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<br />. . <br /> <br />West Rhone Lateral Ditch Co. <br />November 20-21. 2000 <br /> <br />~nda Item 15b. <br />'dated November 22. 2000) <br /> <br />. <br /> <br /> <br /> <br />175% <br />$ 5.90 <br /> <br /> <br />31% <br />$14.79 <br /> <br /> <br />As security for the loan the WRLDC will pledge assessment revenues backed by assessment <br />covenant and one payment in a certificate of deposit account to be held by the State. This <br />security is in compliance with CWCS Loan Policy #5 (Collateral). <br /> <br />Recommendation <br />Staff recommends that the CWCS find that the West Rhone Lateral Ditch Company is eligible <br />for a loan from the Small Project Loan Account. The upper portion of the West Rhone Lateral is <br />a concrete ditch approximately 30 years old. It is in poor condition, leaks badly, and needs <br />rehabilitation. The lateral ditch can not deliver the full water supply owned by the shareholders. <br />Delaying the project until summer or fall 2001 would result in undue hardship on the borrower. <br /> <br />Staff recommends a Small Project Loan not to exceed $100,000 to the West Rhone Lateral <br />Ditch Company for up to 90% of the costs to rehabilitate the West Rhone Lateral and construct <br />a new headgate on the GVIC Mainline. The recommended term of the loan is 30 years and the <br />recommended lending rate is the CWCS loan rate for Agricultural borrowers in 2001. Security <br />for the loan will be a pledge of assessment revenues backed by assessment covenant and one <br />payment in a certificate oi deposit account to be held by the State. The Company agrees to <br />reduce the amount of the CWCS loan by the amount of NRCS cost share received when the <br />project is complete. <br /> <br />Staff further recommends that final approval of the loan be conditioned upon all other standard <br />conlracling provisions of the CWCS. <br /> <br />Action taken bv the CWCS November 20. 2000 <br />The CWCS approved the Staff recommendation. <br /> <br />cc: Karen E. Fogelquist, President West Rhone Lateral Ditch Co., 20741 Road, Fruita, CO 81521 <br />Linda Bassi. AGO <br /> <br />Attachment <br /> <br />C:IWP51IProi-NewIWestRhonel 100memo; <br /> <br />L:\boardmemlNovOOl 15b NovOO <br /> <br />4 <br />