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CT2017-2878 Approval Letter
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CT2017-2878 Approval Letter
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Last modified
6/20/2017 12:10:08 PM
Creation date
11/18/2016 11:23:51 AM
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Loan Projects
Contract/PO #
CT2017-2878
Contractor Name
Orchard Mesa Irrigation District
Contract Type
Loan
Loan Projects - Doc Type
Approval Letter
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DNR COLORADO 1313 Sherman Street John Hickenlooper, Governor <br /> Colorado Water Denver, CO 80203 <br /> CO <br /> Robert Randall, DNR Executive Director <br /> Conservation Board P (303) 866-3441 <br /> Department of Natural Resources F(303)866-4474 James Eklund, CWCB Director <br /> TO: Colorado Water Conservation Board Members <br /> FROM: Jonathan Hernandez, P.E., Project Manager <br /> Kirk Russell, P.E., Finance Section Chief <br /> DATE: November 16-17, 2016 Board Meeting (Updated November 17, 2016) <br /> AGENDA ITEM: 14b. Water Project Loans <br /> Orchard Mesa Irrigation District - Grand Valley Power Plant Rehabilitation <br /> Introduction <br /> The Orchard Mesa Irrigation District (District) is applying for a loan for the Grand Valley Power Plant <br /> Rehabilitation (Project). The District is working with the Grand Valley Water Users Association <br /> (Association) to complete this Project. The goal of the Project is to bring the Grand Valley Power Plant <br /> (GVPP) up to a sustainable operating condition and meet current electric and safety standards. <br /> Preliminary designs show the rehabilitation could increase the maximum power generation output from <br /> 2.75 MW to 4.1 MW. The District is requesting a loan from the CWCB for approximately 92% of its share <br /> of Project cost. The Association is concurrently seeking a CWCB loan to help cover its share of Project <br /> cost (see November 2016 Agenda Item 14c). Combined, these two CWCB loans would cover <br /> approximately 65% of the total Project cost. See attached Project Data Sheet for a location map and <br /> Project summary. <br /> Staff Recommendation (Board approved Staff Recommendation on November 16, 2016) <br /> Staff recommends the Board approve a loan not to exceed $1,717,000 ($1,700,000 for Project costs and <br /> $17,000 for the 1% service fee) to the Orchard Mesa Irrigation District, for costs related to the Grand <br /> Valley Power Plant Rehabilitation Project, from the Construction Fund. The loan terms shall be 30 <br /> years at the hydroelectric interest rate of 2.0% per annum. Security for the loan shall be in compliance <br /> with CWCB Financial Policy #5. <br /> Interstate Compact Compliance •Watershed Protection • Flood Planning a Mitigation • Stream a Lake Protection <br /> Water Project Loans a Grants • Water Modeling • Conservation a Drought Planning •Water Supply Planning <br />
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