C153623 Extension Letter

• Contract/PO #: C153623
• Contractor Name: Sanchez Ditch and Reservoir Company
• Contract Type: Loan
• Water District: 24
• County: Costilla
• Loan Projects - Doc Type: Approval Letter

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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: Anna Mauss, P.E., Project Manager
Kirk Russell, P.E., Chief
Finance Section
DATE: September 18, 2012 (Updated October 4, 2012)
John W. Hickenlooper
Governor
Mike King
DNR Executive Director
Jennifer L. Gimbel
CWCB Director
SUBJECT: Agenda Item 23c, September 27 -28, 2012 Board Meeting
Finance/Water Supply Planning — WSRA Grant & Construction Fund Loan
Sanchez Ditch and Reservoir Company — Sanchez Reservoir Outlet
Rehabilitation Project
Introduction
The Sanchez Ditch and Reservoir Company (Company) is applying for a WSRA grant and CWCB
loan to finance the Sanchez Reservoir Outlet Rehabilitation Project (Project). The purpose of the
Project is to make safety and operational improvements to the outlet works at Sanchez Reservoir
(Reservoir). The total Project cost is estimated to be $2,032,000. In July of 2012, the Company was
approved for a $914,400 grant by the Rio Grande Basin Round Table from the Water Supply
Reserve Account. The Company is requesting a loan from the CWCB to cover the remaining
$1,117,600. See attached Project Data Sheet for a location map and a Project summary.
Staff Recommendation for WSRA Grant (Board approved staff recommendation on
September 28, 2012)
Staff recommends approval of up to $859,400 from the Statewide Account and $55,000 from the
Rio Grande Basin Account to fund the Sanchez Reservoir Outlet Rehabilitation Project.
Staff Recommendation for Construction Fund Loan (Board approved staff recommendation
on September 28, 2012)
Staff recommends the Board approve a loan, from the Construction Fund, not to exceed $1,128,776
($1,117,600 for project costs and $11,176 for the 1% Loan Service Fee) to the Sanchez Ditch and
Reservoir Company for the Sanchez Reservoir Outlet Rehabilitation Project. The loan terms shall
be 30 years at the agricultural rate of 1.75% per annum, the first 5 years of which are interest only.
Security for the loan shall be in compliance with CWCB Financial Policy #5.
Interstate Compact Compliance • Watershed Protection • Flood Planning & Mitigation • Stream & Lake Protection
Water Project Loans & Grants • Water Modeling • Conservation & Drought Planning • Water Supply Planning