C150251 Approval Letter

• Contract/PO #: C150251
• Contractor Name: Montezuma Valley Irrigation Company
• Contract Type: Loan
• County: Montezuma
• Loan Projects - Doc Type: Approval Letter

STATE OF COLORADO
Colorado Water Conservation Board �kRCONS.e.ip
Department of Natural Resources c0 ` '
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1313 Sherman Street,Room 721 ¢(T ?±, ,.1
Denver,Colorado 80203 0• 4 J�
Phone:[phone]
FAX [phone] �1�: "
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www.cwcb.state.co.us •1 9 3 2 • ,
July 16, 2007 Bill Ritter,Jr.
Governor
Harris D.Sherman
Jim Siscoe, General Manager Executive Director
Montezuma Valley Irrigation Company Dan McAuliffe
11501 Hwy 491 Acting Director
Cortez, CO 81321
RE: May Lateral Pipeline Project
Dear Mr. Siscoe:
I am pleased to inform you that on July 11,2007,the Colorado Water Conservation Board(CWCB)
approved your loan request. We understand that the loan will be used to pay for the design and
installation of pipe,meters,vents, and other appurtenances in the construction of the May Lateral
Pipeline Project.
The Board approved a loan not to exceed$5,292,400 (5,240,000 for project costs and$52,400 for the
1%Loan Service Fee)with loan terms of 2.25%per annum for 30 years. I have attached a copy of the
updated Board memo that includes the Board's approval of the Staff Recommendations. The Board
approval includes supplemental conditions that must be met before a Loan Contract can be executed. In
addition,the Board has required the loan contract include language which requires all funds received
from NRCS related to the May Lateral Pipeline Project be applied to the Project and the CWCB loan.
When the Board approves a loan there remain several conditions:
a) Feasibility Study: Kirk Russell has reviewed the study titled "Feasibility for New Pipe
Line Construction for the May Lateral, March, 2007". The approved study, in
combination with the CWCB Board Memo revised July 16,2007,will meet the
requirements of the CWCB Construction Fund Guidelines for loan feasibility studies.
b) Contracting: An approved contract must be in place before funds can be advanced.
Vaughn McWilliams will initiate the loan contracting process for this project. Once the
contract is finalized the Company may request loan funds to cover eligible project
expenses.You can contact Vaughn at [phone] regarding the requirements.
c) Design/Construction: You must adhere to the CWCB Design and Construction
Administration Procedures. Tim Feehan will contact you regarding the requirements
concerning construction.Tim will make construction site visits,which will be the basis
of pay estimates for disbursement of your loan funds. You can contact Tim at his office
at(303) 866.3480 or cell phone [phone].
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