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<br />F <br />.. <br /> <br />Lower Poudre Augmentation Company <br />March 12-13, 2007 <br /> <br />Agenda Item 16a <br /> <br />and the Reservoir Company will act as a guarantors for the loan through a separate loan <br />guaranty contract that will be incorporated into the CWCS loan contract. This is in compliance <br />with CWCS Loan Policy #5 (Collateral). <br /> <br />Recommendation <br /> <br />Staff recommends that the Soard approve a loan not to exceed $3,104,053 ($3,073,320 for <br />project costs and $30,733 for the 1 % Loan Service Fee in accordance with CWCS Loan Policy <br />#16), to the Lower Poudre Augmentation Company from the Severance Tax Trust Fund <br />Perpetual Sase Account, to acquire the Timnath Flatiron Reservoir and 4.5 shares in the <br />Soxelder Ditch Company, for the purpose of for the purpose of providing augmentation water for <br />existing wells. The recommended terms of the loan are 30 years at 2.50% per annum. <br />Security for the loan will be a pledge of well augmentation fee revenue backed by a rate <br />covenant, and other company revenue; and the project itself, including the reservoir and <br />appurtenances, and the 4.5 shares of Soxelder Ditch Company, along with the Soxelder Ditch <br />carriage agreement. Additional security will be in the form of a loan guaranty contract from <br />New Cache La Poudre Irrigating Company and the Cache La Poudre Reservoir Company. <br /> <br />Staff further recommends that final approval of the loan be conditioned upon all other standard <br />contracting provisions of the CWCS, as well as the following: <br /> <br />1. Loan Guarantv Aqreement - Prior to execution of a State loan contract, the New Cache <br />La Poudre Irrigating Company and the Cache La Poudre Reservoir Company, as <br />guarantors of the CWCS loan to the Lower Poudre Augmentation Company, shall <br />execute a loan guaranty contract in a form acceptable to the CWCS. <br /> <br />cc: Mike Hungenberg, President, Lower Poudre Augmentation Company <br />Jennifer Lee, P.E" Applegate Group, Inc. <br />Amy Stengel, AGO <br /> <br />Attachment <br /> <br />Action Taken bv the CWCB on March 13.2007 <br />The CWCS approved the Staff Recommendation. <br /> <br />60f6 <br />