C150274 Approval Letter

• Contract/PO #: C150274
• Contractor Name: Yuma County Water Authority Public Improvement District
• Contract Type: Loan
• Water District: 0
• County: Yuma
• Loan Projects - Doc Type: Approval Letter

STATE OF COLOR.AD4
Colorado Water Conservation Board
Department of Natural Resources ~
13I3 Sherman Street, Room 721
Denver, Colorado 80203
Phone: [phone]
Fax:[phone]
www.cwcb.state.co.us
Bill Ritter, )r.
Govemor
TO: Colorado Water Conservation Board Members
Hartis D. Shemtisn
~ DNR Execudve Direclor
FROM: Kirk Russell, PE ~' ~/'
Mike Serlet, PE, Chief ~y~% cwca n~~~ ~ ,
Water Supply Planning and Finance Section
Dan McAuliffe
CWCB Depury Director
DATE: November 10, 2008 (UPDATED NOVEMBER 20, 2008)
SUBJECT: Agenda Item 26d November 18-19, 2008 Board Meeting
Water Supply Planning and Finance Section - New Project Loan~
Yuma County Water Authority Public Improvement District - North Fork
Water Rights Purchase
Introduction
The Yuma County Water Authority Public Improvement District (Yuma County PID) is requesting
a loan from the CWCB in the amount of $9.5 million to finance the North Fork Water Rights
Purchase (Project). The loan represents approximately 1/2 of the negotiated purchase price of $20
million for the purchase with the remainder coming from other sources. The Project is needed in
order to settle a lawsuit threatening to impact the Northern High Plains Designated Ground Water
Basin boundary and therefore threaten the Republican River Water Conservation District's
(Republican District) ability to meet the State's Republican River Compact requirements as well as
maintain a vital agricultural economy in the eastern plains of Colorado. Closing of the water right
purchase is scheduled for December 30, 2008. See attached Project Data Sheet for a location map
and a project summary.
Staff Recommendation (Approved on November 19, 2008 with Reserve Account Waiver)
Staff recommends the Board approve a loan not to exceed $9,595,000 ($9,500,000 for Project costs
and $95,000 for the 1% Loan Service Fee) to the Yuma County Water Authority Public
Improvement District for the purchase of surface w•ater rights in the North Fork of the Republican
River using funds from the Severance Tax Trust Fund Perpetual Base Account. The loan amount
shall not exceed 90% of Project expenses. The loan terms shall be 20 year at an interest rate of
2.25% per annum. Security for the loan shail be in compliance with CWCB Financial Policy 5.
Water Supply Protection • Watershed Protection & Flood Mftigatlon • Stre~m & I.ake Protection • W~ter Supply Planniog & Finrnce
Wrter Conservation & UrauYht Plrnning • Intrast~te Water ;Nanagement & Development