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WRCC, Inc. - Loan Increase Consent Agenda Item 3a <br />` January 14, 2011 (Updated February 3, 2011) <br />Page 3 of 3 <br />Creditworthiness: The original Windsor Reservoir and Canal Company had four CWCB loans <br />between 1992 and 2006 for rehabilitation of several structures along the Poudre Valley Canal. <br />These loans, totaling $2,557,000, were paid in full in 2006 <br />Staff has reviewed the Company's current financial status and feels the additional $3/share (or 0.6% <br />increase in annual assessments) will not affect the Company's ability to repay the loan. <br />Collateral — Security for the loan will remain as the Company's pledge assessment revenues and <br />the Company's storage rights in Cobb Lake. This is in compliance with CWCB Financial Policy #5 <br />(Collateral). <br />Staff Recommendation (Board approved staff recommendation on January 25, 2011) <br />Staff recommends that the Board approve an increase of $50,702 ($50,200 for project costs and <br />$502 for the 1% Loan Service Fee) from the Construction Fund. The Company's amended total <br />loan amount will be $1,352,592 ($1,339,200 for project costs and $13,392 for the 1% Loan Service <br />Fee) for engineering and construction costs related to the Cobb Lake Inlet Structure Project. The <br />loan terms shall be 30 years at a blended rate of 2.85% per annum. Security for the loan shall be in <br />compliance with CWCB Financial Policy #5. <br />cc: Mayo Sommermeyer, the Dow Law Firm, LLC <br />Susan Schneider, AGO <br />Patricia DeChristopher, AGO <br />Attachment: Water Project Loan Program — Project Data Sheet <br />