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<br />. <br /> <br />. <br /> <br />. <br /> <br />STATE OICOLORADO <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: (3031 866,3441 <br />FAX: (3031866-4474 <br /> <br />Roy RonWf <br />(~JV('rn()1 <br /> <br />MEMORANDUM <br /> <br />Jilmes $. lochhe<ld <br />hecutivc Director, DNR <br /> <br />Dilries Clile, PE. <br />Oirpdor, CWCH <br /> <br />TO: <br /> <br />Colorado Water Conservation Board Members <br /> <br />Bill Green, P.E. ~~ <br />Project Planning and Construction <br /> <br />FROM: <br /> <br />DATE: <br /> <br />March 13, 1997 <br /> <br />SUBJECT: <br /> <br />Agenda Item IS.b., March 20-21, 1997 Board Meeting- <br />Water Project Construction Loan Program- <br />Informational Items - Town of Johnstown Pipeline Project <br /> <br />In November 1993, the Board approved a Construction Fund loan of about $2,5 million, not to <br />exceed 75 percent of the actual project costs, to the Town of Johnstown for the construction of a <br />raw water pipeline and pump station as improvements to the Town's municipal water supply <br />system, One of the conditions ofloan approval was an analysis of the Town's ability to continue <br />to repay the loan in the event that the Golden Technology Corporation (GTC) plant (the Town's <br />major employer) were to close, A final feasibility study for the pipeline and pump station was <br />submitted by the Town's consultant in September oflast year and the report included water fund <br />cost and revenue projections with and without GTC. <br /> <br />Construction on the pipeline and pump station is expected to be essentially completed next <br />month, The total cost of the project is now estimated at about $2.6 million of which the Board <br />will finance about $1.95 million (75 percent) and the remaining 25 percent will be financed by <br />the Colorado Water Resources & Power Development Authority, <br /> <br />Earlier this month we were informed by the then Town Manger that GTC had given notification <br />to its employees that the plant would close on April 20th of this year, The plant closing is <br />especially significant for the Town's water fund since approximately 50 percent of water system <br />revenues are attributable to GTe. The cost and revenue projections in the feasibility study <br />indicate a substantial shortfall in revenues over the next four or five years and the need for a rate <br />increase of about 40 percent in the event of a plant closing, <br /> <br />. <br />