CT2017-916 Approval Letter

• Contract/PO #: CT2017-916
• Contractor Name: Grand Junction, City of
• Contract Type: Grant/Loan Combo
• Loan Projects - Doc Type: Approval Letter

DNR COLORADO 1313 Sherman Street John Hickenlooper, Governor
As3Denver, CO 80203 Robert Randall, Interim DNR
CO i Colorado Water 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: Anna Mauss P.E., Project Manager (, 111
Kirk Russell, P.E., Finance Section Chief /L.,,e,14_
DATE: March 16-17, 2016 Board Meeting (Updated March 18, 2016)
AGENDA ITEM: 13a. Water Project Loans / WSRA Grants
City of Grand Junction - Hallenbeck Reservoir No. 1 Dam Rehabilitation
Introduction
The City of Grand Junction (City), acting by and through its water activity enterprise, is applying for a
loan and grant for the Hallenbeck Reservoir No. 1 Dam Rehabilitation (Project). In June of 2014,
Hallenbeck Reservoir No. 1 (aka Purdy Mesa) developed an 80-foot crack on the downstream slope of
the dam. The City immediately contacted the Office of the State Engineer (SEO) Dam Safety Branch
and voluntarily drained the reservoir. The purpose of the Project is to repair the dam and restore the
full storage capacity of the reservoir. The total Project cost is estimated to be $1,153,800. The City is
requesting a loan from the CWCB for approximately 87% of the Project cost and WSRA grants for the 9%
of the Project cost. The balance will be funded by cash from the City. See attached Project Data Sheet
for a location map and Project summary.
Staff Recommendation for CWCB Loan (Board approved Staff Recommendation on March 16, 2016)
Staff recommends the Board approve a loan not to exceed $1,010,000 ($1,000,000 for Project costs and
$10,000 for the 1% service fee) to the City of Grand Junction, acting by and through its water activity
enterprise, for costs related to the Hallenbeck Reservoir No. 1 Dam Rehabilitation Project from the
Construction Fund. The loan terms shall be 20 years at the reduced middle-income municipal interest
rate of 2.65% per annum. Security for the loan shall be in compliance with CWCB Financial Policy#5.
Staff Recommendation for WSRA Grant (Board approved Staff Recommendation on March 16, 2016)
Staff recommends approval of up to $75,000 from the Statewide Account and $25,000 from the
Gunnison Basin Account to the City of Grand Junction, acting by and through its water activity
enterprise, for costs related to the Hallenbeck Reservoir No. 1 Dam Rehabilitation Project.
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Interstate Compact Compliance •Watershed Protection • Flood Planning a Mitigation • Stream a Lake Protection '/ ' =)
Water Project Loans a Grants • Water Modeling • Conservation Et Drought Planning •Water Supply Planning