C153795 Feasibility Study

• Contract/PO #: C153795
• Contractor Name: Farmers Independent Ditch Company
• Contract Type: Loan
• Water District: 2
• County: Weld
• Bill Number: SPL
• Loan Projects - Doc Type: Feasibility Study

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Agenda Item lOb. (Updated March 21, 1997)
March 20, 1997

2

DISCUSSION

The project involves reconstruction of a critical portion of the canaL The culverts restrict runoff
flow with the result that homes are sometimes flooded. In addition, the culverts are in poor
condition and could collapse during a flood, cutting off access to existing homes, and flooding
irrigated lands.

The canal diverted 13,304 acre feet in 1995, and 16,742 acre feet in 1994, according to State
Engineer records. 7,500 acres are served by the canaL

Funding will consist of a $55K loan from the CWCB, $10K from a grant from the U.S.D.A.
Farm Services Agency, and $8.5K from a special assessment of stockholders. The CWCB
annual loan payment will be about $3,100 per year, amounting to about $0.23 per acre foot
diverted in 1995, and about $0.19 per acre foot diverted in 1994. The share assessment
necessary to service the loan debt is $3.88, based on 800 shares under the system. One share
provides about 16.5 acre feet of irrigation water, based on 1994 diversions.

Water delivered by the FIDC 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 FIDC needs to reconstruct this critical portion of their canal as soon as possible, preferably
in spring 1997, or fall 1997 at the latest. Delaying the project until 1998 would result in undue
hardship on the borrower.

COLLATERAL

The CWCB can take a collateral interest in the assessments of the FIDC shareholders. The
Company can also provide .one payment in a certificate of deposit account, to be held by the
State Treasurer.

STAFF RECOMMENDATION

The staff recommends:

1. That the Board fmds that delay in the completion of the reconstruction of this
portion of the Farmers Independent Ditch would cause undue hardship for the water
users, qualifying the Farmers Independent Ditch Company for a loan from the Small
Project Loan Account, and

2. That a Construction Fund loan in an amount of $55,000, not to exceed 75% of
actual project costs, be approved for the Farmers Independent Ditch Company to
reconstruct a portion of their ditch, and