C150190 Approval Letter 2

• Contract/PO #: C150190
• Contractor Name: Beaver Reservoir Company
• Contract Type: Loan
• Water District: 59
• County: Gunnison
• Loan Projects - Doc Type: Approval Letter

STATE OF COLORADO

Colorado Water Conservation Board

Department of Natural Resources
1313 Sherman Street, Room 721
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
www.cwcb.state.co.us.

MEMORANDUM
(Revised November 24,2004)

Bill Owens
Governor

FROM:

Colorado Water Conservation Board Members

Kirk Russell, P.E. V-6.2- v//'
Mike Serlet, P.E., ChiefY~
Water Supply Planning a~6Finance Section

Russell George
Executive Director

TO:

Rod Kuharich
CWCB Director

Dan McAuliffe
Deputy Director

DATE: November 9,2004 (Revised November 24,2004)

SUBJECT: Agenda Item 14a,November 16-17, 2004 Board Meeting
Water Supply Planning and Finance Section - New Loans
Beaver Reservoir Company
Beaver Reservoir Liner Protection & Valve Replacement Project

Introduction

The Beaver Reservoir Company (Company) is applying for a loan in the amount of $128,500 from
CWCB for the Beaver Reservoir Liner Protection & Valve Replacement Project (Project). The Project
consists of stabilizing the reservoir liner, which was installed in 1995 and financed by CWCB and
includes the replacement of the malfunctioning and unreliable hydraulic valve and gate on the intake
end of the outlet structure. See attached Project Data Sheet.

Backaround

The Beaver Reservoir (Reservoir) is located 9 miles southeast of Paonia on the East Fork of
Minnesota Creek, a tributary to the Gunnison River. The Reservoir was constructed in 1958 by the
Company and has a capacity of 1,620 acre-feet behind 113 feet high and 870 feet long zoned
earthfill dam. The reservoir is used to store and regulate the release of water for irrigation of
approximately 3,400 acres of agricultural land for hay and pasture in the Paonia area. The steel
outlet pipe releases flows, which are controlled by a concrete inlet with a hydraulic controlled gate
system.

Since construction, the Reservoir had a history of sinkhole problems, until the installation of a liner in
the reservoir through a project funded by CWCB. In 1992 the Dam was placed on a restricted
storage list by the SED. This prompted a feasibility study and a CWCB construction loan for the
installation of a reservoir liner. The liner has performed very well however the lower portion of the
liner has become susceptible to erosion and requires the placement of additional material to stabilize
the lower edge and prevent undermining. In addition the hydraulic gate has become unreliable and

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Water Supply Protection. Conservation and Drought Planning