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<br />AGENCY NAME: Water Conservation Board
<br />
<br />AGENCY NUMBER: PDA
<br />ROUTING NUMBER: ~
<br />
<br />$922,000
<br />
<br />LOAN CONTRACT
<br />
<br />THIS CONTRACT, made this ~~cl day of November 1999, by and between the State of
<br />Colorado for the use and benefit of the Department of Natural Resources, Colorado Water
<br />Conservation Board, hereinafter referred to as the CWCB and/or STATE, and the Town of Palisade
<br />,
<br />hereinafter referred to as the BORROWER and/or CONTRACTOR, 175 E, 3rd Street, P.O. Box 128,
<br />Palisade, Colorado 81526.
<br />
<br />FACTUAL RECITALS
<br />
<br />1. Authority exists in the law, and funds have been budgeted, appropriated and otherwise made
<br />available and a sufficient unencumbered balance thereof remains available for payment in Fund
<br />Number 424, Organization YYYV, Appropriation 533, Program WTRC, Reporting Category 0006,
<br />Object Code 5110, Contract Encumbrance Number C150006.
<br />
<br />2. Required approval, clearance, and coordination have been accomplished from and with
<br />appropriate agencies.
<br />
<br />3. Pursuant to the provisions of ~~ 37-60-119 and 37-60-120, C.R.S. (1999), the STATE is
<br />authorized to loan money for the construction of water projects for the benefit of the people of the
<br />STATE, provided that the borrower assures repayment of that money.
<br />
<br />4. The TOWN is a duly constituted statutory town pursuant to ~ 31-1-203, C.R.S. (1999), located in
<br />Mesa County, Colorado.
<br />
<br />5. The BORROWER applied to the STATE for a loan to be used for the construction, installation and
<br />replacement of the Cottonwood Creek Pipeline, hereinafter referred to as the PROJECT, at an
<br />estimated total cost of $1 ,242,000.
<br />
<br />6. The STATE has reviewed a feasibility study report on the PROJECT compiled by WestWater
<br />Engineering (Grand Junction) and Hydrosphere Resource Consultants (Boulder), which is
<br />incorporated herein by reference, and, based upon the feasibility report, the STATE determined
<br />the PROJECT to be technically and financially feasible.
<br />
<br />7. At its November 1994 meeting, the CWCB approved a loan to the BORROWER in the amount of
<br />up to $750,000, not to exceed 75% of PROJECT costs, at an interest rate of 4% per annum for a
<br />term of thirty (30) years, to finance a portion of the PROJECT. At its November 1997 meeting, the
<br />CWCB approved increasing that loan by $172,000 to a total of up to $922,000, not to exceed
<br />75% of PROJECT costs, at an interest rate of 4% per annum for a term of thirty (30) years, to
<br />finance a portion of the PROJECT.
<br />
<br />8, Pursuant to 1995 Colo. Sess. Laws, Ch, 117, Section 1(1)(13) and to 1998 Colo. Sess. Laws,
<br />Ch, 175, Section 3(1), the Colorado General Assembly authorized CWCB to loan to the
<br />
<br />Town of Palisade
<br />
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