CT2017-915 Approval Letter

• Contract/PO #: CT2017-915
• Contractor Name: Duke Ditch Company
• Contract Type: Grant/Loan Combo
• Loan Projects - Doc Type: Approval Letter

DNR COLORADO 1313 Sherman Street John Hickenlooper, Governor
Ati
Denver, CO 80203
CO , Colorado Water Robert Randall, Interim DNR
Conservation Board P [phone] Executive Director
Department of Natural Resources F [phone]
James Eklund, CWCB Director
TO: Colorado Water Conservation Board Members
n
FROM: Anna Mauss P.E., Project Manager .�
Kirk Russell, P.E., Finance Section Chief 146,,c7._
DATE: March 16-17, 2016 Board Meeting (Updated March 18, 2016)
AGENDA ITEM: 13b. Water Project Loans / WSRA Grants
Duke Ditch Company - Piping the Duke Ditch
Introduction
The Duke Ditch Company (Company) is applying for a loan for Piping the Duke Ditch (Project). The Duke
Ditch (Ditch) is an earthen ditch that traverses a steep hillside in Leroux Creek canyon in Delta County.
It has significant seepage that contributes both salinity and selenium to the Colorado River System.
Primary funding for the Project will be provided by the Bureau of Reclamation (Bureau) Basin States
through its Salinity Control Program (Salinity Control Program) and the Natural Resource Conservation
Service (NRCS) through in-kind services. The total Project cost is estimated to be $749,374. The
Company is requesting a loan from CWCB for approximately 12% of the Project Cost and WSRA grants
for approximately 12% of the Project Cost. The remaining 76% of Project cost will be funded by the
Bureau and NRCS. 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 $90,900 ($90,000 for Project costs and $900
for the 1% service fee) to the Duke Ditch Company for costs related to the Piping the Duke Ditch
Project from the Construction Fund. The loan terms shall be 30 years at a blended interest rate of
2.00% 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 $47,237 from the Statewide Account and $47,237 from the
Gunnison Basin Account to the Duke Ditch Company for costs related to the Piping the Duke Ditch
Project.
Interstate Compact Compliance • Watershed Protection • Flood Planning I*Mitigation • Stream >t Lake Protection e '' w9,
Water Project Loans&Grants •Water Modeling • Conservation a Drought Planning • Water Supply Planning * i*i