LPPD000260 - Laserfiche WebLink

Home Browse Search

BORROWER: LOWER ARKANSAS WATER MANAGEMENT ASSOCIATION Contract No. C153715 Agency Name: Water Conservation Board Agency Number PDA Routing Number: 04 PDA OOD9J3 LOAN CONTRACT AMENDMENT No.6 This Amendment is made this April 1, 2004, by and between the State of Colorado for the use and benefit of the Department of Natural Resources, Colorado Water Conservation Board ("CWCB"), and the Lower Arkansas Water Management Association, a Colorado nonprofit corporation ("BORROWER" and/or "CONTRACTOR"). FACTUAL RECITALS A. Authority exists in the law, and funds have been budgeted, appropriated, and otherwise made available for payment in Contract Encumbrance Number C153715. B. Required approval, clearance, and coordination have been accomplished from and with appropriate agencies. C. The CWCB and the BORROWER entered into Contract Encumbrance Number C153715 dated March 14, 1996, and amended June 27, 1996; December 2, 1996; April 9, 1997; May 28, 1997; and March 10, 2001, hereinafter referred to as ORIGINAL CONTRACT and incorporated herein by reference, wherein the STATE agreed to loan money in the total amount of $3,688,567.74, hereinafter referred to as the LOAN, and the BORROWER agreed to repay the LOAN in accordance with the terms of the ORIGINAL CONTRACT~ D. Section 37-60-120 (3), C.R.S., authorizes the CWCB to defer annual loan payment(s) if, in the CWCB's opinion, the entity requesting such deferral demonstrates that it has encountered significant and unexpected financial difficulties and that it has been duly diligent in its efforts to comply with the repayment provisions of its contract with the CWCB. E. The BORROWER submitted a letter dated September 11, 2001, incorporated herein by reference, which describes unexpected financial difficulties in the form of unanticipated legal and engineering costs associated with preparation of a report to the Special Master in the Kansas v. Colorado case. Kansas has raised many issues specific to the operation of the BORROWER'S replacement plan in the Lower Arkansas River basin. Because the BORROWER'S costs of preparing this report is estimated at $120,000, the BORROWER requested that its May 2002 loan payment be deferred. F. At its September 24-25, 2001 meeting, the CWCB found that the BORROWER had encountered significant and unexpected financial difficulties and that it has been duly diligent in its efforts to comply with the repayment provisions of this contract, and approved deferral of the BORROWER'S May 2002 loan payment pursuant to ~ 37-60-120(3), C.R.S. The approval provided that the May 2002 loan payment would be deferred and the interest amount of the loan payment would be added to the current loan balance. G. The BORROWER submitted a letter dated October 21, 2002, incorporated herein by reference, which describes additional unexpected financial difficulties in the form of increased legal and engineering costs associated with the Kansas v. Colorado case. The costs, which were originally estimated at $120,000 in 2001, increased to over $300,000. H. At its November 25,2002 meeting, the CWCB found that the BORROWER had encountered significant and unexpected financial difficulties and that it has been duly diligent in its efforts Page 1 of 4