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<br />.' <br /> <br />. <br /> <br />STATE at COLOAADO <br /> <br />- <br /> <br />" <br /> <br />Colorado Water Conservation Board <br />Department of Natural Resources <br />721 Centennial Building <br />1 J 1 3 Sherman Street <br />Denver, Colorado 80203 <br />Phone: (30JI 866-J441 <br />fAX: (JOJI 866-4474 <br /> <br />Roy Romer <br />CO\Iemo\ <br /> <br />December 30, 1997 <br /> <br />f~mes S. lochheil.d <br />Executive Director, DNR <br /> <br />Dilries C. lite. PE <br />Oiredor. eWeB <br /> <br />Mr. David Yamada <br />City Superintendent <br />City of Fort Morgan <br />710 E. Railroad Ave. <br />Fort Morgan, CO 80701 <br /> <br />Re: Loan for Pipeline and Raw Water Reservoir <br /> <br />Dear Mr. Yamada: <br /> <br />I am pleased to inform you that at the November 24,1997 meeting of the Colorado Water <br />Conservation Board, the Board recommended a loan of$8,000,000 to the City of Fort Morgan <br />for the purpose of refinancing a portion of the water revenue bonds issued by the City this month. <br />The term of the loan is for up to 30 years and the lending rate is 4.00 percent. <br /> <br />The Board's action on the $8,000,000 loan request will be included in the 1998 CWCB <br />legislation and is subject to authorization by the General Assembly. If authorized by the General <br />Assembly, the proceeds for this loan should be available in mid- I 998. <br /> <br />As security for the loan, it is expected that the City will pledge water fund revenues at parity with <br />any other lenders, the City's portion of capacity in the Southern Water Supply Project (SWSP) <br />from Carter Lake to Fort Morgan, and a security interest in the proceeds of any lease of the <br />City's SWSP capacity. <br /> <br />Please coordinate with Jan Illian 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 /> <br />Mike Serlet of this office will be responsible for all matters related to project design and <br />construction. Please contact him at your earliest convenience regarding the schedule for the <br />design and construction of the pipeline and the raw water reservoir. <br />