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<br />. <br /> <br />STATE cJP COLOMDO <br />JK1 _ <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: (3031 866-4474 <br /> <br />Roy Romer <br />Governor <br /> <br />December 18, 1998 <br /> <br />James S. lochhea.d <br />Executive Director, DNR <br />Oaries C. Lile, RE. <br />Director, eWeB <br />Peter H. EVi\n~ <br />Acting Director, eweB <br /> <br />Mr. Larry Clever <br />General Manager <br />Ute Water Conservancy District <br />56025 Road. P.O. Box 460 <br />Grand Junction, CO 81502 <br /> <br />Re: Loan for Plateau Creek Pipeline Replacement Project <br />Dear Mr/~ tow::; <br /> <br />I am pleased to inform you that at the November 24, 1998 meeting of the Colorado Water <br />Conservation Board, the Board recommended an increase of $9,600,000 in the Ute Water <br />Conservancy District's authorization for the design and construction of the Plateau Creek <br />Pipeline Replacement Project. For this additional increment of funding, the term ofthe loan is <br />for thirty years and the lending rate is 4.75 percent. <br /> <br />The Board's action on the $9,600,000 loan request will be included in the 1999 CWCB <br />legislation and is subject to authorization by the General Assembly. For your information, we <br />are recommending that $7,000,000 of the authorization be funded through the severance Tax <br />Trust Fund Perpetual Base Account and that $2,600,000 be funded through the CWCB <br />Construction. Fund. <br /> <br />As security for the loan, it is expected that the District will pledge water system revenues at <br />parity with any other lenders and the Plateau Creek Pipeline Project. Also, prior to the execution <br />of a loan contract, the District must adopt an increase in water rates. <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 reviewing the project plans and specifications <br />and for all matters related to project construction including approval of design and construction <br />payments. Please contact him before beginning design work on the project. <br />