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. . . reevaluate existing sources and investigate additional sources of augmentation water, . assess the use of a storage account in John Martin Reservoir, and . . investigate certain economic incentives for obtaining replacement water and reducing members' well pumping. LAWMA's engineering consultant, Helton & Williamsen, has prepared a Proposal and Scope of Services, as outlined above, which has been reviewed and approved by the CWCB staff. The cost of the engineering work is estimated at $45,000 and an additional $20,000 is included for any water rights appraisals which may be needed. The appraisal would be conducted independently of LAWMA and of Helton & Williamsen. Recap of Existing Loans LAWMA currently has two outstanding Construction Fund loans with CWCB: 1. A feasibility study loan of $65,000 for the 1995 and 1996 feasibility studies. The. first loan payment in the amount of $8,113.96 will be due September 1997 2. A $3,750,000 loan to purchase the X-Y Ranch and associated water rights, shares in the Manvel Canal and Irrigation Company, and 1.0 cts of X-Y Canal Co. water. These properties yielded approximately 5,500 acre-feet of augmentation water_ $3,690,000 of this authorization has been expended with $61,000 remaining. The first loan payment of $122,000 is due May 1997 and LAWMA is prepared to make that payment on time. At its May 1996 meeting, the Board approved substitution of collateral so that LAWMA could sell the 4,600 . acres of X-V Ranch land and place the proceeds from the sales in an escrow account. To date, $1,087,500 has been deposited in the escrow account from 1,300 acres which were sold at auction in June 1996 for $87,500, a conservation easement which was sold for $60,000, and 3,300 acres sold to the Division of Wildlife for $940,000. STAFF RECOMMENDATION The staff recommends that the Board favorably consider a Construction Fund Loan in the amount of $65,000 to the Lower Arkansas Water Management Association for the purpose of conducting a feasibility study and associated water rights appraisals in order to respond to more stringent replacement requirements for LAWMA in the future and to supplement LAWMA's water rights acquisition program. The term of the loan would be for ten years and the lending rate would be 3.25 percent, the Board's ten-year agriculturallendi e loan d be a security interest in LAWMA'S revenues and certificate of de osit in the amount of 0 oan a 'ent. The loan would be subject to all standard contracting provisions of the CWCB. / cc: William Grasmick, LAWMA / .... Amelia Whiting, Moses, Wittemeyer, Ha 'son and Woodruff Duane Helton, Helton & Williamsen 7 _ k-+ ... /1 ~ Linda Bassi,AGO _ A/1;/p7~ - iIuf ~ ,tLdf ~ ~MemOS\;.a\1127/97) 1/q 7 /.JW,!,fI _ I" Qi!:. 'f/u!.o ~, ~JU- a CD ~ . < ..Ju ~ tIw-J- -<..//tLJ/H,If" ~~~IJl~jt1:~~. h tuL rtu.-i",(lj..K JJ:U--..- ~CJAU)' ~