M E M O R A N D U MMarch 8, 2018

TO: EXECUTIVE COMMITTEE; CRWCD BOARD OF DIRECTORS

FROM: HUNTER CAUSEY, P.E.

SUBJECT: 2018 GRANT PROGRAM STAFF RECOMMENDATIONS ACTION: Staff requests that the Executive Committee adopt (or amend, as desired) these recommendations for the full River District Board to consider for additional action at the quarterly board meeting scheduled for April 17-18, 2018.

STRATEGIC INITIATIVE(S): 1.E Outreach and Advocacy 2.A Outreach in All Basins3.A, D Climate and Hydrologic Uncertainty4.A, B Colorado River Supplies 7.D Water Needs/Project Development9.A Water Efficiency and Conservation11.D River District Staff Resources

After much deliberation, analysis and discussion, the staff committee of eight reached a consensus and recommends that 9 projects receive funding, including 4 large projects (total project costs greater than $60,000) and 5 small projects (total project costs less than or equal to $60,000). This recommendation expends $196,658 of the $200,000 that is budgeted in the 2018 River District Capital Fund for the Water Supply Grant Program. Table 1 in the subsequent staff recommendation section lists the recommended projects.

During the open application period, the River District received 25 qualifying requests totaling $875,916 for a wide range of projects with total project costs between $3,871 and $10.4 million. The total of the grant requests is over four times the amount of money appropriated and available. Table 2 lists and briefly describes all the applications and Figure 1 shows the geographic distribution of the projects (both attached). All of the grant proposals are included with this memo.

In general, the grant proposals were very good and represented a diverse mix of water supply development, protection, improvement and related projects. Consistent with previous years, it was difficult for the staff committee to limit the recommended grant applications without exceeding the available budget.

Grant applicants must meet one or more the multiple objectives of the grant program. Projects should promote beneficial use of water for agricultural, municipal, industrial, or other purposes;

Page 2 of 4 March 8, 2018 2018 Grant Program Staff Recommendations

watershed management activities; water quality enhancement projects; and/or water use efficiency enhancement projects. Ranking priorities are given to those projects that utilize and/or preserve pre-Colorado River Compact water rights. The published policies and guidelines state that: “Projects eligible for funding must be located within the physical boundaries of the Colorado River District and should generally address one or more of the following*:

1. Development of a new water supply

2. Improvement of an existing water supply system

3. Measures to improve instream water quality

4. Water use efficiency improvements

5. Sediment reduction; and/or

6. Implementation of watershed and riparian management actions* Priority will be given to those projects that utilize and/or preserve pre-Colorado RiverCompact water rights (those rights that were put to use before 1922).”

STAFF REVIEW COMMITTEE RECOMMENDATIONS: On February 26th, the Staff Grant Review Committee (including Hunter Causey, Mike Eytel, Alesha Frederick, Don Meyer, Lorra Nichols, Ian Phillips, Ray Tenney, and Audrey Turner) met to analyze, review and rank the grant applications. The Committee members utilized standardized ranking score sheets to evaluate the grant applications for the following categories: appropriateness, project description, budget, funding, milestones and timelines, technical adequacy, project effectiveness, sponsor's capability, cost effectiveness, and participation. To further help differentiate the projects staff tried to also capture the intangible nature of the proposed projects (e.g., project significance, uniqueness, transferability, and perceived “ripeness”).

New this year, staff considered return flow impacts from irrigation efficiency projects. Staff is recommending funding three of five irrigation efficiency projects: Silt River Preserve Irrigation Improvement Project; Jennifer McPherson Micro-Jet System; and White River Ranch Irrigation Project. The Silt River Preserve Project will have minimal return flow impacts because its return flows accrue to the mainstem of the Colorado River. The McPherson Microjet System project is expected to reduce return flows but Staff decided that those impacts were small enough, and the application scored well enough to still recommend the project. Staff also expects that the White River Ranch Irrigation project will have return flow impacts but staff determined that the project sufficiently mitigates those impacts through riparian improvements and project benefits.

Pursuant to previous Board direction, the proposed grant projects were divided into two category ‘bins’ for evaluation based upon size and total project costs to ensure that larger projects compete only amongst larger projects and that smaller projects compete primarily against similarly sized projects. Figure 2 (attached) shows the staff review committee scores and grant request amounts with the differentiated small/large grant thresholds.

Page 3 of 4 March 8, 2018 2018 Grant Program Staff Recommendations

TABLE 1: 2018 Grant Program Applications

Project Sponsor Project Name Complete County Project Cost

Grant Amount Recommended

Arch Ditch Association Arch Ditch Headgate Improvement Project No Saguache $30,076 $3,500

Grand Valley Water Users Association

Roller Dam Electrical and Control Systems Upgrades Project No Mesa $224,098 $50,000

Jennifer McPherson Micro-Jet System Yes Delta $207,543 $51,886 Jerry Eller Antelope Reservoir Rehabilitation No Grand $60,000 $15,000

Minnesota L-75 Lateral Ditch Company

Minnesota L-75 Lateral Salinity Control Project No Delta $205,874 $17,462

Roseman Ditch Company Doolan Weir Yes Garfield $3,871 $1,935

Thompson Glen Ditch Co* Cattle Creel Head Gate Repair Yes Garfield $24,666 $6,136

Town of Silt Silt River Preserve Irrigation Improvement Project No Garfield $38,694 $10,739

White River Ranch LLC White River Ranch Irrigation Project No Rio

Blanco $210,000 $40,000

Total $196,658

Brief History of the Grant Program: Since 1998 when the Grant program was initiated to support smaller projects, the program has grown significantly, spawning the combined Grant Program as we know it today that supports both large and small projects. Table 3 outlines the history of the program and summarizes the requests and funding history to date. Assuming the 2015 Grant program monies are disbursed as recommended, the Grant Program will have awarded more than $3.8 Million to River District constituents over 21 years.

Page 4 of 4 March 8, 2018 2018 Grant Program Staff Recommendations

Table 3: Historical Summary of Grant Program

Year Applied Awarded Requested Awarded Contracted /

Est. Paid to Date

1999 17 14 $180,381 $137,371 $119,114

2000 29 21 $275,922 $177,335 $162,283

2001 35 16 $313,396 $150,833 $150,833

2002 59 17 $507,656 $173,529 $160,987

2003 64 14 $663,342 $157,800 $157,800

2004 42 17 $376,309 $157,639 $157,639

2005 36 16 $351,121 $148,941 $148,941

2005+ 3 3 $165,336 $120,000 $90,000

2006 35 12 $369,961 $158,295 $156,600

2007+ 11 2 $1,143,502 $150,000 $150,000

2008 35 12 $422,421 $150,829 $113,329

2009+ 17 3 $1,279,656 $150,000 $146,858

2010++ 39 11 $1,344,662 $250,000 $239,454

2011++ 24 11 $1,394,406 $249,658 $216,024

2012# 26 13 $991,107 $245,855 $209,252

2013 33 13 $1,570,534 $241,766 $238,374

2014 35 11 $1,509,603 $250,338 $205,088

2015 42 14 $1,667,350 $250,000 In progress

2016 35 8 $1,187,837 $150,000 In progress

2017 34 8 $1,308,546 $150,000 In progress

2018 25 9 $875,916 $196,658

(recommended)

Totals 676 236 $17,023,048 $3,816,847 ≈ $2.8 MM + Large Grant Program only ++ Combined Grant Program # Two applicants declined their awards *A Grant in the amount of $30,000 was terminated due to non-completion of originally designed project; proposed changes to the original grantby the grantee were deemed unacceptable **This does not include two grant applications that were deemed ineligible for the Large Grant Program because the program did not fund completed projects at that time

Grant Program Discussion: The water supply grant program continues to be successful and popular, as evidenced by the strong demand that continues to greatly exceed the supply of available funding. Amongst grant funding programs it continues to be unique in several ways, including the funding of completed projects, its flexibility, and user-friendly nature. While the staff and board continue to refine the application, review, ranking and approval processes, the program works and is an effective way to perform outreach to the west slope water community.

Table 2: 2018 Grant Program- Application Summaries

Project Sponsor Project Name Project Description Complete County Project Cost

Requested / Allowed

Small/ Large

Staff Recommendation

Arch Ditch Association

Arch Ditch Headgate Improvement Project

Addition of hydraulics to diversion structure headgate so it is easier to raise and lower gate for standard operations. No Saguache $30,076 $3,500 Small YES

Charlene Bagley West Pasture Connect to existing sprinkler system by installing 600 ft of pipeline,riser, and a gun to irrigate a section of land that is not currently irrigated No Garfield $12,000 $5,400 Small NO

City of Glenwood Springs, CO

Two Rivers Park Shoreline Restoration Restore eroding shoreline to improve instream water quality No Garfield $153,000 $38,250 Large NO

Dewayne Zimmerman & Janelle Berner ZimBer Pivot Installation of center pivot No Moffat $101,364 $25,341 Large NO

Eagle County Conservation District

CoAgMet Station Fund Project Installation and maintenance of a CoAgMet station No Eagle $20,000 $7,000 Small NO

Eagle River Watershed Council*

River Run Restoration Project

Improve instream water quality through sediment reduction and the implementation of watershed and riparian management actions. No Eagle $113,308 $28,327 Large NO

Eastern Rio Blanco Recreation and Park

District (ERBM)

Meeker Circle Park Fishing Pond

Improvement of an existing water supply system by utilizing an existing water right within the WREA Meeker Power Ditch at Circle Park to supply

water for a new recreational fishing pond that would be constructed for the community to enjoy and to improve existing ditch outflow and water

quality conditions in the White River.

No Rio Blanco $333,500 $33,500 Large NO

Fruitland Irrigation Company

Gould Canal Improvement Project

Stabilization of rock wall tunnels by installing 2 miles of pipe from the reservoir outlet through two tunnels and injecting cellular concrete

between the pipe and rock walls.No Delta $10,359,519 $50,000 Large NO

Grand Valley Water Users Association

Roller Dam Electrical and Control Systems

Upgrades Project

• Improve an existing water supply system for agriculture, power, and some domestic users

• Improve water use efficiency by providing reliable power at the Roller Dam and headgate diversion structure thereby improving

diversion control• Implement (and support) watershed and riparian management

actions

No Mesa $224,098 $50,000 Large YES

Greg Lunsford Lunsford Pond Repair pond to stop leakage No Grand $10,792 $5,000 Small NO

Jennifer McPherson Micro-Jet System Installation of a sprinkler system in a 24 acre pear orchard for the purpose of conserving water and promoting tree and soil health Yes Delta $207,543 $51,886 Large YES

Jerry Eller Antelope Reservoir Rehabilitation

Repair the outlet pipe, head-gate stem casing, crest and upstream slope No Grand $60,000 $15,000 Small YES

Laughingstock LLLP Needham Ditch Piping Project

Piping 2520 feet of ditch in the two highest priority sections in the first mile of the ditch. No Eagle $226,632 $56,658 Large NO

Manuel P. Gomez Ditch to Irrigation Pipeline Conversion Piping from the Grand River ditch along County Road 225 to Highway 6. No Garfield $26,000 $8,200 Small NO

Minnesota L-75 Lateral Ditch

Company

Minnesota L-75 Lateral Salinity Control Project

Conversion of an open ditch lateral to a pressurized delivery system No Delta $205,874 $17,462 Large YES

Oak Meadows Water Association, Inc.

OMWA Water Distribution System Water main replacement project No Garfield $1,500,000 $150,000 Large NO

Table 2Page 1 of 2

Project Sponsor Project Name Project Description Complete County Project Cost

Requested / Allowed

Small/ Large

Staff Recommendation

Rifle Creek Estates HOA Emmer Well #2 Drilling of a well No Garfield $225,920 $95,000 Large NO

Roseman Ditch Company* Doolan Weir Replacement of existing Parshall Flume Yes Garfield $3,871 $1,935 Small YES

Sheridan Ranches, LLC McHatton Reservoir Improvement of existing dam outlet pipe to avoid SEO Dam Safety

storage restriction No Rio Blanco $312,500 $78,125 Large NO

Thompson Glen Ditch Co*

Cattle Creel Head Gate Repair Headgate repair Yes Garfield $24,666 $6,136 Small YES

Town of SiltSilt River Preserve

Irrigation Improvement Project

Addition of 1200' of waterlines to irrigate an additional 10.2 acres of property using a side roll and 3 additional sprinkler gun connection

sitesNo Garfield $38,694 $10,739 Small YES

Town of VailGore Creek Riparian

Restoration and Habitat Enhancement

Restore riparian habitat along Gore Creek No Eagle $273,171 $68,292 Large NO

Water User's of Lateral Ditch #110,

Inc.Ditch Piping

Piping of earthen ditches on the main lateral's delivery system to prevent waste of water, address the heavy amounts of silt and debris in the

system and increase overall water quality.No Mesa $125,810 $16,765 Large NO

West Glenwood Sanitation District

Blower Upgrade Phase 1

Replacement of centrifugal blower with positive displacement blower using variable frequency drives to improve water quality and to reduce

energy consumption.No Garfield $52,000 $13,400 Small NO

White River Ranch LLC

White River Ranch Irrigation Project Install sprinkler pivot on currently flood irrigated 82.9 acres No Rio Blanco $210,000 $40,000 Large YES

*These entities received previous funding all from the 2017 grant cycle: Eagle River Watershed Council ($9,278), Roseman Ditch Company($3,500), and Thompson Glen Ditch Co ($2,673)

Table 2Page 2 of 2

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Figure 12018 Grant Program Applications

Legend!. Recommended Projects!( Applications# recomended # applications/

Figure 2Grant Review Commitee Score and Grant Request Amount

Zimmerman Berner

White River Ranch LLC

Jennifer McPherson

Town of Silt

Laughingstock LLLP

Manuel P. Gomez

Minnesota L‐75 Lateral Ditch Company

Lateral Ditch #110

Fruitland Irrigation Company

Roseman Ditch Company

Grand Valley Water Users Association

Thompson Glen Ditch CoArch Ditch Association

Jerry Eller

Sheridan Ranches

Greg Lunsford

ERBMTown of Vail

Glenwood Springs

Eagle River Watershed Council

West Glenwood San District

Oak Meadows Water Assn.

Rifle Creek Estates HOA

Eagle County Conservation District

Charlene Bagley

40.0

45.0

50.0

55.0

60.0

65.0

70.0

75.0

80.0

85.0

90.0

 $‐  $20,000  $40,000  $60,000  $80,000  $100,000  $120,000  $140,000  $160,000

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 Com

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 Score

Grant Request Amount

Large Grant Score Threshold

Small Grant Score Threshold