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<br />. <br /> <br />- <br /> <br />, <br /> <br />Agenda Item 411, <br />March 12, 1996 <br /> <br />2 <br /> <br />. <br /> <br />Three companies are dependent on the Tremont headgate for water deliveries, The Tremont <br />Ditch Company also diverts water for the Snyder Smith Ditch Company (3000 acres irrigated), <br />and for Pioneer Water and Irrigation,Inc., which places it in ground water recharge sites, <br /> <br />Tremont has already completed $l1K in preliminary work to repair the ditch and prepare for <br />installation of the river structure, <br /> <br />Water diverted by the Tremont Ditch is used for agricultural purposes, The loan may thus be <br />at the "Agricultura1" rate of 3.75% for 10 years, as set by the CWCB November 6, 1995, <br /> <br />The Company needs to complete the rehabilitation project prior to runoff in 1996, preferably in <br />early March, when river flows are minimal and can be controlled, This loan may be from the <br />Small Project Loan Account, because the loan amount is not more than $100,000, and because <br />the delay associated with General Assembly approval would result in undue hardship on the <br />borrower, <br /> <br />COLLATERAL <br /> <br />The CWCB can take a collateral interest in the stream of revenue from shareholder assessments. . <br /> <br />The Company also has annual income from the running fee charged to sale af ';iater Pioneer <br />Water and Irrigation, for augmentation, During the period 1992 to 1995, this income has ranged <br />from a low of $4869 to a high of $10,196, with an average of about $7100, The CWCB could <br />take a collateral interest in this stream of revenue, <br /> <br />STAFF RECOMMENDATION <br /> <br />The staff recommends: <br /> <br />1, That the CWCB imds that the Tremont Mutual Ditch Company is eligible to <br />apply for a loan from the Small Project loan Account because the loan <br />amount does not exceed $100,000, and because delay in completing the <br />project would result in undue hardship on the Borrower, and <br /> <br />2, That a Small Project construction fund loan in an amount of $27,000, be <br />approved for The Tremont Mutual Ditch Company to rehabilitate the <br />Company's diversion structure on the South Platte River, and <br /> <br />3, <br /> <br />That the financing terms shall be at an annual percentage rate equal to the <br />"Agricultural" rate of 3.75% for a duration of 10 years (as set by the CWCB <br />November 6, 1995), and <br />. <br />