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<br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />o <br />D <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />Colorado Water Conservation Board <br />Department of Natural Resources <br />721 Centennial Building <br />1313 Sherman Street <br />Denver, Colorado 80203 <br />Phone: (303) 866-3441 <br />fAX, (3031866.4474 <br /> <br />STATE OF COLORl\DO <br /> <br />" <br /> <br />MEMORANDUM <br /> <br />Roy Romer <br />GovernOI <br /> <br />TO: <br /> <br />Jilmes S. lochheild <br />hecutive Dire<.-1or, DNR <br /> <br />OMit'S C. lile, PE <br />Dir('clor. CWCH <br /> <br />Colorado Water Conservation Board Members <br /> <br />. FROM: John Van Sciver <br /> <br />DATE: May 6, 1996 <br /> <br />SUBJECT: Agenda Item 7b., May 13-14, 1996, Board Meeting-- <br />City of Idaho Springs <br />Emergency Loan: Final Approval. (Repairs to the City's raw water intake <br />structure, and to the City's Chicago Creek Reservoir.) <br /> <br />BACKGROUND <br /> <br />The City of Idaho Springs (located in Clear Creek County), was approved for an Emergency <br />Loan in amount of $130K, at the November 7, 1995 CWCB meeting. An updated copy of that <br />board memo is attached. The loan was approved under the condition that the City provide a <br />description of the loan collateral. <br /> <br />The CWCB also required that a feasibility study be completed. The study is in draft form, and <br />will be completed prior to contracting for the loan. <br /> <br />The City has decided not to pursue the $1.5 million CWCB loan to rehabilitate the Chicago <br />Creek Reservoir. The City plans to reapply in 1996 or 1997 for that funding. <br /> <br />DISCUSSION <br /> <br />A critical issue for the CWCB Emergency loan is weather the City will need to go to an election <br />to pledge collateral. The City adopted Resolution No. 12, Series 1995 on December 29, 1995 <br />establishing a water activity enterprise to be operated as an enterprise within the meaning of <br />Article X, Section 20 (The Tabor Amendment.) This allows the City to pledge the water/sewer <br />revenue as collateral for the CWCB loan. <br /> <br />The City has applied for a $1.5 million loan through the Water Pollution Control Revolving <br />Fund, for waste water improvements. As part of the application, a credit check was completed, <br />recommending the loan be granted. The current water and sewer debt will be retired in 1999. <br />Until that time, the City will be struggling with relatively high debt payments. <br />