CT2016-2005 Approval Letter

• Contract/PO #: CT2016-2005
• Contractor Name: Lower Poudre Augmentation Company
• Contract Type: Loan
• County: Larimer
• Loan Projects - Doc Type: Approval Letter

D N R COLORADO 1313 Sherman Street John Hickenlooper, Governor
ii`` Denver, CO 80203
CO % Colorado Water Mike King, DNR Executive Director
Conservation Board P [phone]
Department of Natural Resources F(303)866-4474 James Eklund, CWCB Director
TO: Colorado Water Conservation Board Members
FROM: Jonathan Hernandez, P.E., Project Manage /1
Kirk Russell, P.E., Finance Section Chief�(A'
DATE: September 15-17, 2015 Board Meeting (Updated September 18, 2015)
AGENDA ITEM: 22b. Water Project Loans
Lower Poudre Augmentation Company - Box Elder Ditch Water Rights Purchase
Introduction
The Lower Poudre Augmentation Company (Company) is applying for a loan for the Box Elder Ditch
Water Rights Purchase (Project). The Company runs an augmentation plan that offsets well pumping by
its members. The purpose of the Project is to enable the Company to provide additional augmentation
water to its well members by purchasing water rights for use in the Company's augmentation plan. The
total Project cost is estimated to be $500,000. The Company is requesting a loan from CWCB for
approximately 90% of the Project Cost. See attached Project Data Sheet for a location map and Project
summary.
The Company was recently approved at the May 2015 Board meeting for the Cornish Water Rights
Purchase project (CT2015-171). The purchase of the Box Elder Ditch water rights will not negate the
need for the Cornish water rights, but will be added to the Company's water rights portfolio in addition
to the newly acquired Cornish water rights.
Staff Recommendation (Board approved Staff Recommendation on September 17, 2015)
Staff recommends the Board approve a loan not to exceed $454,500 ($450,000 for Project costs and
$4,500 for the 1% service fee) to the Lower Poudre Augmentation Company for costs related to the Box
Elder Ditch Water Rights Purchase from the Severance Tax Perpetual Base Fund. The loan terms shall
be 30 years at a blended interest rate of 1.85% per annum. Security for the loan shall be in compliance
with CWCB Financial Policy#5.
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Interstate Compact Compliance •Watershed Protection • Flood Planning£s Mitigation • Stream 8 Lake Protection ta, g
Water Project Loans a Grants •Water Modeling • Conservation Et Drought Planning •Water Supply Planning \* ` ,�
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