C153354 Feasibility Study

• Contract/PO #: C153354
• Contractor Name: Paradox Valley Canal and Reservoir Company
• Contract Type: Loan
• Water District: 61
• County: Montrose
• Bill Number: SB 81-439
• Loan Projects - Doc Type: Feasibility Study

PROJECf SUMMARY

General

The Paradox Valley Canal and Reservoir Company is located in Montrose County,
Colorado and bounded on the West by ~he Town of Paradox and on the East by the
Town of Bedrock. The midpoint of the Paradox Valley is just seven miles East of
the boundary between the States of Colorado and Utah. The Paradox Valley Canal
and Reservoir Company have sufficien~ water rights from both the States of Colorado
and Utah to satisfactorily irrigate 2,580 acres of land during normal years.

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The Paradox Valley Canal and Reservoir Company is organized as a non-profit organ-
ization and Was formed in February, 1949. The water rights for the Paradox Valley
Canal and Reservoir Company date back to June, 1982 in the State of Utah and of
January, 1922 in the State of Colorado. The Stevens Land and Cattle Company, the
Paradox Valley Land and Development Company, and the West End Irrigation Company
were predecessors to the Paradox Valley Canal and Reservoir Company.

There are 8,600 shares of capital stack in the Paradox Valley Canal and Reservoir
Company for stored water. The financial record of the Company is good, even though
they have not needed to establish credit ratings over the years they have been able
to finance their own operation and maintenance on a cash basis. There is approx-
imately 16,511 acres of private o,vuership in the Paradox Valley of which only 2,580
acres are irrigated, the climate in the area is semi-arid, characterized by rela-
tively pleasant temperatures. The majority of land in the Paradox Valley is rated
as a land capability classification II by the Soil Conservation Service. The
average water requirements in the Paradox Valley for the last ten years have been
approximately 4,180 acre feet of water and in the same ten year period an average
of 5,759 acre feet has been available counting normal summer precipitation. Due
to the remoteness of the Paradox Valley the payment capacity for irrigation
water is only $6.40 per irrigated acre per year.

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The Buckeye Reservoir, the only storage in the Paradox Valley Canal and Reservoir
irrigation system, was originally constructed in the years 1910 through 1913 and
the original plans call for a capacity of 8,500 acre foot. The reservoir was
only constructed to a capacity of 1,600 acre foot and has been restricte~ by the
State Engineer to only 900 acre foot since there are no provisions for a spill-
way. The proposed project consists of: preparing a flood study to determine the
maximum probable flood; construct the crest of the dam to a uniform grade with
compacted fill and provide a five foot free board; construct a spillway to safely
accommodate the maximum probable flood; and provide a new gate, gate operator,
and outlet works.

The benefit to cost ratio is greater than 1 when the costs of the total project
can be amortized over 40 years at a 3% interest rate. Construction funds are
anticipated in the form of a loan from the Colorado Water Conservation Board for
a 40 year term at a 3% interest rate. The total cost of the project is estimated
to be $102,000.00 and the total project costs, which include emergency oper-
ation and maintenance funds; normal operation, maintenance and replacement funds;
will require an average annual revenue of $10,454.15 for the next 40 years.

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