15d_Directors Report

• Board Meeting Date: 7/21/2009
• Description: Directors' Report - CWCB Director
• Board Meetings - Doc Type: Memo

Terms of Loan: $ 5.4M @3.50% for 30 - years Project Ty pe: Distribution System
The District’s WETPACK (Water for Everyone’s Tomorrow Package) proposal is intended to
better manage the available resources of the Dolores Project to provide an additional 3,300 acre -
feet of water for the fishery below McPhee Dam , increase municipal water supplies, and to
provide water of the irrigation of additional lands. This project involves a system of pipelines,
pumps, and related facilities to deliver water to the District’s Dove Creek Canal system for the
irrigation of 4 ,000 acres of new lands that are presently dry land farmed. Water will be delivered
to irrigators in pipes under pressure for sprinkler irrigation only. Harris Water Engineers, of
Durango, Colorado, is the planning and design consultant for the projec t. The project involved
the purchas e of water shares and the construction of pressurized pipe systems at various locations
within the valley. The original cost estimate to co mplete the project was $8M , which reduced to
$6M with a final loan contract of $5.8M. In 2005 the District indicated that full build out of the
project was probably not going to occur, g iven crop production cost versus the cost to supply
pressurized water. Therefore in 2005 , CWCB approved an amendment to the District’s existing
l oan contract, allowing the $2. 6M in completed work to be finalized under a separate contract and
the remaining loan amount of $ 3.2 M to be transferred over to a new contract for future work.
The $2.6M loan contract that was finalized was collateralized by the original annuity that was
setup for the full $5.8 M loan contract. Given the current trends in the financial market the
District’s annuity bond rating was downgraded from AAA to AA. The new rating not only
changed the collateral standing with CWCB, but it also reduced the District’s annual investment
return. Given these changes and the lack of progress with future pipeline projects, the District
has elected to payoff the $2.6M loan, to eliminate the collateral concern with CWCB, and do de -
authoriz e the $3.2M loan for future pipeline projects. The District’s payoff was received in May
of 2009.
6 . Parker Water and Sanitation District – New Reservoir Construction
Authorization: Construction Fund County: Douglas
Water Source: Cherry Creek P roject Yield: 16,200 acre - feet
Terms of Loan: $15,000,000 @4.75% for 20 - years Project Type: Reservoir Construction
The Parker Water and Sanitation District is currently in the design phase to construct the Rueter
Hess Project for the storage of municipa l water for its 7,924 customers. The new reservoir will
provide terminal storage for use within the District's existing 8,596 - acre service area. The
reservoir will be located 3 miles southwest of Parker on Newline Gulch. The proposed reservoir
will be a Class I structure, 135 feet high, impounding approximately 16,200 acre - feet of water.
GEI Consultants, Denver, Colorado, will be putting together the final design and construction
documents. Major land purchases have been completed and the Rueter He ss Reservoir and other
related project activities are currently under construction. The entire project is anticipated to be
completed by the fall/winter of 2008 . Parker Water has approved the expansion of the reservoir
to accommodate the requested need s of other water users in the area (Castle Rock and Castle Pine
North) . The foundation work on the reservoir was expanded to accommodate this potential
enlargement. The District is curre ntly constructing the reservoir expansion. The final storage
capac ity of the reserv oir will be approximately 72,000 acre - feet.
7 . Mancos Water Conservancy District - Canal Rehabilitation
Authorization: Severance Tax Perpetual Account County: Montezuma