C150108 Approval Letter

• Contract/PO #: C150108
• Contractor Name: Delta Canal Company, The
• Contract Type: Loan
• Water District: 40
• County: Delta
• Bill Number: MC3
• Loan Projects - Doc Type: Approval Letter

Delta Canal Company
May 20-21, 2002

Agenda Item 12a.
(Updated May 23, 2002)

Proiect Description
Three alternatives were analyzed in the feasibility study:

1. No Action
2. Rehabilitate 6,030 feet of canal by lining it with concrete ($144,200)
3. Rehabilitate 8,250 feet of canal by lining it with concrete ($192,000)

Alternative 3, Rehabilitate 8,250 feet of canal by lining it with concrete ($192,000), would solve
all seepage problems, but was not financially feasible for this small ditch company. Alternative
2, Rehabilitate 6,030 feet of canal by lining it with concrete ($144,200), consists of rehabilitation
of the critical portion of the canal, and would resolve the most serious maintenance and hazard
issues, This alternative is feasible and is considered the preferred alternative by the Company.
The no-action alternative was considered unacceptable since it would leave the Company to
deal with the high maintenance costs associated with a deteriorated ditch system.

Selected Alternative 2 consists of lining 6,030 linear feet of existing canal, rebuilding 8
driveway crossing bridges, and installing 9 headgates for individual water users. A control
structure will be built at the head of the new concrete ditch, to spill excess water back to the
Uncompahgre River. The new system will have a capacity of 20 cfs. This alternative will solve
the problems of seepage and bank sloughing along county road 1600, and will provide safety
and salinity control.

The implementation schedule calls for completion of financing arrangements in spring-summer
2002. Final engineering design will be completed in summer 2002, and construction will start in
fall 2002. Construction will be completed by spring 2003.

Financial Analvsis
The total estimated cost of the project is $144,200 (including engineering costs). Funding
sources are shown in Table 1:

a e rOjec un Ing ources
Construction Phase
Funding Source Grant Loan
NRCS Plannina and Design (8,75% of project) $11,600
CWCS Loan $75,000'
Delta Canal Company $57,600'
Total ($144,200) $69,200 $75,000
Permanent Financing Phase
NRCS PlanninQ and Desian $11,600
NRCS Construction Cost share $92,800'
CWCS Loan $39,800'
Total ($144,200) $104,400 $39,800

T bl 1 P . t F d' S

'When construction is complete, the Company will receive $92,800 in NRCS cost share. These
funds will be used to pay all outstanding construction costs, and to reduce the CWCS loan
amount to approximately $40,000,

2