BOARD00205

• Board Meeting Date: 3/10/1998
• Description: CF Section - Boulder and Left-Hand Irrigation Company
• Board Meetings - Doc Type: Memo

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Agenda Item 13b.
March 10, 1998
Page 2

DISCUSSION

The primary purpose of the project loan is to rehabilitate the inlet and outlet structures for the
Twin Lakes Dam. Recent engineering inspections by the State Engineers office, and by RMC,
indicate that the outlet conduit has rusted through, exposing the surroundirig soil.

The secondary purpose of the loan is the rehabilitation of ditch structures (primarily drop
structures) that are in very poor condition,

The Company needs to reconstruct the Twin Lakes outlet and inlet structures in 1998. Recent
engineering inspections show these structures could fail at any time. Twin Lakes Reservoir has a
total capacity of 218 acre-feet and this storage would be lost if the State Engineer imposes a gage
o restriction, Delaying the project until 1999 would result in an undue hardship on the borrower.

The Boulder and Left Hand Irrigation Company provides water for irrigation. A loan to the
Company should thus be at the "Agricultural" rate (4% for 30 years, or 3.75% for 20 years, or
3,5% for 10 years), as set by the CWCB on November 24, 1997,

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The Company's stockholders have already approved a resolution to proceed with this loan, They ..
have also approved an assessment increase of $40 per share to make the loan payment to the ..
CWCB. A copy of the resolution is attached.

COLLATERAL

The Company receives assessments from its stockholders, The CWCB will take a security
interest in this stream of revenues,

The Company can provide one payment in a certificate of deposit account, to be held by the State
Treasurer.

STAFF RECOMMENDATION

The staff recommends:

1. That the Board rmds that delay in the rehabilitation of the inlet and outlet structures on
the Twin Lakes Reservoir and drop structures on the ditch would cause undue hardship
for the water users, qualifying the Boulder and Left Hand Irrigation Company for a
loan from the Small Project Loan Account, and

2, That a Construction Fund Authorization in an amount of $50,000, not to exceed 75% of
actual project costs be approved for the Boulder and Left Hand Irrigation Company to
rehabilitate the inlet and outlet structures on the Twin Lakes Reservoir and drop ..
structures on the ditch, and ..