C150298 Approval Letter

• Contract/PO #: C150298
• Contractor Name: Fort Morgan Reservoir and Irrigation Company
• Contract Type: Loan
• Water District: 0
• County: Morgan
• Loan Projects - Doc Type: Approval Letter

STATE OF COLORADO
Colorado Water Conservation Board
Department of Natural Resources
] 313 Sherman Street, Room 721
Denver, Colorado 80203
Phone: [phone]
Fax:[phone]
www.cwcb.state.co. us
TO: Colorado Water Conservation Board Members
FROM: Anna Mauss, P.E.
Water Supply Planning and Finance Section
Bill Ritter, Jr.
Govemor
Harris D. Sherntan
DNR Executive Director
Jennifer L. Gimbel
CWCB Director
Dan McAuliffe
DATE: September 9, 2009 (UPDATED September 16, 2009) CWCB Deputy Director
SUBJECT: Agenda Item 7a, September 15-16 2009 Board Meeting
Water Supply Planning and Finance Section - New Project Loans
Fort Morgan Reservoir and Irrigation Company - Pipeline Project
Introduction
The Fort Morgan Reservoir and Irrigation Company (Company) is applying for a$1,900,000
loan from the CWCB to construct its Pipeline Project (Project). The pipeline, along with pumps
and recharge ponds, is being built to give the Company the ability to recapture and re-time its
excess augmentation credits that accrue to the South Platte River. The Project is a cooperative
project between the Company and Groves Farms. The estimated total project cost is $2,388,500.
See the attached Project Data Sheet for a location map and project summary.
Staff Recommendation (Board approved staff recommendation on September 15, 2009)
Staff recommends the Board approve a loan not to exceed , , , , ~
+ a Q i ~ nnn ~' +~,o , o~ T~-. ce.~,:~o ~~~~ to the Fort Morgan Reservoir and Irrigation
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Company to construct the Pipeline Project from the Construction Fund. The loan terms shall be
30 years at a blended rate of 2.9% per annum. Security for the loan shall be in compliance with
CWCB Financial Policy #5. Loan approval amount is $1,494,800 ($1,480,000 for project
costs and $14,800 for the 1% Loan Service Fee). Loan amount was reduced (per the
condition noted in following paragraph) because the Company was awarded $420,000 for
project costs from the Water Supply Reserve Account statewide funds.
Staff further recommends that if the Fort Morgan Reservoir and Irrigation Company is awarded a
grant from the Water Supply Reserve Account statewide funds, this CWCB loan approval shall be
reduced by such amount plus the 1% Loan Service Fee.
Water Supply Protection • Watershed Protection & Flood Mitigation • Stream & Lake Protection • Water Supply Planning & Finance
Water Conservation & Drought Planning • Intrastate Water Management & Development