CT2015-142 Approval letter

• Contract/PO #: CT2015-142
• Contractor Name: Supply Irrigating Ditch Company
• Contract Type: Loan
• Loan Projects - Doc Type: Approval Letter

Supply Irrigating Ditch Company Agenda Item 27b
November 19-20,2014 Board Meeting(Updated November 21,2014)
Page 3 of 4
Project Description
The goal of this Project is to restore full water right diversions by performing permanent repairs to the
flood damaged ditch system.
Alternative 1 - Do Nothing: This alternative was considered unacceptable. The temporary diversion
structure does not provide a reliable means to divert the Company's water right. Failure to bring the
ditch into a reliable operating condition could prevent the diversions of the Company's water rights,
leading to the abandonment of the water rights and the ditch.
Alternative 2 - Rebuilding Collaboratively: The Company has been in discussions with the Town of
Lyons, City of Longmont, Boulder County Wildlife and Environment, and the St. Vrain and Left Hand
Water Conservancy District, for the possibility of a collaborative project that incorporates a multi-
objective design into the Project. To date, these discussions have not yielded a project concept.
Future discussions are planned but in order to move the loan funding forward, the Company is pursuing
funding based on Alternative 3. CWCB encourages a collaborative and multi-objective approach. If
needed, loan funds may be used to pursue this option further, up to the approved loan amount.
Selected Alternative 3 -Reconstruct to Pre-Flood Conditions: This alternative will reconstruct the
damaged diversion dam in the same location, size, and for the same function as the pre-flood
structure. The structure itself will be improved by incorporating a hydraulic cutoff and energy
dissipation to provide additional protection from future flood events, and will be changed from a
concrete dam to a grouted boulder dam. Repair of the ditch bank at the tunnel will require removal of
the temporary fill, subgrade preparation, and the import and placement of suitable fill material. CDOT
has removed a significant amount of sedimentation from the culverts crossing Highway 66 but some
additional sediment removal is anticipated.
During the Project assessment phase, the Company determined the existing flume has deteriorated to
the point where continued accurate operation is in jeopardy. Though the flood may have contributed
to its current condition, the flume will be replaced separately from FEMA funding as the Company
believes FEMA will classify this work to be "deferred maintenance" and not an eligible expense.
The total Project cost is estimated to be $321,000 as shown in Table 2.
TABLE 2: Construction Cost
Task Cost
Engineering and Permitting $37,000
Construction - Ditch Repairs $56,000
Construction - Diversion Dam Repairs $127,000
Construction - Flume Replacement $35,000
Contingency (30% of Construction) $66,000
Total $321,000
Schedule: The Company is currently selecting an engineer to provide final design using FEMA's
procurement procedures. Construction is expected to begin late fall or winter of 2014/2015 and be
completed prior to the 2015 irrigation season.
Federal (FEMA) Funding: Through the Project Worksheet, dated January 7, 2014, FEMA has
determined that costs associated with the diversion dam and headgate structures are 100% eligible and
that cost associated with down ditch repairs are 15.56% eligible. Costs associated with cleaning the box
culverts and replacing the flume are not eligible for reimbursement. FEMA provides reimbursement at a
rate of 75% of eligible cost after a final accounting of actual construction costs.
Financial Analysis
Table 3 provides a summary of the Project's financial aspects. The first three years of the loan will be
assessed a 0% interest rate. The remaining term of the loan will be assessed a blended interest rate of