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<br />Agenda Item 8b. <br />January 24, 1996 <br /> <br />The Company has a $42K commitment from the CFSA for the project. The remaining cost will <br />be funded from company reserves. <br /> <br />Water diverted by the South Platte Ditch is used for agricultural purposes. The loan should thus <br />be at the "Agricultural" rate of 4.25%, as set by the CWCB November 6, 1995. <br /> <br />The Company needs to complete the rehabilitation project prior to runoff in 1996, to allow <br />irrigation diversions in 1996. This loan may be from the Small Project Loan Account, because <br />the loan amount is not more than $100,000, and because the delay associated with General <br />Assembly approval would result in undue hardship on the borrower. <br /> <br />COLLATERAL <br /> <br />The CWCB can take a collateral interest in this stream of revenue from shareholder assessments. <br /> <br />The Company also has annual income from the sale of water to GASP, for the Sandhill Ditch <br />Recharge Project. During the period 1980 to 1994, this income has ranged from a low of $2428 <br />to a high of $15323, with an average of about $7500. The CWCB could take a collateral <br />interest in this stream of revenue, as additional collateral. <br /> <br />STAFF RECOMMENDATION <br /> <br />The staff recommends: <br /> <br />L That the CWCB fmds that the South Platte Ditch Company is eligible to apply <br />for a loan from the Small Project loan Account because the loan amount does no <br />exceed $100,000, and because delay in completing the project would result in undue <br />hardship on the Borrower, and <br /> <br />2. That a Small Project construction fund loan in an amount of $100,000, not to <br />exceed 75% of actual project costs, be approved for The South Platte Ditch <br />Company to rehabilitate the Company's diversion structure on the South Platte <br />River, and <br /> <br />3. That the financing terms shall be at an annual percentage rate equal to <br />the "Agricultural" rate of 4.25% (as set by the CWCB November 6, 1995), <br />for a duration of 30 years, and <br /> <br />4. That loan approval shall be contingent upon completion of the feasibility study, <br />and upon all standard contracting provisions of the CWCB, as determined by the <br />CWCB Director, and <br /> <br />2 <br /> <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />