BOARD00097 ‎(2)‎

• Board Meeting Date: 1/23/2007
• Description: Draft Summary Minutes and Record of Decisions - November 13-15, 2006
• Board Meetings - Doc Type: Memo

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to the loan to the Enterprise and the step-up provisions of the participants'
agreements;
(7) Federal Memorandum of Understanding (MOU) It is contemplated that
an MOD between the SECWCD Water Activity Enterprise and a federal agency or
agencies will be necessary to address such items as design, ownership and operation
of the Arkansas Valley Conduit. This agreement shall be in place prior to execution
of a State contract;
(8) Status Report on Conditions - Prior to executing a State loan contract,
the CWCB staff shall provide a status report to the Board on the fulfillment ofthe
above loan approval conditions;
(9) Loan Disbursements - Disbursements from the CWCB to the Enterprise
will be in the same percentage (and time frame) relative to the total CWCB loan
amount, as disbursements made from the federal government relative to the total
federal government cost-share commitment.

Harold Miskel recused himself from the vote. The motion was approved
unanimously (8-0).

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lOb. Water Supply Planning and Finance - Construction Fund and Severance Tax Trust
Fund Perpetual Base Account New Loans - Lazy-a-Ranch - Dual Water Supply
System
Tape 1, Track 2 01:25:35-01:38:18
Action: A motion was made by Barbara Biggs and seconded by Don Schwindt to approve a
loan from the Construction Fund in the amount up to $152,258 ($150,750 for
project costs and $1,508 for the 1% loan origination fee, in accordance with CWCB
Financial Policy No. 16) to the Lazy 0 Ranch Homeowners Association. The loan
is for up to 90% of the cost to construct a secondary water supply system. The
recommended loan tenns are 30-years at 4.25%. Security for the loan will be a
pledge of assessment revenues backed by assessment covenant and the project itself
in accordance with Policy No.5. The final approval of the loan shall be conditioned
upon all standard-contracting provisions of the CWCB. The motion was approved
unanimously (9-0).

lOco Water Supply Planning and Finance - Construction Fund and Severance Tax: Trust
Fund Perpetual Base Account New Loans - Penrose Water District - Water Rights
Purchase and Raw Water Pipeline Project
Tape 1, Track 2 02:42:44 - 03:03:09
Action: A motion was made by Harold Miskel and seconded by Tom Sharp to approve a
loan not to exceed $8,844,570 ($8,757,000 for project costs and $87,570 for the 1%
Loan Service Fee in accordance with the CWCB Loan Policy #16), to the Penrose
Water District, acting by and through the Penrose Water District Water Activity
Enterprise, from the Severance Tax Trust Fund Perpetual Base Account, to purchase
water rights and construct a raw water pipeline from the Arkansas River to the
District's service area, enlarge Brush Hollow Reservoir, and to cover expenses
already incurred. The tenns of the loan are 30 years at 3.25% per annum. As
security for the loan the Penrose Water District Water Activity Enterprise, will
pledge water user revenues backed by a rate covenant, revenues from the 3.00 mill
Special Revenue Fund levy, and annual financial reporting. The fmal approval of
the loan shall be conditioned upon all other standard contracting provisions of the

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Flood Protection. Water Supply Planning and Finance. Stream and Lake Protection
Water Supply Protection. Conservation and Drought Planning
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