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Water Supply Reserve Account - Grant and Loan Program <br />Water Activity Summary Sheet <br />Applicant: Summit Reservoir & Irrigation Company <br />Water Activity Name: MVIC - Summit Irrigation Company Feasibility Study (Phase 1) <br />Amount Requested: $39,300 <br />Source of Funds: $39,300 (Southwest Basin Account) <br />Matching Funds: $0 <br />Water Activity Purpose: Technical Assistance <br />County: Montezuma <br />Drainage Basin: Southwest <br />Water Source: Dolores River <br />Staff Recommendation <br />Staff recommends approval of the $39,300 from the Southwest Basin Account to help complete Phase 1 of <br />the MVIC - Summit Irrigation Company Feasibility Study contingent on resolution of the items in the <br />issues/additional needs section. <br />Water Activity Summary: <br />The proposed funding request is for the first phase (Phase 1) of a technical and legal review of the potential <br />for combining the operations of the two private irrigation companies. This phase will analyze and outline the <br />benefits and drawbacks associated with the merger based on a perspective of water rights and water <br />planning. It will provide a platform for shareholders in both irrigation companies to evaluate if the concept of <br />merger warrants additional study and effort or it should be abandoned. <br />This task will include an engineering review of historic diversions and irrigable acreage to determine system <br />efficiency and changing patterns. Interviews with both companies' shareholders will be performed to identify <br />concerns. Results may identify benefits and/or liabilities that may accrue from a merger or acquisition. It <br />may also identify potential for changes in the decrees that could be used to improve system operations. An <br />engineering report will be produced that summarizes the findings. The results will give a Go - No Go <br />decision on whether or not to continue pursuing the concept of merger or acquisition. <br />Phase 2 - The next phase if warranted would be a condition assessment of the Summit Reservoir & Irrigation <br />Co. infrastructure. This will include a field assessment and office review. Geotechnical information will be <br />gathered through exploratory drilling of the dam and lab testing of the Summit Reservoir. A survey of the <br />reservoir will be done to determine the reservoir volume. This would be compared to the historic data for <br />estimating the impact of silt. The data will be used for doing quantity estimates on rehabilitation alternates <br />and construction cost estimates. The results would provide cost-benefit ratios for acquiring and rehabilitating <br />the Summit system for improved delivery and the potential for expansion of the service area. <br />Phase 3 - The third task would be a legal review of the companies. Articles of Incorporation and Bylaws will <br />be examined and a risk assessment will be done to determine what known potential liabilities need to be <br />considered. This will include some strategic planning to figure out how the merger can best serve customers <br />and plan for the future.