Boxelder letter to CO State Senator

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Page 2 of 4 fees on to the Authority. This is a common method, also used by the Urban Drainage and Flood Control District, which has member entities collect its fees. The Authority's Master Plan recommended the construction of three flood control projects: 1) Coal Creek Flood Mitigation Project, 2) East Side Detention Facility, and 3) Larimer and Weld Canal Crossing Structure. These projects were selected based on an extensive internal and external review process that evaluated existing and future developments,human safety concerns, land constraints, and cost-benefit ratios. The first of these projects,the Coal Creek Flood Mitigation project, was successfully completed in 2012 at a cost of$5.1M, which was funded in part by a pre-disaster mitigation grant from the Federal Emergency Management Agency(FEMA). This project diverted stormwater flows from Coal Creek(tributary to Boxelder Creek) into Clark Reservoir. The Authority has also received funding approval from CWCB to construct the two remaining projects, as identified above. Additionally, the Authority has received loan approval from CWCB for a third loan,to address overtopping concerns on County Road 52, discussed in more detail below. Discussion: Mr. Sutherland claims that the Authority is not a legal entity, does not operate as a water enterprise, does not have the legal ability to collects fees, and therefore does not have the ability to repay CWCB. Mr. Sutherland has provided both written and verbal arguments to this effect, which have been thoroughly considered by staff and the CWCB Board. In May of 2013,the CWCB approved loans for the East Side Detention Facility for $7,171,000 and the Larimer and Weld Canal Crossing Structure for$1,010,000. Security for both loans is a pledge of revenues backed by a rate covenant and annual financial reporting, which is in compliance with CWCB Financial Policy No. 5. Prior to the execution of these contracts by CWCB,the borrower submitted to CWCB a letter from its bond counsel stating that: 1)the contract has been duly executed by officers of the borrower; 2)the resolution or ordinances of the borrower authorizing the execution and delivery of the contract were duly adopted by the governing bodies; 3)there are no provisions in the Colorado Constitution or any other state or local law that prevent this contract from being binding; 4)the contract will be valid and binding against the borrower; and 5)the borrower was formed and is operated as a drainage authority pursuant to section 29-1-204.2. All CWCB contracts require such Attorney Opinion Letters prior to the execution of contracts. To address Larimer County concerns,the Authority agreed to install box culverts under County Road 52 to reduce the level of overtopping over the roadway at a cost of$1,850,000. To secure funding for this project,the Authority applied for a third loan with CWCB for$818,100, or roughly 44%of the total construction. During the review of this third loan request,the Authority indicated that the land needed to construct the East Side Detention Facility would likely require condemnation. Given this recent development, and given concerns raised by Mr. Sutherland over what legal right the Authority even has to condemn property,the CWCB requested and received attorney opinion letters stating that the Authority has the power to condemn land for its projects