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<br />, <br />." of <br /> <br />; <br /> <br />STATE OF COLORADO <br /> <br />Jo' <br /> <br />Colorado Water Conservation Board <br /> <br />Department of Natural Resources <br />1313 Sherman Street, Room 721 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3441 <br />FAX: (303) 866-4474 <br />www.cwcb.state.co.us <br /> <br /> <br />Bill Owens <br />Governor <br /> <br />May 11, 2006 <br /> <br />Russell George <br />Executive Director <br /> <br />Rod Kuharich <br />CWCB Director <br /> <br />Walter Welton, President <br />Consolidated Mutual Water Company <br />12700 W. 27th Ave <br />Lakewood, CO 80215 <br /> <br />Dan McAuliffe <br />Deputy Director <br /> <br />RE: Consolidated Mutual Water Company (CMWC) - Loan Contract No. C150011 <br /> <br />Dear Mr. Welton, <br /> <br />We received your letter dated April 17, 2006, regarding Loan Contract No. C150011. Your letter <br />indicates that you need approximately $10,000,000 of financial relief from the Loan Contract <br />over the next five years. We understand this request is due to the accelerated schedule and cost of <br />a major water system improvement. Since CMWC has a strong repayment history and the <br />request for extending the term ofthe loan does not exceed 30 years, we feel your request <br />warrants consideration by the CWCB at the July 2006 Board Meeting. We will contact the <br />Attorney Generals office to be sure this does not violate any law governing the Loan Program <br />and we will notify you as to the results when a determination is made. <br /> <br />If approved by the Board, the Loan Contract will be amended to show interest-only payments for <br />the first five years and then principle and interest payments for the remaining years of the loan. <br />Under the terms of the Loan Contract, the CMWC will be charged $1,000 for processing the <br />amendment. <br /> <br />In addition, the loan interest rate will be increased by 0.25%. The current Loan Contract shows <br />that the CMWC received a 0.50% reduction in the interest rate for a 10-year loan. If approved, <br />the amended contract will allow for a 0.25% reduction in the interest rate since the loan term is <br />between 10 and 20 years. We have attached a DRAFT amortization schedule for the proposed <br />amended contract. <br /> <br />Flood Protection. Water Supply Planning and Finance. Stream and Lake Protection <br />Water Supply Protection. Conservation and Drought Planning <br />