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<br />. <br /> <br />STATE ~ COLORADO <br /> <br />Colorado Water Conservation Board <br /> <br />Department of Natural Resources <br />1313 Sherman Street, Room 721 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3441 <br />FAX: (303) 866-4474 <br /> <br />Q <br /> <br />Bill Owens <br />Governor <br /> <br />February 10, 2000 <br /> <br />Greg E.Walcher <br />Executive Director <br /> <br />Mr. Walter Welton, President <br />The Consolidated Mutual Water Company <br />12700 West 27th Avenue <br />Lakewood, Colorado 80215 <br /> <br />Peter H. Evans <br />ewes Director <br /> <br />Dan McAuliffe <br />Deputy Director <br /> <br />Re: Fortune Reservoir Project <br /> <br />Dear Mr. Welton: <br /> <br />1 am writing to confirm that, at the January 26, 2000 meeting ofthe Colorado Water <br />Conservation Board, the Board recommended an increase of $6,300,000 in the Construction <br />Fund authorization for the Fortune Reservoir Project of the Consolidated Mutual Water <br />Company. The $6,300,000 increment of additional funding will be for ten years at a lending rate <br />of 5.00 percent. Total Construction Fund lending for the project will not exceed $16,3000,000 or <br />75 percent of total project costs, whichever is less. <br /> <br />The Board's action on the $6,300,000 increase in authorization will be included in the year 2000 <br />CWCB funding legislation and is subject to authorization by the General Assembly. If <br />authorized by the General Assembly, the loan funds for the increase in authorization should be <br />available in Mayor June of2000. <br /> <br />As collateral for the loan, it is understood that the Consolidated Mutual Water Company will <br />pledge revenues from service charges and stock sales backed by a rate covenant and annual <br />financial reporting as well as a security interest in the Company's shares in the Agricultural <br />Ditch. <br /> <br />The Board's recommendation for funding is conditioned upon the following: <br /> <br />1. The board of directors of the Consolidated Mutual Water Company will adopt a <br />resolution or resolutions approving the loan, the pledge of revenues and the <br />conveyance of a security interest in the proposed collateral. <br /> <br />2. Any collateral pledged for the loan shall be free of liens and encumbrances. <br /> <br />3. The CWCB Construction Fund loan shall have parity status with any existing debt of <br />the Company with respect to a pledge of revenues. <br /> <br />- <br />