C150394 Approval Letter

• Contract/PO #: CT2015-132
• Contract/PO #: C150394
• Contractor Name: Farmers Pawnee Canal Company, The
• Contract Type: Loan
• County: Logan
• Loan Projects - Doc Type: Approval Letter

Farmers Pawnee Canal Company Agenda Item 34a
May 9,2014(Updated May 23,2014)
Page 2 of 4
Background
The Company, located in Logan County,provides irrigation water to a 10,000 acre service area.
The service area extends from one mile south of Merino to four miles north of Sterling along the
west side of the South Platte River.
The Company's diversion structure is 218-foot long rollover diversion dam that spans the width of
the river. Adjacent to the dam is the Company's 40-foot canal headgate structure. Both structures
were originally built in 1926. In 1998, repairs and improvements were completed including the
addition of sheet piling on the upstream and downstream sides of the dam.
After the September 2013 flood,the river began to undermine the structures. Attempts to repair the
structures with additional steel sheet piling and concrete were not successful and the undermining
worsened. The Company intends to rebuild the diversion dam and canal headgate. Replacement of
the diversion dam provides the Company with an opportunity to utilize an improved design and
alleviate an ongoing maintenance issue of sand accumulation within the canal.
Loan Feasibility Study
John Gauthiere, P.E. of Gauthiere Engineering, Inc. in Greeley, Colorado prepared the Loan
Feasibility Study, titled"Feasibility Study for the Farmers Pawnee Canal Company Diversion
Structure Replacement Project," dated March 15, 2014. The Study was prepared in accordance
with CWCB guidelines and includes preliminary engineering and an engineer's estimate of
probable cost that were used in determination of the total Project cost.
Farmers Pawnee Canal Company
The Company is a non-profit ditch company incorporated in 1898. There are 102 shareholders and
500 shares of stock. The Company is managed by a six-member board of directors. The board has
the authority to set annual assessments to be paid by the shareholders,to take on debt, and the
power to offer shareholders' stock for sale to pay assessments that remain delinquent.
Water Rights
The Company has absolute rights to divert up to 305.4 cfs for irrigation and augmentation use from
the South Platte River under decrees dated from 1873 to 1995. It also has a 1994 conditional decree
for 75 cfs. Average annual diversions are 27,956 acre feet.
Project Description
The purpose of this Project is repair the river diversion structure and canal headgate so the
Company can continue delivering water to its shareholders. Three alternatives were considered.
Alternative No. 1 —No-action: This option was considered unacceptable because the existing
diversion dam is no longer dependable and complete failure of the structure would result in the loss
of irrigated acreage.
Alternative No. 2—Reconstruction of the diversion dam with a concrete weir: This alternative
evaluated reconstructing the diversion dam with a concrete weir with board slots and improving the
canal headgate with a bladder gate. The estimated cost was $1,852,600. This alternative was
dismissed because it did not address the large accumulation of sand upstream of the dam and did
not provide the efficiency and safety of the operation of Alternative 3.