C150363 Approval Letter - Laserfiche WebLink

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Petrocco Family Limited Partnership, LLLP Agenda Item 30d September 13, 2012 (Updated September 30, 2013) Page 3 of 5 acre -feet of water which will still have to be leased after this water rights purchase. Since the water rights to be purchased satisfy an existing water need, this loan is in compliance with CWCB Financial Policy #8. Project Description The farming operation is water short when it comes to providing enough water to irrigate its 2,600 acres of farm land. In wanting to maintain its long term family business goals and to provide a more reliable water supply for future farming operations, the partners of the Partnership have initiated a program of purchasing land and water shares, when available, from ditch and irrigation companies adjacent to their owned and leased farms. Three alternatives were considered by the Partnership as described below. Alternative No. I — Do Nothing: This alternative was considered unacceptable. Alternative No. 2 — Improve Efficiencies: This alternative is to improve the efficiencies of the existing irrigation systems on owned land and to purchase water available for leased land. This alternative would meet the Partnership's goals by providing a reduction of water use on two farms and increasing the water supply for three farms. At an estimated cost of $1,803,000, this was not considered a preferred option. Selected Alternative No. 3 — Water Rights Purchase: This alternative is to purchase available water shares for the five most water short farms, regardless if the land is owned by the Partnership, or leased by the Corporation. The five most water short farms and the available water rights to be purchased are identified in Table 2. TZA Water Engineers, Inc. investigated the subject water rights and concluded the identified shares can be delivered to and used on the respective farms without a change in water right. TABLE 2: WATER RIGHTS TO BE PURCHASED Farm Site Ditch/Irrigation Company with Available Shares Shares to be purchased Average Annual Yield per Share AF Total Average Annual Yield A Sasaki North Fulton Ditch Company 16 2.9 46.4 Sasaki South Fulton Ditch Company 16 2.9 46.4 Palombo Fulton Ditch Company 21 2.9 60.9 Benson #7 New Cache La Poudre Irrigating Company 4.8 12.0 57.6 Cache La Poudre Reservoir Company 3.6 1.9 6.8 Williams #8 New Cache La Poudre Irrigating Company 3.2 12.0 38.4 Cache La Poudre Reservoir Company 2.4 1.9 4.6 This Alternative meets the Project's goals and is the most cost efficient with an estimated project cost of $925,000. A summary of the cost is shown in the Table 3.