Finance Committee Meeting 2006

• Board Meeting Date: 9/19/2006
• Description: Finance Sub-Committee Meeting September 19, 2006
• Board Meetings - Doc Type: Meeting

However, in order to make the financing effective and address the challenges we currently face,
as identified by the Statewide Water Supply Initiative (SWSI),much study and discussion needs
to occur about the terms and conditions placed on such financing. The following is a brief
discussion of the terms and conditions that could be attached to the contracts signed by the
recipients of our funds under these proposals:
Projects of Statewide Concern
To receive a 50/50 grant/loan for projects that fit within the CWCB's definition of"projects of
Statewide Concern"or the Construction Fund non-reimbursable guidelines from the CWCB or
from the CWCB in partnership with the Colorado Water and Power Development Authority,the
applicant must:
• Submit a signed Letter-of-Intent to borrow an amount of funding from the CWCB that
equals or exceeds the amount of non-reimbursable funding sought.
• Agree to donate a portion of the developed water to the CWCB for the purposes of future
sale or lease for municipal, industrial or agricultural use or for addressing compact calls,
drought impacts, endangered species or state species of special concern needs, instream
flow, river restoration, recreation or other purposes deemed appropriate by the CWCB.
The donation would be in accordance with a storage or other decree to be jointly sought
by the owners and the CWCB. The donation would be implemented through an
operations agreement enforced by the CWCB or the State Engineer. Dry-year provisions
could also be written into these agreements.
• Complete a feasibility study, a non-reimbursable financing application for the individual
project and a donation agreement to be approved by the CWCB. The cost of the
feasibility study may be included in the total non-reimbursable financing package.
• Execute a loan contract within three-years or agree to be liable to repay the cost of the
non-reimbursable financing provided at an interest rate determined in accordance with
our existing loan policies by the CWCB at the time the project is approved.
• Other conditions the Board may require.
Water Storage Rehabilitation
The CWCB and the State Engineer have identified many dams that hold between 5,000-10,000
AF of water that need to be repaired or improved to meet storage capacity expectations. Many of
the owners of these projects may not be financially able to repair these facilities themselves
using their own assets and would not qualify for a CWCB loan.
However,many of these facilities, if repaired, could help the CWCB meet its mission objectives
of developing, conserving and managing Colorado's water resources. Specifically, repairs may
allow the owners to put their water rights to beneficial use in accordance with their decrees,
make water available for beneficial uses and contribute to the preservation or improvement of the
environment.