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'-'. "". Agenda Item 8b. January 28, 1998 Page 2 . more difficult to negotiate. By constructing the pump station, the Company will have access to an estimated 14,700 acre feet of water per year, which can be delivered to water users in its system. A $925,000 CWCB loan at 4% for a 30-year period would have an annual payment of about $53,500. This represents an annual cost of about $3.64 per acre-foot, based on 14,700 acre feet recovered. The capital cost of the entire project ($1.233 million), is about $84 per acre-foot. Portions of the feasibility study are attached. The Company provides water for irrigation. A loan to the Company should thus be at the "Agricultural" rate, as set by the CWCB on November 24, 1997. The Company is requesting a 30-year loan at 4 % . The Company has an existing 1996 authorization from the CWCB in amount of $1,202,000 for 6 projects involving dam and canal rehabilitation, to be completed during the time frame 1996 through 2011. The Company is 2 years ahead of schedule on these projects. They have completed the Poudre Valley Canal project, and are currently constructing the Cobb Lake pipeline project. The Big Windsor pump station project is separate from those previously authorized, and will be handled through a separate contract. . COLLATERAL The Windsor Canal and Reservoir Company receives assessments from its stockholders. The CWCB will take a security interest in this stream of revenues. The Company can also provide physical assets as collateral, such as the dam and appurtenant structures, or other Company assets. STAFF RECOMMENDATION. The staff recommends: 1. That a Construction Fund Authorization in an amount of $925,000, not to exceed 75% of actual project costs, be recommended for the Windsor Canal and Reservoir Company to construct a pump station on Big Windsor Reservoir, and 2. That the financing terms for this Construction Fund Authorization shall be at an annual percentage rate of 4% for a duration of 30 years (equal to the "Agricultural" rate as set by the CWCB November 24, 1997), and ..