C150235 Feasibility Study

• Contract/PO #: C150235
• Contractor Name: Platte Valley Irrigation Company
• Contract Type: Loan
• County: Weld
• Loan Projects - Doc Type: Feasibility Study

Feasibility Study
Platte Valley Reservoir No. 1
PROJECT SPONSOR
The Platte Valley Irrigation Company (PVIC)is a Colorado Mutual Ditch Company and a Non-
profit Corporation. Articles of Incorporation and Bylaws are included in Appendix D. i i f ZL c
33 12.� I '
The Platte Valley Irrigation Company was incorporated in 1944 and has been in operation
continuously since and has delivered water and applied assessments since its inception. Assessments
for the year 2006 were set at the annual board meeting at$400 per share of stock. The Company has
issued 344 shares os stock owned by 99 shareholders.
The Platte Valley Irrigation Company diverts water for irrigation from the South Platte River near
Platteville,Colorado for the purpose of irrigation. The Company has a part ownership in Sand Hills
Reservoir to store up to 400 acre-feet of CBT water. They have no other storage or equalizer
reservoirs in their system. The stock ownership is currently100%agriculture and no municipal and
industrial users own Platte Valley Irrigation stock.
Financial statements for 2003, 2004, and 2005 are included in Appendix C of this study. For the
year 2005 the PVIC had income of approximately $791,000 with expenses of approximately
$455,755. The Company had a cash balance of$2,168,527 as of November 30, 2005. The cash
balance includes $50,709 in a money market and $2,105,751 in a certificate of deposit. The large
amount of cash assets is due to an equity contribution of$10,000 per share or partial share in 2004
and 2005 to set up a separate Capital Improvement Account. This money is set aside to be spent to
improve ditch flow, to reduce seepage loss, and otherwise keep the facilities in good repair.
Prior to the special assessment in 2004, the PVIC was carrying a significant cash balance equal to
approximately 40%of their operations and maintenance expenses in one year. Assets listed in their
financial statement includes only their cash accounts. The PVIC has purchased property,to construct
a reservoir,for a value of$309,360 and does own equipment and property including the ditch rider's
residence and the diversion on the South Platte River.
PROJECT SERVICE AREA
The service area of for the PVIC (Evans No. 2 Ditch) includes approximately 14,832 acres of
irrigated farm land in Weld County,Colorado. The approximate service area boundaries are shown
on the map in Appendix A which was developed by Brown and Cauldwell, March, 2006. The
service area starts near Platteville and extends along the east side of State Highway 85 north and east
for approximately 15 miles.
The proposed Equalizer Reservoir location is 2 miles east and 2 miles north of Platteville in NE '/
of Section 9, Township 3N, Range 66W of the 6`h Principle Meridian, County of Weld, State of
Platte Valley Irrigation-Feasibility Study Page 1