CT2017-2875 Approval Letter

• Contract/PO #: CT2017-2875
• Contractor Name: Grand Valley Water Users Association
• Contract Type: Loan
• Loan Projects - Doc Type: Approval Letter

DNR COLORADO 1313 Sherman Street John Hickenlooper, Governor
Co Colorado Water Denver, CO 80203
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: Jonathan Hernandez, P.E., Project Manager
Kirk Russell, P.E., Finance Section Chief \i,C1 —
DATE: November 16-17, 2016 Board Meeting (Updated November 17, 2016)
AGENDA ITEM: 14c. Water Project Loans
Grand Valley Water Users Association - Grand Valley Power Plant Rehabilitation
Introduction
The Grand Valley Water Users Association (Association) is applying for a loan for the Grand Valley
Power Plant Rehabilitation (Project). The Association is working with the Orchard Mesa Irrigation
District (District) to complete this Project. The goal of the Project is to bring the Grand Valley Power
Plant (GVPP) up to a sustainable operating condition and meet current electric and safety standards.
Preliminary designs show the rehabilitation could increase the maximum power generation output from
2.75 MW to 4.1 MW. The Association is requesting a loan from the CWCB for approximately 92% of its
share of Project cost. The District is concurrently seeking a CWCB loan to help cover its share of
Project cost (see November 2016 Agenda Item 14b). Combined, these two CWCB loans would cover
approximately 65% of the total Project cost. See attached Project Data Sheet for a location map and
Project summary.
Staff Recommendation (Board approved Staff Recommendation on November 17, 2016)
Staff recommends the Board approve a loan not to exceed $1,717,000 ($1,700,000 for Project costs and
$17,000 for the 1% service fee) to the Grand Valley Water Users Association, for costs related to the
Grand Valley Power Plant Rehabilitation Project, from the Construction Fund. The loan terms shall be
30 years at the hydroelectric interest rate of 2.0% 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 Et Mitigation • Stream Et Lake Protection se c
Water Project Loans Et Grants •Water Modeling • Conservation Et Drought Planning •Water Supply Planning
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