BOARD02370

• Board Meeting Date: 3/24/2003
• Description: Draft Summary Minutes and Record of Decisions - January 22-23 2003
• Board Meetings - Doc Type: Memo

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revenues backed by a rate covenant and annual fmancial reporting. Approval .
conditions are as follows:
1. CWCB loan approval shall be conditioned upon the Town obtaining bond
approval or alternate funding totaling $710,000 (unless The Conservation Fund
contracts for sale of the land component of the property to another suitable private
buyers), in addition to the Town's commitment of $190,000 from their Water
Fund reserves.
2. Prior to execution of the loan contract with CWCB, the Town shall provide a
copy of the Ark Land Property appraisal obtained by The Conservation Fund,
indicting that the appraised valueofIand and water taps equals or exceeds the
purchase price of$1.8 million.
3. Prior to execution of the contract with CWCB, the Town shall provide CWCB a
final Feasibility Study.
4. As part of this loan approval, the previous Construction Fund Loan (HB 95-1155)
to the Town ofPaonia, in the amount of $600,000 for a new reservoir construction
was deauthorized.
5. Proof shall be provided by the Town ofPaonia that all of the CWCB money
loaned will be used exclusively to; purchase the water taps: and in accordance with
paragraph 3 of Attorney General Ken Salazar's letter of January 8, 2003, the
Board hereby finds that the proposed loan to the Town ofPaonia will promote the
general welfare of the citizens benefited by the retired water taps by reducing
demand and making the Town's water supply more reliable.

Staff further recommends that final approval of the loan be conditioned upon all other .
standard contracting provisions oftheCWCB. The motion was approved 10-0.

g. GMS Land and Cattle LLC - Rehabilitation of Giffin #1 and #2 Reservoirs
Tape 2,
Track 1, Start/Stop: 1:59:00 - 2:15:00
Action: A motion was made by Eric Wilkinson with a second by David Smith to
approve the staff recommendation for a CWCB Small Project Loan in the
maximum amount of$200,00Q to the a.M.s. Land and Cattle Company, LLC,
to rehabilitate the Giffm #1 and #2 reservoirs. The maximum loan amount
may be increased to $202,000 jfthe borrower elects to finance the 1 % loan
service charge in accordance with CWCB Policy #16. The recommended loan
terms are 30 years at 2.75% or20 years at 2.5%, at the borrower's option.
Security for the loan will be the west 112 of Section 18, TI ON, R66W
containing approximately 320 acres offarmland (including an easement for
maintenance access and storage of water for Giffin #2 Reservoir within
Section 7, T10N, R66W) with value documented by a Certified General
Appraiser. Staff further recolllf11ends that final approval of the loan be
conditioned upon all other stan;:lard contracting provisions of the CWCB,
including Loan Policy #16 (Lo!ll1 Service Charges 1 %). The motion was
approved 10-0.

h. Low Line Ditch Company - Well Augmentation Proj ect
Tape 2,
Track I, Start/Stop: 2:15:00 - 2:21:00 .
Flood Protection. Water Project Planning and:Finance . Stream and Lake Protection
Water Supply Protection. Cqnservation Planning

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