26e

• Board Meeting Date: 11/19/2008
• Description: CF Section - New Project Loans - Republican River Water Conservation District - North Fork Water Rights Lease
• Board Meetings - Doc Type: Memo

STATE OF COLORADO

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1313 Sherman Street, Room 721
Denver, Colorado 80203
Phone: (303) 866 - 3441
Fax: (303) 866 - 4474
www.cwcb.state.co.us

Bill Ritter, Jr.

Governor
TO: Colorado Water Conservation Board Members

Harris D. Sherman

DNR Executive Director
FROM: Kirk Russell, PE

Jennifer L. Gimbel
Mike Serlet , PE, Chief
CWCB Director
Water Supply Planning and Finance Section

Dan McAulif fe

CWCB Deputy Director

DATE: November 10 , 200 8

Agenda Item 26e , November 18 - 19 , 200 8 Board Meeting
SUBJECT :
Water Supply Planning and Finance Section New Project Loans

Republican River Water Conservation Dist rict North Fork Water Rights
Lease

Introduction

The Republican River Water Conservation District ( Republican District), acting by and through its
Water Activity Enterprise (Enterprise) , is requesting a $4.5 million loan from the CWCB to finance
a 20 - year lease of the North Fork Water Rig hts ( Project ) as part of a $20 million purchase of the
water r ights by the Yuma County Water Authority Public Improvement District ( Yuma County
PID) . The w ater r ights are being purchase d in order to settle a lawsuit that could result in a change
to th e Nor thern High Plains Designated Ground Water Basin boundary and the Republican
District , as well as
maintain a vital agricultural economy o n the eastern plains of Colorado. This le ase will leave water
in the stream therefore reducing the amount of water pumped from the Republican District
proposed Compact Compliance Pipeline wells . CWCB approved a loan for the Compact
Compliance Pipeline Project at the January 2008 CWCB meeting (HB 1346). Execution of the lease
agreement with the Yuma County PID ( North Fork Lease ) is scheduled for December 30 , 2008. See
attached Project Data Sheet for a location map and a project summary.
Staff Recommendation

Staff recommends the Board approve a loan not to exceed $ 4,545 ,000 ($ 4,5 00,000 for Project costs
and $ 45, 000 for the 1% Loan Service Fee) to the Republican Ri ver Water Conservation District ,
acting by and through its Water Activity Enterprise for a 20 year lease of the surface water rights in
the Nort h Fork of the Republican River using funds from the Severance Tax Trust Fund Perpetual
Base Account. The loan terms shall be 20 year at an interest rate of 2.25% per annum. Security for
the loan shall be in compliance with CWCB Financial Policy 5.
Wa Watershed Protection & Flood Mitigation er Supply Planning & Finance