PROJ00198

• Contract/PO #: C153668
• Contractor Name: Erie, Town of
• Contract Type: Loan
• Water District: 0
• County: Weld
• Bill Number: SB 90-41
• Loan Projects - Doc Type: Contract Documents

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raw water to the Borrower and other participating entities; and

WHEREAS, on July 21, 1993, the United State Department of the
Interior, Bureau of Reclarnatiotl, issued a Finding of No Significant
Impact No. EA-E~400-92-15, which determined pursuant the National
Environmental Policy Act, 42 U.S. C. !i 4331 et sea., that the
construction and operation of the Project will not significantly
affect the quality of the human environment and on October 22,
1993, issued a Special USe Permit to the NCWCD for Project-related
activities on federal land; and

WHEREAS, the Borrower
construction of the Proj ect,
State; and

desires to participate in the
in part through financing from the

WHEREAS, the Borrower ha& entered into an Interim Agreement
with NCWCD dated April 1993, to fund its pro rata share of certain
design and cost estimates for the Project; and

WHEREAS, in order to obtain the right to use its share of the
capacity in the Carter Lake-to-Broomfield segment of the Project as
shown in Appendix B attached h@reto and to fund its share of costs
for planning, design, right~of-way acquisition, construction,
administration, operation, maintenance, repair and rehabilitation
of such segment of the Project, the Borrower soon will enter into
an Allotment Contract, hereinaftex called the Allotment Contract,
with the SWSP Enterprise; and

WHEREAS, the Borrower's right to utilize its share of the
capacity of the Project as more fully set forth in its Allotment
Contract with the SWSP Enterprise is a part of the security which
the Borrower shall provide to the State to ensure the repayment of
the loan made as a part of this contract; and

WHEREAS, the Erie Water Department is an Enterprise within the
meaning of !i 37-45.1-101 et se~, C,R.S. and Article X, Section 20
of the Colorado Constitution as recognized by an ordinance of the
Town Board of Trustees of the Town of Erie dated April 22, 1993,
attached hereto as Appendix C. The purpose of the Erie Water
Department Enterprise is to continue to operate the water utilities
of the town and inter alias to participate in the Project; and

WHEREAS, pursuant to Senate Bill No. 90-41, First Regular
Session of the Fifty-Sixth General Assembly of the State of
Colorado duly enacted into law, the Colorado Water Conservation
Board was authorized to loan the sum of $1,050,000, reimbursable at
5% interest over 40 years, to the Town of Erie for a water project
conditioned on the Town not purchasing water from the Windy Gap
Project, not purchasing an interest in a water supply to be used
only until it can obtain Windy Gap Project water, but instead
utilizes the monies to obtain water from a regional water supply
system which the State determines can be made available within a
reasonable time; and

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