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<br />Plumb and Dailey Ditch Co. Agenda Item 12a. <br />May 22-23, 2000 (Updated 812100) <br /> <br />Water Riahts <br />The water rights diverted at the PDDC headgate consist of direct flow rights in total amount of <br />30.44 cfs, adjudicated in 1882, Average annual diversions were 2,278 acre-feet for a period of <br />record 1950 through 1998, according to records of the State Engineer's Office, <br /> <br />Proiect Description <br />Three alternatives were analyzed in the feasibility study: <br /> <br />1. The no-action alternative. <br />2. Rehabilitation of the diversion only. <br />3. Rehabilitation of the diversion and the headgate structure, <br /> <br />Alternative 3, rehabilitate the diversion and the headgate structure, was ruled out because of <br />the additional cost, and because the headgate is in generally good condition. For this reason <br />Alternative 2 was selected, since it is considered to be the least costly reliable approach. The <br />no-action alternative was considered unacceptable since it means the PDDC could not deliver <br />water to its shareholders, <br /> <br />Selected Alternative 2 involves construction of a 225 cubic-yard grouted rock riprap diversion <br />dam, and rebuilding the 48-foot steel check structure. <br /> <br />The implementation schedule calls for completion of financing arrangements in spring 2000. <br />The PDDC has approved the project by formal resolution of its shareholders, Engineering <br />design has been completed by the NRCS and construction is scheduled to be completed in fall <br />2000, <br /> <br />Financial Analvsis <br />The total estimated cost of the project is $ 46,620, and the water is used by the shareholders <br />for agricultural purposes. Staff is recommending a 20-year loan from the Small Project Account <br />in amount of $42,000 (90 percent of the estimated cost.) CWCS policy allows for 90% loans to <br />agricultural and municipal low income borrowers (policy set at the November 24-25, 1997 <br />CWCS meeting.) Agriculture has not been a participant in the recent economic boom. <br /> <br />Alternative financing sources: The Company actively sought alternative financing, They were <br />able to obtain a grant to cover project planning and design through the NRCS ($4,620), but <br />were not able to obtain cost share for construction through that agency, The PDDC also <br />requested a loan from their bank (First National Sank of Longmont), but were turned down <br />because the bank does not provide long-term fixed rate financing, and because of the lack of <br />marketable collateral. <br /> <br />Table 1 is a summary of the financial aspects of the project, Annual assessments of $83.12 will <br />be needed to repay a CWCS Emergency Loan of $42,000. (The annual payment plus 10% <br />reserve requirement is $3,325,) This represents $1.46 per acre-foot, based on average annual <br />diversions of 2,278 acre-feet. <br /> <br />2 <br />