C153623 Extension Letter

• Contract/PO #: C153623
• Contractor Name: Sanchez Ditch and Reservoir Company
• Contract Type: Loan
• Water District: 24
• County: Costilla
• Loan Projects - Doc Type: Approval Letter

STATE OF COLORADO
Colorado Water Conservation Board
Department of Natural Resources
I 313 Sherman Street, Room 721
Denver, Colorado 80203
Phone: [phone]
Fax: [phone]
www.cwcb.state.co.us
TO: Colorado Water Conservation Board Members
FROM: Kirk Russell, P.E. ��
Tim Feehan, P.E., Chief
Finance Section
DATE: July 1, 2011 (UPDATED July 18, 2011)
John W. Hickenlooper
Governor
Mike King
DNR Executive Director
Jennifer L. Gimbel
CWCB Director
SUBJECT: Agenda Item 22a, July 12-13, 2011 Board Meeting
Finance Section — Changes to Existing Loans
Sanchez Ditch and Reservoir Company — Loan Payment Deferral Request
Introduction
The Sanchez Ditch and Reservoir Company (Company) has requested one annual loan payment
deferment from both of the Company's current CWCB Construction Fund loans (per letter received
on June 2, 2011 - attached). The purpose for this request is to help offset the Company's financial
burden related to urgently needed safety upgrades to the tramway/gondola system used to access the
outlet tower. The cost of the improvements is estimated to be about $27,000. The Company's two
CWCB loan payments total $31,385.92. CWCB Financial Policy #10 (attached) allows for
"providing project sponsors an opportunity to recover from periods financial difficulties.....or other
hardship beyond their control." The staff has reviewed the request, supporting documentation and
the Company's repayment history in preparation of the Staff Recommendation.
Staff Recommendation (Board approved Staff Recommendation as presented)
Staff recommends the Board approve the Sanchez Ditch and Reservoir Company's request for
financial relief by granting one annual loan payment deferment of principal and interest for Loan
Contracts C153623 and C153755A, totaling $31,385.92. The interest portion due within the
deferred payment will be transferred to principal, which will be reflected in the new amortization
schedules. Since the principal will be increased, the term of the loan will also need to be increased.
The Company will return to making its annual payments in 2012.
Interstate & Federal • Watershed & Flood Protection • Stream & Lake Protection • Finance
Water [nformation • Water Conservation & Drought Pianning • Water Supply Planning