ALP 6

Board Meeting Minutes
August 16, 2012
Page 5
Authority's statute limits the use of Authority funds to planning, designing, and management of urgent
watershed protection and forest health projects. Mr. Brod and the Board discussed whether other sources
of funding were available that would not be as restricted as the Authority's fiends. Mr. Monson
understood that portions of the stabilization project could be considered as planning and designing,. Mary
Hammond rewrote Resolution No. 12 -62 to clarify the uses of the Authority funds by the CWCB to be
"planning, designing, and management of urgent watershed protection and forest health projects across
the state necessitated by the 2012 wildfires." A motion was made to adopt Resolution No. 12 -62 as
amended.
Motion by: Greg Higel
211d by: Greg Fisher
Vote: Motion carried 6 -0, Don Carlson recused himself from the vote.
Small Hydropower Loan Program
Status of Program — Ryan Shipley reported that no applications for SHLP Matching Grants had been
received since the August 16 °i Board meeting. There is $100,500 remaining for SHLP Matching Grants
in 2012, and two applications are anticipated in the near future. Two loans have been executed through
the program to date and staff continues to work with Tri- County Water and Sanitation District on its
project. A number of projects have been pushed back to wait for the outcome of pending legislation .to
eliminate the FERC permit requirement on projects of 5.0 kW or less.
Grant Assistance Program (GAP) for Small Svstems
Status of Program — Ryan Shipley reported that all allocated funds had been obligated. One Grant
Agreement had been executed since the previous Board meeting, and two additional closings had been
scheduled. The approval for all unexecuted grants will expire on February 16, 2013.
Water Revenue Bonds & Small Water Resources Projects
Status of Programs — Keith McLaughlin reported that staff was working with potential borrowers but it
was unlikely that any applications would be submitted during the remainder of 2012. The City of Aurora
was pursuing a partial prepayment of its WRBP 2005D Prairie Waters project, planned for November 7..
2012, in an amount of approximately $41 million. Four SWRP borrowers had paid off their loans,
leaving only six borrowers in the program, two of which are also considering prepayments. Mr.
McLaughlin pointed out that the SWRP Program remaining principal balance had been halved in 2012,
from approximately $45 million to about $21 million. Staff had processed 15 prepayments under all
Authority programs this year as compared to a normal average of approximately one per year.
La Plata Future Projects Escrow & Animas -La Plata Project
Long Hollow Reservoir — Mike Brod showed construction photos of Long Hollow and stated that a winter
construction schedule is being finalized. In response to questions from the Board, Mr. Brod stated that to
date only one change order had been requested. An application for payment from the Resource Funds had
been filed and were waiting for approval by the Department of the Interior.
Animas -La Plata Project, Amendinent and Addendt.un to Schedule A — Annended and Restated Agreement
Between USDOI and the Authority, Resolution No. 12 -61
Mike Brod stated that the previous Agreement for administering the Animas -La Plata Escrow Account
had expired on September 30, 2012, and that a draft amendment to the agreement to extend the term of
the agreement was included in the Board's materials. Mary Hammond stated that there had been some
discussion pertaining to use of the phrase "substantially complete" and the new amendment had been
written to extend the agreement for an indeterminate length of time. She also stated that an amendment
may not be acceptable to the Bureau of Reclamation because the original agreement had expired, thereby
necessitating a new agreement_ Resolution No. 12 -61 would approve execution of an amendment to the
expired agreement, substantially in the form submitted to the Board. Mr. Brod stated that he hoped to