C150372 Approval Letter

• Contract/PO #: CT2015-025
• Contract/PO #: C150372
• Contractor Name: Oligarchy Irrigation Company
• Contract Type: Loan
• Water District: 5
• County: Boulder
• 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
John W. Hickenlooper
Governor
TO: Colorado Water Conservation Board Members
Mike King
DNR Executive Director
FROM: Jonathan Hernandez, P.E., Project Manager
Kirk Russell P.E. Chief James Eklund
> > CWCB Director
Finance and Administration Section
DATE: October 18, 2013 (Updated October 21, 2013)
SUBJECT: Agenda Item 8d, October 21, 2013 Special Board Meeting
Finance — Emergency Loans
Oligarchy Irrigation Company — Emergency Oligarchy Ditch River Diversion
Structure Repair
Introduction
The Oligarchy Irrigation Company (Company) is applying for an Emergency Loan for the
Emergency Oligarchy Irrigation Ditch River Diversion Structure Repair Project (Project). During
the unprecedented flood of September 2013 in the tributaries to the South Platte River, a significant
number of diversion structures and dams along the river corridor were damaged. The Oligarchy
Ditch river diversion structure received significant damage as a result of this flood. The purpose of
the Project is to repair the diversion structure to allow the Company to divert their decreed water
rights. The total Project cost is estimated to be $1,250,000. See attached Project Data Sheet for a
location map and project summary.
Staff Recommendation (Board approved staff recommendation on October 21, 2013)
Staff recommends the Board approve a loan not to exceed $1,262,500 ($1,250,000 for project cost
and $12,500 for the I% service fee) to the Oligarchy Irrigation Company for 100% of engineering
and construction costs related to the Emergency Oligarchy Ditch River Diversion Structure Repair
Project from the Severance Tax Perpetual Base Fund, up to the approved loan amount. The loan
terms shall be 3 years of no interest followed by 27 -years at a blended interest rate of 2.50% per
annum. Security for the loan shall be in compliance with CWCB Financial Policy #5.
Additionally, staff recommends the following contract condition:
Any future grant funds obtained for the purpose of this Project shall be submitted to CWCB to
be applied to the balance of the loan within thirty (30) days after receipt of said funds.
Interstate Compact Compliance • Watershed Protection • Flood Planning & Mitigation • Stream & Lake Protection
Water Project Loans & Grants • Water Modeling • Conservation & Drought Planning • Water Supply Planning