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RESOLUTION <br />(CWCB - Stokes Gulch Siphon Contract) <br />The Board of Directors ( "Board ") of the Orchard Mesa Irrigation District ( "District "), at a <br />special meeting held on July,, 2006, adopts the following Resolution: <br />RECITALS <br />A. The District is an irrigation district operating under the Irrigation District Law of <br />1921, Sections 37 -42 -101 et seq., C.R.S. <br />B. The District diverts water from the Colorado River at the Grand Valley Project <br />Diversion Dam ( "Roller Dam') east of Palisade, Colorado. This water is diverted into the District's <br />Power Canal approximately five miles downstream of the Roller Dam. This water passes under the <br />Colorado River in a siphon, and continues to be transported in the Power Canal on the south side of <br />the Colorado River to the District's pumping plant, where it is pumped into the District's Canals <br />Nos. 1 and 2 for distribution to landowners in the District. <br />C. The Stokes Gulch Siphon ( "Siphon") crosses Stokes Gulch adjacent to the Colorado <br />River, and is a part of the Power Canal. The Siphon is over 85 years old and is in poor condition. <br />If the Siphon fails, it could cause significant damage to adjacent properties. In addition, since the <br />Power Canal is the main source of irrigation Awalan e within the District, failure of the <br />Siphon would interrupt the supply of irrigati and could cause significa nt <br />damage to crops which rely on this irrigation evaluated several alternatives <br />for the repair or replacement of the Sipho that the best alternative is the <br />replacement of the Siphon. <br />D. Thus, the Board hereby reaffirms ' tefinination that the best interests of the <br />District and of the landowners in the District de t the Siphon be replaced and that provision <br />be made for paying the cost of such replacement.? <br />E. The District desires to obtain a loan from the State of Colorado for the use and benefit <br />of the Department of Natural Resources, Colorado Water Conservation Board ( "CWCB ") for the <br />purpose of preparing the final design and constructing the replacement of the Siphon (the "Project "). <br />F. CWCB has authority to loan funds to the District for the Project. <br />G. The loan from CWCB, in an amount not to exceed $600,000.00, was approved at a <br />special election of the landowners in the District held on February 24, 2006. However, due to a <br />procedural error regarding the notice for that special election, it was necessary to hold another <br />election. The second special election was held on July 20, 2006, and the loan from CWCB, in an <br />amount not to exceed $600,000.00, was again approved at that second special election. <br />Appendix 3 to Loan Contract 0150222 <br />