BOARD00239

• Board Meeting Date: 1/25/2005
• Description: CF Section - New Loans - Dolores Water Conservancy District - WETPACK II
• Board Meetings - Doc Type: Memo

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Dolores Water Conservancy District - WETPACK II
January 25-26, 2004

Agenda Item 20a

252 acres of land along the Dove Creek Canal (areas that can be irrigated easily without significant .
project cost.) Two WETPACK" irrigation alternatives were considered for completing construction
for the remaining Pleasant View East and Yellow Jacket East areas:

1. Use Existing Loan to the Extent Possible ($2,931 ,200 CWCS loan)
2. Close Out Existing Loan and Obtain New Loan ($3,323,180 CWCS loan)

Alternative 1, Use Existing Loan to the Extent Possible - This alternatiye would provide the
remaining facilities necessary to irrigate approximately 1,800 to 1900 acres in the Yellow Jacket
East and Pleasant View East areas, using approximately 3,600 to 3,800 acre-feet of the MVIC
Class 8 Shares, with an estimated construction cost of $3,258,000. The CWCS Joan amount is for
90% of the construction cost or $2,931,200. This is the remaining amount of the existing loan.

Alternative 2, Close Out Existing Loan and Obtain New Loan - This alternative would proYide
the remaining facilities necessary to irrigate approximately 2,200 acres Yellow Jacket East and
Pleasant View East areas, using approximately 4,400 acre-feet of the MVIC Class S Shares,
with an estimated construction cost of $3,692,000. The requested CWCS loan is for 90% of the
construction cost or $3,323,180.

Table 1 compares the irrigated acreage of each alternative, as well as the MVIC water used.

Alternative 1 - Existing Loan Alternative 2 - New Loan
Area to be Served Irrigated Area Water Usage Irrigated Area Water Usage
(acres) (acre-feet) (acres) (acre-feet)
Lands Along Canal 252 500 . 252 500
Sandstone West 440 880 /440 880
Pleasant View East 1800 to 3600 to 1189 2378
Yellow Jacket East 1900 3800 1011 2022
Totals 2492 to 2592 4984 to 5180 2892 5,780

Table 1. Loan Alternatives Comparison

.

Selected Alternative 2, Close Out Existing Loan and Obtain New Loan, was chosen as this
would maximize irrigated acreage, within the financial capability of DWCD. The entire Yellow
Jacket East and Pleasant View East irrigation facilities could not be constructed with the original
contract loan amount. The construction cost would haye to be reduced by $434,000 to meet the
original contract loan amount. Approximately 300 to 400 acres would be deleted from the project,
allowing only 1,800 to 1,900 acres rather than 2,200 acres. Also, the available MVIC water supply
would not be fully utilized. The recommended plan allows a total construction cost of $3,692,000
and a loan of $3,323,180, sufficient to construct facilities to serve the remaining 2,200 acres needed
to fully utilize the purchased MVIC Class B shares. The water supply of 5,780 acre-feet per year is
slightly less than the 6,000 acre-feet ayailable, allowing a small amount of additional storage
carryover each year or water for the water bank.

The project involyes constructing a system of pipelines, pumps and related facilities to deliyer water .
through District's Dove Creek Canal System for the irrigation of lands that are presently dry land
farmed. Water will be delivered in pipes under pressure for sprinkler irrigation only. The primary

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