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<br />Mrs. Joann F. Jordan, Secretary-Manager <br />Northern Colorado Water Association 2 <br />August 20, 1998 <br /> <br />1. An appraisal must be conducted to establish the value of the water rights you plan to acquire <br />with the loan funds. (If the loan authorization is later revised so it can be used acquire the land, <br />we will need an appraisal to establish the value ofthe land also.) <br /> <br />2. An evaluation must be conducted to establish the annual yield of the wells for municipal <br />purposes. The evaluation must indicate whether the wells are currently permitted for municipal <br />use, and whether a change of use will be required. The requirement of an augmentation plan to <br />allow use of the wells during the winter must be addressed. This evaluation should include a <br />copy of the well permits, and lor court adjudication documents that define allowable uses of the <br />wells you plan to acquire. <br /> <br />3. You now have a new loan with pI Choice Barue Will 1 sl Choice Bank subordinate to the <br />CWCB loan? Subordination is a necessary condition of our contracting process. <br /> <br />4. The financial plan needs to be updated to reflect the fact that the USDA-RD loans have been <br />paid off, and a new loan has been taken out through 1 sl Choice Bank. <br /> <br />5. The members of the Northern Colorado Water Association must pass a resolution to allow an <br />encumbrance to be placed on Company property (see Articles of Incorporation, page 4, <br />paragraph XIII). If a rate increase will be necessary for repayment of the CWCB loan, the <br />members also should approve this by resolution. Jan Illian(866-3441) will send you a copy of <br />the resolution. Please contact Jan if you need help with this requirement. <br /> <br />6. Permitting issues need to be addressed. Will the NCW A need to apply for a revision of the <br />current well permits to allow municipal use? Will a permit from the Colorado Department of <br />Health be needed before the wells can be used for municipal purposes? <br /> <br />Please work directly with John Van Sciver and Jan Illian to decide which option from page 1 you <br />want to pursue to resolve the land purchase issue, and to complete the other requirements outlined <br />in this letter. I, <br /> <br />j;;~?fj-Mv~ <br /> <br />William P. Stanton, P ,E, <br />Chief, Project Planning and Construction Section <br /> <br />Attachment: <br />CC: (wo/Attachment): <br /> <br />Letter of December 5, 1997 <br />Mr, William H. Brown, Board Member CWCB <br />CWCB Section B Staff <br />Linda Bassi, AGO <br />