LPPD000395

• Contract/PO #: C150005
• Contractor Name: Loveland, City of
• Contract Type: Loan
• Water District: 4
• County: Larimer
• Bill Number: HB 98-1189
• Loan Projects - Doc Type: Approval Letter

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STATE ClJ COLORADO
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Colorado Water Conservation Board
Department of Natural Resources
721 Centennial Building
1313 Sherman Street
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]

Roy Romer
Governor

December 18, 1998

James S. Lochhead
Executive Director, DNR

Daries C. Lile, PE.
Director, CWCB

Peter H. Evans
Acting Director, CWCB

Mr. Ralph Mullinix
Director of Water & Power
City of Loveland
200 North Wilson, Bldg. #1
Loveland, CO 80537

Re: Loan for Green Ridge Glade Reservoir Enlargement

Dear Mr. Mullinix:

I am pleased to inform you that at the November 24, 1998 meeting of the Colorado Water
Conservation Board, the Board recommended an increase of $3,000,000 in the City of
Loveland's authorization for the design and construction of the Green Ridge Glade Reservoir
Enlargement Project. For this additional increment of funding, the term of the loan is for up to
ten years and the lending rate is 4.25 percent. (You may recall that the City's 1998 authorization
of $2,000,000 was approved for up to ten years at a lending rate of 4.75 percent.)

The Board's action on the $3,000,000 loan request will be included in the 1999 CWCB
legislation and is subject to authorization by the General Assembly. If authorized by the General
Assembly, the City's total authorization for the Green Ridge Glade Project will amount to
$5,000,000.

As security for the loan, it is expected that the City will pledge water fund revenues at parity
with any other lenders and a portion of the project equivalent in value to the amount of the loan.

Please coordinate with Jan Illian of this office on all matters related to contracting. She will be
responsible for drafting and processing of contract documents. No funds may be disbursed until
a fully executed contract is in place.

Mike Serlet of this office will be responsible for reviewing the project plans and specifications
and for all matters related to proj ect construction including approval of design and construction
payments. Please contact him before beginning design work on the project.

You may also want to refer to Section 5.0 and Appendices E, F and G of the Guidelines for
Financial Assistance through the Colorado Water Conservation Board Construction Fund for
information relating to design and construction administration ofCWCB-funded projects. Please
let us know if you would like a copy of the Guidelines.