CT2019-2848 Contract

• Contract/PO #: CT2019-2848
• Contractor Name: Fruitland Irrigation Company
• Contract Type: Grant/Loan Combo
• Loan Projects - Doc Type: Contract Documents

APPENDIX 1, PROJECT SUMMARY
Loan Contract Number CT2019-2848
Section 1 —Borrower's Name
Fruitland Irrigation Company
Section 2—Project Description
A. Description of Project: The Borrower applied to the CWCB for a loan to be used for the Tunnel
and Canal Renovation(Project), located in Montrose County, at a total estimated project cost of
$10,951,271.00. The purpose of the Project is to stabilize and renovate the tunnels and canals,
to assure the continued ability to deliver irrigation water, while minimizing seepage losses and
salinity contributions to the Colorado River drainage.
B. Description of Feasibility Study: Danny Todd, Board President, Fruitland Irrigation Company,
prepared the Loan Feasibility Study titled, "Feasibility of the Fruitland Irrigation Company
Tunnel and Canal Renovation Project," dated May 2017. The feasibility study relied on the
2016 Feasibility Study prepared by Craig Ullmann, P.E., with the Applegate Group, Inc. The
feasibility study was prepared in accordance with CWCB guidelines and includes an analysis of
alternatives, preliminary engineering design, and construction cost estimates and is
incorporated herein by this reference. 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 the 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 $1,729,000.00 for Project Costs.
CWCB's Origination Fee of 1% in the amount of$17,290.00, in accordance with CWCB Policy
No. 16, added to the Base Loan Amount results in a Total Loan Amount of$1,746,290.00, at an
interest rate of 2.0%per annum for a repayment term of 40 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
assessment revenues in such amount as is necessary to make each annual payment due under
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Appendix I
Contract Number:CT2019-2848