PROJ02075

• Contract/PO #: C150222
• Contractor Name: Orchard Mesa Irrigation District
• Contract Type: Loan
• Water District: 72
• County: Mesa
• Loan Projects - Doc Type: Feasibility Study

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Economic Analysis

The economic benefit of the project is considerable. The District serves 9,200 acres,
approximately 67% of which is agricultural, producing significant incomes for the
landowners farming those lands and contributing to the economic health of the Grand
Valley. The siphon is at the head of the entire system. If it fails, there would be no water
for an extended period while emergency work is performed, thus causing the loss of
significant amounts of crops.

Estimates from several peachgrowers in our service area, determined that a two month
down time in the growing season would result in the loss ofthe fruit trees, in addition to
the crops. Their estimates are approximately $250 million in losses to the economy. The
valley would then lose the agricultural lands to developers and we would grow houses
instead of peaches, grapes, alfalfa and other produce.

Currently, the District's investment portfolio, managed by Capitol Investments, totals
$1.4 million. It is intended that we will maintain a full year's budget in reserves. Weare
also required to participate in capital work done on the roller dam when the Grand Valley
Water Users Association begins that upgrading project. Thus, we are building that fund
as quickly as possible.

Social and Physical Impacts

The project will have no significant social impacts as the siphon is not utilized for
recreational purposes and none will be created by the project. The project will, however,
ensure the continued operation of an existing irrigation system.

The project will have no significant physical impacts except in the immediate vicinity of
the construction. These impacts will be minor in nature and will affect only a small area
of less than one acre.

Conclusions

1. The Orchard Mesa Irrigation District is an irrigation district organized under
the laws of the State of Colorado with the ability to enter into a contract with
the CWCB for the purpose of obtaining a Construction Fund loan.
2. Easements are adequate and in place for the construction of this project.
3. The project would provide for the continued delivery of irrigation water to the
landowners of the District.
4. The total estimated cost ofthe project is $600,000.
5. The project is technically and fmancially feasible.

Orchard Mesa Irrigation District Feasibility Study
Stokes Gulch Siphon

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