BOARD00152 ‎(2)‎

• Board Meeting Date: 3/13/2007
• Description: CF Section - Construction Fund and Severance Tax Trust Fund Perpetual Base Account New Loans - Lower Poudre Augmentation Company - Reservoir and Water Rights Purchase
• Board Meetings - Doc Type: Memo

!.

Lower Poudre Augmentation Company
March 12-13, 2007

Agenda Item 16a

Alternative 3, Purchase Timnath Flatiron Reservoir - This option is desirable because of it's .
location in relation to the Irrigating Compahy and the depletions associated with the LPAC
Augmentation Plan. The river diversion st~ucture of the Irrigating Company is just downstream
of the Timnath Flatiron Heservoir less tha~ two miles with no intervening diversions. Thus, any
water released out of Timnath Flatiron Reservoir can be left in the river to replace well
depletions various reaches of the Augmerltation Plan, or taken to other facilities within the
. ,
~M~a~. I

Selected Alternative 3, Purchase Timnath Flatrion Reservoir- This option was chosen, and
The components of the proposed project ~re:
I

1. Reservoir Purchase and APPu1enances - In addition to the reservoir purchase,
construction of some facilities are required. An inlet structure on the northwest
corner of the reservoir will need to be constructed for a 30 cfs capacity to fill the
reservoir. A 10 cfs pump statidn is proposed at the southeast corner of the reservoir,
,
where there is an existing pond and outlet that was used by the gravel operation to
discharge to the Poudre River.' The proposed pump would pump water from the
reservoir into the pond and the water would gravity flow to the river.
2. Diversion Structure at Boxelder Ditch - Modifications at the existing lateral headgate
at the Boxelder Ditch are required to divert 30 cfs.
3. I -25 Culvert - Replace the existing 24-inch CMP with 42-inch pipe to carry 30 cfs.
4. Lateral Ditch Improvements - I:mprove lateral east and west of 1-25, including grading
and enlargement of 2,400 feet pf lateral to deliver 30 cfs to the reservoir site.
5. Water Rights Purchase - 4.5 shares of Boxelder Ditch

.

The Total Project cost is estimated to be:
1. Engineering Design
2. Construction (incl. contingency)
3. Reservoir Purchase
4. Water Right Purchase
5. Legal/Admin.

TOTAL

$ 123,000
800,000
1,576,800
900,000
15,000
$3,414,800

Schedule - The reservoir is already completed and approved by the SEa. If the loan is
approved, LPAC will close on the reservoir and water purchase in Spring 2007. Design of the
related improvements would occur in 2007, and construction would occur in Winter 2007-08, in
order that the facility would be available fqr use in the 2008 irrigation season. A permit from
COOT will be required to bore under 1-25. Coordination with the City of Fort Collins will be
required where the lateral conveyance system crosses the City of Fort Collins Arapahoe Bends
Natural Area, as addressed in a letter of n:o objection from the City. A Corps of Engineers 404
permit will not be required for work neces~ary to release water back to the Poudre River.

Financial Analvsis

The total estimated cost of the project is $'3,414,800. LPAC qualifies for an agricultural interest
rate. Staff is recommending a maximum Iban amount of $3,073,320 (90% of the estimated
project cost) for 30 years at an interest rat,e of 2.50%. LPAC will pay the 10% local share
($341,480) of the project cost from increased well augmentation charges and reserves. LPAC
has received $117,789 from GASP disbur~ements that is currently in reserve.

.

40f6