LPPD000331

• Contract/PO #: C153832
• Contractor Name: DeWeese-Dye Ditch and Reservoir Company
• Contract Type: Loan
• Water District: 12
• County: Custer
• Bill Number: HB 98-1189
• Loan Projects - Doc Type: Contract Documents

Colorado Water Conservation Board

Department of Natural Resources
1313 Sherman Street, Room 721
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]

ST ATE OF COLORADO
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MEMORANDUM

Bill Owens
Governor

TO:

Colorado Water Conservation Board Members

Greg E.Walcher
Executive Director

FROM:

John Van Sciver, PE, ~
Mike Serlet, PE, Chief ,oj (
Water Supply Planning'crM Finance Section.

Peter H, Evans
CWCB Director

Dan McAuliffe
Deputy Director

DATE: March 2, 2000

SUBJECT: Agenda Item # 8a., March 20-21,2000, Board Meeting -
Water Project Construction Loan Program - Partial Release of
Collateral.
DeWeese-Dye Ditch and Reservoir Co.

Introduction
The DeWeese-Dye Ditch and Reservoir Company (DDRC) completed rehabilitation of
the DeWeese Dam December 1, 1999. The total proj ect cost was approximately $1.1
million, and the CWCB loaned $585,000 of this amount under contract C-153832 to
complete the project.

Collateral for the loan consists of the dam and reservoir and 1,040 acres of land. The
DDRC is requesting release of a portion of the collateral; 160 acres of land valued at
$480,000. The Company plans to sell 40 acres, and negotiate an easement with the
Division of Wildlife for the remainder. The Company will use the funds to set up a
capital improvement account to rehabilitate ditches and hydraulic structures owned by the
DDRC.

The DDRC sold portions of reservoir storage in the DeWeese Dam to help finance the
rehabilitation project. These sales occurred in fall 1999 and consisted of500 acre-feet to
the Division of Wildlife ($500,000), and 100 acre-feet to Round Mountain Water and
Sanitation District ($100,000.) These interests need to be released as collateral from the
CWCB loan, or as an alternative, the CWCB loan needs to be subordinated to these
interests, (The $600,000 from these sales went directly toward the cost of rehabilitation of
the DeWeese Dam and reduced the required size of the CWCB loan from $990,261 down
to $585,000.)