BOARD01346

• Board Meeting Date: 3/21/2002
• Description: CF Section - Upper Platte and Beaver Canal Company Emergency Loan Request
• Board Meetings - Doc Type: Memo

Upper Platte and Beaver Canal Company
March 21-22, 2002

Agenda Item 10.

Feasibilitv Studies
Jack Odor, P,E" of Fort Morgan has drafted the feasi~i1ity study using information provided by the .
UPBCC, The study includes an assessment of alt~rnatives available for rehabilitation of the
UPBCC diversion structure. The study is scheduled fo~ completion in April 2002,

The Upper Platte and Beaver Canal Company
The UPBCC is a mutual ditch company and a non-profit corporation registered in the State of
Colorado. There are 100 shareholders and 1187 shares of stock, The UPBCC has the power to
set annual assessments to be paid by the shareholders, the power to cut off water deliveries to
shareholders that fail to pay their assessments, and the power to acquire and sell the shares of
delinquent shareholders.

Water Riahts
The UPBCC has a 234 cfs direct flow right out of the South Platte River consisting of a 20 cfs
right (1868/1869), a 50 cfs right (1882), and a 164 cfs right (1888). Diversions have averaged
30,000 acre-feet per year.

Project Description
Three alternatives were analyzed in the feasibility study:

1, Construct a new diversion ($350K),
2, Rehabilitate the foundation area below the existing diversion ($95K).
3. The no-action alternative,

Alternative 1, Construct a new diversion ($350K), was ruled out due to cost, and because
surviving portions of the existing diversion are in serviceable condition, Alternative 2, .
Rehabilitate the foundation area below the existing diversion ($95K), was the preferred
alternative, since it was the least overall cost that would allow continued diversion of the
Company's water rights, The no-action alternative was considered unacceptable since it leaves
the diversion subject to failure so that the UPBCC could not deliver water to its shareholders.

Selected Alternative 1 involves forming and pouring a reinforced concrete foundation under and
behind the existing diversion structure, Steel pipe piling will first be driven into shale on 8-foot
centers, and steel sheet piling will be installed arou[ld the perimeter of the structure, Two levels
of reinforcing will be installed, with bars on one-fool centers. This repair work will be tied to the
existing diversion, such that concrete can also be poured under the floor of the old diversion,
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The impiementation schedule calls for completion qJf financing arrangements and final
engineering design in March 2002. Construction will also be completed in March 2002,

Financial Analvsis
The total estimated cost of the project is $95,000, and the water is used by the shareholders for
agricultural purposes, The Company has requested a 10-year Emergency loan in maximum
amount of $83,000 (approximately 90% of estimat$d project cost.) Staff is recommending a
CWCB grant of up to $2,500 to pay for half the co$t of the feasibility study,

Alternative financing sources: The Company activeiy sought alternative financing. They were
not able to obtain a grant from the NRCS to cover project planning and design. They requested
a loan from their iocal bank (First Security of Brush) but the bank does not provide long-term .
fixed rate financing for agricultural projects.

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