PROJC02139

• Contract/PO #: C150145
• Contractor Name: Spring Dale Ditch Company, The
• Contract Type: Loan
• Water District: 64
• County: Logan
• Bill Number: MC3
• Loan Projects - Doc Type: Contract Documents

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

MEMORANDUM

Bill Owens
Governor

Greg E. Walcher
Executive Director

TO:

Colorado Water Conservation Board Members

Rod Kuharich
CWCB Director

FROM:

J an Illian, Contract Manager
Mike Serlet, P.E., Chief,
Water Supply Planning and Finance Section

Dan McAuliffe
Deputy Director

DATE: July 18,2003

SUBJECT: Consent Agenda Item 2a - July 28-29, 2003, Board Meeting
Water Supply Planning and Finance Section - Changes to Existing Loans-
Spring Dale Ditch Company - Collateral Change

Introduction

At the May 2003 meeting, the Board approved a loan to the Spring Dale Ditch Company in the amount of
$122,715 for construction ofa water recharge project and the proposed collateral for the loan was the project.

Discussion

During the contracting process, it was determined that the water recharge project which consists of three
recharge ponds, a small pumping station, three wells as well as pipeline and measuring devices would be located
on private property and made available to the borrower through several lease agreements. Taking a security
interest in the improvements and leasehold estates, in the event of default, would leave the CWCB exposed to
additional liability, such as being obligated to make annual leasehold payments to the property owners and
returning the sites to their original condition when the project was eventually abandoned. The staff determined
that collateral consisting of the Borrower's diversion structure on the South Platte River would be adequate and is
in compliance with CWCB Loan Policy # 5 (Collateral), and requests the Board's approval for change of
collateral.

Recommendation

Staff recommends the Board amend its approval of this loan to reflect the collateral for this loan is the
Borrower's diversion structure located on the South Platte River.

Flood Protection. Water Supply Planning and Finance. Stream and Lake Protection
Water Supply Protection. Conservation and Drought Planning