AGUA STUDY ANALYSIS
WATER RIGHT PRIORITY DATES YIELD PRICE/AF
Fountain Mutual Irrigation Co. 4) 9/21/1861 5.38 + cfs 7) 4/11/1862 124 af $3,848 $477,200 1.125 cfs 11) 2/1/1863 16.69 cfs 17) 12/31/1882 2.125 cfs 21) 12/31/1864 4.65 cfs . 28) 12/31/1866 8.48 cfs . 29) 12/31/1867 6.45 cfs 41) 9/21/1874 17.05 cfs 168) 1/31/1903 343.2 cfs Lock Ditch 15) 12/31/1863 1,070 af $1,920 6.30 cfs $2,054,400 22).12/31/1864 8.38 cfs 45) 12/31/1880 5.02 cfs
Liston & Love 14) 3/21/1863 795 af $1,502
Ditch. 8.82 cfs $1,02,000 33) 12/31/1871 3.60 cfs Robinson Ditch 13) 3/1/1863 467 af $2,027 10.45 cfs $946,800 Excelsior Ditch 5/1/1887 752 af $1,183 20.00 cfs $889,300 1/6/1980 40.00 cfs Keese Ditch
, N/A N/A N/A
**NOTE*** Page 7 - Due to the relatively junior nature of the water right priorities, the dry-year diversions of the Excelsior Ditch is zero (0) acre feet.
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9CT-17-97 FRI 03:10 PM KEFFELER 602 5 6 1 2 5 6 8 P.01
ARKANSAS GROUNDWATER
USERS
S C:
• oir• •tat.,..•.10..•
artaa.. • .4 • • a.. . •41.4. . ti 4. 41.1 A.A.',
100 West ht Stmt. Box I Itatvaola, Colota.do Ph. 719-t4:62-5140 Ya% 719-162.-S7 55
Date: October 9, 1997
To: AGUA Members
From: AGUA Board of Directors
Re: Elections at AMA's Annual Membership Meeting
that concerns you and the future of your
well/wells
As you well know, water has become a valuable commodity in the Arkansas
Valley and all over
Colorado. The AGUA. Board of Directors was approached with
an offer to make our first purchase for.
water, The Board foresees that with the position we are in, we must start purchasing
water now, because
in the future we may not be able to continue purchasing water from the City of
Pueblo and/or the City of
Colorado Springs. Those Cities are currently selling AGUA excess waters that they do not
need. On the
other hand, they are also expecting growth in those areas and possibly
won't be able to furnish water to
AGUA in the near future as they are now. If AGUA were to acquire their own rights,
a little at a time, we
would then have control of our own releases when it conies down to a dry year.
At this time, the Board has decided to call for our Annual Meeting
and take the opportunity to discuss and
vote on the purchasing of the water right (the Excelsior Ditch). Currently the CWCB
(Colorado Water
Conservation Board) has approved to loan AGUA the money needed to purchase
the right, contingent
upon a majority of the vote of its membership and an appraisal. So, as you can see, we need each
and
every one of you to vote. Attached is a memo from Bill Green from the CWCB.
This is a memo he
submitted to the CWCB Board of Directors for approval of the loan. AGUA
has decided to use this letter
in their presentation because it best describes the 60 page Feasibility Study
in just about four pages. 1
strongly suggest that you attend our Annual Meeting so you can see for yourself what is taking place
and
let your vote be counted (votes are counted by one vote per well). Or, you are more than welcome to
call
or come in my office, ask questions and/or read the Feasibility Study
concerning the purchase. If you
cannot make the meeting, you may vote by sending in the proxy attached
or send it with someone to the
meeting and they could vote for you. All proxies are due at or before
the meeting. Also, at the
meeting, we will be voting on the Board of Directors, if you or someone you
know would be interested in
serving on the board, call so we can put you on the ballot.
The Annual Meeting is scheduled on November 8, 1997 at 2:00 p.m, at the Vineland Middle School in
Vineland at 1132 Lane 36. That morning we will be having tours of the proposed water right at
10:00
AM and at 12:00 Noon. Please call my office so we can schedule which time that would
best suit you and
directions to the start of the tour.
Please call if you can attend, if you need directions, or if you have any questions
or concerns at
719-462-5140. Your attendance at this meeting is important and your voice is needed and expected
to help make vital decisions for now and in the future.
OCT-17-97 FRI 03:11 PM KEFFELER
• • . • • . • •
602 561 2568 P . 02
STATE OF
COLORADO
Colorado Water Conservation Board Department of Natural Resources •
721 Centennial Duilding 1313 Sherman Street Denver, Colofado 130203 Phooe: (303) 866.3441 FAX: (303) 806-4474 TO: FROM: DATE: MEMORANDUM .7 • •
Colorado Water Conservation Board Members
Bill Green, P.E. ;Lb
• Project Planning and Construction
September 12; 1997
Imes S. Lochtwild becuim, DueLior, UNR °Ades C. Life, PE.
CLVCH
• • • • .•
SUBJECT: Agenda Iteni 1.4.b., September 22-23, 1997 Board Meeting - Water
• Project Construction Loan Program -Arkan.sa.s:14ypr Augmentation
Loan Account - Arkansas Groundwater Users Association ,
Augmentation Plan, . •
••T•••••••••••••••••••••••••••••••
•
4••••/
Introduction
The Arkansas Groundwater Users Association (AGUA) is applying for a loan of
$650,000 from the Arkansas River Augmentation Loan Account for AGUA's
augmentation program in the upper Arkansas River Basin. The loan would be used to
purchasetharps iliA9..psQeKor Djtch.,(o o.ffse.t,a port* of Om4epl,e.tipns,resu1ting from
well pumping by members of AQUA.
Eracsisiaunicir
AGUA was formed in 1995 as a non-profit corporation "to protect and develop the
surface and undergroiind waters of the State of Colorado in the Arkansas River Basin to
their fullest use". AGUA's membership consists of.254 individuals or entities and more
than 400 wells
or
which 336 are currently active. Approximately 95 percent of AGUA'smember water use is for irrigation.
The Association's primary service area is the mainstem of the Arkansas River between
Pueblo Reservoir and Jp1u,i MartiwReserv. oir with some mernbers'Ioc4ted aboveyueblo
Reservoir. on the Arkansas as far west as Salida and a large number of member in the
Fountain Creek Basin. The current officers of AGUA are: Dick Evans, President; Bert
OCT-17-97 FRI 03:11 PM KEFFELER 602 561 2568 P.03
AMA's amended 1997 Replacement Plan, as submitted to the Division 2 Engineer,
is
for 19,452 acre-feet of well pumping for the current member welts. The estimated
long-term replacement requirement for this level of pumping is about 8,950 acre-feet. AQUA
does' not own any. water rights at the present time but lea.es, from various sources, all of
the water used to 'replace member pumping depletions.
auslailmILWL11
AQUA has submitted a feasibility study, prepared by Rocky Nlountain Consultants of
Longmont, describing the pumping and replacement requirements of AGUA's member
wells and six possibtg water rights acquisitions to offset a portion of the replacement
requirements. AQUA intends to acquire, through water rights purchases, 50 to 60 percent
of its augmenta6n requirements Ov6r thetexf25 to 30 years.
Six water rights have been offered to AQUA for purchase. The feasibility study included
a preliminary screening of the six water rights to: (I) estimate average annual
replacement credits, (2) evaluate timing and location chaiacteristics of the water rights,
and (3) evaluate the purchase price and other costs associated with use of the rights for
augmentation purposes. The results of the evaluation are shown in Table 1, attached.
Table 1 clearly shows tht.tb. Excisior water:rights at a purchase price of $864 per
acre-foot and a total estimated implemantation cost of
$1;1.83.per acre.foot are the most cost-effective alternative. The location of the ditch on the mainstem of the Arkansas River
between Pueblo and John Martin reservoirs also makes it very suitable for AGLJA's
augmentation program.
The Excelsior Ditch diverts from the north bank of the Arkansas River about four miles
east of Pueblo and has water rights priorities of May 1, 1887 for 20 cubic feet
per second
(cfs) and January 6, 1890 for 40 cfs. The
average annual diversion of the Excelsior Ditch for the years 1908 to 1985 was about 4,000 acre-feet.
• • •• • • e • 4 •.•.;
. : . .
• *. I - ••
AGUA is proposing to purchase 1,007 shares (a 30-percent interest in the
ditch) from
Dick Evans, Kr. Evans is both the prospective seller of
the water rights and the president
of AQUA. Table 2 summarizes the major characteristics of the proposed acquisition.
Table 2. Summary for Excelsior Ditch purchase
Water Rights Priorities
Mayl, 1887 20
cfs
Jan. 6,
1890 • 40
cisAvelm.pkartal Diversion, ditch (1908-19811- 4,070 acre- ee
1,007 Shares at a total price *of $650,000
Consumptly..9 Use Credit for 1,007 Shares i--752 abre-feet
Cosiper Acre-Foot = $864 •
2
OCT-17-97 FRI 03:12 PM KEFFELER 602 561 2568 P.04
zaaildaLA1121y5k .
Rocky Mountain Consultants has submitted a detailed 40-year projection of revenues and
expenditures for AGUA over'the assurned;period'of CWCE3.debt retirement. AGUA is
requesting a 40-year loan at a 3.0 percent lending rate, TAble 3 gives AGUA's current fee
structure and the projected fee structure after a $650,00 loan. The augmentation cost per
acre-foot of wateripumped, using 19,452 acre-feet, amounts to about $10 per year in
current dollars.
Item
Total Feljs..y Well, Active WetiEwelae$205.00
Total Fee per Well Inactive Wells1.$1well/Bar) $50.00 Water Fee
q/acre-footkpar)
f
-0-&
14-c-ucre)t
pcp-e6 "4-7fit
• .,
.741.* ...•• 3.,APPA Fe.0 • •._ S.chedule,.current $9.44 Future $225.00 $60.00 $10.68 PmPlidnib DisctissISM
The Excelsior Ditch is not a senior water right but does have a good record of diversions.
The Ditch has diverted water in all but one year (1977) since 1908. The 1,007 shares
proposed for purchase should provide a reliable average yield of about 750 acre-feet.
Staff has reviewed AGUA's financial statement for 1996 and detailed budget projections
for 1997 and 1998. All of these items (along with the 40-year projection described
above) indicate that revenues are or will be sufficient to provide for operating expenses
and debt service on the loan. The increase in well fees and water charges in Table 3 appear reasonabl and appropriate to cover expenses plus debt service.
As collateral for the loan, AQUA will pledge the 1,007 shares in the Excelsior Ditch and
revenues froT mcmbership fees. Stafehfs requested that AQUA submit an appraisal of
the Excelsior ivater right prior to'etitering into a loan contract. •
AGUA's articles of incorporation give the Association the powers to establish and collect
charges for all costs incurred in doing business and providing augmentation water. In
addition, the application and membership agreement signed by each member includes a
commitment to abide by the Rules and Regulations of the State Engineer's Office for
groundwater use in the Arkansas Basin as well as an agreement to cease pumping in the
event of failure to pay membership fees.
,•
Staff finds the AGUA proposal to be economically, financially and technically feasible.
In addition, the proposal and the Association appear to meet all of the requirements for
the Arkansas River Augmentation Loan Account as set forth in C.R.S. 37-60-130(3)
provided that the collateral is adequate based upon the results of the appraisal. •
3
OCT-17-97 FRI 03:13 PM KEFFELER 602 561 2568 P.05
Staff recommends a loan from the Mkansas.River.Augmentation Loan Account of
the
Cotistniction Fund to the Arkansas Groundwater Users Association in
the amount of
$650,000 for the purchase of I.,007 shares in the Excelsior Ditch. The recommended term
of the loan is 40 years at a lending rate of 3.0 percent. As collateral for the loan, AGUA
will pledge all shares in the Excelsior Ditch acquired with the loan proceeds and
also will
pledge revenues from membership fees.
Staff further recommends that final approval of the loan be conditioned upon the
submittal of an appraisal, accmtable to, the Director of the. CWCB, of the Excelsior Ditch
water rights,
Cc: Board of Directors, AQUA,
Steve Witte, Division 2 Linda Bassi, AGO
Mark McLean, Rocky Mountain Consultapts „
k
Table 1. Water Flights Purchase
Comparisons
.11•11,
Replacement rurchase Ptirchas Cost Other Water Right Crecrice _ _or Acre-Foot Costs Fountain Mutual kriztion Co. 124_ $265,500 -$2,14L 211,70_$ Lock Ditch Uston and Love Ditch Robinson Ditch Excelsior Ditch Keesee Ditch 1070 $122_31122,_ $11_610 $322700 795 $1 287,900 467 $800 000 752 $650100 4dain
Total Cost per Ac-Ft Cost of Ftepjacement $477L200 $2 054 400 $1 620 $214 100 $1,502,000 1_113 $146 800 4 , _$946 800 $864 $239,300 $089 300 mod • II•OPW $3,848 $1 889 $2 027 WI, $11.183 4
I ' . 17, Cup
You
are Invited to Attend
The
Arkansas Groundwater Users
Associations Annual
Meeting
For The
Membership
. On
November
8,
1997
At
2:00 P.M:
At
The
Vineland Middle School
In Vineland at 1132
Lane
36
You
are also invited to attend one of
Two
scheduled Tours of
the proposed
Purchase
"The
Excelsior Ditch" at
10:00 AM
or 12:00 Noon on the morning of
the Annual
Meeting
(call
for
reservations,
for thee tour!)
719-462-5140
If you are unable to attend, it is vital
That
we
receive your Proxy before
Or
at the Annual meeting!
**The
Proxy is on the back side of this pagt!** •
^ 01.T-17-97 FRI 03:14 PM KEFFELER 602 561 2568 P.07
CORPORATE
PROXY
ARKANSAS
GROUNDWATER
USERS
ASSOCIATION
AGUA
Members,
the undersigned stockholder (the "Stockholder"),
,hereby designate(s) (the
"Proxy")
as the proxy for the Stockholder, with respect to the Stockholder's shares
of
stock (the "Stock")
in the Arkansas Groundwater Users Association (the
"Corporation").
By this designation of
proxy,
the Stockholder hereby revokes any prior designation
of
proxy that the Stockholder may have given previously with respect to the Stock.
This designation of
proxy shall be effective for the Annual Meeting of the
Stockholders and Directors of the Corporation to be held on November 8, 1997, at
2:00 p.m., and at all adjournments-of such meeting. .This Proxy is due prior to or at
the November
8
meeting: •
• •
11 • • • •
The proxy shall have the fall power, as the Stockholder's substitute, to represent
flip Stockholder and vote the Stock on all issues and motions that are properly
presented at the meeting for which this designation of proxy is effective. The
Proxy shall have the authority to vote entirely in the discretion of the Pioxy.
Provided, however, with respect to the following issue(s) the Proxy shall vote as
follows:
.,•
Vote Yes if you algree to purchase the shares in the Excelsior Ditch for
Augmentation. Vote No
if you disagree in purchasing these shares of
the
Excelsior Ditch.
Yes
No
Date of
Signing,
•
Arkansas
Groundwater
Users
Association
First
Annual
Meeting
February
15,1995
107
South
Park
Manzanola,
CO
Member information Packet
and financial reports for
1994
- 1995
41(EJ - • . • 'y • • • ' 1111[11011.11MINIVIVIILIKIIKILIVIC 11[1111‘ IL1111.11111011C111‘41[101111VILIIILIK1C4VIKAL 111[111LIK IL! 1111.111,11111VIC 111011E1111C ICARKANSAS GROUNDWATER
USERS ASSOCIATION
ANNUAL MEETING
AGENDA
February 15,
1995
Call Meeting to Order
President's Report - Dick Evans
Consultants Report - Dr. Jeris Danielson
Appointment of Credentials committee - Evans a. Jack Miles
b. Cliff Walter c. Beverly Eckerdt Call for election of directors
-15 minute recess for proxy count Announce 1995 directors
Call for vote on 1995 Proposed Budget Open Discussion
YEAR END - 1994
BALANCE SHEET
AGUA - all accounts
2/15/95 Account ASSETS 12/31/94 Balance CURRENT ASSETS Checking Account 788.13 Petty Cash 0.00 Tax Account 368.63
TOTAL CURRENT ASSETS 1156.76
TOTAL ASSETS 1156.76
LIABILITIES
CURRENT LIABILITIES
Danielson & Associates 11423.00
TOTAL CURRENT LIABILITIES 11423.00
TOTAL LIABILITIES 11423.00
TOTAL ASSETS AND LIABILITIES 12-31-94 <10266.20>
,
PROFIT & LOSS STATEMENT
4/1/94 Through 12/31/94
AGUA - All accounts
02/15/94
Income / Expense Description
INCOME / EXPENSE
INCOME
Membership Dues income
04/01/94 -12/31/94 56210.00 TOTAL INCOME 56210.00 EXPENSES Advertising 257.75 Bank Charges 120.86
Deposits - Utility, etc. 4090.86
Directors Expenses 439.46
Education - Training & Supplies 250.00
Equipment Purchase - FAX machine 400.00
Engineering Direct Expenses 1020.64
Office Expenses 1464.07 Office Supplies 849.22 Postage 489.76 Rent 1800.00 Subscriptions 116.00 Travel Expenses 273.95 Utilities 1279.30 Wages 11561.37 Wages - 1099 (Programming) 4320.00 Water Purchases 16220.00 4' Well Testing 10100.00 TOTAL EXPENSES
TOTAL INCOME / EXPENSE through 12/31/94
55053.24 1156.76
BALANCE SHEET
As of 2/15/95
AGUA - all accounts
2/15/95 Account ASSETS 2/13/95 Balance CURRENT ASSETS Checking Account 7081.91 Petty Cash 0.00 Accounts Receivable 40404.00 Tax Account 60.00
TOTAL CURRENT ASSETS 47545.91
TOTAL ASSETS 47545,91
LIABILITIES
CURRENT LIABILITIES
Danielson & Associates 14222.84
TOTAL CURRENT LIABILITIES 14222.84
TOTAL LIABILITIES 14222.84
TOTAL ASSETS AND LIABILITIES 02/15/95 33323.07
. ..
_
NAME
Evans, Dick 1 year
Miles, Jack 1 year
Walter, Cliff 1 year
Potestio, Bert 1 year
Hawkins, Loren 2 years
Williams, Clarence 2 years
1995 Candidates for AGUA Board of Directors
TERM VOTE yes yes yes yes yes yes ************************************ Write in Candidates: no no no no no no 5
Arkansas Groundwater Users Association
(a non-profit corporation) Projected 1995 Budget 1995 Categont Budggt INCOME:Projected Dues income 86000.00
TOTAL PROJECTED INCOME 86000.00
EXPENSES:
Advertising 600.00
Contract Well Testing 8000.00
Directors Expenses 600.00
• Engineering* 21000.00
Engineering - direct expenses** 5300.00
Equipment Purchase (computer) 2000.00 ,
Office expenses (equipment rental) 1200.00
Office Supplies 1600.00 Postage 600.00 Rent 2400.00 Travel 500.00 Utilities 3000.00 Wages 19200.00 Water Purchases 20000.00 TOTAL EXPENSES 86000.00
* Engineering costs include 1994 Accounts Payable of 9000.00 ** includes direct expenses for 1994 of 2500.00
