BOARD01817

• Board Meeting Date: 11/19/2003
• Description: CF Section - New Loans - Colorado River Water Conservation District - Elkhead Reservoir Enlargement
• Board Meetings - Doc Type: Memo

Colorado River Water Conservation District.
November 19-21,2003

Agenda Item 8a

As security for the loan, the River District's Water Projects Enterprise will pledge proceeds from
its revenue stream from water sales, adequate to assure repayment of the loan. The pledge will
be established by a Resolution of the River District's Water Projects Enterprise Board of
Directors. This security is in compliance with CWCB Loan Policy #5 (Collateral).

Recommendation
Staff recommends a CWCB loan from the Severance Tax Trust Fund Perpetual Base Account
in an amount up to $11,110,000 ($11,000,000 for project costs and $110,000 for the 1% Loan
Service Fee, in accordance with CWCB Loan Policy #16) to the Colorado River Water
Conservation District acting by and through its Water Projects Enterprise. The loan is for up to
57% of the cost to enlarge Elkhead Reservoir. The recommended terms of the loan are 20
years at 3.75%. (Annual Percentage Rate of 3.86%.) Security for the loan will be a pledge of
water sale revenues adequate to assure repayment of the loan, in accordance with CWCB Loan
Policy #5.

Staff recommends that funding of this project be contingent upon the CWCB's approval of an
Acquisition Agreement that contemplates that the River District permanently convey to the
CWCB the 5,000 acre-feet of water from the permanent fish pool and provide a lease for up to
2,000 acre-feet of water annually from the temporary fish pool to the CWCB to maintain
instream flows in the critical habitat reach of the Yampa River.

Staff further recommends that final approval of the loan be conditioned upon standard
contracting provisions of the CWCB.

cc: Dan Birch, Project Development Manager, Colorado River Water Conservation District
Linda J. Bassi, Attorney General's Office

Attachment

Water Project Construction Loan Program-Project Data

6