C154204 Release Letter

• Contract/PO #: C154204
• Contractor Name: Terrace Irrigation Company
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

• .
WHEREAS, the design phase of the Terrace Reservoir In-stream Flow Project included
purchasing one or more senior irrigation water rights, transferring the rights to the CWCB
in-stream flow program through water court proceedings, and designing Terrace
Reservoir spillway improvements and was further divided into two sub-phases: a)
assessment of potential water rights for purchase and conducting a Potential Maximum
Flood Study to determine the size of required spillway; and,b) the funding of the
spillway design and acquisition of water rights and water court proceedings approving
change of use for the storage of the water in the reservoir; and
WHEREAS, the Terrace Reservoir In-stream Flow Project sponsor has: 1)acquired 2.5
cfs out of the sought 10 cfs of senior water rights,2) donated these rights to the Colorado
Water Conservation Board for use in the Project, 3)pursued additional senior water rights
acquisition and will continue to seek additional acquisitions, and 4)obtained 60%
complete spillway reconstruction design work; and
WHEREAS,with completion of the above listed design tasks,the project sponsor has
requested approval from the Trustees to proceed to design implementation as
construction of the Terrace Reservoir improvements and obtain approval of funding to
proceed and accomplish this task, and
WHEREAS design implementation as construction of the Terrace Reservoir spillway
improvements, storing the in-stream flow water rights in Terrace Reservoir, and releasing
water rights to restore healthy stream flows in the Alamosa River to facilitate restoration
of resources damaged in the Alamosa River watershed; and
WHEREAS, the engineer's opinion of estimated construction costs (2011 dollars)are
approximately $4,420,000, and
WHEREAS, the private owner of Terrace Reservoir, The Terrace Reservoir Irrigation
Company (TIC), has applied to the Rio Grande Roundtable for a 1.5 million dollar grant,
which it has agreed to apply the full amount of to provide the sponsor's cost share to
support Trustee approved allocations to fund Phase II; and
WHEREAS, the project sponsor has represented to the Trustees that the grant funds may
need to be used within a short time period such that the funds would not be available as a
matching source for the project if the Trustees do not approve the construction allocation
now; and
WHEREAS, TIC has further agreed to obtain a loan in an amount not to exceed
$920,000.00 and to apply the loan proceeds as further matching costs to fund
construction of the spillway improvements; and
WHEREAS, the Trustees have received various letters from the community that endorse
the completion of the spillway improvements; and
WHERAS, the project applicant has represented to the Trustees that the currently
estimated construction cost will translate into an advantageous contracting price that
reflects current economic conditions, such that the Trustees should approve funding and
2