C150323 Approval Letter

• Contract/PO #: C150323
• Contractor Name: Jackson Ditch Company, The
• Contract Type: Loan
• Water District: 1
• County: Larimer
• Loan Projects - Doc Type: Approval Letter

STATE OF COLORADO
Colorado Water Conservation Board
Department of Natural Resources
1313 Sherman Street, Room 721
Denver, Colorado 80203
Phone: [phone]
Fax: [phone]
www.cwcb.state.co.us
TO: Colorado Water Conservation Board Members
FROM: Ryan Edwards, P.E., Project Manage>Alt(i
Kirk Russell, P.E., Chief 1612-
Finance Section
DATE: January 13, 2012 (Updated January 31, 2012)
John W. Hickenlooper
Governor
Mike King
DNR Executive Director
Jennifer L. Gimbel
CWCB Director
SUBJECT: Agenda Item 27a, January 23 -24, 2012 Board Meeting
Finance Section — Construction Fund — Change to Existing Loan
The Jackson Ditch Company — Check Dam Rehabilitation Project
Introduction
The Jackson Ditch Company (Company) received approval of a loan for its Check Dam
Rehabilitation Project (Project) in September 2011. The Project involves the installation of a new
check dam structure across the Cache la Poudre River, allowing the Company to divert its most
senior water rights during times of low flow. The Company is requesting a loan increase because
the three contractor bids exceeded the engineer's estimated project cost of $90,000. The revised
total project cost is estimated to be $137,000, which is a 52% increase over the original project cost.
The loan request is for 90% of the revised total project cost.
Staff Recommendation (Board approved staff recommendation on January 24, 2012)
Staff recommends the Board approve a loan increase of $42,723 ($42,300 for project costs and
$423 for the 1% Loan Service Fee), from the Construction Fund, to the Jackson Ditch Company.
The Company's amended total loan amount will be $124,533 ($123,300 for project costs and
$1,233 for the 1% Loan Service Fee) for engineering and construction costs related to the Check
Dam Rehabilitation Project. The loan terms shall remain 30 -years at a blended rate of 3.60% per
annum. Security for the loan shall be in compliance with CWCB Financial Policy #5.
Background and Current Project Status
At a point approximately five miles northwest of Fort Collins the Cache la Poudre River splits and
flows around an island located 700 feet upstream of the Jackson Ditch diversion gate. During
periods of low flow the Company must utilize the check dam structure to secure its most senior
water rights. The check dam spans the river from the upstream tip of the island to the west river
bank, and diverts flows around the east side of the island towards the Company's diversion gate.
Using the structure to reroute river flows enables the Company to divert water that would otherwise
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