C150163 Approval Letter - Laserfiche WebLink

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The NCLPIC manages water in the Greeley No. 2 Ditch, delivering approximately 37,500 acre -feet per year. The ditch level fluctuates throughout the irrigation season making it difficult and inefficient to serve all of the users, particularly those near the end of the system. In order to overcome fluctuations in the ditch, NCLPIC must run extra water to ensure that users at the end of the system are not shorted. In addition, the NCLPIC estimates that it is approximately 10,000 ac -ft short of its current annual water requests, due to operational losses as well as the transfer of Colorado Big Thompson water out of the system. The intent of this project was to construct three reservoirs near Barnesville to equalize ditch flows, improve system efficiency (approx. 2,000 AF /year), and provide additional storage (approx. 2,500 AF /year) to meet demand. The proposed reservoirs will also provide a benefit to the comprehensive groundwater augmentation plan that the company is developing. FEASIBILITY STUDIES Smith Geotechnical Engineering Consultants of Fort Collins completed the feasibility study in accordance with CWCB guidelines. The study included an assessment of alternatives to address storage and operational deficiencies. Table 1 below is a brief summary of the major project elements selected and their estimated cost, as presented in the original feasibility study: Table 1. Opinion of Cost DISCUSSION The NCLPIC has completed all the items identified above, with the exception of Drury Reservoir. The NCLPIC does not plan on pursuing the design and construction of Drury Reservoir at this time. The original storage volume of Cornish Reservoir was estimated at 1,600 acre -feet, but was increased to 3,000 acre -feet during construction. The increased storage volume achieved in Cornish Reservoir eliminated the immediate need to construct the 600 acre - foot Drury Reservoir. The land necessary to construct both Drury and Cornish Reservoir was purchased in 2003 under a separate loan contract between NCLPIC and Cornish Plains Livestock, LLP for $1,409,649, with a 20 -year amortization, an annual payment of $122,843, and a 10 -year balloon payment of approximately $1,030,000. The purchase price of the land and accrued interest was included in the overall cost of the project, as indicated above in Table 1. When the project was presented to the Board in November of 2003, staff recommended a maximum loan amount of $7,200,000, which was 75% of the total project cost of $9,542,000. The purchase of the land was included the 25% cost participation from NCLPIC. 2 Item Estimated Cost 1. Drury Reservoir $2,217,000 2. Cornish Plains Reservoir $2,350,000 3. Barnesville Equalizer Reservoir $922,000 4. Jack Wells Pumping Station & Pipeline $1,632,000 5. Property Acquisition $2,421,000 Total: $9,542,000 DISCUSSION The NCLPIC has completed all the items identified above, with the exception of Drury Reservoir. The NCLPIC does not plan on pursuing the design and construction of Drury Reservoir at this time. The original storage volume of Cornish Reservoir was estimated at 1,600 acre -feet, but was increased to 3,000 acre -feet during construction. The increased storage volume achieved in Cornish Reservoir eliminated the immediate need to construct the 600 acre - foot Drury Reservoir. The land necessary to construct both Drury and Cornish Reservoir was purchased in 2003 under a separate loan contract between NCLPIC and Cornish Plains Livestock, LLP for $1,409,649, with a 20 -year amortization, an annual payment of $122,843, and a 10 -year balloon payment of approximately $1,030,000. The purchase price of the land and accrued interest was included in the overall cost of the project, as indicated above in Table 1. When the project was presented to the Board in November of 2003, staff recommended a maximum loan amount of $7,200,000, which was 75% of the total project cost of $9,542,000. The purchase of the land was included the 25% cost participation from NCLPIC. 2