C150057 Approval Letter

• Contract/PO #: C150057
• Contractor Name: West Rhone Lateral Ditch Company
• Contract Type: Loan
• Water District: 72
• County: Mesa
• Bill Number: SPL
• Loan Projects - Doc Type: Approval Letter

West Rhone Lateral Ditch Co.
November 20.21, 2000

enda Item 15b.
dated November 22, 2000)

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shareholders that fail to pay their assessments, and the power to file a lien on property of
delinquent shareholders.

Water Riahts
The source of water for the WRLDC is 130 shares of Grand Valley Irrigalion Company waler
from the Mainline Canal. This amounts to 1.3 CFS (one share is 4.675 gallons per minute), and
averages 541 acre-feet per year.

Proiect Description
Six alternatives were analyzed in the feasibility study. Four key alternatives are listed here:

1. The no-action alternative.
2. Replace the concrete ditch with underground pipe all the way to the divide box.
5. Replace 0.25 miles of concrete ditch with underground pipeline and tie in to Lateral 405.
6. Construct a new headgate on the GVIC Mainline and a new 1-mile pipeline, and replace
0.25 miles of concrete ditch with a new pipeline.

Alternalive 2, Replace the concrete ditch with underground pipe all the way to the divide box,
was ruled out because it does not solve the problem of water shortages associaled with misuse
of the divider box off Lateral 395. Other alternatives that involved retaining the old divider box
arrangement were also ruled out Alternative 5, Replace 0.25 miles of concrete ditch with
underground pipeline and tie in to Lateral 405, was ruled out as too expensive. The 405 Lateral
pipeline is already at capacity and would need to be completely replaced. For these reasons
Alternative 6 was selected, since it is considered 10 have the least overall cost, and to be a
reliable approach. The no-action alternative was considered unacceptable since it means the
WRLDC could not provide full water delivery to its shareholders.

1"Selected Alternative 6 involves construction of a new headgate with concrete inlake strucl~
\ on the south side of the Mainline Canal, just easl of Road 21. 6,500 feet of 12-inch plastic \
\ pipeline (80 psi rated) will be laid along 21 Road right of way. The new pipeline will tie into the \
\ existing 12-inch West Rhone Lateral pipeline 1.25 mile south of the new headgate. Taps will be ~
[E!pvided off the new pipeline to deliver waler to the shareholders. _-

The implemenlation schedule calls for completion of financing arrangemenls and final NRCS
engineering design in late fall 2000. Conslruction will take 30 to 90 days, and will be completed
in winter 2000/2001.

Financial Analvsis
The tolal estimated cost of the project is $111,518, and the water is used by the shareholders
for agricultural purposes. Staff is recommending a 30-year loan from lhe Small Project Account
in maximum amount of $100,000 (approximately 90% of estimated project cost)

Alternative financing sources: The Company actively sought alternative financing. They were
able 10 obtain a grant from the NRCS to cover project planning and design. They have also
been approved for an NRCS grant for project construction, payable when the project is
complete. The WRLDC plans to apply for a $15,000 grant from the Colorado River Water
Conservancy Dislricl (CRWCD) in early 2001.

The WRLDC also requested a loan from two local banks (Alpine Bank and Home Loan Bank of
Grand Junction) but was turned down because neilher bank provides conslruction loans with
long-term fixed rate financing, Table 1 is a summary of financing for the project:

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