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<br />- 9 - <br /> <br />loan terms are 30 years at 2.5% (2.577% Annual Percentage Rate). Security <br />for the loan will be collateral in accordance with CWCB loan policy #5 (a first <br />lien on 640 acres of land, including improvement and water rights, located in <br />Section 8, T5N, R59W with value at least equal to the loan amount, as <br />established by a Colorado Certified General Appraiser.) The CWCB loan <br />may be used to payoff short-term construction loan financing. <br /> <br />Staff further reconnends that fmal approval of the loan be conditioned upon <br />all standard-contracting provisions ofthe CWCB, including the 1 % loan <br />origination fee charged in accordance with CWCB Policy #16. The loan <br />amount may be increased to $357,016 if the borrower elects to fmance the 1 % <br />loan service charge. <br /> <br />The motion was approved 8-0. Kent Holsinger was not present in the room. <br />Carolyn McIntosh was not present. <br /> <br />i. Dolores Water Conservancy District - Dove Creek Dual Water System <br />Tape 3, Track 1 2:52:30 - 3:10:00 <br />Action: A motion was made by Harold Miskel with a second by David Smith for staff <br />reconnendation of a CWCB Small Project Loan from the Construction Fund, <br />not to exceed 90% of the project cost up to $883,304, to the Dolores Water <br />Conservancy District, acting by and through Dolores Water Conservancy <br />District Water Activity Enterprise, to finance the construction of a (dual) <br />secondary water supply system for the Town of Dove Creek. The project <br />would be construction, owned and operated by DWCD through a franchise <br />agreement with the Town. The reconnended term of the loan is 10 years and <br />the reconnended lending rate is 3.00% per annum. Security for the loan will <br />be a pledge of DWCD revenues from its Water Activity Enterprise, which <br />shall include the Dove Creek Secondary Water Supply System tap fees and <br />operations revenues, as well as any other Water Activity Enterprise revenues <br />necessary to assure payment of the annual debt service and debt service <br />reserve deposit, backed by a rate covenant and annual fmancial reporting. <br /> <br />Staff further reconnends that fmal approval of the loan be conditioned upon all other <br />standard contracting provisions of the CWCB, including the 1 % origination fee in <br />accordance with CWCB Policy #15. The maximum loan amount may be increased to <br />$892,137 if the borrower elects to fmance the 1% loan service charge. <br /> <br />Staff further reconnends the following approval conditions: <br />1. No CWCB loan funds shall be disbursed until DWC D has provided <br />documentation that 200 tap connitments have been secured for the project. <br />2. In the event that State grant funds are obtained through the Department of Local <br />Affairs, with the intent of reducing the impact of tape fees required of Dove <br />Creek residents, said grant funds shall be used to reduce the principal of the <br />CWCB loan. <br /> <br />The motion was approved 8-0. Don Schwindt recused himself. Carolyn McIntosh was not <br />present. <br /> <br />Flood Protection . Water Project Planning and Finance. Stream and Lake Protection <br />Water Supply Protection. Conservation Planning <br />