C150299 Approval leter

• Contract/PO #: C150299
• Contractor Name: Lake Canal Reservoir Company
• Contract Type: Loan
• Water District: 0
• County: Larimer
• County: Weld
• Loan Projects - Doc Type: Approval Letter

STATE OF COLORADO
Colorado Water Conservation Board
Department of Natural Resources
1313 Shemian Street, Room 721
Denver, Colarado 80203
Phone:[phone]
Fax:[phone]
www.cwcb.state.co.us
Bill Ritter, Jr.
Governor
TO: Colorado Water Conservarion Board Members
Harris D. Sherman
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Ki DNR Executive Director
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WateT Supply Planning & Finance Section
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DATE: September 9, 2009 PDATED Se tember 16, 2009
~ ~1 ~ Dan McAuliffe
CWCB Deputy Director
SUBJECT: Agenda Item 7b September 15-16, 2009 Board Meeting
Water Supply Planning and Finance Section - New Project Loans
Lake Canal Reservoir Company - South Gray Reservoir Rehabilitation & Gray
No. 3 Breach
Introduction
The Lake Canal Reservoir Company (Reservoir Company) is applying for a loan for the South Gray
Reservoir Rehabilitation & Gray No. 3 Breach Project (Project). The Project includes: 1) installation
of toe drains on the South Gray dam to collect excessive seepage as required by the SEO Dam
Safety Branch and avoid reservoir restrictions; and 2) breaching of Gray Reservoir No. 3 dam. The
total cost estimate for the Project is $433,000. The Project will address SEO Dam Safety hazazd
concerns and maintain full use of the Company's storage rights. The loan request is for
approximately 90% of the Project costs. See attached Project Data Sheet for a location map and
summary.
Staff Recommendation (Board approved Staff Recommendation on September 16, 2009)
Staff recommends the Board approve a loan not to exceed $393,900 ($390,000 for project costs and
$3,900 for the 1% Loan Service Fee) to the Lake Canal Reservoir Company for the South Crray
Reservoir Rehabilitation & Gray No. 3 Breach from the Construction Fund. The loan terms shall be
an interest rate of 3.15% per annum for 30 years. Security for the loan shall be in compliance with
CWCB Financial Policy #5.
Background
South Gray Reservoir dam has excessive seepage along a major portion of the dam. In an effort to
preserve the storage right on this reservoir, the Reservoir Company is adding a toe drain or other
seepage measures to ensure the safety of the dam.
Water Supply Protection • Wntershed Protection & Flood MiNgation • Stresm & Lake Protection • Water Supply Planning & Finance
Water Conservation & Drought Plaoning • Intrastete Water Mxnagement & Development