PROJC01288

• Contract/PO #: C153714
• Contractor Name: Hay-Bretherton Ditch Company
• Contract Type: Loan
• Water District: 43
• County: Rio Blanco
• Bill Number: HB 95-1155
• Loan Projects - Doc Type: Contract Documents

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Agenda Item 29b
November 4, 1994

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DISCUSSION

This project was made necessary by the rather sudden failure of the steel pipeline, which had
been in the ground for over 30 years. After the failure, the water users acted quickly to obtain
SCS assistance and to rehabilitate the most critical section of the ditch.

Staffreviewed the SCS design and will tour the ditch on October 21,1994, to confirm that Phase
I of the project has been done properly. Staff expects that Phase II will be properly completed
in spring 1995, provided continued assistance and control by the SCS.

The life of the lining project is 20 years.

This loan will be to two individuals who own a 77 % interest in the ditch. Collateral will be
provided through a deed of trust on other properties owned by these individuals.

This project will be completed by the time funding is authorized. The loan authorization, if
approved, must specify that funds will be used to refinance the actual project costs, rather than
to finance the project itself.

STAFF RECOMMENDATION:

1. That a construction fund loan in an amount of $20,000 be approved for Billy Howard
and Brenda Howard, to allow these individuals to REFINANCE their costs associated
with the rehabilitation of the Hay-Bretherton Ditch, and

2. That the financing terms shall be 5% annual percentage rate, for a duration of 20
years, and

3. That the loan may be used to REFINANCE project costs incurred prior to contracting
with the State, only if approved by the Director of the Colorado Water Conservation
Board, and

4. That loan approval shall be contingent upon staff evaluation of the Borrower's
financial condition and ability to pay, and upon all standard contracting provisions of the
CWCB.