CT2017-2258 Approval Letter

• Contract/PO #: CT2017-2258
• Contractor Name: Grand Valley Water Users Association
• Contract Type: Grant/Loan Combo
• Loan Projects - Doc Type: Approval Letter

A DNR COLORADO 1313 Sherman Street John Hickenlooper, Governor
Denver, CO 80203
CO Colorado Water Robert Randall, 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: ts../
Anna Mauss, P.E., Project Manager 2
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Kirk Russell, P.E., Finance Section Chief 4,,
DATE: September 21-22, 2016 Board Meeting (Updated September 22, 2016)
AGENDA ITEM: 17a. Water Project Loans and Water Supply Reserve Fund (WSRF) Grants
Grand Valley Water Users Association - Government Highline Canal Lining
Introduction
The Grand Valley Water Users Association (Association), is applying for a loan and grant for the
Government Highline Canal Lining (Project). The Association is the managing entity for the Bureau of
Reclamation's Grand Valley Project. A part of the Grand Valley Project is the Grand Valley Diversion
Dam, also known as the Roller Dam, on the Colorado River in De Beque Canyon. Through a recently
completed master plan, the Association identified its top rehabilitation needs at the Roller Dam. This
Project, lining the first 500 feet of canal immediately below the Roller Dam, was identified as the most
immediate need. The total Project cost is estimated to be $800,000. The Association is requesting a
loan from the CWCB for approximately 19% of the Project cost and a WSRF grant for approximately 38%
of the Project cost. The balance will be funded with cash from the Association and a $296,000
WaterSMART Grant from the Bureau of Reclamation. See attached Project Data Sheet for a location
map and Project summary.
Staff Recommendation for CWCB Loan (Board approved Staff Recommendation on September 21,
2016)
Staff recommends the Board approve a loan not to exceed $151,500 ($150,000 for Project costs and
$1,500 for the 1% service fee) to the Grand Valley Water Users Association, for costs related to the
Government Highline Canal Lining Project, from the Construction Fund. The loan terms shall be 30
years at a blended interest rate of 1.55% per annum. Security for the loan shall be in compliance with
CWCB Financial Policy#5.
Staff Recommendation for WSRF Grant (Board approved Staff Recommendation on September 21,
2016)
Staff recommends approval of up to $285,000 from the Statewide Account and $15,000 from the
Colorado Basin Account to the Grand Valley Water Users Association for costs related to the
Government Highline Canal Lining Project.
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