C150277 Feasibility Study

• Contract/PO #: C150277
• Contractor Name: New Salida Ditch Company
• Contract Type: Loan
• Water District: 0
• County: Chaffee
• Loan Projects - Doc Type: Feasibility Study

Feasibility Study
The New Salida Ditch Company
Pipeline Project
Introduction
The New Salida Ditch Company is located in Chaffee County and derives its water from
the Arkansas River via a diversion in Brown Canon located approximately 10 miles
North of Salida, Co. The water rights serve 14 shareholders who irrigate 1000 acres of
farm and ranch land. The ditch constructed in 1882 runs parallel to the Arkansas River
for approximately 1.25 miles. Approximately 3000 feet in this reach has historically
been difficult to maintain and has suffered frequent catastrophic breaks that has resulted
in costly repairs and discharges of sand and gravel into the Arkansas River an important
fishery and highly recreated portion of the Arkansas River. In 2005, the Ditch Company
undertook a maintenance project designed to maintain the ditch on grade and line. Some
sand and gravel inadvertently entered below the historic high water line of the Arkansas
River. The Ditch Company was cited with violations from the Colorado Department of
Public Health and Environment "CDPHE". As a resolution to this dispute the Ditch
Company and CDPHE entered into an agreement that requires the Ditch Company to
enclose a portion of this subject reach in a pipe to prevent the potential for future
discharges of material into the Arkansas River by a ditch failure. Additionally, there is a
lack of suitable materials that can be easily and relatively inexpensively accessed to
repair future ditch breaks in this location. The last ditch break occurred in 2006 that
resulted in a repair that cost the ditch company nearly $20,000 due to the cost of hauling
suitable material to the site. The solution that the ditch company is seeking to reduce
future maintenance costs and to protect the river is the installation a pipeline in this reach.
Project Sponsor
The New Salida Ditch Company is a mutual ditch company and anon-profit ditch
corporation registered in the State of Colorado. There are 14 shareholders and 400 shares
of stock. The company has the power to levy assessments on the shares of stock and also
has the power to cease delivery of water to shareholders who are delinquent in payment
of assessments. In accordance with Article Six of the Articles of Incorporation the Board
of Directors have the power to "declare any share, or shares, of stock to be forfeited when
the holder, or holders, shall neglect or refuse to make full payment of any calls or
assessments which may have been levied upon such stock" and after notice have the
power by resolution of the Board to divest the defaulting holder, or holders of any and all
rights and interest, and shall have the power to issue new stock in lieu, and sell said stock
to owners along the ditch. (See Articles of Incorporation in Appendix A)
Project Service Area and Facilities
The Ditch Company delivers water to lands in Sand Park, Chaffee County, for the
irrigation of 1000 acres. The Company derives its supply from the Arkansas River via a
diversion structure located 2 miles upstream of the south end of Brown Canon. The ditch
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