From The Fort Morgan Times (Dan Barker):
The council unanimously approved a resolution authorizing indebtedness for its water project, but that is not quite what it sounds like, said Wiggins Town Attorney Sam Light. This was basically approval of signing a USDA form contract which sets up conditions for taking a loan and grant package from the federal agency, and which indicates that the entire debt could come due if Wiggins defaults on its loan once bonds are issued, he said. It pledges the water system as security for the loan, and states that Wiggins cannot contract to build the project without USDA consent after the agency has a chance to see designs, Light said. Essentially, this contract says that Wiggins understands all the provisions and agrees to them, he said. The resolution also agrees that Wiggins will comply with all state and federal laws, and will continually operate the facility in good condition. Part of the agreement is to provide for adequate revenues to pay the debt on time, and to operate and maintain the facility. Revenue cannot be used to pay any expenses which are not directly incurred for the facility, and no free use of the facility will be permitted.
Board members went into a closed-door executive session for 2-1/2 hours to discuss a land and water purchase for the water project, legal issues pertaining to the water project, use of land from previously purchased acreage which was part of buying water, and getting permission from the Weldon Valley Ditch Co. to change the use of the water from that property, Light said…
The USDA did approve a grant and loan package for Wiggins to build the new water system, which includes a pipeline to bring water from a farm northwest of the town and to build a water treatment facility at the farm. Certain conditions must be met before the town can begin taking bids from contractors to do the job, said Tim Holbrook, who is overseeing the engineering aspect of the project for Industrial Facilities Engineering. Staff is working to secure easements for the pipeline, including negotiating for private land for the pipe, he said. They have also applied to the Colorado Department of Transportation for approval for the pipeline to cross Highway 144 and Highway 34, and did secure approval from the Burlington Northern Santa Fe Railroad to trench under its property to lay pipe. Holbrook said he is working on completing an engineering design to send in to the USDA, which will include the treatment part of the project. That is also needed for a permit to construct the project, and getting that permit could take 30 to 60 days, he said.