26b

• Board Meeting Date: 11/19/2008
• Description: CF Section - New Project Loans - New Salida Ditch Company - Ditch Pipeline Project
• Board Meetings - Doc Type: Memo

New Salida Ditch Company Agenda Item 26b
November 10, 2008
Page 2 of 4
Background
The New Salida Ditch Company is located in Ch affee County and delivers water to agricultural
users from the Arkansas River (River) through a diversion in Browns Canyon. The diversion is
located 10 miles north of Salida. The ditch was constructed in 1882 and is approximately eight
miles from its diversion to its end at Ute Gulch.
In Browns Canyon, the New Salida Ditch (Ditch) r uns parallel to the River for 1.25 miles. This
section has historically been diffi cult for the Company to maintain and has suffered frequent breaks
resulting in costly repairs and di scharges of sand and gravel into the River. In 2005, the Company
undertook a maintenance project designed to mitig ate erosion along the ditch. During construction,
sand and gravel were accidently deposited in to the River and the Company was cited with
violations from the Colorado Department of Pub lic Health and Environment (CDPHE). As a
resolution of this dispute, the Company and CD PHE entered into an agreement requiring the
Company to enclose a portion of the Ditch to preven t the potential for discharg es of material due to
ditch breaks in this area in the future.
Another break occurred in 2006 resulting in $20,000 in repair costs. The Company is seeking to
reduce future maintenance costs and to protect the River th rough this Project.
Loan Feasibility Study
The Loan Feasibility Study titled “ Feasibility of Installation of a Pipeline in Brown Canon Section
of New Salida Ditch, October, 2008 ” was prepared by Ralph “Terry” Scanga with te chnical support
from Chirs Manera, P.E., Colorado River Engineer ing. The study was prepared in accordance with
the CWCB guidelines and includes preliminary engineering desi gn and cost estimates.
New Salida Ditch Company
The Company is a Colorado mutual ditch company and non-profit corporation. It was established in
1953 to operate the New Salida Ditch for the benefit of its shareholders. There are 400 shares held
by 14 shareholders. The Company is controlled by a seven-member Board of Directors. The Board
has the ability to take on debt, levy assessmen ts, the power to cease delivery of water to
shareholders who are delinquent in payment of assessments, and the power to sell the stock of
delinquent shareholders.
Water Rights
The Company has the right to divert 20 cfs from the Arkansas River under irrigation rights decreed
July 8, 1912 with an appropriation date of May 1, 1882. The Company’s average diversions are
approximately 7,000 AF annually.
Project Description
In order to stabilize the Ditch ba nk that is shared with the River and prevent future failures, the
Company considered the following options: