BOARD01139

• Board Meeting Date: 9/10/2002
• Description: CF Section - Overland Ditch and Reservoir Company-Loan Payment Deferral Request
• Board Meetings - Doc Type: Memo

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ODRC currently has two loans in payback "'jifh the CWCB as shown below: .
Loan Date of Current Annual Due
Number Contract Princioal Terms Balance Pavment Date
CI53307 7/01/83 $850,000 2%-40 yrs $678,776 $31,076 Dec 1
CI53527 9/16/88 $541,947 5%-30 yrs $382,083 $35,255 Jnn I

The $850,000 loan was for fhe dam rehabilitation project and the other CWCB loan was to
finance a reduced price re-purchase agreement for the remaining balance owed on a Small Projects
Loan from the US Bureau of Reclamation.

The Board has authorized three defermentsito ODRC for loan #CI53307. The deferments
were made in order for the ODRC to contest by-pass flow requirements imposed by the U.S Forest
Service on Overland Reservoir. Otherwise, the ODRC has been current on all of their ofher loan
payments.

Discussion

The Board has the statutory aufhority under Section 37-60-120 (3), CRS to make loan
deferments provided the borrower has encoWltered significant and unexpected financial difficulties,
and fhat it has been duly diligent in its efforts to comply with the repayment provisions of its
contract wifh the Board. The Board's Financial Policy #10 (attached) clearly provides guidance in
the resolution offhis request.' .

In order to maintain fhe long-term integrity of the loan, it is the staff recommendation fhat the
Board grant ODRC's deferral request. The deferral would be approved on fhe condition fhat the
deferred interest payment be added to fhe current loan balance, and the resulting new balance be re-
amortized over the remaining life of the loan. This re-financing offhe loan allows it to be repaid and
still allow ODRC relief from its current financial hardship.

RecommendatIon

The staff recommends fhe Board adopt a resolution to approve fhe Overland Ditch and
Reservoir Company's request for financial relief by granting a one-year, 100% deferment of their
December I, 2002 contract #C153307 loan payment in fhe amount of $31,076.00. The deferred
interest amount of fhe loan will be added to the current loan balance fhat will fhen be re-amortized
over the loan's remaining life. The deferral is based 6n the Board's finding fhat fhe District has
encoWltered significant and unexpected financial difficulties due to this year's extreme drought, and
that it has been duly diligent in its efforts to comply with the repayment provisions of its contracts
with the Colorado Water Conservation Board.

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Flood Protection. Water Project PlaMing and Financing. Stream and Lake Protection
Water Supply Protection. Conservation Planning