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<br />. <br /> <br />STATE & COLORADO <br /> <br />o <br /> <br />Colorado Water Conservation Board <br />Department of Natural Resources <br />721 Centennial Building <br />'313 Sherman Street <br />Denver, Colorado 80203 <br />Phone' (3031 866,3441 <br />fAX, (3031 866,4474 <br /> <br />Roy Romer <br />Governor <br /> <br />August 21,1998 <br /> <br />James S.lochhe..d <br />Executive Director, DNR <br />DilriesC. Lile, P.E. <br />Diredor, (WeB <br /> <br />Mr, Thomas Alvey, President <br />Leroux Creek Water Users Association <br />11653100Rd <br />Hotchkiss, CO 81419 <br /> <br />RE: Rehabilitation of Carl Smith Dam <br />Emergency Loan Approval <br /> <br />Dear Mr, Alvey, <br /> <br />Concerning your application for an Emergency Loan from the Construction Fund, I am 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 />Dam, The Board also approved a small grant to help complete the feasibility study, <br /> <br />The Board found that the sudden failure ofthe Carl Smith Reservoir Dam 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 lip 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 dam, 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 of the loan. Furthermore, the previous loan for $150,000 <br />authorized in HB 95-1155 for the rehabilitation and/or 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 Creek Water 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 />