BOARD00981

• Board Meeting Date: 9/22/2003
• Description: CF Section - Rio Grande and Piedra Ditch Company
• Board Meetings - Doc Type: Memo

Rio Grande and Piedra Valley Ditch Co.
September 22-23, 2003

Agenda Item Sa;

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Water Riahts _
The source of water for the Company is direct flow water rights out of the Rio Grande River. _
Water diverted at the Rio Grande and Piedra Valley headgate consists of 11 rights with dates of
appropriation ranging from 1877 to 1901 and totaling 94.48 cfs. Records of the State
Engineer's Office indicate that total average annualidiversions are 17,381 acre-feet, based on
record years 1950 through 2002, and that the maximum diversion rate was 123.0 cfs for the
record year 1987.

Prolect DescriDtion
The following alternatives were evaluated:
1. The no-action alternative.
2. Reconstruct the check structures using concrete only ($103,333).
3. Reconstruct the check structures using steel sheet piling and concrete ($69,333).

Alternative No. 1 was considered unacceptable since It means the Company could not deliver
water to its shareholders.
Alternative No. 2 was ruled out due to cost.
Alternative No.3 was selected since it is considere~ to be the least costly reliable approach.

The selected alternative, Alternative No.3, involves construction of a combination steel sheet
piling and concrete check structure. The structures will have steel walls and cutoffs, sheet metal
piling wing walls and a reinforced concrete floor. The old wooden structures will be removed as
part of the cost of this alternative. Site preparation -and dressing the site after construction are
also included in the cost of this alternative. The NRCS has prepared engineering designs and
cost estimates for the project '

The implementation schedule calls for completion df financing arrangements in September
2003. The NRCS completed the final design in mid~August 2003. Construction is expected to
begin in September 2003 and to be completed by ~ovember 2003.

Financial Analvsis .
The total estimated cost of the project is $69,333 and the Company has requested a Small
Project Loan of $52,000 for 30 years. The RGPVOC serves agricultural users and the standard
CWCS agricultural loan rate of 2.5% would apply. I
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Table 1 is a summary of the financial aspects of th$ project. Annual assessments would
increase from $95 up to $108 per share with a cwes loan payment of $2,732 (including the
10% reserve requirement.) This $13 assessment increase represents only $0.16 per acre-foot,
based on average annual diversions of 17,381 acre-feet.

Table 1. Financial Summa

Pro' ect Cost
Loan Amount ;
CWCS Loan Pa ment Amount, includin 10% loan: reserve
Number of Shareholders
Number of Shares of Stock
Current Assessment er Share
Future Assessment er Share
Annual Loan Cost per acre-foot
Avera e annual diversions: 17,381 acre-feet

$69 333
$52,000
$2,732
31
204.32
$95
$108
$0.16

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