PROJ01795

• Contract/PO #: FS0050FX
• Contractor Name: Lateral 35 Association
• Contract Type: Miscellaneous
• Water District: 0
• Loan Projects - Doc Type: Approval Letter

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STATE OF COLORADO

721 Slale Centennial Building
1313 Sherman Street
Denver, Colorado 80203
PhOne [phone]
FAX [phone]

MEMORANDUM

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COLORADO WATER CONSERVATION BOARD

Department of Natural Resources

(UPDATED 11/15/93)

Roy Romer
Governor

TO:

Members, CWCB

Oaries C, tile, P_E,
Oiredor, CWCB

FROM: John Van Sciver

DATE: November 5, 1993

SUBJECT: Agenda Item 9p-l, November 9-10, 1993, Board Meeting--
Lateral #35 Association
Approval of a Construction Fund Loan in Amount of $35,000 as the
Company's Cost Share to Rehabilitate the Ditch as part of the Salinit)'
Program.

BACKGROUND

The Lateral 35 Association, located in Grand Junction, has submitted an application
for partial funding of a project to rehabilitate their ditch, which is approximately one mile
in length. The project involves a combination of concrete lining and placing the ditch in
pipeline as part of the salinity program, They are requesting a loan in the amount of $35,000
( 4% for 30 years ), This represents approximately 30% of the $115,000 total project cost.
ASCS will fund 70% of the project. The SCS has prepared the formal plans and cost
estimate, which have been provided to the CWCB staff.

DISCUSSION

This project will promote conservation of existing water rights, while achieving the
goals of the salinity program.

Since the project is funded 70% by a grant from the ASCS, the Company has the
financial capability to repay the loan to the CWCB. Annual loan payments will be $2,042,
or about $20 per share per year.

The project would start in November 1994.