BOARD01693

• Board Meeting Date: 7/26/1999
• Description: Colorado River Basin Issues - Long-Term Funding Legislation
• Board Meetings - Doc Type: Memo

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2.7

3.
3.1

3.1.1

The funds loaned to Western may be provided pursuant to 37-60-119 C.R.S. and
37-60-120 C.R.S. that give the CWCB the authority to loan money for the benefit of
the people of the state; and specifically pursuant to the provisions of 37-60-122.9
C.R.S. that gives the CWCB the authority to loan money for endangered fish
recovery program capital projects.

Terms

Within one-year from the date Western determines it requires a loan, the CWCB,
Reclamation and Western, in consultation with SLCA-IP firm power contractors,
shall enter into a contract that shall include, but not be limited to, the following:

A provision or provisions specifying the amount of the loan, the interest rate, and the
repayment period of the loan. (INSERT LANGUAGE REGARDING THE MAXIMUM
INTEREST RATE TO BE CHARGED BY THE CWCB FOR ENVIRONMENTAL
MITIGATION PROJECTS. IF APPROPRIATE. AND SUBJECT TO DISCUSSIONS
WjTH THE CWCB)

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3.1.2 A provision or provisions stating that Western may repay the CWCB in one lump
swn or in periodic payments that include principal and interest. These provisions
shall also establish a procedure by which Western may elect to not remit a loan
payment for the purpose of minimizing the impact ofloan repayment on SLCA-IP
rates. This provision shall specify a date by which Western must notify the CWCB
of its intent to not remit a loan payment, and shall provide that interest shall
continue to accrue to the loan and that late charges shall not apply.

3.1.3 A provision or provisions indicating the basis for concluding that no collateral or .
security interests are required to assure repayment of the loan.

3.1.4 A provision or provisions indicating that the CWCB, Reclamation and Western shall
adhere to all applicable federal, state, and local laws and regulations that are in
effect or may be established throughout the term of the contract.

3.1.5 A provision or provisions indicating that no funds shall be used to exercise the power
of eminent domain.

3.1.6 A provision or provisions indicating that the financial obligations of the State of
Colorado and Western payable after the current fiscal year are contingent upon
funds for that purpose being appropriated, budgeted, and otherwise made available.

(To be signed by):

Peter Evans, Director Colorado Water Conservation Board

Ken Salazar, Colorado State Attorney General

State Comptroller

Dave Sabo, CRSP Manager Western Area Power Administration

Charles Calhoun, Regional Director, Upper Colorado River Region
U.S. Bureau of Reclamation

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