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<br />Black Dike Pipeline Company <br />May 14, 2007 <br />Page 2 of 4 <br /> <br />Agenda Item 3a <br /> <br />f <br /> <br />Feasibility Study <br /> <br />. <br /> <br />Eric Lindgren, Company President, has completed the feasibility study in accordance with <br />CWCB guidelines. The study includes an assessment of alternatives available for ditch <br />rehabilitation. The cost estimate is provided by Harward Irrigation Systems. NRCS - Cortez <br />office has provided a letter indicating a l"tentative approval" of the NRCS grant funding for the <br />project. <br /> <br />The Black Dike Pipeline Company <br /> <br />The Company is a non-profit corporation registered in the State of Colorado in March 2007 and <br />is in good standing and has nine (9) Company members. The Ditch has been in existence for <br />nearly 118 years (construction 1889). Prior to incorporation, an informal version of the Company <br />managed the Ditch by distributing costs or in-kind services for Ditch maintenance and repair <br />needs (approximately $1 ,OOO/year). The Company's Funding Agreement establishes that <br />member assessments will be prorated according to the maximum amount of water member is <br />entitled to be carried in the pipeline. The Company will own, operate and maintain the new pipe <br />system and diversion structure and will have the responsibility to receive, convey and deliver <br />irrigation water to the members of the Company. The Company will repair, improve and/or <br />reconstruct the Ditch when necessary. The Company does not own any of the water conveyed <br />in the Ditch. <br /> <br />Water Riahts <br /> <br />The members of the Company own the water right~ conveyed in the Ditch. The source of the <br />irrigation water is the McElmo Creek. An open ditch currently carries the decreed 7.75 cfs and . <br />an average of 1,003 acre-feet per year (measured 1970-2002 per State Engineer's Office <br />Summary) with the highest diversion measured in 1976 of 1,684 ac-ft. Water is diverted at <br />structure ID number 509 and under nine (9) different adjudicated rights with appropriation dates <br />of 1962. I <br /> <br />Proiect Description <br /> <br />Three alternatives were analyzed in the feasibility study: <br /> <br />1) No action alternative <br />2) Individual members construct pipeline to meet their own needs <br />3) Participate in the Colorado River Basin Salinity Control Program <br /> <br />The Company chose to participate in the Salinity Control Program primarily due to the available <br />NRCS funding assistance. The selected alternative includes a new diversion structure, flow rate <br />measurement structure, approximately 20,000 feet of PVC pipeline, metered delivery points to <br />each member, valves, drains and vents, and river channel improvements to improve delivery of <br />the water to the diversion structure. ' <br /> <br />Total Project cost estimate is: <br /> <br />TOTAL <br /> <br />$58,000 <br />540,000 <br />$598,000 <br /> <br />. <br /> <br />1. <br />2. <br /> <br />Planning/Engineering <br />Construction <br /> <br />The loan request is based on the total design and construction cost estimate for the Project. <br />Design is to be complete by September 2007 by Harward Irrigation Systems. Construction is <br />expected to begin October 2007 and to be completed in phases during the winter of 2007/2008. <br />