BOARD02057

• Board Meeting Date: 1/22/2003
• Description: CF Section - G.M.S. Land and Cattle Company
• Board Meetings - Doc Type: Memo

G,M,S, Land and Cattle Company
January 22-23, 2003

Agenda Item 199 .

Water Riahts A
The GMSLCC holds a water right to fill the Giffin #1 and #2 reservoirs with a decree date of _
1970 and an appropriation date of 1948, The wate~ right Is from Lone Tree Creek to store a
total of 139.3 acre-feet, with a refill right (dated 1965,) In normal years the reservoirs can be
filled and refilled as allowed by these decrees,

ProJect DescriDtlon
Three alternatives were analyzed in the feasibility study:

1) The no-action alternative,

2) Rehabilitate the dams ($85,000)
3) Rehabilitate the dams and dredge out the reservoirs ($223,000)

The "no-action alternative"is not acceptable sinceiit means the reservoirs will nDt be able to
store the full decreed water rights. Alternative #2, i'Rehabilitate the dams ($85,000)"would
ensure the dams meet State Engineer safety requirements, but reservoir capacity would remain
inadequate, Alternative #3, "Rehabilitate the damS. and dredge out the reservoirs ($223,000)" is
the preferred alternative since it provides for full storage of water rights, while meeting safety
requirements for the dams. .

Selected Alternative 3 consists of the following: .
Excavate and backfill the upstream slope of each dam, then place bedding material and rock A
riprap, Any trees will also be removed, and the voids backfilled with compacted material. A total _
of 105,000 cubic yards of sediment will be excavated from the reservoirs.

The implementation schedule calls for completion: of financing arrangements and final design in
January 2003. Construction would be completed l!ly March 2003,

Financial Analvsis
Thelotal estimated cost of the project Is $223,000 and the borrower is a farming/ranching
corporation that intends to use the water for agricpltural purposes. The CWCS agricultural
lending rate would apply to this borrower, GMSL~C has requested a $200,000 loan at 2,75% for
30 years. This loan would represent about 90% of the total project cost.

Table 1 is a summary of the financial aspects of (he project with a $200,000 CWCS Loan. The
annual payment would be $10,865 (including the:1 0% reserve requirement) at the loan terms of
2,75% for 30 years, This represents $39 per acre-foot, based on total reservoir storage capacity
(including refill) of 279 acre-feet.

Table 1. Financial Summa

$223,000
$200 000
$10,865
$39

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