C150304 approval ltr

• Contract/PO #: CT2015-032
• Contract/PO #: C150304
• Contractor Name: Lower Latham Reservoir Company
• Contract Type: Loan
• County: Weld
• Loan Projects - Doc Type: Approval Letter

STATE OF COLORADO
Colorado Water Conservation Board
Department of Natural Resources
1313 Shertnan Street, Room 721
Denver, Colorado 80203
Phone: [phone]
Fax: (303) 866�474
www.cwcb. state.co.us
TO: Colorado Water Conservation Board Members
FROM: Anna Mauss, P.E. G�l� r v
Water Supply Planning & Finance Section
DATE: January 19, 2010 (UPDATED February 4, 2010)
Bill Ritter, Jr.
Govemor
James B. Martin
DNR Executive Director
Jennifer L. Gimbel
CWCB Director
Dan McAuliffe
CWCB Deputy Director
SUBJECT: Agenda Item 26a, January 26-27, 2010 Board Meeting
Water Supply Planning and Finance Section - New Project Loans
Lower Latham Reservoir Company - Well Augmentation Project - Phase III
Introduction
The Lower Latham Reservoir Company (Company) is applying for a$3,773,8351oan to acquire five
shares of the Lower Latham Ditch Company (LLDC), for the pwrpose of providing additional
augmentation water for existing shareholder wells and to construct groundwater recharge facilities.
This project has been identified as the Well Augmentation Project - Phase III (Project). The Company
previously financed two water rights purchases through CWCB in July 2007 and March 2008. The
current loan request is for 90% of the estimated total project cost of $4,193,150. See attached Project
Data Sheet for a location map and a project summary.
Staff Recommendation (Board approved staff recommendation on January 27, 2010)
Staff recommends the Board approve a loan from the Construction Fund not to exceed $3,811,573
($3,773,835 for project costs and $37,738 for the 1% Loan Service Fee) to Lower Latham Reservoir
Company for the water rights purchase, engineering and construction costs related to the Well
Augmentation Project - Phase III. The loan terms shall be 30 years at the agricultural rate of 2.75%
per annum. Security for the loan shall be in compliance with CWCB Financial Policy #5.
Staff also recommends a contract condition requiring the bridge financing related to the Project be
paid in full with the proceeds from this CWCB loan.
Background
The Company operates jointly with the LLDC to irrigate approximately 11,000 acres southeast of
Greeley, in Weld County. In addition to owning and operating the Lower Latham Reservoir, the
Company provides well augmentation for 84 wells to replace out-of-priority depletions caused by
Water Supply Protection • Watershed Protection & Flood Mitigation • Stream & Lake Protection • Water Supply Planning & Finance
Water Conservation & Drought Planning • Intrastate Water Management & Development