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<br />, <br />. <br /> <br />Agenda Item 4d. <br />March 12, 1996 <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 /> <br />-" <br /> <br />Three companies are dependent on the Tremont headgate for water deliveries. The Tremont <br />Ditch Company also diverts water for the Snyder Smith Ditch Company (3000 acres irrigated), <br />and for Pioneer Water and Irrigation,lnc., which places it in ground water recharge~ites. <br /> <br />Tremont has already completed $11K in preliminary work to repair the ditch and prepare for <br />installation of the river structure. <br /> <br />Water diverted by the Tremont Ditch is used for agricultural purposes. The loan may thus be <br />at the "Agricultural" rate of 3.75% for 10 years, as set by the CWCB November 6, 1995. <br /> <br />The Company needs to complete the rehabilitation project prior to runoff in 1996, preferably in <br />early March, when river flows are minimal and can be controlled. This loan may be from the <br />Small Project Loan Account, because the loan amount is not more than $100,000, and because <br />the delay associated with General Assembly approval would result in undue hardship on the <br />borrower. <br /> <br />COLLATERAL <br /> <br />The CWCB can take a collateral interest in the stream of revenue from shareholder assessments. <br /> <br />The Company also has annual income from the running fee charged to sale Elf water Pioneer <br />Water and Irrigation, for augmentation. During the period 1992 to 1995, this income has ranged <br />from a low of $4869 to a high of $10,196, with an average of about $7100. The CWCB could <br />take a collateral interest in this stream of revenue. <br /> <br />STAFF RECOMMENDATION <br /> <br />The staff recommends: <br /> <br />1. That the CWCB finds that the Tremont Mutual Ditch Company is eligible to <br />apply for a loan from the Small Project loan Account because the loan <br />amount does not exceed $100,000, and because ,delay in completing the <br />project would result in undue hardship on the Borrower, and <br /> <br />2. That a Small Project construction fund loan in an amount of $27,000, be <br />approved for The Tremont Mutual Ditch Company to rehabilitate the <br />Company's diversion structure on the South Platte River, and <br /> <br />3. That the financing terms shall be at an annual percentage rate equal to the <br />"Agricultural" rate of 3.75% for a duration of 10 years (as set by the CWCB <br />November 6, 1995), and <br />