BOARD01618

• Board Meeting Date: 7/23/2001
• Description: CF Section - Cedar Mesa Ditch and Reservoir Company
• Board Meetings - Doc Type: Memo

Cedar Mesa Ditch and Reservoir Company
July 23-24, 2001

Agenda Item 9b,

Table 4. Financial Ratios

Financial Ratio Without With
the Droiect the oro/ect
Operating Ratio (revenue/expense) 127% 110%
weak: less than 100% (str<~ng ) (average)
average: 100% - 120%
stron';: nreater than 120%
Debit Service Coverage Ratio 158'% 113%
(revenues-expenses)/debt service (strong) (average)
weak: less than 100%
average: 100% - 125%
strona: oreater than 125%
Cash Reserves to Current Expense 62% 55%
weak: less than 50% (average) (average)
average: 50% - 100%
stronn: nreater than 100%
Annual Cost per Acre-Foot (903 AF) $ ~.01 $16.11
weak: greater than $20 (strong) (average)
average: $10 - $20 ,
strona: less than $10

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As security for the loan the CMDRC will pledge assessment revenues backed by assessment
covenant and the project itself, The CMDRC owns the; Cedar Mesa Dam and Reservoir. The
reservoir lies on forest Service property with use gral'1ted under the 1891 Department of Interior
Act. This security is in compliance with CWCB Loan Policy #5 (Collateral).

Recommendation e
Staff recommends that the CWCB find that Cedar Mesa Ditch and Reservoir Company is
eligible for a loan from the Small Project Loan Account. The Company needs to rehabilitate the
downstream slope of the Cedar Mesa Dam to control seepage and reduce the possibility of a
sliding failure of the slope. If the project is not completed in fall 2001, the reservoir can not be
used to capacity in spring 2002, and the Company will not be able to provide full water delivery to
its shareholders. The CMDRC is eligible for a loan ftom the Small Project Loan Account, since
delaying construction until summer or fall 2002 would result in a hardship on the Borrower.
,
,
Staff recommends a Small Project Loan not to exce~d $100,000 to the Cedar Mesa Ditch and
Reservoir Company to rehabilitate the Cedar Mesa pam. The recommended loan terms are the
standard CWCB terms for agricultural projects in 2001 (30 years at 3.5%,20 years at 3.25%, or
10 years at 3%) at the Borrower's option. Security for the loan will be a pledge of assessment
revenues backed by assessment covenant and the ~roject itself.

Staff further recommends that final approval of the Iban be conditioned upon all other standard
contracting provisions of the CWCB, .

cc:

Bud Burgess, President, Cedar Mesa Ditch and Reservoir Company, 2380- N, Rd., Eckert, CO 81415
Michael Smith, P,E., Knight Piesold and Co., 1050 1('" Street, Suite 500, Denver, CO 80265-0500
Linda Bassi, AGO

Attachment
C:\WP51\Proj-New\CedarMesa701 memo;

L:lboardmem\July01\9b July01 Cedar Mesa

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