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<br />. <br /> <br />. <br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />The City of Fort Morgan File <br /> <br />FROM: <br /> <br />Bill Green <br /> <br />DATE: <br /> <br />Revised August 10, 1998 <br /> <br />RE: <br /> <br />Collateral Evaluation <br /> <br />Backl!round <br /> <br />The Board has approved (recommended) two loans to the City of Fort Morgan for the <br />City's participation in the Southern Water Supply Project (SWSP) of the Northern <br />Colorado Water Conservancy District (NCWCD). A Construction Fund loan for $5.5 <br />million was authorized in SB 94-29 (conditional) with final approval by the Board in <br />March 1995. A loan of $8.0 million from the Construction Fund and the Severance Tax <br />Trust Fund was authorized in HB 98-1189. Total CWCB lending to the City for this <br />project then amounts to $13.5 million. <br /> <br />The City has participated in the SWSP through three allotment contracts with the <br />NCWCD as outlined in the following table: <br /> <br />Segment Cost Miles of Capacity <br /> ($ million) Pipeline (cubic ft. per <br /> second) <br />Carter Lake to north of Longmont 2.5 9 9.5 <br />Longmont to vicinity ofPlatteville 5.5 29 9.5 <br />Platteville to Fort Morgan 13.5 42 14.5 <br />Totals 21.5 80 N/A <br /> <br />Value of Collateral <br /> <br />The collateral for the first ($5.5 million) loan is a security interest in the City's portion of <br />capacity in the SWSP pipeline from Carter Lake to the eastern terminus ofthe Fort <br />Lupton line near Platteville. The collateral for the second ($8 million) loan is a security <br />interest in the City's capacity in the entire run of pipeline from Carter Lake to Fort <br />Morgan. The best indication ofthe value of the collateral in this case is the $21.5 million <br />figure in the last row of the table since this is what the City actually paid for their <br />proportionate share of pipeline costs. <br />