C150300 Approval Letter

• Contract/PO #: C150300
• Contractor Name: Raymond Dairy, Inc.
• Contract Type: Loan
• Water District: 0
• County: Mesa
• Loan Projects - Doc Type: Approval Letter

STATE OF COLORADO
Colorado Water Conservation Board
Department of Natural Resources
i 313 Sherman Street, Room 721
Demer, Colorado 80203
Phone:[phone]
Fax:[phone]
www.cwcb.state.co.us
Bill Ritter, Jr.
Governor
TO: Colorado Water Conservation Board Members Harris D. Shernian
G~~~ DNR Executive Director
FROM: Anna Mauss, P.E. Jennifer L. Gimbel
Water Supply Planning & Finance Section CWCB Director
Dan McAuliffe
DATE: September 9, 2009 (UPDATED September 16, 2009) CWCB Deputy Director
SUBJECT: Agenda Item 7c, September 15-16, 2009 Board Meeting
Water Supply Planning and Finance Section - New Project Loans
Raymond Dairy, Inc. - Raymond Ditch Reconstruction Project
Introduction
The Raymond Dairy, Inc. (Borrower) has requested a loan from the CWCB to replace approximately
2,400 feet of its existing concrete ditch for the Raymond Ditch Reconstruction Project (Project). The
Project will increase ditch efficiency and reduce salinity impacts in the Colorado River. The total
Project cost, including engineering and construction, is estimated at $95,000. The Borrower is eligible
to receive funding assistance from Natural Resources Conservation Service (NRCS). The remaining
project cost will become a 20-year CWCB loan. See attached Project Data Sheet for a location map
and Project summary.
Staff Recommendation (Board approved staff recommendation September 15, 2009)
Staff recommends the Board approve a loan, not to exceed $95,950 ($95,000 for project costs and
$950 for the 1% Loan Service Fee) for engineering and construction costs, to Raymond Dairy, Inc.
from the Construction Fund for the Raymond Ditch Reconstruction Project. Following construction,
the staff further recommends the loan be amended to an amount not to exceed $63,950 ($63,000 for
the remaining balance of the Project and $950 for the Loan Service Fee). The loan terms shall be
20 years at the reduced agricultural rate of 2.5% per annum (2.75% reduced by 0.25% for a 20-year
term). Security for the loan shall be in compliance with CWCB Financial Policy #5.
Staff further recommends that no loan funds be disbursed until an account is set up with one annual
payment is set aside as the reserve account.
Water Supply Protection • Watershed Protection & Flood Mitigation • Stream & Lake Protection • Water Supply Planning & Finance
Water Conservation & Drought Planning • lntrastate Water Management & Development