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<br />Peoples Ditch Co. <br />July 24-25, 2000 <br /> <br />Agenda Item 12a. <br />(Updated September 28, 2000) <br /> <br />Water Riahts <br />The water rights diverted at the PDC headgate consist of direct flow rights in amount of 16 cfs, <br />adjudicated in 1885. Annual diversions averaged about 1200 acre-feet per year prior to 1997, <br />according to records of the State Engineer's Office. <br /> <br />Proiect Description <br />Four alternatives were analyzed in the feasibility study: <br /> <br />1. The no-action alternative. <br />2. Restore the ditch and diversion to its pre-flood condition. <br />3. Abandon the Peoples Ditch, and drill wells instead. <br />4. Install a pipeline to deliver water from the Bravo Ditch to the Peoples Ditch. <br /> <br />Alternative 2, Restore the ditch and diversion to its pre-flood condition, was ruled out because it <br />was considered a temporary solution that would be washed out during the next major flood. <br />Alternative 3, Abandon the Peoples Ditch, and drill wells instead, would be inexpensive for the <br />Company, but expensive for the individual shareholders that would pay for new wells. It would <br />also mean the end to diversions at times when there was no call on the river. For these reasons <br />Alternative 4 was selected, since it is considered to have the least overall cost, and to be a <br />reliable approach. The no-action alternative was considered unacceptable since it means the <br />PDC could not deliver water to its shareholders. <br /> <br />Selected Alternative 4 involves construction of a new 24 inch pipeline, 1,040 feet in length and <br />having a capacity of 20 CFS. The pipeline will have an inlet structure and Parshall flume on the <br />Bravo Ditch, and an outlet structure on the Peoples Ditch. Water for the Peoples Ditch will be <br />diverted at the Bravo diversion on the South Platte River, flow down the Bravo for approximately <br />1 mile, and then to the Peoples Ditch through the new pipeline. The PDC has a written <br />agreement to use the Bravo Ditch for deliveries, at an annual cost of $1080. The project would <br />conform to NRCS standards and specifications 430-00, and would require the PDC to obtain a <br />change in the point of diversion for their ditch. <br /> <br />The implementation schedule calls for completion of financing arrangements and final <br />engineering design in summer 2000. Construction is scheduled to be completed in fall 2000. <br /> <br />Financial Analvsis <br />The total estimated cost of the project is $ 75,000, and the water is used by the shareholders <br />for agricultural purposes. Staff is recommending a 20-year loan from the Small Project Account <br />in maximum amount of $43,000 (about 57%of the estimated cost.) <br /> <br />Alternative financing sources: The Company actively sought alternative financing. They were <br />able to obtain a grant from the NRCS to cover project planning and design ($5,000 estimated <br />value), and a grant for just under $27,000 from the USDA-NRCS EQIP program for <br />construction. The PDC also requested a loan from their bank (Bank of Colorado, Sterling), but <br />were turned down because the bank does not provide long-term fixed rate financing, and <br />because of the lack of marketable collateral. <br />Table 1 is a summary of the financial aspects of the project. Annual assessments of $94.55 will <br />be needed to repay a CWCS Emergency Loan of $43,000. (The annual payment plus 10% <br />reserve requirement is $3,404.) This represents $2.84 per acre-foot, based on average annual <br />diversions of 1200 acre-feet. <br /> <br />2 <br />