Laserfiche WebLink
<br />Consolidated Mutual Water Company <br />July 17, 2006 (Revised July 27, 2006) <br />Page 4 of 4 <br /> <br />Agenda Item 9a .. <br /> <br />~ <br /> <br />Collateral: Security for the current Fortune Reservoir Loan is as follows: . <br />The Company has a Security Agreement in place which provides a security interest in "All revenues <br />and all Debtor's rights to receive revenues to repay the indebtedness ~n the amount loaned" and a <br />100% interest in The Agricultural Ditch and Reservoir. In addition, Am~ndment 2 is secured with an <br />undivided 100% interest in Fairmont Reservoir. This security is in compliance with the current <br />CWCB Loan Policy #5 (Collateral). It will not be necessary to change this collateral for the revised <br />loan. . <br /> <br />Staff Recommendation <br /> <br />The staff recommends the Board approve the Consolidated Mutual Water Company's request for <br />financial relief by granting a five year deferment of principal, with interest only payments for years <br />2007 through 2011. The interest rate shall be increased from 4.85% to15.1 0% on the Amendment 1 <br />amount and 5.50% to 5.75% on the Amendment 2 amount. The increalsed interest rate will be <br />retroactive, starting on March 1, 2006 on the remaining balance, which will be reflected in the new <br />amortization schedule with the first full annual payment in March 2012; In addition, the Company <br />shall pay a $1,000 contract amendment fee as required by CWCB Financial Policy #16. <br /> <br />Action Taken bv the CWCBon Julv 25. 2006 <br /> <br />The CWCS approved the staff recommendation as written above. <br /> <br />Email copy: <br /> <br />Walter Welton, President, Consolidated Mutual Water Company <br />Amy Stengel, Attorney General's Office <br /> <br />. <br /> <br />Attachments: <br /> <br />CWCS Financial Policy #10 <br />Walter Welton Letter dated April 17, 2006 <br />Fortune Reservoir Project Data Sheet (Original Project) <br /> <br />. <br />