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<br />~ <br /> <br />~/ <br /> <br />Agenda Item 8d. <br />January 29, 1997 <br /> <br />(Updated February 7, 1997) <br /> <br />2 <br /> <br />DISCUSSION <br /> <br />The project involves reconstruction of a critical check structure on the canal. If the structure <br />fails during a flood, much of the canal will be destroyed, and project lands will be flooded. <br /> <br />The proposed project will maintain the current canal capacity of 524.78 cfs, with an ability to <br />supply about 1050 acre feet of water per day, during irrigation season. The canal diverted <br />41,285 acre feet in 1995, and 21,495 acre feet in 1994, according to State Engineer records. <br />11,000 acres are served by the canal, in Alamosa County. <br /> <br />Funding will consist of a $188K loan from the CWCB, and $62K from a special assessment of <br />stockholders. The CWCB annual loan payment will be about $10,500 per year, amounting to <br />about $0.25 per acre foot diverted in 1995, and about $0.49 per acre foot diverted in 1994. The <br />share assessment necessary to service the loan debt is $0.79, based on 13,318 shares under the <br />system. One share provides about 1.6 acre feet of irrigation water, based on 1994 diversions. <br /> <br />Water delivered by the SLVCC is used for irrigation of agricultural lands. The loan should thus <br />be at the "Agricultural" rate of 3.75% for 30 years, as set by the CWCB November 25, 1996. <br /> <br />COLLATERAL <br /> <br />The CWCB can take a collateral interest in the assessments of the SLVCC shareholders. The <br />Company can also provide one payment in a certificate of deposit account, to be held by the <br />State Treasurer. <br /> <br />STAFF RECOMMENDA nON <br /> <br />The staff recommends: <br /> <br />1. That a Construction Fund loan in an amount of $188,000, not to exceed 75% of <br />actual project costs, be approved for the San Luis Valley Canal Company to <br />reconstruct a concrete check structure on the canal, and <br /> <br />2. That the financing terms shall be at an annual percentage rate corresponding to <br />the "Agricultural" rate of 3.75% for a 30 year loan, as set by the CWCB November <br />25, 1996, and <br /> <br />3. 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 />