PROJ00143 App Letter

• Contract/PO #: C153810
• Contractor Name: Wood Lake Mutual Water & Irrigation Company
• Contract Type: Loan
• Water District: 1
• County: Weld
• Bill Number: SB 97-008
• Loan Projects - Doc Type: Approval Letter

I ..
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I

" >

Agenda Item 12k.
November 25, 1996

2

$11 ,000. There are 1600 shares under the system, so a share assessment increase of about
$7/share will be needed. The current assessment is $45/share. The new assessment of about
$52/share will represent a cost of $26 per acre foot delivered, based on a 2 acre feet per acre
delivery to the 2150 acre service area.

Water diverted by the WLMWIC is used for agricultural purposes, and the Company has
requested a 30 year loan. The loan should thus be at the 30 year "Agricultural" rate, to be set
by the CWCB November 25, 1996.

COLLATERAL

The CWCB would take a collateral interest in the stream of revenue from shareholder
assessments. The Company would also provide one payment to be held by the State Treasurer.

STAFF RECOMMENDATION

The staff recommends:

1. That a Construction Fund loan in an amount of $188,000 (not to exceed 75% of
actual project costs), be approved for The Woods Lake Mutual Water and Irrigation
Company to rehabilitate the Wood's Lake Dam and Reservoir, and

2. That the fmancing tenns shall be at the "Agricultural" rate for a 30 year loan,
to be set by the CWCB November 25, 1996, and

3, 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

4. That security for the loan shall be a collateral interest in the stream of income
derived from shareholder assessments, and a certificate of deposit account in the
amount of one annual payment to be held by the State Treasurer.

Action Taken bv the CWCR November 25.1996

The CWCB approved the Staff Recommendation without revision. The interest rate
for the loan will be 3.75%.

The CWCB also approved a grant in amount of $3000 from the Small Dam Site
Reconnaissance Program to help fund the feasibility study. (This was item lOb. on
the agenda.)

Attachments
C;\wpSl\PROJ.NEW\12k.nov
cc; Ruben Hergert, 12315 WCR 72. Eaton. CO 80615