C153808 Feasibility Study

• Contract/PO #: C153808
• Contractor Name: Arkansas Groundwater Users Association
• Contract Type: Loan
• Water District: 14
• County: Pueblo
• Bill Number: ARA
• Loan Projects - Doc Type: Feasibility Study

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Chapter X - HB95-1155 Requirements of Selected Replacement Source

Section 37-60-130 of House Bill 95-1155 created an Arkansas River augmentation loan account into

which the State Treasurer was authorized to transfer money from the CWCB construction fund.

Subparagraph 3 of Section 37-60-130 states that, "The Board shall approve or deny applications for

loans, after consulting with the Arkansas River Coordinating Committee concerning applications,

based upon criteria, including but not limited to whether the:"... and it lists eight specific items to be

met. Each of these items are listed below with a description of how AGUA will meet the Board

requirements through money acquired from a CWCB loan.

(a) Source of augmentation water is from a reliable permanent supply.

The Excelsior Ditch has two water rights with a priority of May 1, 1887 for 20 cfs and
January 6, 1890 for 40 cfs. The headgate has recently been reconstructed and
equipped with a trash rack. A rated section of the wasteway has been equipped with a
stage-recorder, so augmentation flows delivered to the river via the wasteway can be
measured. Recorded ditch headgate diversions from 1908 to 1985 have averaged
4,070 acre-feet per year. Diversions have been made by the Excelsior Ditch in all but
one year (1977) between 1908 and 1985. Thus, the Excelsior Ditch has been a reliable
supply and will be one component of future augmentation sources to be acquired by
AGUA.

(b)

Applicant has adequate security or collateral to assure repayment.

AGUA would use the 1,007 shares of Excelsior Ditch water as collateral for the loan.

(c)

Applicant has the ability to repay the loan at an interest rate and over a period of time
as set by the Board.

The funding analysis for purchase of the 1,007 shares of Excelsior Ditch water was
discussed in Chapter VIII. AGUA will repay the loan by increasing the annual well fees
by $20 per well (from $205 per well to $225 per well) and initially increasing the
augmentation water fees from $9.44 per acre-foot of well depletion to $10.68 per acre-
foot of well depletion.

(d)

Applicant is able to collect payment for the augmented water from its members.

The Certificate of Incorporation for AGUA (see Appendix A), under Purposes and
Powers, paragraph 1 (h), allows the Corporation to "Establish schedules of charges and
assessments necessary to offset all costs of the Association and for the delivery of water,
either directly to its members or other vested water rights for the benefit of its members,
or for the provision of water pursuant to a plan for augmentation or substitute supply
plan and to collect such water charges and assessments from its members."

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