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I I I 1 1 I I I 1 I 1 1 1 1 1 I t 1 I Agenda Item 13a. March 10, 1998 Page 2 (Revised March 11, 1998) The Company needs tp J:omplete this 'work prior to spring runoff 1998 to ensure that the structure does not fail completely during high water, Delaying the project until 1999 would result in an undue hardship on the borrower, The Farmers Pawnee Canal Company provides water for irrigation, A loan to the Company should thus be at the "Agricultural" rate as set by the CWCB on November 24, 1997. The Company has requested a lO-year loan at 3,5%, COLLATERAL The Company receives assessments from its stockholders" The CWCB will take a security interest in this strearn of revenue, The Company can provide one payment in a certificate of deposit account, to be held by the State Treasurer. ST AFF RECOMMENDATION The staff recommends: 1. That the Board [mds that delay in the rehabilitation of the diversion dam and headgate structure would cause undue hardship for the water users, qualifying the Fanners Pawnee Canal Company for a loan from the Small Project Loan Account, and 2, That a Construction Fund Authorization in a maximum amount of $29,000, not to exceed 75% of' actual project costs, be approved for the Fanners Pawnee Canal Company to rehabilitate their diversion dam and headgate on the South Platte River, and 3. That the fmancing terms for this Construction Fund Authorization shall be at an annual percentage rate of 3.5% for a duration of 10 years (equal to the "Agricultural" rate for a loan duration of 10 years, as set by the CWeB November 24 1997), 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 collateral for the loan shall be a security interest in the stream of income derived by the Company from assessments, and one payment in a certificate of deposit account, to be held by the State Treasurer.