BOARD01750

• Board Meeting Date: 5/21/2001
• Description: CF Section - Pine River Irrigation District - Approval of Contract Terms
• Board Meetings - Doc Type: Memo

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Colorado Water Conservation Board
Department of Natural Resources
1313 Sherman Street, Room 721
Denver, Colorildo 80203
Phone: [phone]
FAX: [phone]
'WWN.cwcb.state,cQ,us

STATE OF COLOMDO

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MEMORANDUM

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Greg E. Walcher
Executive Director

Rod Kuharich
eweB Director

Dan McAufUfe
OeputyDire<:tot

TO: Colorado Water Conservation Board Members

FROM:

y Planning and Finance Section

DATE: May 10, 2001

SUBJECT: 'Consent Agenda Item 1(a) - May 21-22,2001, Board Meeting
Water Supply Planning and Finance Section - Pine River Irrigation
District - Approval of Contract Terms

INTRODUCTION.

The Board approved a $341,000 loan to the Pine River Irrigation District (District) in
November 1996, secured by an interest in assessments of the District shareholders, a
security Interest in the District's income from the sale of water to the Val/ecito Water
Company, and a certificate of deposit in the amount of one annual payment.

The staff is seeking Board approval to contract with the District in accordance with the
Board's current policy and practices.

DISCUSSION.

At its November 1996 meeting, the Board considered a request from the District for a loan
in the amount of $341,000 for construction of the raw water portion of a rural domestic
water distribution system. The staff recommended collateral consisting of an interest in
the assessments of the District shareholders, a security interest in the District's income
from the sale of water to the Vallecito Water Company, and a certificate of deposit in the
amount of one annual payment. Since the November 1996 Board meeting, the Board
has adopted policy regarding collateral, as discussed below.

Furthermore, the District intends to borrow the loan funds acting by and through its water
activity enterprise, the Vallecito Water Company, formed by the District in 1998.

The staff seeKs approval from the Board to revise the collateral for the loan in accordance
with current policy and to contract with the District, acting by and through the Vallecito
Water Company, which is the Disricfs water activity enterprise.

Flood Pfot~tion. Water Project Planning ~nd Financlng. Stream and Lake Protection
Water Supply Protection. Conservation Planning