BOARD01034

• Board Meeting Date: 9/13/2004
• Description: Summary Minutes and Record of Decisions - September 13-14, 2004
• Board Meetings - Doc Type: Minutes

a. May 24 - 27, 2004 Meeting Minutes
Tape 3, Track 1 1 :55 :00 - 1 :56:00
Action: Ray Wright asked that the attendance record reflect that he was present on both days
of this meeting. Eric Wilkinson asked that the record show in Item 20 that Oak Creek was on the
Agenda but not discussed by the Board. A motion was made by Eric Wilkinson that the May 2004
minutes be approved with these changes. The motion was seconded by Ray Wright and approved
unanimously (9-0).
b. July 20-21, 2004 Meeting Minutes
Tape 3, Track 1 1 :56:00 - 1:58:00
Action: A correction to Barbara Bigg's name was requested on Item 14b. On the same item,
the language "a pledge of revenues" was requested to be deleted from the last line of the 1" paragraph
on page 5. A motion was made by Eric Wilkinson that the July 2004 minutes be approved with these
changes. The motion was seconded by John Redifer approved unanimously (9-0).

4. Water Supply Planning and Finance Section - New Loans
a. Mancos Valley Beaver Ditch Company - Mancos Valley Beaver Ditch Pipeline Project
Tape 1, Track 1 3:10 - 24:25
Action: A motion was made by Tom Sharp with a second by Harold Miskel to accept staff
recommendation for an initial loan, not to exceed $413,000 for construction costs, to
the Mancos Valley Beaver Ditch Company from the Severance Tax Trust Fund
Perpetual Base Account, for the Mancos Valley Beaver Ditch Pipeline Project. The
Board approved a post-construction loan of the difference between the construction
loan and payment back to Colorado Water Conservation Board from USDA
Conservation Grant (NRCS) as part of the grant for the work not to exceed $107,100
($103,000 for project costs and $4,130 for the 1 % Loan Service Fee) to the Company
with terms based on the current agricultural rate (30 years at 2.5% per annum).
Security for the loan will be collateral in compliance with CWCB Loan Policy No.5.

Final approval of the loan will also be conditioned upon the following:
1. Executed USDA Conservation Program Contract.
2. Company's Funding Agreement shall include a "step-up" provision.
3. All Standard contracting provisions of the CWCB Loan Program including a
revised Debt Service Reserve Fund Provision that requires two annual loan
payments (one payment set aside at the time of contract execution and one
third of an annual payment set aside at the time of each of the first three
annual loan payments.
Motion was approved 10 - O.

b. Lower Bauer West Lateral, Inc. - Lower Bauer Res. Outlet Pipeline Extension
Tape 1, Track 1 24:25 - 31 :00
Action: A motion was made by Ray Wright with a second by Bob Burr to approve the staff
recommendation for an initial loan, not to exceed $195,000 for construction costs, to
the Lower Bauer West Lateral, Inc. from the Severance Tax Trust Fund Perpetual
Base Account, for the Lower Bauer Reservoir Outlet Pipeline Extensions Project.
The Board approved a post -construction loan of the difference between the
construction loan and payment back to CWCB from USDA Conservation Grant
(NCRS) as part of the grant for the work not to exceed $50,700 ($48,750 for project
costs and $1,950 for the 1 % Loan Service Fee) to the Company with terms based on
the current agricultural rate (30 years at 2.5% per annum). Security for the loan will
be collateral in compliance with CWCB Loan Policy No.5.

Final approval of the loan will also be conditioned upon the following:
1. Executed USDA Conservation Program Contract.
2. Company's Funding Agreement shall include a "step-up" provision.

Flood Protection. Water Project Planning and Finance. Stream and Lake Protection
Water Supply Protection. Conservation Planning