C150303 Approval Letter

• Contract/PO #: C150303
• Contractor Name: Trinchera Irrigation Company
• Contract Type: Loan
• Water District: 35
• County: Costilla
• Loan Projects - Doc Type: Approval Letter

STATE OF COLORADO
Colorado Water Conservation Board
Department of Natural Resources
1313 Sherman Street, Room 721
Denver, Colorsdo 80203
Phone: [phone]
Fax:[phone]
www. c wcb. state. c o. u s
TO: Colorado Water Conservation Board Members
FROM: Anna Mauss, P.E. G��
Water Supply Pla.nning & Finance Section
Bill Ritter, Jr.
Govemor
James B. Martin
DNR Executive Director
Jennifer L. Gimbel
CWCB Director
DATE: Janu 19, 2010 / UPDATED Februa 4� 2010 Dan McAuliffe
� \ �' � CWCB Deputy Director
SUBJECT: Agenda Item 26b, January 26-27, 2010 Board Meeting
Water Supply Planning and Finance Section — New Project Loans
Trinchera Irrigation Company — Smith Dam Repair
Introduction
The Trinchera Imgation Company (Company) is applying for a$600,000 loan to repair erosion on
Smith Dam and replace the upstream sluice valve in order to remove the State Engineer's Office
(SEO) restriction. This project has been identified as the Smith Dam Repairs Project (Project). The
current loan request is for 90% of the estimated $667,000 total cost of the Project. 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 $606,000
($600,000 for project costs and $6,000 for the 1% Loan Service Fee) to the Trinchera Irrigation
Company for engineering and construction costs related to the Smith Dam Repair Project. 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 that all bridge financing be paid in full with
the proceeds from the CWCB loan.
Background
The Company, located in Costilla County, Colorado, owns and operates Smith Reservoir, Mountain
Home Reservoir, and approximately 26 miles of canals and 45 miles of laterals for the purpose of
managing agricultural irrigation water for the benefit of its shareholders. The total irrigated farm
land serviced by the Company is approximately 14,100 acres.
Water Supply Protection • Watershed Protection & Flood Mitigation • Stream & Lake Protection • Water Supply Planning & Finance
Water Conservation & Drought Planning • Intrastate Water Management & Development