BOARD00658

• Board Meeting Date: 1/22/2003
• Description: CF Section - South Side Irrigation Company
• Board Meetings - Doc Type: Memo

Soulh Side Irrlgallon Company
January 22-23, 2003

Agenda Item 19d '

Water Rlahts
The SSIC has rights to divert 56.29 cfs from the Big Thompson River with decree dates of 1883 e
and 1914. Average annual diversions are 1,590 acre-feet.

Project DescrlDtJon
Two alternatives were analyzed in the feasibility study:

1) The no-action alternative.

2) Rehabilitate the ditch ($80,000.)

The" no-action alternative" is not acceptable since it means the Company will not be able to
deliver its full water right to the shareholders. Alternative #2, "Rehabilitate the ditch ($80,000)" is
the preferred alternative since it guarantees full d$livery of water to the shareholders.

Selected Alternative 2 consists of the following: '
Replace hydraulic control structures and check structures. Reline sections of the ditch where
the existing lining has failed, clear the ditch right-of-way, and clean the ditch to recover lost
carrying capacity.

The implementation schedule calls for completion' of financing arrangements and final design in
Winter-Spring 2003. Construction will be completed in Fall 2003.

Financial Analvsis ..
The total estimated cost of the project is $80,000 'and 74% of the shares in the SSIC are owned -
by farmers/ranchers who use the water for agricultural purposes, The CWCB agricultural loan
rate would apply to these shareholders. The remaining 26% of the shares are owned by the
City of Loveland, which has a Median Household :Income close to the statewide average, The
CWCB Municipal Average Income loan rate would apply to these shares. The blended rate for
a loan to the SSIC is calculated as follows: .

I
Table 1: SSIC Share Ownership and Blended Interest Rate

Shareholder
Farmers/Ranchers
Loveland, City

Totals .

Year 2002 Rate
2.75%
4.25%;

Ok Shares
74
26

Rate x %Shares
2.035
1,105

100

3,14

Blended rate for SSDC

3.1%
(Rounded down to
nearest .1 %

Table 2 is a summary of the financial aspects of the project with a $72,000 CWCS Loan. The
annual payment would be $4,093 (including the 10% reserve requirement) at the loan terms of
3.1 % for 30 years. This represents $2.57 per ac~e-foot, based on average annual diversions of
1,590 acre-feet. '

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