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STATE OF COLORADO <br />Colorado Water Conservation Board <br />Department of Natural Resources <br />1313 Sherman Street, Rcx~m 721 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3441 <br />FAX: (30.3) 866~474 <br />(Revised) Bill Ritter ]r. <br /> Govemor <br />TO: Colorado Water Conservation Board Memb S Harris D. Sherman <br /> DNR Executive Director <br />FROM: Tim Feehan, P.E., Project Mana er ' <br />~ Jennifer L. Gimbel <br />cwcs ~~cot <br />Mike Serlet, P.E., Chief ~, <br />Water Supply Planning and Finance ection Dan McAuliffe <br /> CWCB Deputy Director <br />DATE: November 5, 2008 <br />SUBJECT: Agenda Item 25b, November 18-19, 2008 Board Meeting <br />Water Supply Planning and Finance Section - Changes to Existing Loans <br />Bijou Irrigation District - Diversion Structure Rehabilitation <br />Introduction <br />• At the September 2007 board meeting, the Colorado Water Conservation Board (CWCB) approved <br />a loan to the Bijou Irrigation District in the amount of $654,480 from the Severance Tax Trust Fund <br />Perpetual Base Account. The $654,480 loan was for the rehabilitation of the District's diversion <br />structure at the Empire Intake Canal, located on the South Platte River. <br />The District is requesting an increase of $1,436,220 to the District's 2007 authorization of $654,480. <br />The requested loan increase is due to site conditions encountered during excavation of the diversion <br />structure. The original project was to remove only 100 feet of the existing diversion structure and <br />replace with 100-feet of Obermeyer Gates (Bladder Gates). During the removal of this portion of <br />the diversion structure, it was determined that the remaining 180 feet of structure had been severely <br />undermined with no visible cutoff substructure. Given the high probability of its failure and the <br />damage it would cause to the new structure if left unchecked, the District decided to replace the <br />entire diversion structure. Additionally, in order to make the river diversion work more effectively, <br />the intake structure will need to be reconstructed and realigned to accommodate two 25-foot wide <br />Bladder Gates, which were also not included in the original cost estimate. <br />Staff Recommendation <br />Staff recommends that the Board approve an increase of $1,436,220 ($1,422,000 for project <br />costs and $14,220 for the 1% loan origination fee) to the Bijou Irrigation District, from the <br />Severance Tax Trust Fund Perpetual Base Account, at its current interest rate of 2.25% for 30 <br />years. The District's total amended loan amount will be $2,090,700 ($2,070,000 for project <br />~ costs and $20,700 for the 1% Loan Service Fee) for the removal and replacement of the entire <br />diversion structure and improvements to the intake structure. Security for the loan shall be <br />collateral in compliance with CWCB Loan Policy No. 5 <br />