BOARD00323

• Board Meeting Date: 5/21/2001
• Description: CF Section - Tilton Lateral, Inc.
• Board Meetings - Doc Type: Memo

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Tilton Laterellno, Agenda Item 7a,
Mey 21-22, 2001
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Water Rights
The source of water for the TLlls 230 shares of Grahd Valley Irrigation Company water from .
the Mainline Canal. This amounts to 2.36 CFS (one share Is 4.675 gallons per minute), and
averages about 960 acre.feet per year.
Prolect Djlscrlption
Three alternatives were analyzed In the feasibility st~dY:
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1. The no-action alternative. i
2. Continue to make repairs as needed.
3. Install a new piped irrigation system,
Alternative 2, Continue to make repairs as needed, was ruled out because of the Increasingly
high cost of maintenance and because it would not allow full use of the existing water rights.
Alternative 3, Install a new piped irrigation system, was the preferred alternative, since It has
the least overall cost and would allow full use of wat~r rights. The no-aotlon alternative was
considered unacceptable since it means TLI could ~ot prOVide water delivery to Its
shareholders. :
Selected Alternative 3 involves construction of a new concrete inlet structure at the UP Railroad
crossing which will establish a head level from which a pressurized piped network will extend
out the 2 main delivery branches. ApprOXimately 2500 feet of old low head pipe and 10,000 feet
of cracked and leaking cament ditch will be replacecj with new high-head underground Irrigation
pipe. Taps will be provided off the new pipeline to d~liver water to the shareholders.
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The Implementation schedule calls for completion of financing arrangements and final NRCS .
engineering design in summer 2001. Construction will be completed In fall 2001.
Financial Analvsls
The total estimated cost of the project is $153.700, and the water is used by the shareholders
for agricultural purposes. Staff is recommending a 30.year loan from the Small Project Account
In maximum amount of $100,000 (approximately 65:% of estimated project cost.)
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Altematlve financing sources: The Company actively sought alternative financing. They were
able to obtain a grant to cover project planning and idesign (approximate value $8,700), and a
grant to cover a portion of the construction cost ($49.000) from the NRCS under the Salinity
program. TLI also requested a loan from three local banks (Vectra Bank, The Bank of Grand
Junction, and Mesa National Bank) but was turned /:lown because the banks do not provide
long-term fixed rate financing for agricultural prOjecis. Table 1 is a summary offinanclng for the
project: 'i
Table 1: Project Fur/ding Sources
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Fundina Source , Grant Loan
NRCS Plannlna and Desian $8.700
NRCS Construction Cost Share $45.000
cwes Loan i $100,000
Total {$1 53. 700"\ ; $53.700 $100,000
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("TL.I will cover any costs exceeding the estimated ~roject cost.)
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