C150385 Feasibility Study - Laserfiche WebLink

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Emergency Loan Application and Feasibility Study Project Background Project Olvnership Beeman Irrigating Ditch and Milling Co. The Beeman Irrigating Ditch and Milling Company (Beeman) and its sister company, Meadow Island No. 2 (MI2), jointly operate a diversion dam on the South Platte River and a sand bypass /dam, headgate, measurement flume, and bifurcation structure (jointly referred to as the "headworks" in this document) (see attached location map). The operation and maintenance of these structures is governed by a 1925 agreement between the companies which allocates the costs and responsibilities associated with these structures (Beeman is allocated 75% of costs, MI2 is allocated 25% of costs). The Beeman has an outstanding loan with CWCB to address the replacement of the dam in the South Platte River (completed in the early 1980s). Under that agreement, Beeman assesses MI2 for its portion of the annual repayment obligation. Beeman and MI2 propose to maintain that arrangement if Beeman is awarded a loan for the work proposed under the current feasibility study and loan request to CWCB. The Beeman /MI2 ownership is relatively complex. Beeman is a shareholder in MI2 and owns approximately 13.33% of MI2's outstanding shares. The remaining MI2 shares are owned by agricultural entities. Beeman has mixed industrial /agricultural ownership and 51% of its outstanding shares are owned by Public Service Company of Colorado (PSCo). The remaining 49% of its shares are owned by agricultural entities. According to Beeman's calculations, including the Beeman ownership in MI2 and the cost allocation agreement, the industrial usage of the joint diversion dam and headworks facility is 41.58% and the remaining 58.42% is agricultural. Beeman is requesting that CWCB fund 100% of the cost during the construction phase of the project (see tentative schedule). At the conclusion of construction and prior to amortization, PSCo would reimburse CWCB for 100% of its share of fiends borrowed to complete project engineering and construction. Other shareholders under Beeman and MI2 have indicated that they may wish to do the same. Beeman proposes that the engineering and construction costs be funded through CWCB to minimize complexity and contracting requirements. Beeman corporate documents are attached with this report. Project Physical Infrastructure The Beeman/Meadow Island No.2 (MI2) joint diversion headworks was constructed in the early 1900s. Beeman has an outstanding CWCB loan that was used to improve the diversion dam on the South Platte River in the early 1980s. Pre -flood, water diverted at the dam was conveyed by a relict braid to the joint Beeman/MI 2 headworks area (see attached pre -flood aerial photo). Typical flows diverted at the joint headgate structure average approximately 60 cfs, serving a total of 16 shareholders (10 Beeman and 6 MI2, including Beeman) and irrigating up to approximately 5,030 acres under both canal systems. Post - September 2013 flooding, the river deposited silt extensively at the existing diversion dam in the river, embedding the structure in a sand bar (see post -flood aerial photo on Figure 1). In conjunction with this siltation, a new channel was cut through the historic island, cutting off flow