BOARD01618

• Board Meeting Date: 7/23/2001
• Description: CF Section - Cedar Mesa Ditch and Reservoir Company
• Board Meetings - Doc Type: Memo

Cedar Mesa Ditch and Reservoir Company
July 23-24, 2001

Agenda item 9b.

Water Riahts
The source of water for the CMDRC is twD storage rights as listed in Table 1:

Table 1: Water Rights for the Cedar Mesa Reservoir

Filing Date Adjudicated Priority Acre Feet
12/1/1896 1907 21 . 133
8/711939 1954 J-242 770
Total 903 Acre Feet

The reservoir usually fills every year, according to State. Engineer Records.

Proiect Description
Three alternatives were analyzed in the feasibility studX:

1. The no-action alternative.
2. Construct a support berm along the toe of the main dam, incorporating a chimney drain
constructed with geosynthetic, ($ 95,309)
3. Construct a support berm along the toe of the main dam, incorporating a chimney drain
constructed with C-33 concrete sand. ($131,667)

Alternative 2, Construct a support berm incorporating geosynthetic ($95K), was ruled out
because the State Engineer's Office disapproved the design, Alternative 3, Construct a support
berm incorporating C-33 concrete sand ($132K), was the preferred alternative, since it was the
least cost design acceptable to the State Engineer. The no-action alternative was considered
unacceptable since the reservoir would remain restricted and the CMDRC could not store water
for delivery to its shareholders.

Selected Alternative 3 involves construction of a suppprt berm of compacted soil along the
lower portion of the main embankment. A chimney dr$in and toe drain will be incorporated in
the berm to control seepage and allow it to exit and be monitored.

The implementation schedule calls for completion of financing arrangements and final
engineering design in summer 2001, Construction will be completed in fall 2001.

Financial Analvsis
The total estimated cost of the project is $131,667, ahd the water is used by the shareholders
for agricultural purposes. Staff is recommending a lo~n from the Small Project Account in
maximum amount of $100,000 (about 76% of estimated project cost.) The loan terms would be
the standard CWCB agricultural rates (30 years at 3!5%, 20 years at 3.25%, or 10 years at 3%)
at the borrower's option.

.

e

e

Alternative financing sources: The Company actively sought alternative financing, They were
able to obtain a $6,000 grant from the Colorado Rivt;lr Water Conservation District, and two
additional loans totaling $16,500 to help cover engil'1eering, piezometer installation. and soils
analysis for the project. The CWCS will provide a gr,l;mt to pay Yo the cost of the Feasibility
Study and initial planning, up to a maximum of $5,090. The Company also requested a loan A
from their local bank (The Surface Creek Bank.) The terms offered were 8.35% with a 5-year _

2