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<br />-/Jf" <br /> <br />t <br />, <br />~ <br /> <br />"., " <br /> <br />. <br />-, <br /> <br />Agenda Item 13a. <br />March 10, 1998 <br />Page 2 <br /> <br />, <br /> <br />The Company needs to complete this work prior to spring runoff 1998 to ensure that the structure <br />does no fail completely during high water. Delaying the project until 1999 would result in an <br />undue hardship on the borrower. <br /> <br />The Fanners Pawnee Canal Company provides water for irrigation. A loan to the Company <br />should thus be at the "Agricultural" rate as set by the CWCB on November 24, 1997, The <br />Company has requested a lO-year loan at 3.5%. <br /> <br />COLLATERAL <br /> <br />The Company receives assessments from its stockholders. The CWCB will take a security <br />interest in this stream of revenue. <br /> <br />The Company can provide one payment in a certificate of deposit account, to be held by the State <br />Treasurer. <br /> <br />STAFF RECOMMENDA nON <br /> <br />The staff recommends: <br /> <br />. <br /> <br />1. That the Board finds that delay in the rehabilitation of the diversion dam and headgate <br />structure would cause undue hardship for the water users, qualifying the Farmers <br />Pawnee Canal Company for a loan from the Small Project Loan Account, and <br /> <br />2. That a Construction Fund Authorization in a maximum amount of $29,000, not to <br />exceed 75% of actual project costs, be approved for the Farmers Pawnee Canal <br />Company to rehabilitate their diversion dam and headgate on the South Platte River, <br />and <br /> <br />3. That the fmancing terms for this Construction Fund Authorization shall be at an annual <br />percentage rate of 3.5% for a duration of 10 years (equal to the "Agricultural" rate for <br />a loan duration of 10 years, as set by the CWCB November 24 1997), and <br /> <br />4. That loan approval shall be contingent upon completion of the Feasibility Study, and <br />upon all standard contracting provisions of the CWCB, as determined by the CWCB <br />Director, and <br /> <br />5, That collateral for the loan shall be a security interest in the stream of income derived by <br />the Company from assessments, and one payment in a certificate of deposit account, to <br />be held by the State Treasurer. <br /> <br />Atmchments <br />D:\msword\FarmersPawn398.memo <br /> <br />. <br />