BOARD01358

• Board Meeting Date: 7/28/2003
• Description: CF Section - Changes to Existing Loans - Spring Dale Ditch Company - Collateral Change
• Board Meetings - Doc Type: Memo

STATE OF COLORADO

A:olorado Water Conservation Board

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

Bill Owens
Governor

MEMORANDUM

Greg E. Walcher
Executive Director

TO:

Colorado Water Conservation Board Members
- '

Jan lilian, Contract Manage!; W
Mike Serlet, P.E., Chief, ~
Water Supply Planning and Finance Section

Rod Kuharich
CWCB Director

FROM:

Dan McAuliffe
Deputy Director

DATE: July 18, 2003

.

SUBJECT: Consent Agenda Item 2a - July 28-29, 2003, Board Meeting
Water Supply Planning and Finance Section - Changes to Existing Loans _
Spring Dale Ditch Company - Collateral Change

Introduction

At the May 2003 meeting, the Board approved a loan to the Spring Dale Ditch Company in
the amount of$122,715 for construction of a waterrecharge project and the recommended collateral
for the loan was the project

Discussion

During the contracting process, it was determined that the water recharge project which consists of
three recharge ponds, a small pumping station, three wells 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

.

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