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<br />Colorado River Water Conservation District. <br />November 19-21, 2003 <br /> <br />Agenda Item 8a <br />(Updated November 26, 2003) <br /> <br />The Annual Cost per Acre-Foot* is a ratio relating to purely agricultural projects. Municipal and <br />multiple use projects. such as this one, can typically support a much higher annual cost. <br /> <br />As security for the loan, the River District's Water Projects Enterprise will pledge proceeds from <br />its revenue stream from water sales, adequate to assure repayment of the loan. The pledge <br />will be established by a Resolution of the River District's Water Projects Enterprise Board of <br />Directors. This security is in compliance with CWCB Loan Policy #5 (Collateral). <br /> <br />Recommendation <br />Staff recommends a CWCB loan from the Severance Tax Trust Fund Perpetual Base Account <br />in an amount up to $11,110,000 ($11,000,000 for project costs and $110,000 for the 1% Loan <br />Service Fee, in accordance with CWCB Loan Policy #16) to the Colorado River Water <br />Conservation District acting by and through its Water Projects Enterprise. The loan is for up to <br />57% of the cost to enlarge Elkhead Reservoir. The recommended terms of the loan are 20 <br />years at 3.75%. (Annual Percentage Rate of 3.86%.) Security for the loan will be a pledge of <br />water sale revenues adequate to assure repayment of the loan, in accordance with CWCB <br />Loan Policy #5. <br /> <br />Staff recommends that funding of this project be contingent upon the CWCB's approval of an <br />Acquisition Agreement that contemplates that the River District permanently convey to the <br />CWCB the 5,000 acre-feet of water from the permanent fish pool and provide a lease for up to <br />2,000 acre-feet of water annually from the temporary fish pool to the CWCB to maintain <br />instream flows in the critical habitat reach of the Yampa River. <br /> <br />Staff further recommends that final approval of the loan be conditioned upon standard <br />contracting provisions of the CWCB. <br /> <br />Action taken bv the CWCS November 20. 2003 <br />The CWCB approved the Staff Recommendation. <br /> <br />cc: Dan Birch, Project Development Manager, Colorado River Water Conservation District <br />Linda J. Bassi, Attorney General's Office <br /> <br />Attachment <br /> <br />6 <br />