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

Raymond Dairy, Inc.
September 9, 2009 (UPDATED September 16, 2009)
Page 3 of 5
Project Description
Two alternatives were analyzed in the feasibility study:
1) No action alternative;
2) Participate in the NRCS Colorado River Basin Salinity Control Program.
Agenda Item 7c
The Borrower chose to participate in the Salinity Control Program because of the funding assistance
and engineering services provided by the NRCS. Work to be completed consists of replacing
2,400 feet of the Ditch, and installing new head gates and punch plates. The benefits of this Project
include decreased amounts of seepage in the Ditch (thus decreasing the amount of salt that leaches
into the Colorado River), increased efficiency of water flow, and reduction of the amount of debris
in the water.
Construction is scheduled to begin in November 2009 and is expected to be complete by April
2010.
Financial Analysis
Table 1 shows a summary of the funding sources for the Project. The total estimated cost of the
Project is $95,000. An initial loan phase (during construction) amount is based on 100% of the
estimated total Project cost (allowed per Policy #11). The loan will be reduced to $63,000 after the
Project is complete and the Borrower receives funds from the NRCS.
Table 1. Project Funding Sources
Funding Source Grant/Other Loan
Initial Loan Phase
CWCB Loan $95,000
Total $95,000) $0 $95,000
Post Construction Phase
Borrower (NRCS-Cost Share)* $32,000
CWCB Loan $63,000
Total ($95,000) $32,000 $63,000
* Received after construction is complete from Nxc.;~
Table 2 shows a summary of the financial aspects of the Project.