C150311 approval ltr

• Contract/PO #: C150311
• Contractor Name: Grand River Ditch Company
• Contract Type: Loan
• Water District: 39
• County: Garfield
• Loan Projects - Doc Type: Approval Letter

Grand River Ditch Company
July 9, 2010 (Updated July 30, 2010)
Page 3 of 5
Project Description
Agenda Item Sb
The Project will allow the Grand River Ditch Company to continue providing irrigation water to
shareholders while minimizing the occurrence of future failures of their diversion structure. Three
alternatives were considered:
Alternative No. 1- No-action was considered unacceptable because it would mean the Grand River
Ditch Company could not deliver water to its shareholders.
Alternative No. 2- Reconstruct the rock work in the river was ruled out because of the potential
risk that rock work will fail in high water and will continue to seep and cause ditch failure.
Alternative No. 3(Selected) - Install pipeline and protective rock in the river was selected because
it is considered to be the least costly reliable approach. This alternative involves the purchase and
installation of 1,320 ft of twin 48- inch diameter parallel pipes. Final engineering may determine a
reduction in pipe size. Structural concrete, earthwork and rock riprap will also be needed. The
Garfield County Office of the NRCS is preparing engineering design for the Project.
Project Cost Estimate
Mobilization
Earthwork to banks
Concrete Headwall 10 CY
48" Pipe (2) 1320 ft
Install Pipe
Rock Rip Rap
Engineering
Contingencies/permits
$5,000
$20,000
$15,000
$240,000
$95,000
$75,000
$68,000
20 000
Total
$538,000
The NRCS expects final design to be completed by September 2010 and construction to begin
October 2010. '
Financial Analysis
Table 1 shows a summary of the funding sources for the Project. The total estimated cost of the
Project is $538,000. An initial loan phase (during construction) amount is based on 100% of the
estimated total Project cost (allowed per Policy #11). The loan will be reduced to $438,000 or less
after the Project is complete and the Borrower receives funds from the NRCS. The Company has
applied to the Colorado River Basin Roundtable for two WSRA grants. The Company received
approval for $25,000 from the Basin Fund and $175,000 from the Statewide Fund at the July BRT
meeting. These WSRA grant requests will be considered at the 3�} September CWCB meeting.
CWCB Staff has not included these grants in the financial analysis.