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<br />. <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />STA" OF COLORADO <br /> <br />o <br /> <br />Colorado Water Conservation Board <br />Department of Natural Resources <br /> <br />721 State Centennial Building <br />1313 Sherman Street <br />Denver, Colorado 80203 <br />Phooe (303) 866-3441 <br />FAX (303) 866-4474 <br /> <br />Roy Romer <br />Governor <br /> <br />MEMORANDUM <br /> <br />James S. Lochhead <br />Executive Director, DNR <br /> <br />Danes C. lile. P.E. <br />Director, CWCB <br /> <br />TO: Colorado Water Conservation Board Members <br /> <br />FROM: William P. Stanton, P.E. <br />Chief, Project Planning and Construction Section <br /> <br />DATE: May 9, 1995 <br /> <br />SUBJECT: Agenda Item 19b,May 22-23,1995 Board Meeting- <br />Water Project Construction Loan Program <br />General and Financial Matters, Delinquent Payments <br /> <br />Introduction <br /> <br />As of May I, 1995, the total amount still outstanding from the Town of Starkville was <br />$21,936.00 for the town's 1993, 1988, and 1987 payments. <br /> <br />Background 1'1p <br /> <br />In 1982, the Board loaned the Town of Starkville $200,000 Pent interest for 40 years <br />for construction of a domestic water system. As detailed in the No~994 meeting memo, the <br />town has had a long history of delinquent payments. The loan balance is currently $166,093.20. <br /> <br />At the November 3-4, 1994 meeting, the Board passed a resolution to authorize the Division of <br />Central Services to start a collection action against the Town of Starkville. While the regular 1994 <br />payment of $7,312.00 was collected, Collections retained 20% for their services. Collections was <br />unsuccessful in attempting to work with the mayor to agree on a plan for payment of the remaining <br />amount past due. The town was given until March 30, 1995 to respond under the threat that the matter <br />would be turned over to the State Attorney for litigation. No response was received. <br /> <br />Discussion <br /> <br />Staff feels the 20% collection fee is a steep price to pay for continued bad will. Litigation will <br />also be a lose-lose proposition. Collections has indicated there is a very low probability of getting any <br />more money out of the town through their approach. <br /> <br />CWCB staff has renewed efforts once again to directly contact the town. We finally reached <br />the mayor's wife by telephone on Sunday evening, May 8,1995. We are in the process of attempting <br />to set up a non-threatening, face-to-face meeting with the mayor at his convenience. We will report <br />on any progress at the May Board meeting in Granby. <br /> <br />Attachment <br /> <br />WPS:\MA Y95\19BDOC <br />