benefits to the cities. The other alternatives provide less benefits to the cities.

10. BASIS OF COST SHARE (Continued) As the benefits to the cities reduce so does their percentage of the cost share and the percentage of the cost share to the canals increases. The other alternatives are less expensive, but the costs to the canal shareholders could be lesser or greater depending on the benefits to the cities to participate.

11. SUMMARY If the most expensive alternate comes in at estimates with Federal funding providing 75% and BWR providing a 1.25% backup loan, The costs to LN shareholders would be $95.96/share paid by the end of construction with $26.01/share/year for 25 years (total of $746.21/share in 25 years). The costs to LHPS share holders would be $152.48/share paid by the end of construction with $41.33/share/year for 25 years (total of $1,185.73/share in 25 years).

12. Disclaimer The preceding estimate is subject to change based upon in-kind work done with the project, changes in loan amounts or time of repayment, and changes in actual construction costs. No contracts will be signed without shareholder approval.