BOARD02561

• Board Meeting Date: 9/22/2003
• Description: Draft Summary Minutes and Record of Decisions - July 28-29 2003
• Board Meetings - Doc Type: Memo

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rate is 2.5% per annum. As security for the loan, LA WMA will pledge
revenues, including membership dues and assessments on shares ofLAWMA
stock, backed by an assessment covenant, and the acquired Keesee water
rights. This is in compliance with CWCB Loan Policy #5 (collateral).

Staff further recommends that fmal approval of the loan be conditioned upon
all other standard contracting provisions of the CWCB, including the 1 % loan
origination fee in accordance with CWCB Policy #16. The maximum loan
amount may be increased to $2,272,500 if borrower elects to finance the 1 %
loan service charge.

Further staff recommends the following approval conditions:
1. The existing loan No. C152768 shall be closed out at the current level
of disbursal of$1,875,583.50. The date of substantial completion of
this loan will be the date of LA WMA's closing on the purchase of
Keesee water rights. On the date of closing for Keesee water rights,
LA WMA shall provide to CWCB payment for the amount of accrued
interest, on Loan No. C153768.
2. Prior to fmalizing the contract of this loan, LA WMA shall conduct a
special election of the shareholders, (1) authorizing the Board of
Directors to execute the CWCB loan for the Keesee water rights
purchase, and (2) approving in concept the required share assessment
levels necessary to cover Lawma's future expenses, including all
CWCB loan repayments. Said election shall be held in accordance
with the Article 1lI of the LA WMA Bylaws (adopted September, 10,
1998 and amended November 8, 2002), with the exception that the
15% quorum requirement shall be increased to 50% with approval
requiring 2/3 majority of the outstanding shares of stock k represented
by shareholders present or by proxy. CWCB shall be provided with
the office notice ofthe special meeting and election, prior to the
meeting, and the election results shall be certified by LA WMA
secretary and presented to CWCB.

3. LA WMA shall obtain necessary commitments from its members to
ensure compliance with CRS 37-160-130 (3) (g) and (11), pertaining to
the Arkansas River Augmentation Account criteria, requiring that
members who fail to make payments in accordance with the Loan
agreement shall cease pumping, and requiring members to comply
with State Engineer rules governing the measurement and use of
groundwater in the Arkansas River Basin.

Staff further recommends that fmal approval of the loan be conditioned upon
all other standard contracting provision of the CWCB.

The motion was approved 9-0. Carolyn McIntosh was not present.

c. Ogilvy Irrigation and Land Company

Tape 3, Track 1 1:51:59 - 2:00:00

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