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<br />LeRoux Creek Water Users Association <br /> <br />Construction Fund Loan Application <br /> <br />Supplemental Information <br /> <br />Part A. Number 5 <br /> <br />The Leroux Creek Water Users Association owns and operates about 28 small dams <br />and reservoirs most of which were constructed over 50 years ago. Snow melt and <br />runoff are stored in the reservoirs and released on call to the shareholders. <br />Shareholders include agricultural users most of whom raise hay and fruit. The <br />Town of Hotchkiss is also a shareholder. The Town uses the water as a supply <br />to its domestic water system for the Town and several surrounding water <br />companies. The water users has a significant quantity of water in storage rights <br />which at this time it has no place to store. Over a period of time a number of <br />years ago, several small reservoirs failed and were not re-built. The <br />Association would like to rebuild at the sites which are practical and is working <br />with the US Forest Service to obtain the necessary permits to again store water <br />at two of the old sites, <br /> <br />Operation and maintenance problems include repairing and/or replacing <br />deteriorating valves and pipes. Since the reservoirs are so old, a number of <br />them are beginning to need the pipes replaced. Several dams have been breached <br />and new pipes and valves installed in the last decade. More will need to be <br />repaired or replaced in the coming years, All of the recently completed projects <br />were cash funded by shareholder assessments. <br /> <br />Part B. Number 5 <br /> <br />As proposed, the project would include restoring the Lost Hunter and Sheepsdrive <br />reservoirs. The intent is to increase the capacity of the old reservoir in each <br />case by increasing the height of the dams and adding secondary dams as necessary. <br />All of the stockholders would benefit from such a project as the available water <br />in the association I s system is prorated equal I y by share. The Association <br />originally intended to provide one acre foot per share, but does not have that <br />much storage capacity at this time. Based on the runoff and weather. the board <br />of directors each year allows a percentage of an acre foot per share, In wet <br />years it can be as high as 85% and in dry years as low as 65%. The intent of <br />this project is to allow the association to store more of its water rights. The <br />service area inc1 udes most of the agricul tural grounds in the Leroux Creek <br />watershed plus the Town of Hotchkiss and the water companies served by the Town <br />of Hotchkiss. <br /> <br />The feasibility study is just getting underway, The study will also consider <br />increasing the storage capacity of some of the existing dams in order to store <br />even more of the water to which the Association has rights but is currently <br />unable to store. The association would like to proceed with the most cost <br />effective of the projects. The initial expectation is that the Sheepsdrive and <br />Lost Hunter will both be cost effective. The study may find other locations <br />which are also cost effective or which are better than the two initially being <br />considered. The Association would like to have the flexibility to change to a <br />different project if that is found to be more cost effective. <br />