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. . " . Agenda Item 17p. November 24, 1997 Page 2 . DISCUSSION The primary purpose of the project loan is to construct spillways, and to complete other rehabilitation work, on 3 of the Company's Reservoirs, in accordance with State Engineer requirements, The secondary purpose of the loan is to install pipelines in two ditches that are eroding badly, threatening adjacent farm land and county roadways. These projects will assure that 11,973 acre feet of water can continue to be stored by the Company The 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. Three of the projects, and 65 % of the project cost, involve the rehabilitation of existing dams, The Company has requested a grant from the Small Dam Site Reconnaissance fund to help pay for the feasibility study. The total cost estimate for the study is $6000, and a grant of $2000 would cover half the Company's cost relating to dam rehabilitation. COLLATERAL . The North Poudre Irrigation Company receives assessments from its stockholders. The CWCB will take a security interest in this stream of revenues. The Company can also provide a certificate of deposit in amount of one annual payment, and a security interest in the project itself. STAFF RECOMMENDA nON The staff recommends: , -$> 500 )O{fD I. That a Construction Fund Authorization in an amount ot .~ not to exceed 75% of actual project costs be recommended for the North Poudre Irrigation Company to rehabilitate reservoirs and ditches within their irrigation system, and 2. That the financing terms for this ~ction Fund Authorization shall be at an annual percentage rate equal to the "Agri tural" rate (as set by the CWCB November 24 1997), for a duration of 30 years, d W!filtJj1J ~ - 3. That a grant from the Small Dam site Rec1mnai(;rom~d, ili~'7&.~um amount of ~ \ IOeo~, not to exceed 50% of the total study cost, be approved for the North Poudre Irrigation Company, to help pay for the cost of the Feasibility Study, and .