PROJ00044

• Contract/PO #: FS0011X
• Contractor Name: Cotton Creek Water Company
• Contract Type: Loan
• Water District: 0
• County: Moffat
• Loan Projects - Doc Type: Feasibility Study

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Agenda Item lOa. (Updated March 21, 1997)
March 20, 1997

3

STAFF RECOMMENDATION

The staff recommends:

1. That the Board finds that delay in the completion of the rehabilitation of the
Cotton Creek Airline Ditch would cause undue hardship for the water user,
qualifying the Cotton Creek Water Company (S Bar C Farms) for a loan from the
Small Project Loan Account, and

2. That a Construction Fund loan in an amount of $100,000, not to exceed 75% of
actual project costs, be approved for the Cotton Creek Water Company (S Bar C
Farms) to rehabilitate the Cotton Creek Airline Ditch, and

3. That the financing terms shall be at an annual percentage rate corresponding to
the "Agricultural" rate of 3.75% for a 30 year loan, as set by the CWCB November
25, 1996, and

4. That loan approval shall be contingent upon completion of the feasibility study,
and upon all standard contracting provisions of the CWCB, as determined by the
CWCB Director, and

5. That security for the loan shall be an interest in real estate and/or water rights
of value at least equal to the loan amount, and

6. That the loan be contingent upon a written agreement between the project
sponsor and the State Engineer's Office concerning allowable irrigated acres under
the Cotton Creek Airline Ditch.

Action Taken by the CWCB. March 20.1997

The CWCB approved the Staff Recommendation, with the provision that item 5. was
revised to read:

5. That security for the loan shall be an interest in real estate and/or water rights,
or other security of value at least equal to the loan amount, and

Attachments
c: Iwp51 IPROJ-NEW\lOa.mar