PROJ00310 App Letter

• Contract/PO #: C153740
• Contractor Name: Idaho Springs, City of
• Contract Type: Loan
• Water District: 7
• County: Clear Creek
• Bill Number: EIA
• Loan Projects - Doc Type: Approval Letter

Agenda Item 18j.
November 7, 1995

. ,,2

I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I

Construction Fund Authorization: The City is also requesting funding for long term capital
improvements to their raw water storage and diversion systems. They want to construct a new
raw water infiltration gallery to replace the current diversion (estimated total cost $450K), and
to rehabilitate the Chicago Creek Darn (low estimate of total cost $1.5M). Both these facilities
are located on Chicago Creek south west of Idaho Springs (see attached maps.) The dam was
originally built in 1906 and suffers from a broken outlet system, inadequate spillway, and
seepage through the embankment. The reservoir has a capacity of 150 AF, but is restricted to
70 AF by the State Engineer due to these safety concerns. The total estimated cost of theselong
term improvements is about $2.0 million, and City is requesting $1.5 million which represents
75% of the total.

Preliminary engineering design work as well as the feasibility study are being completed by
Richard P. Arber Associates, and by Ground Engineering Consultants, Inc.

DISCUSSION

The City, the CWCB Staff, and Staff from the Colorado Water Resources and Power
Development Authority have discussed the City's overall funding needs. It has been agreed the
. CWCB will offer financing for the raw water portion, and the CWR&PDA will offer fmancing
for the drinking water portion of the CitY's overall funding needs. This is in accordance with
MOU between the CWCB and the CWR&PDA.

The proposed raw water infiltration gallery will have a capacity of 4 CFS, and will supply
approximately 2.6 MGD, or 2900 AF per year.

The Chicago Creek Reservoir will have a capacity of 150 AF after rehabilitation. It is currently
restricted to a 70 AF capacity.

The City of Idaho Springs had a Median Household Income that falls between 80% and 110%
of the Statewide MHI for 1990. A loan to the City should thus be at the "Standard Income" rate
for a municipality, as set by the CWCB on November 6, 1995.

COLLATERAL

The City of Idaho Springs has a separate water enterprise which receives revenues from its water
customers. The CWCB will take a collateral interest in this stream of revenues.

The City's Water Enterprise also has certain land and water rights assets which could be pledged
as additional collateral. However, a collateral interest in the revenue stream should be adequate
security for the loan (the CWR&PDA uses the revenue stream as the only collateral for its loans