C150122 Approval Letter

• Contract/PO #: C150122
• Contractor Name: Central Weld County Water District
• Contract Type: Loan
• Water District: 4
• County: Larimer
• Bill Number: SB 03-110
• Loan Projects - Doc Type: Approval Letter

STATE OF COLORADO
Colorado Water Conservation Board
Department of Natural Resources
1313 Sherman Street, Room 721
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
www.cwcb.state.co.us
Bill Owens
MEMORANDUM Governor
(Updated September 23, 2005) Russell George
TO: Colorado Water Conservation Board Members Executive Director
Rod Kuharich
FROM: Bruce Johnson, P.E. ~ cwcBDirector
Mike Serlet, P.E., Chief ~ Rick Brown
Water Supply Planning a d Finance Section Acting Deputy
Director
DATE: September 2, 2005
SUBJECT: Agenda Item 12b, September 13-14, 2005 Board Meeting
Water Supply Planning and Finance Section -New Loans
Central Weld County Water District -Proposed Dry Creek Reservoir
Introduction
The Central Weld County Water District (CWCWD), acting by and through the Central Weld County
Water District Water Activity Enterprise, is applying fora $4,945,500 loan, from the Severance Tax
Trust Fund -Perpetual Base Account, to construct a new water storage reservoir in 50/50
partnership with the Little Thompson Water District (LTWD). This new loan is in addition to a
$3,937,500 loan approved by the CWCB in November 2002, for a portion of their share of the
project planned at that time. The original project was a 5200 AF reservoir costing $10,500,000,
and the proposed enlarged reservoir will have a 8,850 AF capacity and cost $21,600,000. Both
districts will jointly build, own and operate the proposed reservoir. In conjunction with this loan
request, the LTWD is also submitting a $4,945,500 loan request. If approved, the total amount of
both loans to CWCWD would be $8,883,000. Please see the attached Project Data Sheet.
Background
In November 2002, the CWCB approved a loan of $3,937,500 (75% of the CWCWD's share of the
5200 AF Dry Creek Reservoir project) at an interest rate of 4.15% per year for 20 years. A similar
loan for $3,937,500 was approved for LTWD. The initial plan was to construct the 5,200 acre-foot
reservoir with the vision that it could be enlarged at a future date. The proposed reservoir, at the
same location (west of Berthoud and 2-3 miles southeast of the Carter Lake Filter Plant), would
allow storage of 8,850 acre feet of raw water for use at the Filter Plant. The project includes the
construction of an earthfill dam, concrete spillway, low-level outlet, pump station and related piping.
The low-level outlet will be constructed as a bi-directional conduit through the dam. The outlet will
be used to evacuate the reservoir during emergencies and to fill the reservoir from the St. Vrain
Flood Protection • Water Supply Plazuung and Finance • Stream and Lake Protection
Water Supply Protection • Conservation and Drought Planning