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<br />Silt Water Conservancy District <br />January 26-27, 2000 <br /> <br />Agenda Item 13a. <br />(Updated February 4, 2000) <br /> <br />As security for the loan the SWCD will pledge revenues from assessments, and if necessary. . <br />additional collateral in accordance with CWCS Loan Policy #5. (The District owns land and <br />water rights that could be pledged as collateral.) <br /> <br />The SWCD is considered a governmental entity. and is subject to Tabor. It would normally be <br />necessary for the District to hold an election of the landowners to approve the CWCS loan. <br />However, the SWCD has taken steps to establish a separate Water Activity Enterprise to <br />contract for the loan. The CWCS will take an interest in annual Water Enterprise Revenues <br />sufficient to repay the CWCS loan. <br /> <br />Recommendation <br />Staff recommends the Soard find that delay in the rehabilitation of the diversion structure on the <br />Colorado River would cause undue hardship for the water users. qualifying the Silt Water <br />Conservancy District and/or the Silt Water Conservancy District Water Activity Enterprise for a <br />loan from the CWCS Small Project Loan Account. <br /> <br />Staff recommends a Small Project loan not to exceed $100,000 to the Silt Water Conservancy <br />District and/or the Silt Water Conservancy District Water Activity Enterprise for up to 75% of the <br />costs to rehabilitate the District's diversion structure on the Colorado River. The recommended <br />term of the loan is 30 years and the lending rate is 4%. Security for the loan will be a pledge of <br />revenues from assessments and, if necessary. additional collateral in accordance with CWCS <br />Loan Policy # 5. . <br /> <br />Staff further recommends that final approval of the loan be conditioned upon acceptance of the <br />project and the associated financial obligations by a vote of the Silt Water Conservancy District <br />and/or the Silt Water Conservancy District Water Activity Enterprise board(s), and all standard <br />CWCS contracting provisions. <br /> <br />Action taken bv the CWCS January 26. 2000 <br />The CWCS approved the Staff Recommendation with the following additions and clarifications: <br />1. Undue hardship for the District would occur if the project is delayed, and the diversion <br />washes out in Spring 2000 so that it is not possible to divert water for crops. <br />2. Security for the loan will be a pledge of enterprise revenues backed by rate covenant and <br />annual financial reporting, and a certificate of deposit in amount of one annual payment. <br /> <br />cc: Norman Hunt. Vice-President Silt Water Conservancy District. PO Box 8. Silt. CO 81652 <br />Denis Davidson. NRCS, 401 23rd Street, Suite 106. Glenwood Springs, CO 81601 <br />Linda Bassi. AGO <br /> <br />Attachment <br /> <br />C:\WP51 \Proj-New\SiltWCD1 OOmemo L:\boardmemlJanOO\ 13a-JanOO <br /> <br />. <br /> <br />4 <br />