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<br />Colorado Water Conservation Board <br /> <br />Department of Natural Resources <br /> <br />721 Centennial Building <br />131 3 Sherman Street <br />Denver, ,Colorado 80203 <br />Phone: (303) 866.3441 <br />FAX: (303) 866-4474 <br /> <br />STATE OF COLORI\DO <br /> <br />. <br /> <br />Roy Romer <br />Governor <br /> <br />August 21, 1998 <br /> <br />J..mes S. Lochhe<KI <br />Executive Direaor, DNR <br /> <br />Daries e. Lile. P.E. <br />Direcror. eweB <br /> <br />Mr. Thomas Alvey, President <br />Leroux Creek Water Users Association <br />11653100 Rd <br />Hotchkiss, CO 81419 <br /> <br />RE: Rehabilitation of Carl Smith Darn <br />Emergency Loan Approval <br /> <br />Dear Mr. Alvey, <br /> <br />Concerning your application for an Emergency Loan from the Construction Fund, I arn pleased to <br />inform you the Colorado Water Conservation Board (CWCB) at their July 1998 meeting <br />unanimously approved your request for a construction loan to rehabilitate the Carl Smith Reservoir <br />Darn. The Board also approved a small grant to help complete the feasibility study. <br /> <br />The Board found that the sudden failure of the Carl Smith Reservoir Darn qualifies the Leroux <br />Creek Water Users Association (LCWUA) for a loan from the Board's Emergency Infrastructure <br />Repair Account. This will save valuable time because your project will not have to be approved <br />by the Legislature in the Board's annual Construction Fund bilL <br /> <br />The Board approved the Emergency Loan for up to $300,000; or 90-percent of of the total project <br />costs, whichever is less. The interest rate shall be 4.00-percent and the term shall be 30 years. <br />Eligible loan costs include, but are not limited to, breaching the darn, engineering design and <br />construction. Your cost for geo-technical investigations shall be credited towards the LCWUA <br />minimum 10-percent share of the total project costs. Collateral for the Emergency Loan shall <br />include a security interest in assessment income and land or water rights owned by the LCWUA <br />sufficient to assure repayment ofthe loan. Furthermore, the previous loan for $150,000 <br />authorized in HB 95~1155 for the rehabilitation andlor enlargement of four reservoirs on Grand <br />Mesa shall be de-authorized so that-these funds will be available to other borrowers. <br /> <br />The Board also approved a grant from the Severance Tax Operational Account, in a maximum <br />amount of$5,000, not to exceed 50% of the total study costs, to help pay for the cost of the <br />reconnaissance and feasibility studies. <br /> <br />The Board approved your Emergency Loan with the following conditions: <br /> <br />a. The Leroux CreekW ater Users Association must obtain liability insurance for all of its <br />reservoirs. Please contact your insurance agent and ask them to submit a current <br />