15d_Directors Report

• Board Meeting Date: 7/21/2009
• Description: Directors' Report - CWCB Director
• Board Meetings - Doc Type: Memo

the July or September 2009 Board Meeting. Additional loans funds could be as much as
$600,000.
2 . Owl Creek Reservoir Company - Rese rvoir Rehabilitation
Authorization: Construction Fund County: Weld
Water Source: Owl Creek Basin Project Yield: 1,200 acre - feet
Terms of Loan: $1,125,000 @2.75% for 30 - years Project Type: Reservoir Rehabilitation
Owl Creek Reservoir is located a pproximately 6 miles east and 3 miles north of the Town of Ault.
The reservoir was originally constructed in 1896 to store water for irrigation. The dam was
constructed of granular material, and over the years has suffered structural damage due to
seep age. Given the condition of the dam embankment and the potential for failure, the dam was
intentionally breached in 1983. The proposed project involves rehabilitating the existing dam
embankment, the construction of a controlled outlet structure, and the construction of an
emergency spillway. The project was bid in the fall of 2003. The Reservoir Company is
currently exploring its options increasing the dredging quantity to obtain its full storage decree of
1,750 acre - feet. The Company is consid ering applying for additional funds from the Board to
achieve the full reservoir capacity. Additionally , the Company has amended the loan contract for
a 1 - year time extension to complete the work. The Company is also researching the possibility
of utili zing Owl Creek Reservoir as storage facility from flows outside of Owl Creek. This could
be accomplished by pumping water from the Larimer Weld Canal, located approximately ¾ of a
mile downstream of the reservoir. The Company is looking at bidding the project out for
construction in the summer/fall of 2009.
3 . Southeastern Colorado Water Conservancy District – Arkansas Valley Conduit
Authorization: Severance Tax Fund County: Pueblo, Crowley, Otero, Bent
Water Source: Arkansas – Fry Ark Project Project Yield: 6,555 AF
Terms of Loan: $ 60,600,000 @ 3.25% for 30 yrs. Project Type: Raw Water Pipeline
The Arkansas Valley Conduit is designed to bring relatively clean raw water to 41 water
providers in the lower Arkansas Valley, who currently either t ake water from the Arkansas River,
and \ or pump from shallow and \ or deep aquifers. This pumped water has quality problems and
requires significant treatment before it meets Clean Drinking Water standards. The conduit will
begin at Pueblo Reservoir Dam, wh ere a 30.94 cfs municipal outlet is already in place and
reserved for the specific use of the conduit. The conduit will gravity flow approximately 138
miles down the Arkansas River Valley to Lamar. The conduit water will flow by the St. Charles
Mesa Wate r District where it will enter a water filtration plant. As the conduit moves down the
valley, spurs will take off the main line to deliver water to local and regional water providers.
The conduit will receive its water from the USBR Fryingpan - Arkansas P roject. Currently, about
5,779 acre - feet of water per year is available for entities East of Pueblo in an average year.
Additionally, Return Flows are retained by the District and can be exchanged back up to Pueblo
Reservoir for delivery. These Return F lows can provide up to an additional 1,600 acre - feet of
water. Storage is available to these entities in Pueblo Reservoir because they are in the SECWCD
service area. This storage will help provide water in the years when less than average water is
provi ded by the Fry - Ark Project. The water will be provided strictly for municipal and industrial
purposes. Final chlorination or treatment will be left up to each water provider. The conduit is
currently planned to be paid 80% (approximately $240 million) b y the federal government. The