PROJ01963

• Contract/PO #: C150048
• Contractor Name: Plumb and Dailey Ditch Company, The
• Contract Type: Loan
• Water District: 6
• County: Weld
• Bill Number: SPL
• Loan Projects - Doc Type: Approval Letter

.' .

Plumb and Dailey Ditch Co. Agenda Item 12a.
May 22-23, 2000 (Updated 8/2/00)

Table 1. Financial Summary

Project Cost
Loan Amount (90% of Project Cost)
CWCB Loan Payment Amount, including 10% loan reserve
Number of Shareholders
Number of Shares of Stock
Current Assessment per Share
Future Assessment per Share
Annual Project Cost per acre-foot
(Average annual diversions: 2,278 acre-feet)

$46,620
$42,000
$3,325
13
40
$180
$263
$1 .46

Credit worthiness: PDDC has no existing debt. Table 2 shows the Financial Ratios for the
PDDC and indicates average to strong ability to repay with the project in place.

Financial Ratio
Operating Ratio (revenue/expense)
Debit Service Coverage Ratio
(revenues-expenses)/debt service
Cash Reserves to Current Expense
Annual Cost per Acre-Foot

Table 2. Financial Ratios
Without the project
1 08% (average)
No debt (strong)

With the project
109% (average)
129% (strong)

79%
$ 2.93

(average)
(strong)

53%
$4.39

(strong)
(strong)

As security for the loan the PDDC will pledge assessment revenues backed by assessment
covenant and one payment in a certificate of deposit account to be held by the State. This
security is in compliance with CWCB Loan Policy #5 (Collateral), and is considered adequate
because the Borrower is financially strong.

Recommendation
Staff recommends that the CWCB find that the Plumb and Dailey Ditch Company is eligible for
a loan from the Small Project Loan Account. The diversion is in need of repair and can not be
relied upon for delivery of water. Delaying the project until summer or fall 2001 would result in
undue hardship on the borrower.

Staff recommends a Small Project Loan not to exceed $42,000 to the Plumb and Dailey Ditch
Company for up to 90% of the costs to rehabilitate the Company's diversion structure on the
Boulder Creek. The recommended term of the loan is 20 years and the recommended lending
rate is 3.75% (20-year loan rate for Agricultural borrowers in 2000.) Security for the loan will be
a pledge of assessment revenues backed by assessment covenant and one payment in a
certificate of deposit account to be held by the State.

Staff further recommends that final approval of the loan be conditioned upon all other standard
contracting provisions of the CWCB.

Action taken bv the CWCS Mav 23. 2000
The CWCB approved the Staff Recommendation.

cc: Les Williams, President Plumb & Dailey Ditch Co., 9595 Nelson Rd. - Box C, Longmont, CO 80501
Linda Bassi, AGO
Attachment
C:\WP51 \Proj-New\Plumb&DaileyDiversion500memo ; L:\boardmem\marOO\ 12a-MayOO

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