PROJ00060

• Contract/PO #: C153721
• Contractor Name: Lyons, Town of
• Contract Type: Loan
• Water District: 5
• County: Boulder
• Bill Number: SB 96-153
• Loan Projects - Doc Type: Feasibility Study

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~f).'l TO THE ~o.
~~ t'<tJ~
"\1 ~ The Town otJ; Lyons

PO, BOX 49 . LYONS, COLORADO B0540 . PHONE: 823'6622' lMETR01443'3956

Colorado Water Conservation Board
Department of Natural Resources
721 State Centennial Building
1313 Sherman St.
Denver, Co. 80203

Re: Rehabilitation of Intake Structure

Jan OS, 1996

To the CWCB Board Members:

This letter has been prepared as an addendum to the Feasibility
Study prepared by the Town of Lyons consul tlng engine~rs, RBO, Inc.
of Ft. Collins, Colorado.

A parity l1en test has been completed'a:ccording to thl!l requirements
of the Town's 1991 Joint Revenue Bond Ordinance. This test
indicates that the Town meets the requirements necessary to issue
additional parity liens based on the net revenues Of the system.

Collateral: The Town has the fO~lowing collateral it can offer for
the loan, in this order of preference:

a. A collateral interest In water revenues. (The Town has a
Water Enterprise, and no V4te of the people is required to use
it as collateral.)

b. The project Itself.
and would require a
collateral. )

(Th~ project will be owned by the Town,
vote of the people to use it as

c. Colorado - Big Thompson water rights shares of value equal
to the loan amount. The Town has 523 shares, that are worth
about $1,700 each. (TheSe shares are owned by the Town, and
would require a vote of th~ people to use them as collateral.)

d. The Town's Water Treatment Plant, and the land on which it
is located. This is worth about' $650,000. (The Plant Is owned
by the Town and would require a vote of the people to use It
as collateral.)

The most probable date for a vote of the people would be
November 1996, the timing of which would have a serious
adverse affect on the conStruction schedule.

Slncer~~, ~

J~saeger, Town Accountant