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' Bull Creek Reservoir, Can�al & Power Company Agenda Item 9b <br />January 23-24, 2007 (REVISED January 29, 2007) <br />Page 5 of 5 <br />Staff Recommend�tion (Board approved Staff Ftecommendation on January 23, 2007) <br />Staff recommends a loan not to exceed $1,212,001) ($1,200,000 for project costs and $12,000 for the <br />1% Loan Service F�e) to the Bull Creek Reservoir, Canal and Power Company for project costs, not <br />to exceed 90% of th�e costs associated with the Bull Creek Reservoir No. 4 Rehabilitation and <br />Enlargement Project from the Severance Tax Trust Fund Perpetual Base Account. Loan funds may <br />be used for qualifyir�g project expenses previously incurred. The loan terms shall be based on the <br />current agricultural rate of 2.50% per annum for a<30-year term. Final approval of the loan shall be <br />conditioned upon all standard contracting provisior�s of the CWCB Loan Program. Security for the <br />loan shall be collateral in compliance with CWCB L.oan Policy #5. <br />Staff further recommends the following approval canditions: <br />1) Shareholders sh�all convey a security interest in the Company stock certificates to CWCB in a <br />quantity that exceecHs 90% of all Company stock. <br />2) Company will payoff the current loan held by the Palisades National Bank (PNB) in Palisade, <br />Colorado, with an estimated balance of $160,000. <br />3) As part of this loan approval, Staff recommends de-authorization of the previous Severance Tax <br />Trust Fund Perpetu�l Base Account loan to the Bull Creek Reservoir, Canal and Power Company <br />(Agenda Item 4d, S�:ptember 2004) for $599,940 far the Reservoir Nos. 1, 2 and 4 Rehabilitation & <br />Enlargement project. <br />Email copy: Irvin Johnson, Company President <br />Paul Currier, PE, Water Resources Consulta�nts, LLC <br />Lori Satterfield, Legal Counsel, Holland & H,art <br />Alan Martellaro, SEO Division 5 Division EnGineer <br />Garrefit Jackson SEO Division 5 Dam Safety <br />Amy Stengel, AGO <br />Attachment: Water Proje�ct Construction Loan Program — Project Data Sheet <br />