PROJ01841

• Contract/PO #: FS0061FX
• Contractor Name: Craig, City of
• Contract Type: Miscellaneous
• Water District: 0
• Loan Projects - Doc Type: Approval Letter

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Ms. Bernadette Kimmey
City of Fort Lupton.
December 19, 1994

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alternatives the City has considered, and state why the selected alternative (the two
alluvial wells) was chosen. The study must also show that the City can afford the
annual loan payments to the CWCB, and indicate where the funds will come from
to make those payments. I have included a general outline for feasibility studies
and request that you contaCt Bill Green of this office (866-3441). Bill can provide
assistance and guidance, and will ultimately be reviewing the study. (This study
must be completed and approved before the project is undertaken, and before loan
funds are distributed.)

b. You must continue to oursue bond fmancing with the Colorado Water
Resources and Power Develooment Authority. If the city does not qualify for
bond fmancing through the Authority, the city may qualify for a loan from the
Domestic Water Supply Project Revolvlng Fund. If you have not already done so,
you should confirm with Barry Cress of the Division of Local Government (DLG)
(866-2156), or with the Authority itself, that the City of Fort Lupton is on the
DLG needs list. This will keep the door open for a loan from the Revolving
Fund, at an interest rate of 4.5%. If you receive a loan from the Revolving Fund
for a portion of your project, we can still loan you the rest at a 5.0% rate (up to
. 75% of the total project costs).

c. An aoproved contract must be in place before the CWCS can release any funds
for the oroject. Jan Illian of this office will draft the contract, and can send you
an advanced review copy upon request. Final contract documents will be sent to
you for signing after the Construction Fund bill is signed by the Governor, about .
June 1, 1995. Please contact Jan (866-3441) after February 1, 1995 to initiate the
contracting procedure.

d. If the ewcs approves your request in January. you may be able to use your
CWCB loan to payoff (refmance) qualifying project costs which you incur orior
to contracting with this agency. In recommending this project to the General
Assembly, we will include a footnote in the bill that will indicate the loan will be
for a water project that may have already been constructed, and accepted by our
Director. We expect this note will provide the authority for the Board to include
refmancing as an eligible cost in the contract. This means that you could
construct the wells, at your own risk, in the Spring of 1995 using short term bank
fmancing, and then payoff that loan with funds from this agency when the contract
. is approved. Please contact Mike Serlet of this office (866-3441) if you wish to
take this approach. Mike will' explain our contractor bidding and bonding
requirements, and will make field inspections during construction.