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Agenda Item 9.a. September 27-28,1999 (Memo Updated October 8, 1999) DeWeese-Dye Ditch and Reservoir Co. Page 3 The DDRC has been working hard to obtain additional financing for the project through other sources. The Company has a signed agreement to sell 100 acre-feet of storage space in the DeWeese Reservoir to the Round Mountain Water and Sanitation District, at a price of $100,000. This will be accomplished by raising the spillway crest elevation by just 6 inches. The DDRC will close this sale 9/21/99 and receive the $100,000, which will be applied to the project. The DDRC also has a signed agreement to sell 500 acre-feet of storage space in the DeWeese Reservoir, as well as 500 acre-feet of water rights, to the Colorado Division of Wildlife for a price of $500,000. The purchase was unanimously approved by the State Capital Development Committee at their 9/16/99. These funds will be available after the contract is approved by the State's Attorney General and Controller (probably after 11/15/99), and will also be applied to the project. The final CWCB loan amount will then be approximately $500,000. Financial Summary with all funding in place: New Total Estimated Proj ect Cost DDRC contribution from Round Mountain Sale DDRC contribution from DOW Sale Total DDRC cost share Final CWCB loan amount Annual payment on $500,290 CWCB loan DDRC assessment needed for O&M and CWCB loan payment Current DDRC assessment $1,100,290 $100,000 $500.000 (55%) (45%) $ 600,000 $ 500,290 $ 28,900 $12 per share $12 per share The DDRC needs the $256,261 CWCB loan increase to complete the project on schedule (by 11/15/99), and until the DOW funding becomes available. Without the loan increase, construction may extend into next year, and additional demobilization and remobilization costs would occur. Contract loan provisions for the new CWCB loan would be at the established interest rate of 4% for 30 years. The project collateral, a pledge of revenues from DDRC's assessments as well as the dam and reservoir and 1,040 acres of land owned by the Company, is adequate to cover the additional cost and will therefore remain the same. Representatives from DDRC will be available at the Board Meeting to answer questions and provide additional project details.