BOARD01619

• Board Meeting Date: 5/19/2003
• Description: CF Section - New Loans - Pine River-Bayfiled Ditch Company - Siphon Replacement Project
• Board Meetings - Doc Type: Memo

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Pine River - Bayfleld Ditch Company
May 19-202003

Agenda Item 18c

concerns. First, is the unknown condition of the existing siphon to allow the sleeving process to be
successfully accomplished. Second, is the cost associated with the required excavation and
unforeseen problems associated with this alternative which cannot be determined until actual
construction begins. Third, designing the system to allow for the approximate 37 cfs could be
difficult, especially if a section of smaller diameter pipe is required to by-pass some obstruction(s) in
the existing siphon, One advantage to the slip lining would be to eliminate some of the unknown
problems associated with excavation of boggy soils if the siphon is replaced,

Alternative 3, Replacement of the siphon with a new 30" PVC pipe ($267,000) - Under this
alternative, the existing siphon would be replaced by a new 30-inch PVC pipe, designed to carry 37
cfs.

Selected Alternative 3, Replacement of the siphon with a new 30" PVC pipe, was chosen as
the preferred alternative and the most reliable long-term solution. The new siphon will be capable
of delivering 37 cfs to the PRBDC system, Replacement of the siphon will require excavation of a
trench to a depth of approximately six feet. The trench will then be bedded with 6 inches of three-
quarter inch minus washed granular material, and twenty-foot jOints of a 30-inch diameter PVC pipe
installed in the trench. The sides and top of the pipe would be covered with three-quarter inch
washed granular material for six inches before backfilling with native material. Several trench
location and alignment options will be further evaluated in the design process to address some
concerns about boggy soils/saturated soils, The Durango Office of the Natural Resources
Conservation Service (NRCS) is preparing engineering designs and cost estimates for the project.

Total Project cost is estimated to be:

1 , Construction Cost (incL contingency)
2. Engineering Fees

TOTAL

$217,000
50.000
$267,000

(NRCS in-kind)

The implementation schedule calls for completion of financing arrangements and final engineering
design in June-July 2003. Construction will take place in September to November 2003, Itis
anticipated that a Corps of Engineers 404 permit will be required for the creek crossing, This is in
process and no permitting delays are anticipated. Right-of-way for the ditch is prescriptive, but the
three affected property owners are cooperating with PRBDC and no right-of-way issues are
expected.

Financial Analvsis

The total estimated cost of the project is $267,000, and PRBDC water is used exclusively for
agricultural purposes. Staff is recommending a 30-year maximum amount of $200,000
(approximately 75% of estimated project cost) for 30 years at an interest rate of 2,75%.
PRBDC has sufficient cash assets budgeted to cover its $17,000 share of the project.

Alternative financing sources: The PRBDC investi9ated alternative financing sources. They have
obtained an in-kind grant from the NRCS for engineering design and construction inspection. The
PRBDC attempted to obtain other gr<;lnts, but found the current economic situation had either
eliminated or severely decreased available grant funding.

Table 1 is a summary of the financial aspects of the project. A CWCB Small Project Loan of
$200,000 would have an annual payment of $1 0,865 (including the 10% reserve requirement) at the
loan terms of 2.75% for 30 years. This represents an annual loan cost of $1.22 per acre-foot,
based on an average annual delivery of 8,866 acre-feet. The CWCB loan will be repaid from

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