BOARD01308

• Board Meeting Date: 5/16/2006
• Description: CF Section - New Project Loans - Logan Irrigation District - Prewitt Reservoir Emergency Spillway Construction
• Board Meetings - Doc Type: Memo

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STATE OF COLORADO

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Colorado Water Conservation Board

Department of Natural Resources
1313 Sherman Street, Room 721
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
www.cwcb.state.co.us

MEMORANDUM

Bill Owens
Governor

FROM:

Colorado Water Conservation Board Members

Bruce Johnson, P.E. ~0%,'
Mike Serlet, P.E., Chief~
Water Supply Planning and I nce Section

Russell George
Executive Director

TO:

Rod Kuharich
CWCB Director

DATE:

May 5, 2006

Rick Brown
Acting Deputy
Director

SUBJECT: Agenda Item 11a, May 16-17, 2005 Board Meeting
Water Supply Planning and Finance Section - New Project Loans
Logan Irrigation District - Prewitt Reservoir Emergency Spillway
Construction

Introduction

e The Logan Irrigation District is applying for a $303,385 loan from the Severance Tax Trust Fund
Perpetual Base Account, to construct an emergency spillway for Prewitt Reservoir, The estimated total
cost of the project is $337,095. Please see the attached Project Data Sheet.

BackClround

LID is applying for the loan on behalf of the owners of Prewitt Reservoir, who are as follows:

Logan Irrigation District (LID)
Iliff Irrigation District (110)
Morgan Prewitt Reservoir Company (MPRC)

17/31 Interest (54.8%)
8/31 Interest (25.8%)
6/31 Interest (19.4%)

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Prewitt ODeratinq Committee - Collectively, the three owners conduct business as the Prewitt
Operating Committee, through a Governance Contract executed in January 2006. There are 7
individual members on the Committee, 3 from LID, and two each from 110 and MPRC. The
agreement formalized their historical relationship and business procedures, and addresses each
entity's financial responsibility with respect to the Prewitt Reservoir. Although the Governance
Contract was just officially entered into this year, the three owners of the Prewitt have an excellent
working relationship and the Prewitt Reservoir has been operating this way for over 80 years, At a
joint meeting of the three Boards in March 2006, it was agreed that the LID would be the sponsor of
the project and accept all financial responsibility for the purposes of this loan, while the liD, and the
MPRC agreed to be cooperating entities, providing a pro-rata share of the loan payment to LID. As
such, LID will be the contracting entity for the CWCB loan, and a special agreement among the
three parties is being drafted which specifically addresses loan responsibilities,

Flood Protection. Water Supply Planning and Finance. Stream and Lake Protection
Water Supply Protection. Conservation and Drought Planning