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. /1f . (Update December 4, 1997) The Highland Ditch Company provides water for irrigation. A loan to the Company should thus be at the "Agricultural" rate, as set by the CWCB on November 24, 1997. COLLATERAL The Company receives assessments from its stockholders. The CWCB will take a security interest in this stream ofrevenues. The Company can also provide a certificate of deposit in amount of one annual payment, and a security interest in the project itself. STAFF RECOMMENDA nON The staff recommends: 1. That a Construction Fund Authorization in an amount of $769,999 $1.04 million, not to exceed 75% of actual project costs be recommended for the Highland Ditch Company to rehabilitate the Foothills Reservoir Dam, and 2. That the financing terms for this Construction Fund Authorization shall be at an annual percentage rate equal to the "Agricultural" rate (as set by the CWCB November 24 1997), for a duration of 30 years, and 3. That a grant from the Small Dam site Recounaissance Fund, in a maximum amount of $3000, not to exceed 50% of the total study cost, be approved for the Highland Ditch Company, to help pay for the cost of the Feasibility Study, and 4. That loan approval shall be contingent completion of the Feasibility Study, and upon all standard contracting provisions of the CWCB, as determined by the CWCB Director, and 5. That collateral for the loan shall be a security interest in the stream of income derived by the Company from assessments, and other collateral to be determined. Action Taken bv the CWCB November 25. 1997: The CWCB approved the Staff Recommendation as presented above, with the added provisions that the loan may also be funded from the Severance Tax Perpetual Base Account, and that the other collateral for the loan be approved by the CWCB Director, The interest rate for the loan will be 4%. Financial details of the loan are to be provided at the January 1997 Board meeting, Attachments D:\msword\Highland97 ,memo