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<br />;. <br /> <br />STATE OF COLORADO <br /> <br />Colorado Water Conservation Board <br /> <br />Department of Natural Resources <br />1313 Sherman Street, Room 721 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3441 <br />FAX: (303) 866-4474 <br />www.cwcb.state.co.us <br /> <br /> <br />MEMORANDUM <br />(REVISED) <br /> <br />Bill Owens <br />Governor <br /> <br />Russell George <br />Executive Director <br /> <br />TO: <br /> <br />Colorado Water Conservation Board Members <br /> <br />Kirk Russell, P.E. Vi-~ ~~ <br />Mike Serlet, P.E., Chiet'~~ <br />Water Supply Planning a Finance Section <br /> <br />Rod Kuharich <br />CWCB Director <br /> <br />FROM: <br /> <br />DanMcAuIi.1Ie <br />Deputy Director <br /> <br />DATE: November 6,2006 (Revised November 14, 2006) <br /> <br />SUBJECT: Agenda Item 10f, November 13-15, 2006 Board Meeting <br />Water Supply Planning and Finance Section - New Project Loans <br />Headgate 396 Lateral Corporation - 396 Lateral Piping Project <br /> <br />Introduction <br /> <br />The Headgate 396 Lateral Corporation (Corporation) is applying for an initial loan in the amount of <br />$230,000 and a long-term loan of $134,000 from CWCS to install approximately 1.3 miles of new <br />pipeline in the existing ditch corridor for the 396 Lateral Piping Project (Project), The Corporation <br />receives its water from the Grand Valley Irrigation Company's (GVIC) system. The Project will <br />increase ditch efficiency and reduce salinity impacts in the Colorado River. The total Project cost, <br />including engineering and construction, is estimated at $230,000, The Corporation is eligible to <br />receive a $96,000 grant from NRCS (75% of NRCS cost estimate), which is approximately 60% of <br />the actual contractor's bid price. This is to be disbursed to the Corporation upon completion of the <br />Project. The Corporation is also eligible for in-kind engineering services. The remaining project cost <br />will become a 30-year CWCB loan, not to exceed $134,000. See attached Project Data Sheet. <br /> <br />Backaround <br /> <br />The Corporation is located in Mesa County approximately six miles west of Grand Junction. The <br />Corporation manages the 396 Lateral (Lateral) which starts at headgate ML-396 on the GVIC <br />system for the benefit of the eleven members as an association of owners with water rights and <br />lands served by the Lateral. The 10,000-foot Lateral has a designed flow of 4.3 cfs, and delivers <br />irrigation water from the headgate on the GVIC to the 220-acre service area. The Project will <br />provide an improved water delivery system to all members. The water is primarily used for cattle <br />ranching and to grow hay. <br /> <br />The USDAlNRCS administers the Colorado River Basin Salinity Control Program by providing <br />construction cost sharing and technical assistance using the USDA's Environmental Quality <br />Incentives Program (EQIP). NRCS, Grand Junction Service Center is managing the planning, <br /> <br />Flood Protection · Water Supply Planning and Finance. Stream and Lake Protection <br />Water Supply Protection. Conservation and Drought Planning <br />