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<br />. <br /> <br />STATE ~ COLORADO <br /> <br />Colorado Water Conservation Board <br /> <br />Department of Natural Resources <br />1313 Sherman Street, Room 721 <br />Denver, Colorado 80203 <br />Phone, (303) 866-3441 <br />FAX, (303) 866-4474 <br /> <br />~ <br /> <br />Bill Owens <br />Governor <br /> <br />February 10, 2000 <br /> <br />Greg E.Walcher <br />Executive Director <br /> <br />Mr. Larry Clever <br />General Manager <br />Ute Water Conservancy District <br />P.O. Box 460 <br />Grand Junction, Colorado 81502 <br /> <br />Peter H. Evans <br />ewes Director <br /> <br />Dan McAuliffe <br />Deputy Director <br /> <br />Re: Plateau Creek Pipeline Rep]acement Project <br /> <br />Dear Mr. Clever: <br /> <br />] am writing to confirm that, at the January 26, 2000 meeting of the Colorado Water <br />Conservation Board, the Board recommended an increase of$]O,OOO,OOO in the Ute <br />Water Conservancy District's Severance Tax Trust Fund authorization for the Plateau <br />Creek Pipeline Replacement Project. The $] 0,000,000 increment of additional funding <br />will be for thirty years at a lending rate of 5,00 percent. Total CWCB lending for the <br />project will not exceed $27,600,000 or 50 percent of total project costs, whichever is less. <br /> <br />The Board's action on the $]0,000,000 increase in authorization will be included in the <br />year 2000 CWCB funding legislation and is subject to authorization by the General <br />Assembly. ]f authorized by the General Assembly, the loan funds for the increase in <br />authorization should be available in Mayor June of 2000. <br /> <br />As security for the loan, it is understood that the District and the Ute Water Activity <br />Enterprise will pledge water system revenues backed by a rate covenant and annual <br />financial reporting as well as the Plateau Creek Pipeline Project. <br /> <br />The Board's recommendation for funding is conditioned upon the following: <br /> <br />1. The boards of directors of the Ute Water Conservancy District and the Ute Water <br />Activity Enterprise will adopt a resolution or resolutions approving the loan, the <br />pledge of revenues and the conveyance of a security interest in the proposed <br />collateral. <br /> <br />2. The collateral for the loan (the Plateau Creek Pipeline Project) must be free of liens <br />and encumbrances. <br /> <br />I <br /> <br />, <br />, <br />