Laserfiche WebLink
<br />e- <br />- -r <br /> <br />STATE OF COLORADO <br /> <br />" <br /> <br />Colorado. Water Conservation Board <br />Department of Natural Resources <br /> <br />721 State Centennial Building <br />1313 Sherman Street <br />Denver, Colorado 80203 <br />Phone (303) 866-3441 <br />FAJ( (303) 8664474 <br /> <br />. <br /> <br />Roy Romer <br />Governor <br /> <br />James S. Lochhead <br />Executive Director, DNR <br /> <br />MEMORANDUM <br /> <br />Daries e. Lile, P.E. <br />Director, ewes <br /> <br />TO: File <br /> <br />FROM: Jan IIlian <br /> <br />DATE: July 12, 1995 <br />SUBJECT: SECURITY FOR S5.5M FORT MORGAN LOAN <br />INTRODUCTION <br /> <br />A meeting was held on June 27th between Lynn obernyer of the Attorney General's Office <br />(AGO), Loring Harkness, Fort Morgan's bond counsel, and Jan IlIian of CWCB. We were able <br />to agree on all conditions of the loan contract except the issue of using the City's CBT <br />shares as collateral since Fort Morgan's Water Enterprise is contracting as the Borrower. <br />It is the opinion of Loring Harkness that the Water Enterprise is not authorized to <br />mortgage City-owned assets of the water system, since this would create a City debt <br />requiring an election pursuant to Amendment 1 <TABOR)' Fort Morgan would not be able <br />to sign the loan contract if we require the CBT shares as security for the loan. <br /> <br />BACKGROUND <br /> <br />pursuant to ~ 37-60-120(1), the CWCB ..... shall take a sufficient security interest in property <br />or take such bonds, notes, or other securities evidencing an obligation, as will assure <br />repayment of funds made available by section 37-60-119." In order to assure repayment, <br />CWCB's normal contracting practice is to require two forms of security for its loans: <br /> <br />1. Assurances the borrower will payoff the loan in the form of a pledge of <br />revenues, and <br /> <br />2. Collateral in the form of real or personal property. <br /> <br />The staff recommendation for security for the Fort Morgan loan included <br /> <br />1. Pledge of water system revenues, <br /> <br />2. City'S interest in the SWSP pipeline (Allotment Contract), and <br /> <br />3. 1,600 of the City'S 4,635 shares of Colorado Big Thompson project water which <br />has a value of approximately $1,500 per share. <br /> <br />This recommendation was approved by the Board at the March 9, 1995, meeting. t/t!. <br />~~~" 71/1 ..sF-/-('1~~:'rl.~i /~IIV' I/?ft,l?')p~/~' t'rr/' ~0s-- <br />