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<br />Vaughan McWilliams <br />Colorado Water Conservation Board <br />August 10, 2006 <br />Page 2 <br />5. By resolution dated January 5, 2006, duly adopted by the Board of Directors of the <br />District and entered of record in the minutes of the proceedings of the Board, the Board of Directors <br />of the District called a special election of the landowners in the District to obtain approval to enter <br />into the loan agreement with the Colorado Water Conservation Board. Notice ofthe special election <br />was mailed to all landowners and published in a newspaper of general circulation in the District. <br />The special election was held on February 24, 2006. At the special election, the landowners gave <br />their approval to the District to "enter into a loan agreement with Colorado Water Conservation <br />Board in an amount not to exceed $600,000 for the replacement of the Stokes Gulch Siphon." The <br />vote for approval was a unanimous vote. <br />After this election was held, it was discovered that publication of the notice of the election <br />only occurred once per week for three consecutive weeks. The applicable statute requires <br />publication once per week for four consecutive weeks. Accordingly, it was necessary to hold a <br />second election to cure the problem with the defective notice. By resolution dated June 7, 2006, duly <br />adopted by the Board of Directors of the District and entered of record in the minutes of the <br />proceedings of the Board, the Board of Directors of the District called another special election of the <br />landowners in the District to obtain approval to enter into the loan agreement with the Colorado <br />Water Conservation Board. Notice of the special election was mailed to all landowners and <br />published once per week for four consecutive weeks in a newspaper of general circulation in the <br />District. The special election was held on July 20, 2006. At the special election, the landowners <br />authorized the District to "enter into a loan agreement with Colorado Water Conservation Board in <br />an amount not to exceed $600,000 for the replacement of the Stokes Gulch Siphon." The vote for <br />approval was a unanimous vote. <br />The election held on July 20, 2006, for the approval of the loan from the Colorado Water <br />Conservation District and of the Loan Agreement met all requirements of the Colorado Constitution <br />and of any other applicable state or local laws. <br />If we can provide further assistance, please do not hesitate to contact me. <br />Very truly yours, <br />WILLIAMS, TURNER & HOLMES, P.C. <br />~ ~ ~~~ <br />Mark A. Hermundstad <br />xc: Rita Crumpton, Manager <br />Orchard Mesa Irrigation District <br />