C150293 Approval Letter - Laserfiche WebLink

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North Sterling Irrigation District May 12, 2009 (UPDATED May 22, 2009) Page 2 of 6 Background Agenda ltem 17d The District owns and operates the Reservoir, located in Logan County, and its associated structures for the benefit of the landowners within the District by providing stored and direct flow water. The District provides water for imgation to a 40,917 acre service area. The District service area begins just east of the North Sterling Reservoir, approximately 15 miles northwest of Sterling, Colorado, and extends east to just northeast of Crook, Colorado. The North Sterling Inlet Ditch diverts from the South Platte River approximately eight miles upstream of the Morgan/Washington County line. Water is then stored in the 74,590 acre-foot (AF) Reservoir and deliveries are made to the North Sterling Outlet Canal. The dam (lalown as Point of Rocks Dam) has a height of 59.5 feet, length of 5080 feet, and is classified as a High Hazard Dam. The Reservoir faces the possibility of a storage restriction without construction improvements to the current spillway and the dam. The District wants to complete this Project so it can retain the full storage capacity of the Reservoir. The District also has an augmentation plan that provides water for 30 irrigation wells within the District and 13 residential wells in the Sterling area. Through the use of the District's augmentation plan, water can also be leased to Xcel Energy for use at its Pawnee Power Plant in Brush, Colorado on an as-needed basis. To facilitate the agreement with Xcel Energy, a company called Point of Rocks Water Company, LLC (Company) was created. Company members are made up of District landowners who volunteered a portion of their water for Xcel's benefit. Landowners representing 84% of the District joined the Company. The lease agreement allows Xcel to request up to 3,000 AF of fully consumable water annually during the months of November through March. The Company receives a base payment in November of each year regardless of whether Xcel requests water; however, if Xcel does request water, the Company receives an additional delivery payment. The District receives one third of the base payment from the Company and the remainder is distributed to the members of the Company. The lease between the Company and Xcel Energy is for 25 years. Feasibility Studies The Loan Feasibility Study, "Feasibility of Construction of the North Sterling Reservoir Dam and Spillway Improvement Project" dated March 2009, was prepared by James Yahn, P.E., Manager of the District. Additional engineering and technical support was provided by James Ferentchak, P.E., of W.W. Wheeler and Associates, Inc. The study was prepared in accordance with the CWCB guidelines and includes an alternative analysis, engineering design and cost estimates. North Sterling Irrigation District The District was formed in 1907 and operates as an Irrigation District under the Irrigation District Law of 1905 (C.R.S. 37-41-101 to 160). The District office is located in Sterling, Colorado. The Logan County Treasurer collects District assessments with property taxes. The District is governed by a three-member board of directors. The District may Iimit delivery of water to lands until all past due or delinquent assessments have been paid in full. Because this