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STATE OF COLORADO <br />Colorado Water Conservation Board <br />Department of Natural Resources <br />1313 Sherman Street, Room 72l <br />Denver, Colorado 80203 <br />Phone: (303) 866-3441 <br />Fax: (303) 866-4474 <br />www.cwcb.state.co. us <br />Bill Ritter, Jr. <br />Governor <br />TO: Colorado Water Conservation Board Members <br />Hams D. Sherman <br />'' r~~ D1VR Executive Director <br />FROM: Kirk Russell, PE 1V~ <br />Jennifer L. Gimbel <br />Mike Serlet, PE, Chief cwcs Director <br />Water Supply Planning an Finance Section <br />Dan McAuliffe <br />CWCB Deputy Director <br />DATE: November 10, 2008 (UPDATED November 19, 2008) <br />SUBJECT: Agenda Item 26e, November 18-19, 2008 Board Meeting <br />Water Supply Planning and Finance Section -New Project Loans <br />Republican River Water Conservation District -North Fork Water Rights <br />Lease <br />Introduction <br />The Republican River Water Conservation District (Republican District), acting by and through its <br />Water Activity Enterprise (Enterprise), is requesting a $4.5 million loan from the CWCB to finance <br />a 20-year lease of the North Fork Water Rights (Project) as part of a $20 million purchase of the <br />water rights by the Yuma County Water Authority Public Improvement District (Yuma County <br />PID). The water rights are being purchased in order to settle a lawsuit that could result in a change <br />to the Northern High Plains Designated Ground Water Basin boundary and the Republican <br />District's ability to meet the Republican River Compact (Compact) requirements, as well as <br />maintain a vital agricultural economy on the eastern plains of Colorado. This lease will leave water <br />in the stream therefore reducing the amount of water pumped from the Republican District's <br />proposed Compact Compliance Pipeline wells. CWCB approved a loan for the Compact <br />Compliance Pipeline Project at the January 2008 CWCB meeting (HB 1346). Execution of the lease <br />agreement with the Yuma County PID (North Fork Lease) is scheduled for December 30, 2008. See <br />attached Project Data Sheet for a location map and a project summary. <br />Staff Recommendation (Board Approved on November 19, 2008) <br />Staff recommends the Board approve a loan not to exceed $4,545,000 ($4,500,000 for Project costs <br />and $45,000 for the 1 % Loan Service Fee) to the Republican River Water Conservation District, <br />acting by and through its Water Activity Enterprise fora 20 year lease of the surface water rights in <br />the North Fork of the Republican River using funds from the Severance Tax Trust Fund Perpetual <br />Base Account. The loan terms shall be 20 year at an interest rate of 2.25% per annum. Security for <br />the loan shall be in compliance with CWCB Financial Policy 5. <br />Water Supply Protection • Watershed Protection & Flood Mitigation • Stream & Lake Protection • Water Supply Planning & Finance <br />Water Conservation & Drought Planning • Intrastate Water Management & Development <br />