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I I I I I I I I I I I I I I I I I I I Agenda Item lOa. (Updated March 21, 1997) March 20, 1997 2 The plan is to place the Cotton Creek Airline in a concrete ditch. Preliminary engineering design work as well as a draft feasibility study have been completed by Laurie Sedlak and Ron Gilbertson of the NRCS Alamosa Office. (Portions of the draft Feasibility Study are attached.) DISCUSSION The project involves rehabilitation of the existing ditch to allow efficient delivery of raw water for irrigation. The proposed project will have a capacity of 30 cfs, with an ability to supply about 60 acre feet of water per day, during irrigation season. Under the Cotton Creek Airline water right 5157 acre feet were diverted in 1995, and 5045 acre feet in 1994, according to State Engineer records. 1,600 acres are served by the ditch, all under circular sprinkler systems. Funding will consist of a $100K loan from the CWCB, and $105,400 from the project sponsors. The CWCB annual loan payment will be about $5,700 per year, amounting to about $1.10 per acre foot diverted in 1995 and 1994. Water delivered by the Cotton Creek Airline water right is used for irrigation of agricultural lands. The loan should thus be at the "Agricultural" rate of 3.75 % for 30 years, as set by the CWCB November 25, 1996. The project sponsor needs to rehabilitate the Airline as soon as possible. If 1997 is as dryas 1996, they will again be short of water. Delaying the project until 1998 would result in undue hardship on the borrower. The State Engineer's Office has expressed concerns that the project should not result in expanded irrigated acreage beyond the stated 1600 acres. The loan should be subject to a written agreement between the project sponsor and the State Engineer's Office. COLLATERAL Since the Cotton Creek Water Company (owner of the Cotton Creek Airline Ditch) is controlled by one stockholder, the CWCB can take a collateral interest in real estate and/or water rights. The Borrower can also provide one payment in a certificate of deposit account, to be held by the State Treasurer.