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AGENCY NAME: Water Conservation Board
<br /> AGENCY NUMBER: PDA
<br /> ROUTING NUMBER: 96PDA (6 2G
<br /> $ 3,000,000
<br /> RACT , & PROMISSORY NOTE
<br /> THIS CONTRACT,Mace th•
<br /> is.,; .day of 1996, by and between the
<br /> State of Colorado fpr the Use and benefit of the Depa ent 'of Natural Resources, Colorado Water
<br /> Conservation Board (CWCB), hereinafter referred to as the S ATE, and Morgan County Quality Water District,
<br /> hereinafter referred to as the BORROWER and/or CONTRACTOR.
<br /> FACTUAL RECITALS
<br /> A. Authority exists in the law, and funds have been budgeted, appropriated and otherwise made
<br /> available and a sufficient unencumbered balance thereof remains available for payment in Fund Number 424,
<br /> Organization YYYY, Appropriation 531, Program WTRC, Object Code 5120, Contract Encumbrance Number
<br /> C153718.
<br /> B. Required approval, clearance, and coordination have been accomplished from and with appropriate
<br /> agencies.
<br /> C. Pursuant to the provisions of §§ 37-60-119 and 37-60-120, 15 C.R.S. (1990) the STATE is
<br /> authorized to loan money for the construction of water projects for the benefit of the people of the STATE,
<br /> provided that the BORROWER assures repayment of that money.
<br /> D. The BORROWER is a duly constituted Colorado water district,formed pursuant to § 32-1-101 et sea.,
<br /> C.R.S. (Supp. 1995), and located in Morgan and Washington Counties, State of Colorado.
<br /> E. The BORROWER has applied to the STATE for a loan in the amount of $3,000,000 to be used to
<br /> purchase the Hay Gulch Wells, which will supply 1,380 acre-feet of water annually. The purchase includes
<br /> a tract of land consisting of 640 acres, more or less, the rights to all water from the wells located on the land
<br /> and a perpetual lease for water from two wells currently operated by the BORROWER, at a total cost of
<br /> approximately $3,132,500, and is hereinafter referred to as the PROJECT.
<br /> F. The STATE reviewed a feasibility study conducted by George M. Underwood, Consulting Engineer,
<br /> dated September 1995 and incorporated herein by reference, and, based upon the feasibility report,the STATE
<br /> determined the PROJECT to be technically and financially feasible.
<br /> G. The BORROWER conducted an election on November 7, 1995, wherein the ballot issue of increasing
<br /> the BORROWER'S debt for the purpose of acquiring water rights was submitted and approved as shown on the
<br /> attached Notice of Election, attached hereto as APPENDIX A and incorporated herein.
<br /> H. At its November 6, 1995, meeting, the CWCB approved a loan to the BORROWER in an amount not
<br /> to exceed $3,000,000 at an interest rate of 4% per annum, and for a duration of 30 years.
<br /> I. Pursuant to 1995 Colo. Sess. Laws, Section 1, Chapter 117, as amended by Senate Bill 96-153,
<br /> Section 8, the Colorado General Assembly authorized the CWCB to loan to the BORROWER an amount not to
<br /> exceed $3,000,000 to refinance the costs of the PROJECT.
<br /> J. The BORROWER purchased all of the components of the PROJECT in December 1995.
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