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<br />. <br /> <br />Agenda Item 29g. <br />November 4, 1994 <br /> <br />2 <br /> <br />The favored alternative is to rehabilitate and enlarge the reservoir to a capacity of 4070 acre <br />feet, an increase of 2900 acre feet. <br /> <br />DISCUSSION <br /> <br />This project will resolve safety problems with the Red Mesa Ward Dam, and place an additional <br />2900 acre feet of Colorado's water to beneficial use. <br /> <br />For the project to be fInancially feasible, the Company is requesting favorable loans terms of <br />4.1 % for a duration of 30 years. This is based on a weighted average of two rates: (1) A 4% <br />rate for the agricultural portion of the water (90% of the water), and (2) A 5.5% rate for the <br />domestic portion of the water (10% of the water). (Note: It is staff's position that the <br />agricultural portion of the water should be fmanced at a 4.5% rate, and that the overall loan rate <br />should be 4.6%.) <br /> <br />Rehabilitation and enlargement of the Red Mesa Ward Dam will require that plans and <br />specifications be approved by the State Engineer, and that the project be completed under the <br />supervision of an engineer registered in the State of Colorado. <br /> <br />(Steve Harris, P.E. of Harris Water Engineering will be present at the CWCB meeting to discuss <br />the feasibility study, and to answer questions.) <br /> <br />STAFF RECOMMENDATION <br /> <br />The staff recommends: <br /> <br />1. That a construction fund loan in an amount of $2,250,000 be approved for the <br />Red Mesa Ward Reservoir and Ditch Company, for the rehabilitation and <br />enlargement of the Red Mesa Ward Dam, and <br /> <br />2. That the financing tenns shall be 4.6% annual percentage rate, for a duration <br />of 30 years, and <br /> <br />3. That loan approval shall be contingent upon staff evaluation of the Company's <br />financial condition and ability to pay, and upon all standard contracting provisions <br />of the CWCR, and <br /> <br />4. That this loan shall be contingent upon completion of the feasibility study, and <br />a finding that the selected alternative is feasible. <br />