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<br />. <br /> <br />. <br /> <br />. <br /> <br />~ <br /> <br />. <br /> <br />. <br /> <br />Discussion <br /> <br />The CWCB loan contract requires the company "to adjust its operating costs and service <br />charges from time to time to provide for adequate operation and maintenance, emergency repair <br />services, obsolescence reserves, debt service, and debt reserves. " <br /> <br />The average flow in the Overland Ditch, 22 week volume, and the date Overland Reservoir <br />became empty for the last five years are shown in the table below. <br /> <br /> Average Volume <br />Year Flow (cfs) (acre-feet) Date Reservoir Empty <br />1992 66 20,236 September 26, 1992 <br />1993 66 19,972 September 17, 1993 <br />1994 42 12,834 August 26, 1994 <br />1995 69 21,067 September 25, 1995 <br />1996 45 13,818 August 30, 1996 <br /> <br />In November 1994, the Board granted a request for deferment of the December 1994 <br />payment due to a dry year and the release of tile by-pass flow. Otherwise, there have been no <br />problems with the repayments made to date on the company's two CWCB loans. <br /> <br />The economic losses to the shareholder$ primarily caused by the dry conditions in 1996 <br />has been estimated by the company to be at least $200,000. <br /> <br />The 2.0 cfs by-pass flow amounts to approximately 1,400 acre-feet per year, or 23% of <br />the reservoir's current capacity of 6,203 acre-feet. However, in order to achieve 2.0 cfs at the <br />prescribed point located 4 miles downstream of the dam, it may be necessary to release up to 4.0 <br />cfs at the turn out in the ditch. Although the by-pass has been a requirement since 1986, the <br />summer of 1994 was the first year it had to \:)e turned back to the stream. The company is <br />attempting to rectify the by-pass flow issue, and has filed suit against the U. S. Forest Service. <br /> <br />The Board has the statutory authority under Section 37-60-120 (3), CRS, to make the <br />requested deferment provided the borrower has encountered significant and unexpected financial <br />difficulties, and that it has been duly diligent in its efforts to comply with the repayment <br />provisions of its contract with the Board. <br /> <br />Recommendation <br /> <br />The staff recommends the Board adopt a resolution to approve the Overland Ditch and <br />Reservoir Company's request for fmancial relief by granting a deferment of 100% of their <br />December 1996 payment in the amount of $31,076 based on a fmding that the company has <br />encountered significant and unexpected fmancial difficulties, and that it has been duly diligent in <br />its efforts to comply with the repayment provisions of its contract with the Board. <br /> <br />:3 <br />