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. . . APPENDIX D STATE OF COLORADO - COLORADO WATER CONSERVATION BOARD Department of Natural Resources 721 State Centennial Building 1313 Sherman Street Denver, Colorado 80203 Phone: (303) 866,3441 R A Richard D. lamm Governor J. William McDonald Director David W. Walker Depuly Director M E M 0 N DUM TO: Members, CWCB FROM: Bill McDonald DATE: August 27, 1985 SUBJECT: Agenda Item 9, September 6, 1985, Board Meeting-- Delinquent project Repayment, Starkville Introduction In 1978, the state legislature authorized $200,000 from the Colorado Water Conservation Board Construction Fund for the construction of the subject project. In 1981, the project also qualified for a $300,000 grant from the Farmers Home Administration. This same year an agreement was reached between Starkville and the City of Trinidad by which Trinidad would supply treated water to the residents of Starkville. Plans and specifications for a storage and distribution system were thereupon prepared and construction began late in 1981. All work was essentially completed by September, 1982. Payments from Starkvi11e are due on June 1 of each year. The town having failed to make its June 1, 1985, payment, this matter is brought to the Board's attention as required by Board procedures. Discussion The State's contract with Starkville specified that the first repayment of CWCB funds was due on June 1, 1983. At that time, the new water system had not been operational long enough for the town to accumulate funds for the first payment. As there were construction funds remaining upon completion of the project, we asked the Attorney General's office if the town could use these funds to make its first payment to the State. The answer was affirmative and the excess construction funds were used to accomplish this. APPENDIX D 318 m/swp