PROJ00432 App Letter

• Contract/PO #: C153738
• Contractor Name: Georgetown, Town of
• Contract Type: Loan
• Water District: 6
• County: Clear Creek
• Bill Number: SB 96-153
• Loan Projects - Doc Type: Feasibility Study

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Colorado Water Conservation Board
Department of Natural Resources

721 State Centeonial Building
1313 Shennan Street
Denver, Colorado 80203
Phone [phone]
FAX [phone]

STATE OF COLORADO

o

Roy Romer
Governor

November 28, 1995

James S. Lochhead
Executive Director. DNR
Daries C, Lile, P.E.
Director, CWCB

Ms. Tammy A, Sanford
Town Administrator
PO Box 426
Georgetown, CO 80444

RE: Purchase of Water Rights
Initial Loan Discussion

Dear Ms, Sanford,

Concerning your application for a loan from the Construction Fund, I am pleased to inform you
that the Colorado Water Conservation Board (CWCB) was receptive to the concept of providing
low interest financing for the purchase of water rights, provided certain criteria were met.
Generally the Board said the purchase must be to satisfy an existing water shortage, and consist
of water rights already available for municipal use, with price supported by an appraisal. I have
attached a copy of the updated Board memo concerning the Town of Georgetown, Please refer
to page 2 of that memo and to the section "Discussion by the CWCB, November 7,1995",

Based on the Board's favorable response, I recommend that you continue with your loan
application with the CWCB, The CWCB will recommend loans to the General Assembly subject
to several conditions:

a. You must adhere to the CWCB Guidelines for Financial Assistance, A copy is
attached for your information,

b, A Feasibility Study is required, The study must include a written discussion of the
alternatives the Town has considered, and state why the selected alternative was chosen.
It must also include a description of the collateral the Town will offer, written by the
Town's attorney or accountant. John Van Sciver of this office (303-866-3441) can
provide assistance and guidance, and will be reviewing the study. A sample Feasibility
Study (and computer disk, Word perfect 5.1) is attached, The study must be in draft
form, and submitted to the CWCB by January 8. 1996, in order for your loan to receive
a final recommendation at the January 23, 1996 CWCB meeting.