BOARD01274

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

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South Side Reservoir Company
January 22-23, 2003

Agenda.llem 1ge

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Water Riahts
The SSRC holds 2 storage decrees for the South Side Reservoir totaling 654 acre-feet, dated
1916 and 1939. The Company also holds 2 storage decrees allowing a refill of the reservoir,
totaling an additional 654 acre-feet.

Proiect Description
Three alternatives were analyzed in the feasibility study:

1) The no-action alternative.

2) Repair the existing outlet system ($200,000.)
3) Replace the outlet, and modify the spillway to pass the design storm ($400,000.)

The "no-action alternative" is not acceptable since it could lead to a more severe restriction and
the requirement to breach or abandon the dam at considerable cost to the Company.
Alternative #2, "Repair the existing outlet system ($200,OOO)"is a partial solution that does not
guarantee full storage in the reservoir because it does not address the spillway safety issue,
and because lining of the outlet may not be a suitable repair. Alternative #3 "Replace the outlet,
and modify the spillway to pass the design storm ($400,000)"is the preferred alternative since it
guarantees full use of the reservoir.

Selected Alternative 3 consists of the following:

. Remove and replace the existing 16" steel outlet, requiring a breach of the dam. This e
would also include the relocation of the control gate out of the public roadway to the
intake end of the outlet pipe. Also included would be replacement of the gravel surfaced
county road. ($350,000)

. Perform a thorough investigation of the lack of spillway freeboard to determine whether
the channel has been filled in, or the dam crest has been lowered by road grading
maintenance activities over the years. Re-establish the dam crest and the spillway to
original elevations and address spillway erosion issues. ($50,000)

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

Financial Analvsis
The total estimated cost of the project is $400,000 and 74% of the shares in the SSRC are
owned by farmerslranchers 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 SSRC is calculated as follows:

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