PROJ02052

• Contract/PO #: C150011
• Contractor Name: Consolidated Mutual Water Company, The
• Contract Type: Loan
• Water District: 7
• County: Jefferson
• Bill Number: SB 99-173
• Loan Projects - Doc Type: Approval Letter

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STATE OF COLORADO

Colorado Water Conservation Board

Department ofN atural Resources
1313 Sherman Street, Room 721
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
www.cwcb.state.co.us

MEMORANDUM
*** REVISED ***

Bill Owens
Governor

Russell George
Executive Director

TO:

Colorado Water Conservation Board Members
.lr...,~
Kirk Russell, P.E. p--'~
Mike Serlet, P.E., Chi
Water Supply Planning Finance Section

Dan McAuliffe
Deputy Director

Rod Kuharich
CWCB Director

FROM:

DATE: July 17, 2006 (Revised July 27,2006)

SUBJECT: Agenda Item 9a, July 24-25, 2006 Board Meeting
Water Supply Planning and Finance Section - Changes to Existing Loans
Consolidated Mutual Water Company - Loan Payment Deferral Request

Backaround

cwes approved the original $10 million Fortune Reservoir Loan in January 1999 for the
construction of a new reservoir subsequently renamed Welton Reservoir. The loan was amended in
January 2000 (Amendment 1) to increase the loan amount to $16.3 million. The loan was again
increased in July of 2001 to $20.6 million (Amendment 2). Each amendment included an increase in
the interest rate for the increased amount. See Table 1. Loan Contract History. The Company is in
year five of repayment and has been prompt each year. In 2005, the Company provided an
additional annual payment with excess cash available. The Company is requesting that the CWCS
consider deferring five annual payments to assist with the financial impacts of the $20 million of
needed system improvements.

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