C150209 Approval Letter

• Contract/PO #: C150209
• Contractor Name: Central Weld County Water District
• Contract Type: Loan
• Water District: 2
• County: Larimer
• Loan Projects - Doc Type: Approval Letter

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STATE OF COLORADO
Colorado Water Conservation Board
Department of Natural Resources
1313 Sherman Street, Room 721
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
www.cwcb.state.co.us
December 23, 2002
Mr. John Zadel, General Manager
Central Weld County Water District
2235 2"a Avenue
Greeley, Colorado 80631
RE: Loan to Construct Proposed Dry Creek Reservoir
Dear John:
Bill Owens
Governor
Greg E. Walther
Executive Duector
Rod Kuharich
CWCB Director
Dan McAuliffe
Deputy Director
I am pleased to inform you that on November 26, 2002 the Colorado Water Conservation Board
(CWCB) recommended your loan to the General Assembly for approval. Your loan request will be
included in the 2003 Water Project Construction Bill. Loan funds will be authorized in Spring 2003,
once the Governor has signed the bill. I understand the loan will be used to construct a new water
storage reservoir in a 50/50 partnership with the Little Thompson Water District.
The Board approved a loan from the Severance Tax Trust Fund -Perpetual Base Account in a
maximum amount of $3,937,500. The loan terms are 4.15 % for 20 years. I have attached a copy of
the updated Board memo that includes a section "Action taken by the CWCB on November 26, 2002."
The Board also added a condition of loan approval that Central Weld County Water District submit,
for acceptance and approval by the CWCB, a Water Conservation Plan fulfilling all requirements of
Sec. 37-60-126, C.R.S. Please coordinate with Kathie Luckie of our staff (303-866-3370) on this
item.
When the Board approves a loan there remain several conditions:
a) A Feasibility Studrequired. Bruce Johnson has reviewed the preliminary feasibility
study titled "Feasibility Study for Construction of Dry Creek Reservoir. "- November
2002. Please continue to work with him to finalize this report. The report, in
combination with the CWCB board memo dated November 15, 2002 will meet the
requirements of the CWCB Construction Fund Guidelines for feasibility studies.
b) An approved contract must be in place before funds can be advanced Jan Illian will
place this project on our contracting "hot list" and will initiate the loan contracting
process. Once the contract is finalized the Company may request loan funds to cover
eligible project expenses. For future reference Jan's phone number is 303-894-2572.
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