C150069 Benefits & Potential Roles Report

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. . . I . It It . . . . . . . . . . . . . . . . , . . . . . . . I I . . . . . . I . . . companies and irrigation districts might face a period of financial risk early on in the development of secondary service. Undoubtedly, this will depend upon the growth in water user subscriptions (and therefore the overall growth in a given secondary supply service area), the terms and size of the repayment contract (assuming that these systems will be financed through bonds or state agency financing), and the revenue (plant investment or "tap" fees) generated by the secondary water supply system. Historical Precedents It is important to remember that the rural domestic water districts began much in the same way in the 1960s. In order to initiate and capitalize these Title 32 districts, rural domestic organizers often went from door-to-door in rural areas compiling a list of subscribers for their new potable water service. Once the district boundaries and the number of potential customers was identified, it was often a simple matter of determining what the capital costs for the water system would be, and what water rates would be required to meet these capital costs and future annual operation and maintenance costs. It is likely that the development of secondary supply systems, particularly if they are to be operated and maintained by canal companies and irrigation districts, will follow a similar developmental process. This developmental process is also discussed in the report. Four traditional and well-established canal companies in Colorado, the New Cache La Poudre Irrigating Company, the Highland Ditch Company, the Lake Canal Company and the Grand Valley Irrigation Company participated as case studies to identify a "process of discovery" and assessment or appraisal of their potential in providing secondary water supply service to residential-commercial- industrial parcels in their traditional irrigation service areas. The Grand Valley Irrigation Company already provides secondary water service indirectly, by delivering water through "historical" headgates to its many affiliated lateral companies. The study provided assistance to the four canal companies in developing a Geographical Information Systems (GIS) database and digital map of their respective irrigation systems, including updated information on residential parcels, zoning, rural domestic water district pipeline systems, municipal pipeline systems and urban growth boundaries overlapping their service areas. The study focused on the potential for secondary water systems in Water Districts 1,2,3,4,5, and 6 in northeastern Colorado, in addition to the Grand Junction area. However, what was learned should be directly applicable to all areas of Colorado. There appear to be many opportunities for pressurized secondary water systems in this region as well as in other areas of the state. Conclusion In summary, the aim of the study was to identify the conditions under which dual systems can be developed and made to work effectively, what the benefits are, how the participation of canal companies and irrigation districts in pressurized secondary water supply may contribute to maintaining irrigated agriculture as a viable industry in the region and the risks involved during development, how local jurisdictions can help promote these systems through the passing of specific ordinances, where dual systems are appropriate for the region, and specific recommendations for a state-wide "secondary system policy" that would be clear and simple for the needs of the state, local jurisdictions, developers and agricultural irrigation water suppliers. The study has tried to ascertain ways in which dual systems contribute to both general public interest goals and private property rights and benefits at the same time. Rather than advocating a strictly market approach to water resource development in the state or, conversely, a strictly public interest approach, the research has attempted to ascertain how these two perspectives can be optimized in the 9