BOARD00321

• Board Meeting Date: 11/20/2000
• Description: CF Section - West Rhone Lateral Ditch Company
• Board Meetings - Doc Type: Memo

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West Rhone Lateral Ditch Co.
November 20~21, 2000

Agenda Item 15b.

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175%
$ 5.90

31%
$14.79

As security for the loan the WRLDC will pledge assessment revenues backed by assessment
covenant and one payment in a certificate of deposit account to be held by the State. This
security is in compliance with CWCS Loan Policy #5 (Collateral).

Recommendation
Staff recommends that the CWCS find that the West Rhone Lateral Ditch Company is eligible
for a loan from the Small Project Loan Account. The upper portion of the West Rhone Lateral is
a concrete ditch approximately 30 years old. It is in poor condition, leaks badly, and needs
rehabilitation. The lateral ditch can not deliver the full water supply owned by the shareholders.
Delaying the project until summer or fall 2001 would result in undue hardship on the borrower.

Staff recommends a Small Project Loan not to exceed $100,000 to the West Rhone Lateral
Ditch Company for up to 90% of the costs to rehabilitate the West Rhone Lateral and construct
a new headgate on the GVIC Mainline. The recommended term of the loan is 30 years and the
recommended lending rate is the CWCS loan rate for Agricultural borrowers in 2001. Security
for the loan will be a pledge of assessment revenues backed by assessment covenant and one _
payment in a certificate of deposit account to be held by the State. The Company agrees to .-
reduce the amount of the CWCS loan by the amount of NRCS cost share received when the
project is complete.

Staff further recommends that final approval of the loan be conditioned upon all other standard
contracting provisions of the CWCS.

cc: Karen E. Fogelquist, President West Rhone Lateral Ditch Co., 20741 Road, Fruita, CO 81521
Linda Bassi. AGO

Attachment

C:\WP51\Proj-NewlWestRhone1100memo;

L:\boardmem\NovOO\ 15b NovOO

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