C150288 Updated Approval Letter

• Contract/PO #: C150288
• Contractor Name: Deuel and Snyder Improvement Company
• Contract Type: Loan
• Water District: 1
• County: Morgan
• Loan Projects - Doc Type: Approval Letter

Deuel and Snyder Improvement Company Consent Agenda Item 3a
January 13, 2012 (Updated February 3, 2012)
Page 2 of 3
The Company diverts water from the South Platte into the Deuel and Snyder Canal (Canal). Flow
into the Canal is controlled by one large diversion structure that runs across the entire width of the
river. This diversion is used by the Company and its neighbor, the Upper Platte and Beaver Canal
Company. The diversion is a large concrete rollover wall with a series of slide gates for river
control.
Initially, the Company selected a slightly less expensive option of replacing the boards with a new
radial gate. As it was preparing to begin construction it was noticed that water was leaking under
the diversion dam in the river. The Company (along with its neighbor) repaired the leak with
Company funds.
Upon further evaluation, the Company has decided that installing a new bladder gate at the Canal
inlet will best serve its needs of addressing sanding problems and controlling the volume of water
into its Canal.
To date, the Company has signed a loan contract but has not used any of its loan funds. The
Company anticipates the work will be done in the winter of 2012.
Additional Costs - The Company received bids for the bladder dam. The total project is estimated to
be $119,970.
Deuel and Snyder Improvement Company
The Company is a Colorado mutual ditch company and non - profit corporation. It was established in
1884 to construct and operate the Deuel and Snyder Canal for the benefit of its shareholders. There
are 15 shareholders and 161 total shares. The shares are split into two categories based upon the
two different types of water rights owned. One division of the Company is made up of 21 shares
associated with the Company's Meadow Rights. The remaining 140 shares are associated with the
Company's traditional irrigation water rights. The Company is controlled by a five- member Board
of Directors. The Board has the ability to set assessments and take on debt as it deems necessary.
Financial Analysis
Based on the share ownership the interest rate for the Company will remain the agricultural rate of
2.5% for a 30 -year term (which was the agricultural interest rate at the time the original loan was
approved in 2009).
TABLE 1
FINANCIAL SUMMARY
PROJECT/LOAN
Original
Increase
New
Total Project Cost
$100,000
$19,970
$119,970
CWCB Loan (90% of the Project)
$90,000
$17,973
$107,973
CWCB Loan (Inc. I% Service Fee )
$90,900
$18,153
$109,053
CWCB Annual Loan Payment
$4,343
-
$5,210
Debt Service (inc. 10% reserve fundin)
$4,777
-
$5,731
Annual Project Cost/Share 161 shares
$30
$6
$36
Total Cost of Project/AF (4,590 AF)
$22
$4
$26