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<br />i <br /> <br />STAlrE OF' COLORADO <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 />May 19, 2006 <br /> <br />Bill Owens <br />Governor <br /> <br />Mr. James Yahn, P.E., Secretary/Manager <br />Logan Irrigation District <br />P.O. Box 333 <br />Sterling, Colorado 80751 <br /> <br />Russell George <br />Executive Director <br /> <br />Rod Kuharich <br />CWCB Director <br /> <br />Rick Brown <br />Acting Deputy Director <br /> <br />RE: Loan to Construct Prewitt Reservoir Spillway <br /> <br />Dear Jim: <br /> <br />I am pleased to inform you that on May 16, 2006 the Colorado Water Conservation Board (CWCB) <br />approved your loan request. We understand that the loan will be used to construct an emergency <br />spillway for Prewitt Reservoir. I call your attention to the approval conditions added by the Board: <br /> <br />1. A special agreement among the three parties shaH be executed that addresses specific loan <br />responsibilities of the parties, and recognizes CWCB as a 3rd Party Beneficiary; and <br />2. The authority to assume the proposed indebtedness, shall be approved by the LID electors in <br />accordance with the applicable provisions of the Irrigation District Law of 1905, C.R.S. 37- <br />41-113(4) and C.R.S. 37-41-117), or as amended, at the time of contract execution. <br /> <br />There was lengthy discussion at the Board meeting pertaining to the approval con.ditions, and more <br />specifically to Logan Irrigation District's understanding that they are pledging collateral for the full <br />loan. Accordingly, when the appropriate steps to resolve Condition #2 have been identified, CWCB <br />requests to be informed of the process and have the opportunity to review any ballot language prior <br />to an election, in order to assure that the question is worded in such a manner as to reflect that <br />understanding. <br /> <br />The Board approved a loan in a maximum amount $306,419 (including the 1 % loan service charge) <br />with loan terms of2.35% per annum for 20 years. I have attached a copy of the updated Board memo <br />that includes a section "Action taken by the CWCB on May 16, 2006. <br /> <br />When the Board approves a loan there remain several conditions: <br /> <br />a) A Feasibility Study is required. Bruc<e Johnson has reviewed the study titled <br />"Feasibility of Construction of the Prewitt Reservoir Emergency Spillway - March <br />2006." No further action is required of you on this item. The report, in combination <br />with the CWCB board memo dated May 5, 2006 will meet the requirements of the <br />CWCB Construction Fund Guidelines for fi:asibility studies. <br /> <br />Flood Protection. Water Supply Planning and Finanl~e . Stream and Lake Protection <br />Water Supply Protection. Conservation and Drought Planning <br />