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<br />Security for the loan will be a pledge of general revenues received from taxes, as authorized by the <br />District's November 4,2003 election, and the election to be held in May of2008 to increase the <br />District's maximum indebtedness from $3,000,000 to $3,890,000. The CWCB will require parity for <br />this lien with any existing debt and the CWR&PDA loan. Thisis in compliance with CWCB Loan <br />Policy #5 (Collateral). <br /> <br />In accordance with CWCB Loan Policy #8 (Purchase of Water Rights), a written appraisal or opinion of <br />value from a qualified water rights appraiser supporting the purchase price must be submitted prior to <br />disbursal of CWCB loan funds for water rights purchases. <br /> <br />Staff Recommendation <br /> <br />Staff recommends that the Board approve an increase of$757,500 ($750,000 for project costs and <br />$7,500 for the 1 % loan origination fee) to the Pinewood Springs Water District, from the Severance Tax <br />Trust Fund Perpetual Base Account, at their current interest rate of 4.0% for 30-years. The District's <br />total amended loan amount will be $2,811,689 ($2,783,850 for project costs and $27,839 for the 1 % <br />Loan Service Fee) to construct a new storage reservoir, pump station and raw water pipeline, raw water <br />infiltration gallery modifications, and to purchase additional water rights. Security for the loan shall be <br />collateral in compliance with CWCB Loan Policy No.5. <br /> <br />Staff further recommends that final approval of the loan be conditioned upon all other standard <br />contracting provisions of the CWCB. Further, staff recommends the following approval condition: <br /> <br />1. The proceeds from the sale of any water rights purchased with this loan approval shall be used to <br />reduce the outstanding balance of District's loan with the CWCB. <br /> <br />2. The loan for the water rights portion of the project is contingent on the ability of the District to <br />acquire the water rights, along with the successful completion of applicable procedures for <br />joining the Northern Colorado Water Conservancy District. <br /> <br />3. An election by the District to obtain voter approval to increase the District's level of <br />indebtedness from $3,000,000 to $3,890,000 for the purposes of financing improvements to the <br />District's domestic water system. <br /> <br />cc: Mr. Mark Upton, Vice President, Pinewood Springs Water District <br />Vaughn McWilliams, CWCB <br />Amy Stengel, CWCB <br /> <br />Attachment <br /> <br />ACTION TAKEN BY THE CWCB BOARD ON MARCH 19. 2008 <br />Board approved staff recommendation. <br /> <br />6 <br />Flood Protection. Water Project Planning and Financing. Stream and Lake Protection <br />Water Supply Protection. Conservation Planning <br />