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C153787 Feasibility Study
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C153787 Feasibility Study
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Last modified
4/26/2011 10:07:43 AM
Creation date
10/5/2006 11:48:39 PM
Metadata
Fields
Template:
Loan Projects
Contract/PO #
C153787
Contractor Name
Smith Irrigation Ditch
Contract Type
Loan
Water District
44
County
Routt
Bill Number
SPL
Loan Projects - Doc Type
Feasibility Study
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<br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />II <br />I <br />I <br />I <br /> <br />For purposes of analysis, it is conservatively assumed that the incremental increase in <br />production due to irrigation is 1.5 tons per acre, that 400 acres would be irrigated below <br />the ditch, and that the value of the irrigated crops would be about $50 per ton. These <br />assumptions result in a net benefit of about $30,000 per year. <br /> <br />If the total cost of the project is assumed to be $183,046 and if this amount is amortized <br />at 3.5 percent over 20 years, the annualized cost amounts to about $12,900. <br /> <br />Benefits then exceed the costs of the project by about $17,100 per year based on the <br />preceding assumptions. Other benefits which could be expected from the proj ect but <br />which are not quantified here are a potential reduction in erosion ofthe stream channel <br />due to the new diversion structure and the absence of temporary diversion structures in <br />the channel. <br /> <br />10. Conclusions <br /> <br />The information in the preceding sections of this report result in the following <br />conclusions: <br /> <br />I. The Smith Ditch Corporation is an incorporated entity in the State of <br />Colorado with the ability to enter into a contract with the CWCB for the purpose <br />of obtaining a Construction Fund loan. <br /> <br />2. Adequate water rights are available for the project and are expected to yield <br />about 1,200 acre-feet per year. <br /> <br />3. The project would result in an adequate water,supply for the irrigation of about <br />400 acres of crop and pasture land. <br /> <br />4. The total estimated cost of the project (with a 15 percent contingency) is <br />$183,046 and this will be financed, in part, by grants from several entities. The <br />Smith Ditch Corporation is applying for a $50,000 loan from the CWCB <br />Construction Fund for the remainder of the financing. <br /> <br />5. The Corps of Engineers has determined that the new diversion structure is <br />exempt from regulation under Section 404 of the Clean Water Act and does not <br />require a permit. <br /> <br />6. The Smith Ditch Corporation may incur $4,000 per year in total costs, <br />operation and maintenance plus debt service, to operate the ditch and the new <br />diversion structure. <br /> <br />7. The economic analysis in this report indicates that annual benefits exceed the <br />annualized total cost of the diversion structure by about $17,100 per year. <br /> <br />10 <br />
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