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Well Augmentation Subdistrict - Loan Feasibility Study <br />Page 16 <br />LOAN REQUEST, CREDIT WORTHINESS AND COLLATERAL <br />WAS is currently requesting a 25 -year loan from CWCB for $3.0 million. WAS sought input <br />concerning their ability to repay this loan from George K Baum & Company. A letter of opinion <br />concerning financial feasibility of the loan is-provided as Attachment F. <br />Collateral for this loan would be in the form of the water rights purchased and the water supply <br />projects, i.e., storage, that are developed. <br />IMPLEMENTATION SCHEDULE <br />WAS has continuously developed its water supply system since its formation in 2004. Each year, as <br />funding allows, WAS invests in additional water rights, storage and recharge projects, and related <br />civil infrastructure necessary to operate its plan for augmentation. Central and WAS are very often <br />presented with new options and opportunities for water rights acquisitions and project <br />development. <br />The WAS Board of Directors have directed staff to pursue borrowing $3 million as soon as possible. <br />Numerous water acquisitions and water supply project opportunities exist within WAS that can <br />benefit WAS member wells through an increased increased augmentation supply and higher well <br />pumping quotas. <br />CONCLUSIONS <br />The WAS Board of Directors has determined that a near -term expenditure of at least $3 million is <br />vital for the long -term economic security of members of the Subdistrict. This report provides a <br />description of how funds from a CWCB loan in this amount would be used, the probable benefit to <br />well member wells, and the financial capacity of WAS to repay the loan. <br />LIMITATIONS <br />This document was prepared for Colorado Water Conservation Board in accordance with <br />professional standards at the time the services were performed and in accordance with a contract <br />between Leonard Rice Engineers, Inc. and Central Colorado Water Conservancy District. The <br />document is governed by the specific scope of work authorized by Central; it is not intended to be <br />relied upon by any other party except for the Colorado Water Conservation Board. Leonard Rice <br />Engineers, Inc. makes to warranties, express or implied, with respect to this document, except for <br />those, if any, contained in the agreement pursuant to which the document was prepared. Any party <br />that relies on this document, except those authorized herein or under the terms of the contract <br />between Central and Leonard Rice Engineers, Inc., does so at its own risk Further, we have relied <br />on information or instructions provided by Central and other parties and, unless otherwise <br />expressly indicated, have made no independent investigation as to the validity, completeness, or <br />accuracy of such information. <br />LeonardRice <br />ENGINEERS,INL <br />