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Lone Cabin Ditch & Reservoir Company Agenda Item 29c <br />September 13, 2013(UPDATED September 26, 2013) <br />Page 4 of 7 <br />Water Supply Reserve Account Grant <br />At the March 2013 Gunnison Basin Roundtable meeting, the Roundtable granted approval of the <br />Lone Cabin Dam Rehabilitation Project application request for $38,000 in Basin Funds and <br />recommended approval of $232,687.50 of Statewide Funds however staff is recommending a lower <br />Statewide amount. <br />Staff Recommends: 75/25 Matching Funds to WSRA Grant Ratio <br />Matching Funds: CWCB Loan = $250,300 <br />Grant Funds: $38,000 from Basin and $46,000 from Statewide Funds <br />Threshold and Evaluation Criteria: The application articulates how the project satisfies the <br />Threshold and Evaluation Criteria as summarized below: <br />Tier 1 • Promoting_ Collaboration /Cooperation & Meeting Water Management Goals & Identified Needs: <br />The water activity is a repair project that will help maintain the agrarian nature of rural Colorado, <br />particularly on Lamborn Mesa, Delta County, Colorado. <br />Tier 2: Facilitating Water Activity Implementation: <br />Funding from the WSRA account will reduce the uncertainty that the needed repair project will be <br />implemented. Receiving the requested grant will make the cost of the project more affordable to the <br />shareholders of Lone Cabin Ditch and Reservoir Company, which is currently making annual payments <br />of $16,601 on existing loans, by reducing the amount of additional debt the Lone Cabin will need to <br />incur to complete the repair project. An application for a loan for CWCB has been filed and pursued for <br />the additional funds necessary to successfully complete the project as described in the conceptual design <br />and engineer's estimate for slump repair prepared by Buckhorn Geotech. <br />Tier 3• The Water Activity Addresses Issues of Statewide Value and Maximizes Benefits: <br />The water activity helps sustain agriculture and open space. The water activity involves decreed water <br />tributary to the Colorado River. The water activity is complimentary to and assists in the <br />implementation of the CWCB loans that exist to Lone Cabin Ditch and Reservoir Company and the <br />Beaver Reservoir Company, of which Lone Cabin is part owner. <br />Issues /Additional Needs: <br />Discussion: <br />After reviewing the cost per acre foot for agricultural irrigation water, the Reservoir Company will need <br />to pay approximately $32 /acre -foot in order to borrow 75% of the project costs. This appears to be a <br />hardship situation and may require special attention as it relates to the use of WSRA grant funds. Most <br />ditch and reservoir companies experience between $10 and $20 per acre foot of annual delivery. In <br />addition, the SEO may require a full breach of the dam at the Company's expense due to safety concerns <br />if repairs are not made. This would result in a loss of approximately 100 acre -foot of pre -1922 water <br />rights. <br />Additionally, the Management Objectives in the SWSI Phase 11 Report: Addressing the Water Supply <br />Gap Technical Roundtable, includes the language "sustainably meet agricultural demands," which is <br />directly met through this activity. The proposed Project effectively meets the objectives of HB 1177 <br />