BOARD00063 ‎(3)‎

• Board Meeting Date: 11/13/2006
• Description: CF Section - Construction Fund and Severance Tax Trust Fund Perpetual Base Account New Loans - Water Supply Planning & Finance Section-Newe Project Loans - Tom Hill-McElroy Dam Rehabilitation Project
• Board Meetings - Doc Type: Memo

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STATE OF COLORADO

Colorado Water Conservation Board

Department of N aturaI Resources
1313 Sherman Street, Room 721
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. v...b.:~C~~1 r
Mike Serlet, P.E., Chief f/fIJ J
Water Supply Planning a (j Finance Section

Dan McAuliffe
Deputy Director

Rod Kuharich
CWCB Director

FROM:

DATE: November 6, 2006

SUBJECT: Agenda Item 10d, November 13-15, 2006 Board Meeting
Water Supply Planning and Finance Section - New Project Loans
Tom Hill - McElroy Dam Rehabilitation Project

Introduction

Tom and Linda Hill (Hills) are requesting a loan from the Colorado Water Conservation Board in the
amount of $854,000 for the McElroy Dam Rehabilitation Project (Project). The Project consists of an
emergency breach of the dam in August 2006 and future replacement of the dam. The McElroy
Reservoir (Reservoir) was breached due to an outlet pipe collapse. The Reservoir capacity is 240 AF
and is owned and operated by the Hills for late season ranch irrigation. The Reservoir is located north
and west of Kremmling along SH 134. The Project is expected to cost $854,000. The loan request is for
100% of total project costs. This loan request as a percent of total project cost is a variance from
Financial Policy #11. The variance is supported by the fact that the Hills are experiencing hardship due
to the emergency nature of the dam breach and repair. Reconstruction of the dam is anticipated to
begin in the summer of 2007. See attached Project Data Sheet for a location map and a project
summary.

Backaround

This Reservoir has been owned and operated by Tom and Linda Hill for the last 30 years. The
Reservoir is located on State Land Board land and is authorized by a 10-year renewable lease
terminating June 2016. The Hills use the water stored in the Reservoir to irrigate approximately 400
acres of the 800 acres of hay production on the 2,588 acre Gore Pass Ranch (Ranch). The Ranch is
located upstream of Wolford Mountain Reservoir and receives irrigation water from several direct and
indirect flow storage rights. The Ranch produces approximately 1,200 tons of hay annually and the Hills
have a 140 head cow-calf operation.

On June 17, 2006 the outlet works failed and the embankment of the dam began piping through the
outlet works. The dam material filled the outlet conduit and the outlet became unusable. With no way to
release stored water, the Hills received a verbal breach order from the State Engineer's Office (SEO).

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