BOARD00142

• Board Meeting Date: 11/19/2001
• Description: CF Section - Silver Springs Trout Farm/Sherwood Trust
• Board Meetings - Doc Type: Memo

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STATE OF COLORl\DO

Q

Colorado Water Conservation Board
Department of Natural Resources
1313 Sherman Street, Room 721 , M E M 0 RAN DUM
Denver( Colorado 80Z03
Phone: [phone]
FAX: [phone]
www.cwcb.state.co.U5
TO: Colorado Water Conservation Board Members

BitlOwer.s
Governor
Greg E. Walcher
Executive Director
Rod Kuharich
eWeB Director
Dan McAuliffe
Deputy Director

FROM:

John Van Sciver, P.E. -fit' v5
Mike Serlet, P.E., Chief '
Water Supply Planning Finance Section.

DATE: November 1, 2001

SUBJECT: Agenda Item 22a., November 19-20, 2001 Board Meeting
Silver Springs Trout Farm I Sherwood Trust

Introduction
The Silver Springs Trout Farm I Sherwood Trust (SSTF I ST) is applying for a $365,000
Construction Fund loan to rehabilitate the Silver Springs Trout Farm and to refinance existing debt
associated with rehabilitation work already completed. The total cost of the project is $408,000.
This is the first request for as CWCS loan to rehabilitate a fish hatchery and eliminate whirling
disease in accordance with HB 01-1024 (Concerning Financial Incentives for Commercial Fish
Hatcheries that test Positive for Whirling Disease.) Please see the attached project summary and
map.

Backaround
The SSTF I ST, located in Mesa County, operates the Silver Springs Trout Farm Fish Hatchery, a
commercial fish operation. The hatchery is located about 3 miles west of Montrose on Mexican
Gulch, a tributary to the Uncompahgre River, which is a tributary to the Gunnison River. The
hatchery, originally constructed in the early 1960s, was rehabilitated in 1998 and has been
certified negative for whirling disease.

The Sherwoods purchased the hatchery in late 1996 to run as a business. Soon after the
purchase the hatchery tested positive for whirling disease, and the Sherwoods hired Fish Pro and
Chimney Rock Engineering to design improvements. Existing earth fish rearing ponds were
replaced with concrete raceways and the hatchery water supply was protected from
contamination. Other work included all new plumbing in the hatchery and upgrades to the
fingerling raceways to secure them from exposure to whirling disease. The hatchery was certified
negative for whirling disease in June 1999 and has operated such since then.

Total rehabilitation costs to date of $350,357, has been financed through a private loan at 8% with
balloon payment due in 2009. The SSTF I ST still needs to rehabilitate the source water collection
system and install a predator control system to keep wild birds from eating fish from the raceways.
This latter work is scheduled for winter-spring 2001-2002.

Feasibilitv Studies
Gregory S. Hicks, P.E., of Chimney Rock Engineering completed plans and specifications for the
project. Those plans were independently evaluated by Ed Frazar and Norm Erthal of the Colorado
Division of Wildlife and found to be adequate in terms of constructability and maintenance
required to avoid the recurrence of whirling disease. The feasibility study was completed by John

Flood Protection. Water Project Planning and Financing _ Stream and lake Protection
Water Supply Protection _ Conservation Planning