ALP 6

Board M f ting Minutes
August 1 2012
Page 6
have an xecuted agreement with the City of Durango for its allocation purchase by the end of the year.
FollowIr g the discussion, a motion was made to adopt Resolution No. 12 -61, approving an Amendment
to the J mended and Restated Agreement and Instructions for Administering the Escrow Account
Between the United States and the Authority for the Financing of the Animas -La Plata Project Water
Depletio Allocated to the Animas -La Plata Water Conservancy District.
Motion y: Frank Kugel
2°d by: Greg Fisher
Vote: Motion carried
La Plata Wes-/ Water Authority — Mike Brod stated that there was nothing new to report.
Committee Reports
Project finance Committee — Ty Wattenberg suggested 10:00 a.m. Tuesday, December 4, 2012, as the
next me ting date for the Project Finance Committee. The Committee consensus was to meet at that date
and timel
New Bu iiness
Budget nd Audit Committee —Approval of BKD 2012 Audit Engagement Letter
Authot-4 Controller Duane Dohrer was absent due to illness. Sr. Accountant Justin Noll provided a
presenta ion of the Audit Engagement Letter for 2012 from the Authority's auditors, BKD, LLC. Mr.
Noll sta d that the proposed cost of the 2012 audit included only one SRF program for single audit. The
second RF program could require a single audit, depending on the outcome of an ARRA funds
expendi res test. A second single audit would require an additional cost of $7,700 over the proposed fee
of $77 0. The Budget and Audit Committee had forwarded the BKD 2012 Audit Engagement Letter
with a vocable recommendation. A motion was made to approve the BKD Engagement Letter to
conduct he *audit of the Authority's 2012 financial statements.
Motion y: Greg Fisher
2 11d by: Don Carlson
Vote: Motion carried
Budget andAudit Committee — 2013 Budget
Mr. Nol and Mike Brod presented the Draft 2013 Budget and stated that a favorable recommendation had
been f6i warded by the Budget and Audit Committee. Mr. Brod stated that the 2013 budget did not
i . ncorpoi ite an additional $2.5 million in GAP funds. The 2013 budgeted GAP amount includes the
remainii g 2012 funds not expended. The amount budgeted for SHLP matching feasibility grants
includec an additional $150,000 of new grants. Mr. Noll reviewed notes prepared by Mr. Dohrer and
stated tl at alI interest estimates were conservative in nature. All funds allocated for SHLP and Forest
Health r rojects were included in the 2013 budget. Because of the WRBP Aurora partial loan prepayment,
we will add a line item in the WRBP uses section for bond defeasance to offset the resources of the
prepayn ent. The potential DWRF and WPCRF refunding bond issues would require a restated budget in
2012 if he refundings are executed in 2012. Both the WPCRF and DWRF programs are budgeted at full
loan cal acity. An allowance of $200,000 was made for arbitrage rebates. Both the WQCD and DOLA
requeste d budgets were included in the Authority's overall draft budget. A motion was made to authorize
publicat on of the Colorado Water Resources and Power Development Authority's Draft 2013 Budget.. as
adjuste , for public inspection.
Motion y: Greg Fisher
2"d by: Greg Higel
Vote: Motion carried
Logan ower Lease Agreement, Resolution No. 12 -63
Mike B od discussed the general maintenance and improvements occurring in the Logan Tower Building,
and ad d that a checklist of general maintenance items had been included with the Lease Ageement