18b

• Board Meeting Date: 9/18/2007
• Description: CF Section - New Project Loans - Bijou Irrigation Company - Diversion Structure Rehabilitation
• Board Meetings - Doc Type: Memo

Sijou Irrigation Company
September 18-19, 2007

Agenda Item 18b

Alternative 1, No-action alternative - If a project is not pursued, the Company will eventually be
unable to operate the Bijou Canal, resulting in an annual loss of 47,460 AF of headgate diversions.
This is not acceptable to the Company.

Alternative 2, Perform temporary remedial work to return diversion to normal operation - This
would involve an immediate fix to any current problem, but solutions could range in length from
several months to several years. This level of repair leaves the ditch vulnerable to the ditch being
taken out of service and the loss of water. Remedial activities of this nature are impossible to
budget for and create a hardship that is no longer acceptable to the Company.

Alternative 3, Replace 96 feet of diversion structure with new spillway gate, using existing
intake gates - This would include replacing the slide gate and part of the board system of the river
diversion structure, with a 96 foot long Obermeyer Pneumatic Spillway Gate that uses an inflatable
bladder to raise and lower the gate. The remaining diversion structure would be left intact.
Lowering the gate during times of high river flow would greatly reduce "wear and tear" on the entire
intake system, and reduce the sand accumulation that forms upstream and in the canal, and
alleviate debris problems in the structure. The cost of this alternative is approximately $840,000.

Alternative 4, Replace 192 feet of diversion structure with new spillway gate, using existing
intake gates - This alternative is similar to Alternative 3, but would increase the gate length to 192
feet, instead of 96 feet. The increased length of the gate would completely alleviate the problems
associated with the sand bar, and greatly reduce the sanding problem in the canal. The cost of this
alternative is approximately $1,596,000.

Selected Alternative 3, Replace 96 feet of diversion structure with new spillway gate, using
existing intake gates - The project will involve construction of a 96 foot long Obermeyer
Pneumatic Spillway Gate (Bladder Gate) structure, 8 feet high, located immediately adjacent to the
river radial gate and the canal intake structure. Sheet piling and pipe piling will be used under the
new concrete structures for stabilization and erosion protection.

The Total Project cost is estimated to be:

1.
2.
3.

Engineering
Construction & Contingency
Contingency (10%)
TOTAL

$ 16,100
749,000
74.900
$840,000

If the loan is approved, final design would be completed in October 2007, with start of construction
in November 2007 and completion in at the end of December 2007. All easements and rights of
way have been arranged for. The Company and the engineer expect that the project will be exempt
from Federal 404 permitting.

Financial Analvsis

The total estimated cost of the project is $840,000, and the Company water usage is 99%
agricultural. Staff is recommending a maximum loan amount of $756,000 (90% of the estimated
project cost) for 30 years at an interest rate of 2.25%. The Company will pay the additional 10%
($84,000) of the project cost from reserve funds and increased share assessments. The Company
will cover any costs that exceed the estimated project cost.
Table 1 is a summary of the financial aspects of the project. A CWCB loan of $756,000 would
have an annual payment of $38,419 (including the 10% reserve requirement) at the loan terms of

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