C150237 Increase Approval Letter

• Contract/PO #: CT2015-040
• Contract/PO #: C150237
• Contractor Name: Penrose Water District
• Contract Type: Loan
• County: Fremont
• Bill Number: SB 07-122
• Loan Projects - Doc Type: Approval Letter

ON R COLORADO 1313 Sherman Street John Hickenlooper,Governor
Denver, CO 80203
1 Colorado Water Mike King, DNR Executive Director
Co V Conservation Board P [phone]
Department of Natural Resources F(303)866-4474 James Eklund,CWCB Director
TO: Colorado Water Conservation Board Members
FROM: Derek Johnson, P.E., Project Manager
Kirk Russell, P.E., Finance Section Chief
DATE: November 19-20, 2014 Board Meeting (Updated November 21, 2014)
CONSENT AGENDA: Item 4a. - Change to Existing Loans
Penrose Water District - Raw Water Acquisition and Utilization Project
Guidance
At the May 2005 Board Meeting, the Board authorized staff to present increases to existing loans less
than 20% of the original loan as Consent Agenda items. This request for increase is approximately 10%
of the original amount.
Introduction
The Penrose Water District (District), acting by and through its Water Activity Enterprise, received
approval of a CWCB loan (Contract C150237/ CT2015-040) to finance the ongoing Raw Water
Acquisition and Utilization Project (Project) at the November 2006 CWCB Board Meeting, in the
contracted amount of$8,844,570, including the 1% loan service fee. This loan was included in the 2007
CWCB Projects Bill approved by the General Assembly by Senate Bill 07-122. The purpose of the Project
is to purchase water rights, construct a raw water pipeline from the Arkansas River to the District's
service area, and to acquire storage space in Brush Hollow Reservoir.
The District has incurred additional costs to the project in the activities of purchasing additional water
rights, acquiring related reservoir storage, preparing additional required engineering studies, and
additional project elements in the specialties of electrical and pipeline construction costs. The District
is requesting a loan increase of$910,000 to finalize the overall project. This increase is approximately
10% of the original loan request. See attached Project Data Sheet for a location map and Project
summary.
Staff Recommendation(Board Approved Staff Recommendation on November 20,2014)
Staff recommends the Board approve a loan increase of $919,100 ($910,000 for project costs and
$9,100 for the 1% Loan Service Fee) for a total loan not to exceed $9,763,670 ($9,667,000 for project
cost and $96,670 for the 1% Loan Service Fee) to the Penrose Water District, acting by and through its
Water District Water Activity Enterprise, for engineering and construction costs related to the Raw
Water Acquisition and Utilization Project from the Severance Tax Perpetual Base Fund. The loan terms
shall remain 30 years at a blended interest rate of 3.25% per annum. Security for the loan shall be in
compliance with CWCB Financial Policy#5.
Interstate Compact Compliance•Watershed Protection • Flood Planning 8 Mitigation • Stream Et Lake Protection i
Water Project Loans a Grants •Water Modeling • Conservation a Drought Planning •Water Supply Planning
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