BOARD00555

• Board Meeting Date: 11/22/1999
• Description: CF Section - Changes in Existing Loans/Grants - Elkhead Reservoir
• Board Meetings - Doc Type: Memo

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Colorado Water Conservation Board
Department of Natural Resources
131 3 Sherman Street
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]

STATE OF COLORADO

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MEMORANDUM

Bill Owens
Governor
Greg E. Walcher
Executive Director, DNR
Peter H. Evans
Director,. eweB

TO:

Colorado Water Conservation Board Members
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Bill Green, P.E., Water Supply Planning and Finance Section 12 /lJ (
Mike Serlet, P.E., Chief, Water Supply Planning and Finance Section,VJj

November 15, 1999

FROM:

DATE:

SUBJECT:

Agenda Item lIf., November 22-23, 1999 Board Meeting - Water
Supply Planning and Finance - Changes in Existing Loans/Grants -
Elkhead Reservoir

Introduction

As noted in Agenda Item No. 109., the authorization for Elkhead Reservoir in SB 86-27
does not identify a project or a project sponsor. The legislation simply provides $750,000
for Elkhead Reservoir with a repayment period of 40 years and an implied lending rate of
5.0 percent. The purpose of this memorandum is to request that the Board amend the
authorization to identify a project and a project sponsor and revise the repayment period.

Discussion

For the past several years, the City of Craig and others have been conducting analyses
and studies of Elkhead Dam and Reservoir by Ayres Associates with the intent of
eventually acquiring the reservoir from the current owner, the Division of Wildlife.
Ownership would be obtained through an "Exchange Agreement" in which the City
would exchange land for the dam and reservoir.

The City of Craig would like to be named as the project sponsor in the authorization for
the project and is hoping to use all or a portion of the $750,000 for rehabilitation work
needed on the spillway, stilling basin and outlet gates. Before entering into a loan
contract, the City would submit an updated feasibility study to provide. as a minimum, a
description and evaluation of the proposed project as well as a financial plan. Staff would
request Board approval ofthe revised project before entering into a ioan contract.