BOARD00065 ‎(2)‎

• Board Meeting Date: 11/13/2006
• Description: CF Section - Construction Fund and Severance Tax Trust Fund Perpetual Base Account New Loans - Headgate 396 Lateral Corp., LLC - 396 Lateral Pipeline Project
• Board Meetings - Doc Type: Memo

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STATE OF COLORADO

Colorado Water Conservation Board

Department of Natura! Resources
1313 Sherman Street, Room 72 I
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
www.cwcb.state.co.us

MEMORANDUM

Bill Owens
Governor

Russell George
Executive Director

TO:

Colorado Water Conservation Board Members

Kirk Russell, P.E. ~;,.~' r
Mike Serlet, P.E., Chief . J
Water Supply Planning a d Finance Section

Dan McAuliffe
Deputy Director

Rod Kuharich
CWCB Director

FROM:

DATE: . November 6, 2006

SUBJECT: Agenda Item 10f, November 13-15, 2006 Board Meeting
Water Supply Planning and Finance Section - New Project Loans
Headgate 396 Lateral Corporation - 396 Lateral Piping Project

Introduction

The Headgate 396 Lateral Corporation (Corporation) is applying for an initial loan in the amount of
$230,000 and a long-term loan of $134,000 from CWCB to install approximately 1.3 miles of new
pipeline in the existing ditch corridor for the 396 Lateral Piping Project (Project). The Corporation
receives its water from the Grand Valley Irrigation Company's (GVIC) system. The Project will
increase ditch efficiency and reduce salinity impacts in the Colorado River. The total Project cost,
including engineering and construction, is estimated at $230,000. The Corporation is eligible to
receive a $96,000 grant from NRCS (75% of NRCS cost estimate), which is approximately 60% of
the actual contractor's bid price. This is to be disbursed to the Corporation upon completion of the
Project. The Corporation is also eligible for in-kind engineering services. The remaining project cost
will become a 30-year CWCB loan, not to exceed $134,000. See attached Project Data Sheet.

Backaround

The Corporation is located in Mesa County approximately six miles west of Grand Junction. The
Corporation manages the 396 Lateral (Lateral) which starts at headgate ML-396 on the GVIC
system for the benefit of the eleven members as an association of owners with water rights and
lands served by the Lateral. The 1 O,OOO-foot Lateral has a designed flow of 4.3 cfs, and delivers
irrigation water from the headgate on the GVIC to the 220-acre service area. The Project will
provide an improved water delivery system to all members. The water is primarily used for cattle
ranching and to grow hay.

The USDA/NRCS administers the Colorado River Basin Salinity Control Program by providing
construction cost sharing and technical assistance using the USDA's Environmental Quality
Incentives Program (EQIP). NRCS, Grand Junction Service Center is managing the planning,

Flood Protection. Water Supply Planning and Finance. Stream and Lake Protection
Water Supply Protection. Conservation and Drought Planning

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