PROJ01893 ‎(2)‎

• Contract/PO #: C150030
• Contractor Name: Silt Water Conservancy District
• Contract Type: Loan
• Water District: 39
• County: Garfield
• Bill Number: SPL
• Loan Projects - Doc Type: Approval Letter

Silt Water Conservancy District
March 24-26, 2003

Agenda Item 24a.
(updated March 27, 2003)

Water Riahts
The District's primary water right consists of a 10,384 acre-foot storage right in Rifle Gap ReseNoir
with a priority date of 1951. The District also has a 1961 right out of the Colorado River (36 cfs), with
average annual diversions of 4000 acre-feet. The Bureau of Reclamation has set aside 5,000 acre-
feet of water from Green Mountain ReseNoir for use as a replacement source for out-of-priority
diversions by the Silt Pumping Plant.

Proiect Description
Four alternatives were analyzed in the feasibility study for replacement of the transformer:

1. The no-action alternative.
2. Obtain power from an Xcel Energy distribution line and upgrade pumps and motors to meet
that voltage.
3. Replace the transformer and upgrade pumps and motors.
4. Replace the transformer with a voltage configuration that will allow upgrading of pumps and
motors at a later date.

Alternative 1, the no-action alternative, was ruled out because it will mean that the District would not
be able to pump from the Colorado River, and would loose an annual supply of 4,000 acre-feet.
Alternatives 2 and 3 were both ruled out due to cost. Alternative 4 was selected, since it is
considered to be a reliable approach, and is less costly.

Selected Alternative 4 involves replacement of the existing transformer with 2 transformers that are
compatible with the existing pumps and motors, as well as with new pumps and motors that will be
installed at a later date. The cost estimate is as follows:

Total Estimated Cost

$176,000
35,000
50,000
106.000
$367,000

$ 15,000
44,000
40,000
25,000
49.100

$540,100

115/69 -- 13.8kV transformer
13.8 -- 2.4kV transformer
3 -- 115kV line structures
Related work

Subtotal Construction

Planning
Design
Construction management and inspection
Commissioning
Contingency at 10%

The implementation schedule calls for completion of financing arrangements in Spring 2003 and
start of design work in fall 2003. The project would be completed in late 2004 or early 2005.

Financial Analvsis
The total estimated cost of the project is $540,100. Staff is recommending a Small Project Loan of
$486,000 (90 percent of the estimate cost.) The SWCD is an agricultural water provider and the
CWCB agricultural interest rate of 2.75% for a 30-year loan would apply. The CWCB loan payment
(including the 10% reserve requirement) would be $26,400 per year. The SWCD will fund their
portion out of cash reserves and will cover any costs that exceed the estimated project cost. The
District will fund all loan payments from current revenues, and no assessment or tax increase will be
necessary.

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