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West Reservoir and Ditch Company Agenda Item 27e <br /> November 19-20,2014 Board Meeting(Updated November 21, 2014) <br /> Page 2 of 4 <br /> Background/Purpose of Project <br /> West Reservoir and Ditch Company was originally founded for the purposes of the construction of West <br /> Reservoir No. 1 and the Wakefield Ditch in 1905. Those structures were designed to convey irrigation <br /> water from branches of Jay Creek, eastward across Oak Mesa for delivery to the Basin and Wakefield <br /> Mesa near Paonia. The water is used as stock water as the ditch runs east across 1,100 acres of private <br /> land, then onto 600 acres of BLM grazing lease. From there it is used to irrigate three ranches' hay <br /> fields and pastures. Return flows enter Roatcap Creek, augmenting irrigation water for the Overland <br /> Ditch and the Fire Mountain Canal. <br /> The West Reservoir was improved in the 1950s, but is now in need of repair. As a result of an annual <br /> inspection of West Reservoir by the Dam Safety Branch of the State Engineer's Office (SEO) and video <br /> inspection of the dam outlet pipe in May of 2103, the SEO delivered a "no fill" storage restriction order <br /> for the reservoir. The SEO determined that the existing deteriorated outlet pipe is not a candidate for <br /> rehabilitation using cast-in-place pipe lining or traditional grouted in-place slip-lining because of the <br /> condition of the existing pipe, the change in grade, and a gap in the pipe located about 36 feet from <br /> the downstream end. In a June 2013 letter the SEO requested a design for replacement of the outlet <br /> pipe be developed. The reservoir was subsequently drained by the use of pumps rather than the <br /> existing outlet pipe. <br /> Loan Feasibility Study <br /> Nick Hughes, President of the Company, with assistance from Doug Neighbors, P.E. of RJH Consultants, <br /> Inc., prepared a Loan Feasibility Study titled "West Reservoir and Ditch Outlet Repair Project", dated <br /> September 2014. The Study was prepared in accordance with CWCB guidelines and includes <br /> preliminary engineering and the engineers' estimate of probable costs. <br /> Borrower -West Reservoir and Ditch Company <br /> West Reservoir and Ditch Company is a non-profit mutual ditch company founded in 1908. The <br /> Company, in good standing with the Secretary of State, comprises three shareholders, who respectively <br /> own 969, 396, and 96 shares of the Company's total 1,200 shares. The Company's only source of <br /> revenue comes from shareholder assessments. Per the Company's bylaws, Company stock can be <br /> assessed for "construction, operation, maintenance, repairs, and betterment of the system". <br /> Assessments are set annually at the shareholders' meeting, based upon Company projections of <br /> expenses for each coming year. <br /> Water Rights <br /> West Reservoir is an off-stream reservoir, collecting run-off water from the mountains surrounding the <br /> Jay Creek drainage and the Roatcap Creek drainage. Company water rights include 454 acre feet of <br /> storage rights, and 55.3 CFS of surface water rights to meet the storage right. The 454 acre feet <br /> storage has an appropriation date of 1905. <br /> TABLE 1: IMPACTED WATER RIGHTS <br /> Name Amount Appropriation Adjudication Water Court <br /> Date Date Case No. <br /> WEST RESERVOIR 454.5 AF 1905-10-19 1914-06-23 CA0617• <br /> WEST RES SUPPLY D EXT 36 CFS 1950-10-03 1954-03-20 CA3503 <br /> WEST RES SUP D EX NO 2 19.3 CFS 1950-10-01 1964-01-31 CA4808 <br /> The average annual diversions of the Company are 604 AF. <br /> Project Description <br /> Two alternatives were considered for this project: <br /> Alternative 1 - No action: The no-action alternative is considered unacceptable to the <br /> Company, as they are presently without the ability to store water. <br />