WSP02017

• File Number: 8270.100
• Description: Colorado River Basin Water Quality/Salinity -- Misc Water Quality
• Basin: Colorado Mainstem
• Water Division: 5
• Date: 9/1/1994
• Title: Lower Gunnison Basin Unit East Side Laterals - Colorado River Water Quality Improvement Program - SUPPLEMENT TO FEASIBILITY REPORT
• Water Supply Pro - Doc Type: Report/Study

Chapter 1 - Introduction

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reduce seepage and the resultant salt pickup. However, a variety of
construction materials (e.g., concrete linings, polyvinyl chloride membrane
linings, and pipe) were evaluated to arrive at the most cost effective and
desirable designs. New cost estimates for the canals and laterals were
developed based on force account construction methods in conjunction with
the lNWUA's management and staff. Recent Grand Valley Unit
experiences along with information from other water user organizations
were also used.

Based on the new designs and a review of "Appendix B, Hydrosalinity" of
the LGBU FRlFES, a revised hydrosalinity analysis was developed. Also, in
anticipation of the use of R&B program loans, a new payment capacity
analysis and preliminary repayment ability analysis were completed. In the
environmental arena, work performed for the FRlFES was reviewed along
with changed conditions and prospective impacts. A new wetlands
inventory was completed as the basis for the formulation of a revised
wildlife mitigation plan. Activities were initiated in cooperation with the
Fish and Wildlife Service and the Colorado Division of Wildlife to develop
alternate mitigation proposals which would be acceptable to the public and
water users in the project area.

As envisioned at the beginning of the study, a recommended plan would
have called for the lNWUA to obtain an R&B loan in order to cost share or
"buy down" the cost effectiveness of the entire project or selected
components to an acceptable level. The UVWUA's estimated payment
capacity was compared with current obligations (which include annual
payments for the original project construction, a reserve fund for the project,
long-term debt to the Colorado Water Conservation Board, and payments for
the Dallas Creek Project water beginning in 1992) and reduced operation,
maintenance, and replacement expenses for postproject conditions. The
resultant annual repayment ability was found to be less than zero.
Therefore, the potential use of an R&B loan as a financial resource could no
longer be assumed as available to share a portion of the project costs.

Cost estimates were developed for each major canal and its lateral system,
thereby transforming the five deferred canal and lateral system components
into five canal components and five lateral system components. Preliminary
results of the SO/JU Study indicated that taking into account revised
estimates of reductions in salt loading, each of the lateral system
components appeared to be an attractive cost-effective increment for the
salinity control program without cost sharing via an R&B loan. However,
the canal components remained relatively costly and would require large
R&B loans to bring them to a cost-effective level sufficiently attractive to
obtain salinity control program funding. No options for generating revenues
from the sale of saved water received further analysis or consideration as
existing State of Colorado water law does not allow for such sales.

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