PROJC02291 ‎(2)‎

• Contract/PO #: C150280
• Contractor Name: Park Center Water District
• Contract Type: Loan
• Water District: 0
• County: Fremont
• 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 Ritter, Jr.
Governor
TO: Colorado Water Conservation Board Members
Hams D. Sherman
G~~r~ " " DNR Executive Director
FROM: Anna Mauss, PE c
Jennifer L. Gimbel
Mike Serlet, PE, Chief CWCB Director
Water Supply Planning & finance Section
Dan McAuliffe
CWCB Deputy Director
DATE: January 20, 2009 (UPDATED January 27, 2009)
SUBJECT: Agenda Item lla, January 27-28, 2009 Board Meeting
Water Supply Planning and Finance Section -New Project Loans
Park Center Water District -Well Redrilling Project
Introduction
The Park Center Water District (District) acting by and through its Enterprise is applying fora $1,000,000
loan for its Well Redrilling Project (Project). The Project consists of redrilling the well the District leases
from the Bureau of Land Management (BLM). This well is a primary source of water for the residents of
the District, located just north of Canon City. The well began leaking in the spring of 2008 and redrilling is
necessary for the District to continue providing water to its residents. The Project cost is estimated to be
approximately $1,500,000. See attached Project Data Sheet.
Staff Recommendation (Board Approved Staff Recommendation on January 27, 2009)
Staff recommends the Board approve a loan not to exceed $1,010,000 ($1,000,000 for project costs and
$10,000 for the 1% Loan Service Fee) to the Park Center Water District acting by and through its
Enterprise for its Well Redrilling Project from the Severance Tax Trust Fund Perpetual Base Account.
The loan amount at no time shall exceed 90% of the total project expenditures. The loan terms shall be
30 years at an interest rate of 3.5% per annum. Security for the loan shall be in compliance with CWCB
Financial Policy #5.
Staff further recommends additional approval provisions:
1) Prior to signing a contract with the CWCB, the District must execute an extended lease
agreement with the BLM showing a 30 year minimum lease so that the timeframe of the lease
meets or exceeds the CWCB debt service repayment schedule.
Water Supply Protection • Watershed Protection & Flood Mitigation • Stream & Lake Protection • Water Supply Planning & Finance
Water Conservation & Drought Planning • Intrastate Water Management & Development