BOARD01005

• Board Meeting Date: 7/28/2003
• Description: CF Section - Changes to Existing Loans - Upper Platte and Beaver Canal Company - Collateral Change
• Board Meetings - Doc Type: Memo

.olorado Water Conservation Board

Department of Natural Resources
1313 Sherman Street. Room 721
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
www.cwcb.state.co.us

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STATE OF COLORADO

MEMORANDUM

Bill Owens
Governor

Greg E. Walcher
Executive Director

TO:

Colorado Water Conservation Board Members

Rod Kuharich
CWCB Director

FROM:

. .

Jan lllian, Contract Mana~er
Mike Serlet, P.E., Chief,
Water Supply Planning and 1 ce Section

Dan McAuliffe
Deputy Director

DATE: July 18, 2003

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SUBJECT: Consent Agenda Item 2b - July 28-29, 2003, Board Meeting
Water Supply Planning and Finance Section - Changes to Existing Loans-
Upper Platte and Beaver Canal Company - CoUateral Change

Introduction

At the May 2003 meeting, the Board approved a loan to the Upper Platte and Beaver Canal
Company (Borrower) in the amount of $68, 175 for construction of a water recharge project and the
collateral for the loan was the project.

Discussion

During the contracting process, it was determined that the water recharge project which
consists of two recharge ponds, and four measuring weirs 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

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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. Scream and Lake Protection
Water Supply Protection. Conservation and Drought Planning