Consent_2a ‎(2)‎

• Board Meeting Date: 7/22/2008
• Description: CF Section - Changes to Existing Loans - Granby Ditch and Reservoir Company - Granby #12 Dam Rehabilitation Project
• Board Meetings - Doc Type: Memo

STATE OF COLORADO
Colorado Water Conservation Board
Department of Natural Resources
1313 Sherman Street, Room 721
Denver, Colorado 80203
Phone: [phone]
Fax: [phone]
www.cwcb.state.co.us
Bill Ritter, Jr.
Governor
TO: Colorado Water Conservation Board Members
Harris D. Sherman
DNR Executive Director
FROM: Anna Mauss, PE
Jennifer L. Gimbel
Mike Serlet, PE, Chief
CWCB Director
Water Supply Planning & Finance Section
Dan McAuliffe
CWCB Deputy Director
DATE: July 15, 2008
Consent Agenda Item 2a, July 22-23, 2008 Board Meeting
SUBJECT:
Water Supply Planning and Finance Section – Consent Agenda
Granby Ditch and Reservoir Company – Granby #12 Dam Rehabilitation
Project
Introduction
At the May 2008 Board Meeting, the Board approved a loan to the Granby Ditch and Reservoir
Company (Company) in an amount not to exceed $254,520 (including the 1% Loan Service Fee). An
additional contract condition incl uded the statement “sha re assessments be increased to cover the
CWCB debt service prior to contracting with the CWCB.” The Company is requesting an amendment
to the condition to pledge a rate covenant rather than increasing assessments to its shareholders
immediately.
Staff Recommendation
Staff recommends amending the additional contract condition of the loan to the Granby Ditch and
Reservoir Company (Agenda Item 18, approve d May 21, 2008) from: share assessments be
increased to cover the CWCB debt service prior to c ontracting with the CW CB, to: a pledge of
assessment revenues backed by an assessment c ovenant in compliance with CWCB Financial
Policy #5.
Background
The Company’s current rates are $18/share and will ne ed to be increased to $34/share to cover the
CWCB debt service associated with the repair of Granby #12 Dam Rehabilitation (Project). Staff
inadvertently recommended assessments be increased to cover debt service pr ior to contracting to
assure that assessments would be ra ised to cover CWCB debt service. This condition is not a standard
Water Supply Protection • Watershed Protection & Flood Mitigatio n • Stream & Lake Protection • Water Supply Planning & Finance
Water Conservation & Drought Planning • In trastate Water Management & Development