C153857 Feasibility Study

• Contract/PO #: C153857
• Contractor Name: Western Mutual Ditch Company
• Contract Type: Loan
• Water District: 2
• County: Weld
• Bill Number: SPL
• Loan Projects - Doc Type: Feasibility Study

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Western :v1utual Diversion Repairs and Improvements
CWCB Feasibility Study
May 6, 1998 (Revised December 29,1998)

Permitting

The Ditch Company has a prescriptive easement to access, operate, maintain and replace the check
structure. No Weld County construction permits will be required for this repair project.

The Ditch Company has received notification from the Corps of Engineers, Omaha District that
replacement of the check structure is exempt from 404 permitting by Statutory exemption, 33 CFR
Section 323.4(a)3. A copy of correspondence from the Corps of Engineers is included in Appendix
E.

The company believes no Environmental Assessment (EA) or Environmental Impact Statement (EIS)
will be required.

Financial Plan

This feasibility study was funded in part by a grant of $5,000 from the CWCB Severance Tax
Operational Account, and in part by Ditch Company funds. The Ditch Company has applied to the
CWCB to borrow up to $100,000 from the Small Project Loan Account to be used for up to 75
percent of the cost to construct the check replacement and island revetment. The loan from the
CWCB is contingent upon CWCB approval, and the successful negotiation of a contract between
the CWCB and the Ditch Company, Ditch Company cash reserves or special assessments, equal to
$61.25 per share for 800 shares, will be used for the remaining $49,000 of estimated costs. The
Ditch Company's grant application, and the CWCB Memorandum of Loan Approval are found in
Appendix F.

The financial condition of the company is solid at the present time. The Company has no
obligations except current operating expenses and is not in default on any of its obligations. The
Ditch Company Statements of Receipts and Disbursements for the 1996, and 1997 fiscal years are
found in Appendix G,

The company currently has 800 shares of stock issued and outstanding with an annual assessment
to stockholders of $70 per share for 1998, For average diversions of 19,532 acre-feet per year, this
amounts to about $2.87 per acre-foot per year, In July 1998 the Ditch Company stockholders
approved a special one time assessment of $60 per share raising a total of $48,000, The Ditch
Company can increase assessments or levy special assessments by a majority vote of the
stockholders.

The company has a contract with Central Colorado Water Conservancy District to carry its recharge
water (see Appendix H). Table 5 shows the income derived from this project since 1987. Payment
for water recharged prior to 1997 was at $3,00 per acre-foot. The current contract calls for payment
of $4,50 per acre-foot recharged in Ditch Company owned facilities and $1,25 per acre-foot per
acre-foot recharged in non-Ditch Company owned facilities, A portion of any income from this
contract can be used to repay the loan to the CWCB,

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