BOARD02452

• Board Meeting Date: 5/22/2000
• Description: CF Section - Plumb and Dailey Ditch Company
• Board Meetings - Doc Type: Memo

,

'.

Plumb and Dailey Ditch Co.
May 22-23. 2000

Agenda Item 12a.

~;

shareholders that fail to pay their assessments, and the power to offer stock for sale to pay
back assessments.

t

Water RiQhts
The water rights diverted at the PDDC headgate consist of direct flow rights in total amount of
30.44 cfs, adjudicated in 1882. Average annual diversions were 2,278 acre-feet for a period of
record 1950 through 1998, according to records of the State Engineer's Office.

Proiect Description
Three alternatives were analyzed in the feasibility study:

1. The no-action alternative.
2. Rehabilitation of the diversion only.
3. Rehabilitation of the diversion and the head gate structure.

Alternative 3, rehabilitate the diversion and the headgate structure, was ruled out because of
the additional cost, and because the headgate is in generally good condition. For this reason
Alternative 2 was selected, since it is considered to be the least costly reliable approach. The
no-action alternative was considered unacceptable since it means the PDDC could not deliver
water to its shareholders.

Selected Alternative 2 involves construction of a 225 cubic-yard grouted rock riprap diversion
dam, and rebuilding the 48-foot steel check structure.

The implementation schedule calls for completion of financing arrangements in spring 2000. .-=-'
The PDDC has approved the project by formal resolution of its shareholders. Engineering
design has been completed by the NRCS and construction is scheduled to be completed in fall
2000.

Financial Analvsis
The total estimated cost of the project is $ 46,620, and the water is used by the shareholders
for agricultural purposes. Staff is recommending a 20-year loan from the Small Project Account
in amount of $42;000 (90 percent of the estimated cost.) CWCS policy allows for 90% loans to
agricultural and municipal low income borrowers (policy set at the November 24-25, 1997
CWCS meeting.) Agriculture has not been a participant in the recent economic boom.

Alternative financing sources: The Company actively sought alternative financing. They were
able to obtain a grant to cover project planning and design through the NRCS ($4,620), but
were not able to obtain cost share for construction through that agency. The PDDC also
requested a loan from their bank (First National Sank of Longmont), but were turned down
because the bank does not provide long-term fixed rate financing, and because of the lack of
marketable collateral.

Table 1 is a summary of the financial aspects of the project. Annual assessments of $83.12 will
be needed to repay a CWCS Emergency Loan of $42,000. (The annual payment plus 10%
reserve requirement is $3,325.) This represents $1.46 per acre-foot, based on average annual
diversions of 2,278 acre-feet.

.'

2