16b

• Board Meeting Date: 7/22/2008
• Description: CF Section - New Project Loans - Headgate 135 Lateral, Inc. - Headgate 135 Pipeline Project
• Board Meetings - Doc Type: Memo

Headgate 135 Lateral, Inc. Agenda Item 16b
July 15, 2008
Page 5 of 5

Staff Recommendation

Staff recommends the Board approve a loan, not to exceed $262, 6 00 ($260,000 for project costs and
$2,600 for the 1% Loan Service Fee) for engineering and construction costs, to the Headgate 135
Lateral Inc. from the Severance Tax Trust Fund Perpetual Base Account as it relates to the Headgate
135 Pipeline Project. Following construction, t he staff further recommends the loan be amended to an
amount not to exceed $1 3 6,600 ($1 3 4,000 for the remaining balance of the Project and $2,600 for the
Loan Service Fee) wit h terms based on the current low - income municipal rate of 30 years at 3.50% per
annum. Security for the loan will be collateral in compliance with CWCB Financial Policy No. 5.

Staff further recommends t hat execution of the CWCB loan contract be conditioned upon having an
e xecuted USDA Conservation Program Contract.

cc: Gordon Barker , President , Headgate 135 Lateral, Inc.
Amy Stengel, AGO
Susan Schneider, AGO

Attachment: Water Project Loan Program Project Data Sheet