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<br />..:.. - - '. <br /> <br />. <br /> <br />STATE ct: COLORADO <br />~ <br />~ <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: 13031 866-3441 <br />fAX: (303) 866-4474 <br /> <br />Roy Romer <br />CovernOl <br /> <br />December 30, 1997 <br /> <br />Jclmes S. Lochheild <br />b:ecutive Direaor, DNR <br />DilfiesC.lile, P.E. <br />Director, eWeB <br /> <br />Mr. Jack Yates <br />Town Administrator <br />Town of Palisade <br />PO Box 128 <br />Palisade, CO 81526 <br /> <br />Re: Cottonwood Creek Pipeline Replacement Project Loan <br /> <br />Dear Mr. Yates: <br /> <br />1 am pleased to inform you that at the November 24, 1997 meeting of the Colorado Water <br />Conservation Board, the Board recommended an increase of$I72,OOO in the Town of Palisade's <br />authorization for the Cottonwood Creek Pipeline Replacement Project. The lending rate for the <br />additional $172,000 increment will be 4.00 percent and the term of the loan is not to exceed 30 <br />years. <br /> <br />As you will recall, the initial $750,000 authorization was approved by the Board in November <br />1994 at 4.00 percent for 30 years and authorized by the legislature in 1995 conditioned upon <br />satisfactory completion of the feasibility study. That condition has now been met by submittal of <br />the WestWater Engineering report of November 1997. <br /> <br />The Board's action on the loan will be included in the 1998 CWCB legislation and is subject to <br />authorization by the General Assembly. If approved, the total authorized amount for the <br />Cottonwood Creek Pipeline Project would be $922,000. <br /> <br />The Board's approval of the increase in the Town's authorization was made subject to the <br />condition that, prior to entering into a loan contract with the CWCB, the Town shall resolve all <br />issues with regard to the use of tax moneys and incurring debt so as to be in compliance with the <br />requirements of Amendment One. <br /> <br />As security for the loan, it is expected that the Town will pledge Utility Fund revenues on parity <br />with all other lenders and such other collateral as the Director of the CWCB finds acceptable. <br /> <br />Please coordinate with Jan lllian of this office on all matters related to contracting. She will be <br />responsible for drafting and processing of contract documents. No funds may be disbursed until <br />a fully executed contract is in place. <br />