C150086 Approval Letter

• Contract/PO #: C150086
• Contractor Name: Glenwood Irrigation Company, The
• Contract Type: Loan
• Water District: 40
• County: Garfield
• Loan Projects - Doc Type: Approval Letter

Glenwood Irrigating Company
July 23-24, 2001

Agenda Item 9a.
(Updated July 26, 2001)

Water Riahts
The source of water for the GIC a 48 cfs direct flow right out of the Roaring Fork River, and a 2
cfs right out of Cattle Creek with appropriation dates of July 25, 1885. Total diversions were
6600 AF in year 2000. Diversions have averaged 15,200 AF for the period 1975 through 1998.

Proiect Description
Three alternatives were analyzed in the feasibility study:

1. Construct a new diversion 200 feet upstream from the current location ($124K).
2. Construct a new diversion at the existing location ($187K).
3. The no-action alternative.

Alternative 2, Construct a new diversion at the existing location ($187K), was ruled out due to
cost. The existing location is a more difficult construction site requiring an additional concrete
structure to withstand the 50-year flood event. Alternative 1, Construct a new diversion 200 feet
upstream from the current location ($124K), was the preferred alternative, since it was the least
, overall cost that would allow continued diversion of the Company's water rights. The no-action
alternative was considered unacceptable since it leaves the diversion subject to failure so that
the GIC could not deliver water to its shareholders.

Selected Alternative 1 involves construction of a new concrete headwall with 3-36" headgates.
A rock check diversion would be constructed and erosion protection added between the ditch
and the Roaring Fork River.

The implementation schedule calls for completion of financing arrangements and final NRCS
engineering design in summer 2001. Construction will be completed in fall 2001.

Financial Analvsis
The total estimated cost of the project is $124,000, and the water is used by the shareholders
for a combination of agricultural and domestic purposes. Staff is recommending a 30-year loan
from the Small Project Account in maximum amount of $85,000 (approximately 69% of
estimated project cost.)

582.5 of the GIC shares are owned and used for agricultural purposes, with this use expected
to continue for the foreseeable future. 917.5 of the GIC shares are currently, or will soon be,
used for residential domestic purposes. Table 1 shows the calculation of the blended interest
rate for this project:

Table 1: GIC Share Ownership and Blended Interest Rate

Shareholder Rate Cateaorv Year 2001 Rate # Shares GIC Rate x Shares
Aaricultural Aqricultural 3.5% 573.5 2007.25
Residential Municipal 6% 917.5 5505
Subdivisions Hiah Income
Totals 1,500 7512.25
30-year blended rate for the GIC Blended Rate = 7512.25 /1500 shares 5%

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