Laserfiche WebLink
C O L O R A D O 1313 Sherman Street John Hickenlooper,Governor <br /> Colorado Water Denver,co 80203 <br /> � Robert Randall,DNR Executive Director <br /> Conservation Board P(303)866.3441 <br /> Department of Natural Resources F(303)866.4474 Lauren Ris,CWCB Acting 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: May 17-18, 2017 Board Meeting (Updated May 19, 2017) <br /> AGENDA ITEM: 27b. Water Project Loans <br /> San Juan Water Conservancy District Dry Gulch Reservoir Land Acquisition <br /> Introduction <br /> The San Juan Water Conservancy District (District) is applying for a loan for the Dry Gulch Reservoir <br /> Land Acquisition (Project). This loan is a part of the overall Dry Gulch Reservoir (Reservoir) project <br /> which has been under various stages of consideration since the 1960s. Previous efforts by the District <br /> and the Pagosa Area Water and Sanitation District (PAWSD) led to securing a majority of land needed <br /> for the proposed Reservoir through the use of a CWCB Water Supply Reserve Fund (WSRF)grant <br /> (Contract No. C150408)to the District and a CWCB loan (Contract No. C150261) to PAWSD. The purpose <br /> of this Project is to acquire and control the remaining land needed for the proposed Reservoir site. The <br /> District is seeking a CWCB loan to cover 100%of Project costs, estimated at$2,000,000. See attached <br /> Project Data Sheet for a location map and Project summary. <br /> The District agrees to make every effort to retain the lands purchased or exchanged with this loan <br /> during the Planning Period as identified in the "Agreement to Restructure Colorado Water Conservation <br /> Board Dry Gulch Reservoir Loan Contract Number C150261,"dated July 22, 2015, and the "Amendment <br /> to Agreement to Restructure Colorado Water Conservation Board Dry Gulch Reservoir Loan Contract <br /> Number C150261,"April 27, 2016 (combined, 3-Way Restructure Agreement). It is not the intention of <br /> CWCB or the District to add, change, or in any way amend the 3-Way Restructure Agreement. <br /> Staff Recommendation (Board approved Staff Recommendation on May 18, 2017) <br /> Staff recommends the Board approve a loan not to exceed $2,000,000 ($1,980,198 for Project costs and <br /> $19,802 for the 1%service fee) to the San Juan Water Conservancy District for costs related to the Dry <br /> Gulch Reservoir Land Acquisition Project, from the Construction Fund. The loan terms shalt be 30 years <br /> at the low-income municipal interest rate of 2.55%per annum. Security for the loan shall be in <br /> compliance with CWCB Financial Policy#5. <br /> Additionally, Staff recommends the following conditions: <br /> 1) Execution of the contract shall be contingent upon voter approval of the District's mill levy <br /> increase at an upcoming TABOR election. <br /> 2) Contract shall be conditioned such that CWCB has the right of first refusal on the land <br /> purchased or exchanged with the loan funds at any time the District offers it for sale. <br /> 3) Contract shalt be conditioned such that in the event the District sells land needed for the <br /> Reservoir, to the extent the Reservoir can no longer be developed, this loan shalt become due <br /> in full within 6 months of the date of sale. <br /> 4) CWCB disbursements for the purchase of land shall not exceed 100%of the appraised value as <br /> determined by a Colorado Certified General Appraiser. <br /> of c�to <br /> Interstate Compact Compliance•Watershed Protection . Hood Planning&Mitigation•Stream i3 Lake Protection I �� <br /> &Drought Planning•Water Supply <br /> Water Project Loans h Grants•Water Modeling•Conservation <br /> •r/+ <br />