PROJ00378 ‎(2)‎

• Contract/PO #: C153790
• Contractor Name: Durkee Ditch Company
• Contract Type: Loan
• Water District: 40
• County: Delta
• Bill Number: SB 97-008
• Loan Projects - Doc Type: Approval Letter

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Agenda Item 12c.
November 25, 1997

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A loan of $120,000 will have an annual payment of about $6900. There are 500 shares on the
ditch, so a share assessment increase of about $14/share will be needed. The current assessment
is about $12/share.

Water diverted by the Durkee Ditch is used for agricultural purposes. The loan should thus be
at the "Agricultural" rate for a 30 year loan, to be set by the CWCB November 25, 1996.

COLLATERAL

The CWCB would take a collateral interest in the stream of revenue from shareholder
assessments. There are 13 shareholders and 500 total shares on the Durkee Ditch. The
Company could also put one payment in an account with the State Treasurer.

STAFF RECOMMENDATION

The staff recommends:

1. That a construction fund loan in an amount of $120,000, not to exceed 75% of
actual project costs, be approved for The Durkee Ditch Company to rehabilitate the
Durkee Ditch, and

2. That the financing terms shall be at an annual percentage rate equal to the
"Agricultural" rate, as set by the CWCB November 25, 1996, for a term of 30 years,
and

3. That loan approval shall be contingent upon completion ofthe feasibility study,
and upon all standard contracting provisions of the CWCB, as determined by the
CWCB Director, and

4. That security for the loan shall be a collateral interest in the stream of income
derived from shareholder assessments, and a certificate of deposit account in the
amount of one annual payment to be held by the state Treasurer.

Action Taken bv the CWCB, November 25.1996

The CWCB approved the Staff Recommendation. The interest rate for the loan will
be 3.75%.

Attachments
C:\wp51 \PROJ-NEW\12c.noY
cc: Jim Hulteen. Box 41, Eckert CO 81418