16b

• Board Meeting Date: 7/22/2008
• Description: CF Section - New Project Loans - Headgate 135 Lateral, Inc. - Headgate 135 Pipeline Project
• Board Meetings - Doc Type: Memo

Headgate 135 Lateral, Inc. Agenda Item 16b
July 15, 2008
Page 3 of 5

Water Rights

The members of the Corporation own shares in the G VIC . The water shares are conveyed through
Headgate 135 and to the member s land via the Lateral. The source of the irrigation water is the
Colorado River. GVIC has a diversion structure on the north bank of the river near Highway 6 in
Palisade. T he Lateral is currently an open ditch and carries 3.0 cfs and is used to irrigate residential
lawns and gardens .
Project Description

Three alternatives were analyzed in the feasibility study:

1) No action alternative
2) Individual members construct pipeline to meet their own needs
3) Participate in the NRCS Colorado River Basin Salinity Control Program

The Corporation chose to participate in the Salinity Control Program primarily due to the available
NRCS funding assistance. The selected alternative includes 4 , 8 00 feet of new 15 inch PVC pipe to
replace open ditch, flow measurement devi c es, metered delivery points to each member, valves,
drains and vents to improve delivery of the water to the diversion structure. Design will begin this
summer and construction i s expected to begin in the f all of 200 8 .
Financial Analysis

Table 1 shows a summary of the funding sources for the project. The total estimated cost of the
project is $2 6 0,000. An initial loan phase (during construction) amount is based on 100% of the
es timated total Project cost ( allowed p er Policy #11). The loan will be reduced to $1 3 4,000 after the
Project is complete and the Corporation receives funds from NRCS and others assisting in the
Project funding .
Table 1. Project Funding Sources
Funding Sour ce Grant /Other Loan
Initial Loan Phase
CWCB Loan $ 260 ,000
Total ($2 6 0,000) $ 0 $26 0,000
Post Construction Phase
Lateral 135 Inc. $0
Mesa Conservation District (NRCS - Cost Share)* $71,000
Grand Valley Drainage District** $ 13,000
Bishop of Pueblo $ 34,000
3P Development, LLC $ 8,000
CWCB Loan $1 3 4,000
Total ($2 6 0,000) $ 126 ,000 $1 3 4,000

* Received after construction is complete from NRCS
** To be in - kind services