PROJ00157

• Contract/PO #: C153702
• Contractor Name: Silt, Town of
• Contract Type: Loan
• Water District: 39
• County: Garfield
• Bill Number: HB 95-1155
• Loan Projects - Doc Type: Contract Documents

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BEATTIE & CHADWICK
ATTORNEYS AND COUNSELORS AT LAW
710 COOPER AVENUE, SUITE 200
GLENWOOD SPRINGS, CO 61601

STEVEN M. SEA ITIE
GLENN D. CHADWICK

TELEPHONE [phone]
FAX [phone]

KAREN J. SLOA T

September 7, 1995

[ffi~~~~W~[Q)

Linda Bassi
Assistant Attorney General
1525 Sherman Street, 5th Floor
Denver, Colorado 80203

SEP 11 1995

OFFICE OF THE
ATfORNE,y GEJ\!ERAL
NATURAL P..EWW,CE:S SECTION

RE: Contract between Town of silt and CWCB-$400,000

Dear Ms. Bassi:

Pursuant to your request, this letter provides our
confirmation, as the Town of silt attorneys and after
consultation with the Town Administrator, that the one percent
(1%) use tax to which the above referenced contract refers is
intended to be used as collateral or security for the loan of
$400,000.00.

<.~

Additionally, the "assessments levied" by the Town for the
purpose of obtaining revenues to repay the loan, as referenced in
the contract, are those user fees and connect fees which will be
assessed to town residents in connection with the low pressure
irrigation system.

!ill

In my opinion, paragraph 7.f. sufficiently covers both of
these issues because it refers to the specific revenues to be
pledged to repay the state which include "a use tax,...and
revenues received for fees charged to customers to connect to the
irrigation system and annual user fees." AccordinglY, the DCC
Security Agreement and Financing Statement do not necessarily
need to be revised and resigned.

In any event, as I have expressed to you, this contract and
the State funds are a matter of urgency for the Town of silt and
we would appreciate your immediate attention to and resolution of
this matter. Thank you for your cooperation.

Very truly yours,

. ~
~Sloat

KJS:bc

cc: James A. Yale, Town Administrator