CT2018-2081 Contract

• Contract/PO #: CT2018-2081
• Contractor Name: Bonus Ditch Company
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

APPENDIX 1, PROJECT SUMMARY
Loan Contract Number CT2018-2081
Section 1 —Borrower's Name
Bonus Ditch Company
Section 2—Project Description
A. Description of Project: The Borrower applied to the CWCB for a loan to be used for the St.
Vrain Diversion Replacement (Project), located in Boulder County, at a total estimated project
cost of$1,297,000.00. The purpose of the Project is to replace one of two of the Company's
diversion dams damaged during September 2013 flood event, located in the tributaries to the
South Platte River, coordinating with the City of Longmont to ensure new dam integrated into
the St. Vrain Creek Improvement Project.
B. Description of Feasibility Study: Barb Brunk, with Resource Conservation Partners, LLC,
prepared the Loan Feasibility Study titled, "Bonus Ditch St. Vrain Creek Diversion Structure
Loan Feasibility Study," dated August 1, 2017. The feasibility study was prepared in
accordance with CWCB guidelines. Branden Effland,P.E.,with Deere&Ault Consultants, Inc.
provided the analysis of alternatives, preliminary engineering, and engineering costs estimates.
Financial statements were provided by the Company. Based upon the feasibility report, the
CWCB determined the Project to be technically and financially feasible.
Section 3—CWCB's Authority
Severance Tax Perpetual Base Fund: This loan is made pursuant to the provisions of§§ 39-29-
109(1)(a)(1), 37-60-119 and 37-60-120, C.R.S., which authorize the CWCB to loan money for
water projects from the CWCB Severance Tax Perpetual Base Fund for the benefit of the people
of the state,provided that the Borrower assures repayment of that money.
Section 37-60-122(1)(b) C.R.S., authorizes the CWCB to make loans of up to $10,000,000
from the CWCB's Severance Tax Perpetual Base Fund without prior approval from the General
Assembly.
Section 4 -Board Approval
At its September 20, 2017 meeting the CWCB approved a Project Loan from the Severance Tax
Perpetual Base Fund, to the Borrower, in an amount up to $1,297,000.00 for Project Costs.
CWCB's Origination Fee of 1% in the amount of$12,970.00, in accordance with CWCB Policy
No. 16, added to the Base Loan Amount results in a Total Loan Amount of$1,309,970.00, at an
interest rate of 2.90%per annum for a repayment term of 30 years.
Section 5—Schedule of Existing Debt
As of the date of the CWCB loan approval, no other debt backed by the loan security, described
in Section 6 below, exists.
Section 6—Loan Security
The Security for this loan, as evidenced by the executed Security Agreement(Appendix 5) and
incorporated herein, shall be: (i)an irrevocable (but not exclusive)pledge to the CWCB of the
Pledged Revenues in such amount as is necessary to make each annual payment due under this
Contract, (ii)an assessment covenant; (iii)annual financial reporting, and an undivided one
hundred percent(100%)interest in the St.Vrain Intake Structure as more particularly described
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Contract Number:CT2018-2081