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<br />e <br /> <br />e <br /> <br />e <br /> <br />The actual assessments in 1997 compllI"ed to those recommended In the 1995 <br />feasibility study are as follows: <br /> <br />Ditch COIDDanv <br /> <br />Shares <br /> <br />1997 Assess <br /> <br />Feasibilitv Rec. <br /> <br />Lone Cabin Ditch Co. <br /> <br />8,368 <br /> <br />$1.50 <br /> <br />$2.28 <br /> <br />Minnesota Canal & Res. <br /> <br />1,700 <br /> <br />$17,00 <br /> <br />$18.02 <br /> <br />Turner Ditch Co, <br /> <br />$30.43 <br /> <br />154 <br /> <br />$56.66 <br /> <br />From this information it is clear that the three ditch companies associated with the <br />BRC have not established their share assessments at levels necessary to provide the funds <br />for operations and maintenance, reserve accounts and debt service, <br /> <br />While the BRC has claimed a hardship due to weather and labor problems, it has <br />not followed the project's financial plan as outlined in the feasibility study or responded <br />to the earlier recommendations of the CWCB staff, By simply rolling the IDC into the <br />loan principal, and financing it over 40 years, the borrower has downplayed the <br />importance of their financial responsibilities to the Colorado Water Conservation BOllI"d, <br /> <br />The loan contract for this project clellI"ly states in pllI"agraph A6.c, that the BRC <br />board of directors shall adopt an order or a resolution (attached) to "Levy annual <br />assessments sufficient to repay the annual amounts due under this contract." Since all <br />three ditch company's 1998 annual meetings are scheduled in the nellI" future, the <br />necessary assessments could be established at those meetings, <br /> <br />STAFF RECOMMENDATION <br /> <br />We recommend, provided all three companies raise their assessments at their next <br />respective regularly scheduled annual meetings, or sooner, sufficient to cover operation <br />and maintenance, reserve accounts, and debt service based on 1998 cost estimates, that <br />under authority of Section 37-60-120 CRS, the Board: <br /> <br />L <br /> <br />Find that the BRC has encountered significant and unexpected financial <br />difficulties and that it has been duly diligent in its efforts to comply with the <br />repayment provisions of its contract with the BOllI"d, and <br />The Board defers Beaver Reservoir Company's Interest During Construction <br />payment of $12,023,63 for the Rehabilitation of the Beaver Reservoir Project <br />until November I, 1998, at which time the first annual loan payment of <br />$16,136,87 is also due, <br /> <br />2, <br />