C150157 approval letter

• Contract/PO #: C150157
• Contractor Name: Grand Mesa Reservoir Company
• Contract Type: Loan
• County: Mesa
• Loan Projects - Doc Type: Approval Letter

Grand Mesa Reservoir Co. Agenda Item 5b
September 22-23, 2003 (Updated September 25, 2003)
Alternative 2- Comp/ete rehabilitation of the outlet systems for both reservoirs.
This alternative would address the most serious deficiencies for both dams, and result in
restoring approximately 100 acre-feet of storage in Reservoir #9. It would not address the
seepage or spillway issues on Grand Mesa Reservoir #1, and would leave in place a 300 acre-
foot restriction on that structure. The Company has selected this alternative for financial
reasons and plans to apply for a follow-up loan to complete other needed work.
A/ternative 3- Comp/ete rehabilitation of the outlet systems for both reservoirs as well as work
to address seepage and spillway prob/ems on Grand Mesa Reservoir #1. This alternative was
rejected for financial reasons, and because the Company does not have a reliable cost estimate
for completion of the additional work on Reservoir #1.
Selected Alternative 2. For Reservoirs #1 and #9
1. Remove existing valve controls and upstream end of outlet pipe.
2. Construct new intake structure with slide gate.
3. Install new valve control wheel and stem.
4. Construct new outlet headwall (Reservoir #9 only)
5. Line entire outlet pipe with cured in place lining.
6. Backfill intake structure, dress to grade, and replace riprap.
The State Engineer has approved plans and specifications for the above work.
The implementation schedule calls for completion of financing arrangements in September
2003. Construction began September 2,2003 and is scheduled to be completed September 27,
2003. The Company will obtain private bridge financing to complete construction, with
permanent financing provided by the CWCB.
Financial Analvsis
The total estimated cost of the project is $100,000. Staff is recommending that the CWCB
Board approve a Small Project Loan of $90,000 (90% of the estimated total project cost.)
Shares in the GMRC are owned by both agricultural and municipal interests, and the Company
has requested either a 20-year or a 30-year loan. Table 2 shows the calculation of the 20 year
blended interest rate for this project:
Table 2: GMRC Share Ownership and Interest Rate
Shareholder Rate Category Year 2003 Rate # Shares Rate x Shares
(20 year loan) GMRC
A ricultural A ricultural 2.25% 883 1987
Municipal Municipal 3.25% 254 826
(Grand Junction) Low Income
Totals 1137 2813
2.47 %
20-year blended rate for GMRC Blended Rate = 2813/1137 shares (Round to 2.4%)
(Note: By similar calculation, the 30-year blended rate would be 2.7%)