C153748 Feasibility Study - Laserfiche WebLink

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. . Agenda Item 12h. November 25, 1996 2 Small Project Loan will represent about 25% of the total Phase I costs of $389K, and about 74% of the cost of work yet to be done. The eompany needs to complete this work this winter to allow diversions in spring and summer 1997 in compliance with the new rules. eonstruction Fund Authorization: The Excelsior Irrigation eompany is also requesting funding for additional improvements. They plan to construct 6 recharge ponds along the ditch for ground water augmentation and storage. Water will be delivered to these ponds through the rehabilitated ditch. Pumps will be available to deliver water to irrigated lands, or for sprinkler systems. Use of these ponds will eliminate the requir,ement for the Company to purchase recharge credits from well owners associations. Phase II costs are estimated at $335K, and the requested authorization of $230K represents-abou~ 68 % of that total. Preliminary engineering design work as well as a draft feasibility study have been completed by Ralph Adkins, P.E. The NRCS has also provided assistance with the preliminary design and layout. DISCUSSION In spring 1996 the State Engineer's Office instituted new rules covering augmentation requirements for wells. Unless the Company can complete Phase I of the rehabilitation of the ditch this winter, they will not be able to use it for augmentation in spring 1997. The result will be a much higher cost to purchase augmentation credits, which would be a financial hardship. For this reason, Phase I costs could be funded from the Small Project Loan Account. The project would maintain the existing ditch capacity of 60 eFS, with a capability to supply 120 acre feet per day. Historic annual diversions for the Excelsior Ditch averaged 4,248 acre feet over a 77 year period, The Excelsior Ditch is owned by 2 stockholders; 2870 shares by e.R. Evans of Stonewall Springs Farm (Agricultural Use), and 450 shares by Southwest Ready-Mix, Inc. (Commercial use.) Southwest has or will build and pay for its portion of improvements, and is not seeking financing for this project. The loan to the Excelsior Ditch should be at the "Agricultural" rate for a 30 year term, to be set by the CWCB on November 25, 1996. COLLATERAL , The major shareholder can offer his water rights and the project itself as collateral. The water rights are currently used as collateral on a loan from the Alamosa National Bank, and the Bank has agreed to subordinate its interest.