C150292 Deauth Ltr

• Contract/PO #: C150292
• Contractor Name: Huerfano-Cucharas Irrigation Company
• Contract Type: Loan
• Water District: 0
• County: Pueblo
• Loan Projects - Doc Type: Approval Letter

STATE OF COLORADO
Colorado Water Conservation Board
Department of Natural Resources
1313 Sherman Street, Room 72l
Denver, Colorado 80203
Phone: [phone]
Fax: [phone]
www.cwcb.state.co.us
TO: Colorado Water Conservation Board Members
FROM: Anna Mauss, P.E.G��
Mike Serlet, P.E., Chief �." �
Water Supply Planning & Finance Section
DATE: May 12, 2009 (UPDATED May 22, 2009)
Bill Ritter, Jr.
Govemor
Harris D. Sherman
DNR Executive Director
Jennifer L. Gimbel
CWCB Director
Dan McAuliffe
C WCB Deputy Director
SUBJECT: Agenda Item 17h, May 19-20, 2009 Board Meeting
Water Supply Planning and Finance Section — New Project Loans
Huerfano-Cucharas Irrigation Company — Cucharas Reservoir Rehabilitation
Introduction
The Huerfano-Cucharas Irrigation Company (Company) is requesting a loan from the CWCB in the
amount of $1,606,000 for the Cucharas Reservoir Rehabilitation Project (Project). The Cucharas
Reservoir (Reservoir) has a storage restriction from the State Engineer's Office (SEO) with a
deadline of October 1, 2010 either to rehabilitate the existing dam, replace it with a new dam, or a
zero storage restriction will be imposed followed by an order to breach the dam and remove the
hazard it represents. This Project involves repairing the existing dam and maintaining a reduced
level of storage in the Reservoir by lowering the spillway, replacing outlet gates, installing a
satellite monitoring system, and updating a new Emergency Action Plan. The estimated total cost
of the Project is $1,784,000. This loan request is for 90% of the estimated Project cost. See
attached Project Data Sheet for a location map and a project summary.
Staff Recommendation (Board approved staff recommendation on May 19, 2009)
Staff recommends the Board approve a loan not to exceed $1,622,060 ($1,606,000 for project costs
and $16,060 for the 1% Loan Service Fee) to the Huerfano-Cucharas Irrigation Company for its
Cucharas Reservoir Rehabilitation Project from the Severance Tax Trust Fund Perpetual Base
Account. The loan terms shall be 30 years at the agricultural interest rate of 2.5% per annum.
Security for the loan shall be in compliance with CWCB Financial Policy #5.
Additional contract condition: The CWCB will not disburse funds until the SEO has approved the
Proj ect.
Water Supply Protection • Watershed Protection & Flood Mitigation • Stream & Lake Protection • Water Supply Planning & Finance
Water Conservation & Drought Planning • Intrastate Water Management & Development