BOARD0212B

• Board Meeting Date: 5/20/2002
• Description: CF Section - Glenwood Irrigation Company
• Board Meetings - Doc Type: Memo

Glenwood Irrigation Company
May 20-21, 2002

Agenda Item 12b.

~
,

The Glenwood Irriaation Company
The GIC is a mutual ditch company and a non-profit corporation registered in the State of
Colorado. There are 69 shareholders and 1500 shares of stock. The GIC has the power to set
annual assessments to be paid by the shareholders, the power to cut off water deliveries to
shareholders that fail to pay their assessments, and the power to acquire and sell the shares of
delinquent shareholders.

~
.

Water Riahts
The source of water for the GIC a 48 cfs direct flow right out of the Roaring Fork River, and a 2
cfs right out of Cattle Creek with appropriation dates of July 25, 1885. Total diversions were
6600 AF in year 2000. Diversions have averaged 15,200 AF for the period 1975 through 1998.

Proiect Description
Three alternatives were analyzed in the feasibility study:

1. Rehabilitate the entire length of the older siphon, 2,000 feet ($514K).
2. Rehabilitate only the aboveground portion of the older siphon, 1,200 feet ($283K).
3. The no-action alternative.

Alternative 2, Rehabilitate only the above ground portion of the older siphon, 1,200 feet
($283K), was ruled out because of the uncertain condition of the remaining 800 feet. If, during
construction, the below ground portion was found to be unsafe for use, the project could not be
completed due to lack of financing. Alternative 1, Rehabilitate the entire length of the older
siphon, 2,000 feet ($514K) was the preferred alternative, since it was the least overall cost that
would provide a reliable delivery system for the Company's water rights. The no-action
alternative was considered unacceptable since it leaves the siphon subject to failure so that the .
GIC could not deliver water to its shareholders.

Selected Alternative 1 involves construction in 2 phases. Phase 1 includes demolition and
removal of the downstream 1 ,200 feet of existing siphon, and replacement with new HOPE
pipeline of the same length. The new pipeline will have a capacity of 48 cfs, and be rated
watertight at pressure heads up to 23 feet. The new pipeline will tie to the existing concrete
headwall at the outlet, and to the existing steel pipe at the upstream end. Phase 2 includes
demolition and removal of the center 800 feet of existing siphon, and replacement with new
HOPE as in Phase 1. Both pipeline phases will incorporate access ports, turnouts, and blowoffs
as needed, as well as several drainage crossings. The decision to proceed with Phase 2 will
depend on conditions observed while completing Phase 1 work to tie in the new pipeline.

The implementation schedule calls for completion of financing arrangements and final
engineering design in spring-summer 2002. Construction of Phase 1 will be completed in fall
2002. Construction of Phase 2 is scheduled to start in fall 2002, or later, if conditions allow.

Financial Analvsis
The total estimated cost of the project is $514,250, and the water is used by the shareholders
for a combination of agricultural and domestic purposes. Staff is recommending a 30-year loan
from the Small Project Account in maximum amount of $386,000 (approximately 75% of
estimated project cost.)

582.5 of the GIC shares are owned and used for agricultural purposes, with this use expected
to continue for the foreseeable future. 917.5 of the GIC shares are currently, or will soon be,
used for residential domestic purposes. Table 1 shows the calculation of the blended interest
rate for this project:

.

2