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<br />Tom Hill - McElroy Dam <br />November 6,2006 (Revised November 14. 2006) <br />Page 2 of 4 <br /> <br />Agenda Item 10d <br /> <br />, <br /> <br />release stored water, the Hills received a verbal breach order from the State Engineer's Office (SEO). <br />The Hills hired URS Consultants to file a breach application with the SEO and hired Pryor Excavating to <br />breach the dam. During the breach it was discovered that a large sinkhole formed on the upstream dam <br />embankment. URS Consultants have developed plans and specifications and applied to the SED for a <br />Dam Safety Permit for the reconstruction, <br /> <br />Loan Feasibility Study <br /> <br />The Loan Feasibility Study was prepared by John Sikora, URS Corporation. The study was prepared in <br />accordance with the CWCB guidelines and includes preliminary engineering design and cost estimates <br />prepared by the engineering firm. <br /> <br />Tom Hill Family <br /> <br />The Hills own the Gore Pass Ranch which utilizes the irrigation water stored in the McElroy Reservoir. <br />The Hill family has owned the 2,588-acre Ranch for approximately 30 years, The Hills own, in part, two <br />other reservoirs in the area, which are used for irrigating the Ranch lands. The Hills are currently selling <br />the Ranch at an asking price of $6.5 million. McElroy reservoir is on 1,929 acres of State Land Board <br />land adjacent to the Ranch under a 1 O-year lease for $2,714/year. <br /> <br />The Hills currently live on a recently purchased ranch near Dlathe, Colorado. The Hills moved to Olathe <br />area to be closer to health care facilities in Montrose. The Hills continue to operate the Ranch from <br />Olathe using hired help and family. <br /> <br />Water Riahts <br /> <br />The Hills own the 240 AF storage right in McElroy Reservoir, The right has an appropriation date of <br />1929 and an adjudication date of 1938. This storage right is used for irrigation on 400 acres of hay on <br />the Ranch, Pass Creek Ditch and Hogback Ditch and five direct flow rights are also used to irrigate the <br />Ranch. The Pass Creek Ditch has three decreed rights: 5 cfs 1884 appropriation, 3 cfsand 2 cfs (4/1 <br />thru 6/15 flood right) with a 1920 appropriation, The Hogback Ditch was decreed for 9.65 cfs with a <br />1900 appropriation date. The Pass Creek Ditch is the "calling" structure on Pass Creek, <br /> <br />Proiect DescriDtion <br /> <br />The purpose of this project is to provide emergency repair of the failed McElroy dam. Due to a failure of <br />the dam outlet and embankment, the SED required an emergency breach which was completed in <br />August 2006 at a cost of $100,000, Without the reservoir, the Hills would realize a loss in hay <br />production of $45,000 per year; therefore the Hills have decided to replace the dam. Water in the area <br />has been valued at $4,000/AF, which would equate to a $960,000 loss if not repaired, <br /> <br />URS Corporation evaluated two alternatives: No Action andDam Replacement. The No Action was not <br />viable due to the loss of annual crop production and value to the Ranch, <br /> <br />The Hills decided to replace the dam at a total cost estimate of $854,000. <br /> <br />Total <br /> <br />$101,000 <br />$650,000 <br />$103.000 <br />$854,000 <br /> <br />Emergency Breach <br />Reconstruction (w/10% contingency) <br />Planning/Engineering <br />