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

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Agenda Item 18j.
November 7, 1995

3

to municipalities.)

STAFF RECOMMENDATION

The staff recommends:

1. That the Board finds that flood daI1lage to the City of Idaho Springs' raw water
intake, and the sudden failure of the valve and existence of a large sinkhole at the
City's Chicago Creek Reservoir qualify the City for a loan from the Emergency
Infrastructure Account, and

2. That a construction fund Emergency Loan in an amount of $130,000, be
approved for the City of Idaho Springs (and/or the City of Idaho Springs Water
Enterprise) to make emergency repairs the City's raw water intake structure, and
to the City's Chicago Creek Reservoir, and

3. That a Construction Fund Author~ation in an amount of $1.5 million, not to
exceed 75% of actual project costs, be approved for the City of Idaho Springs
(and/or the City of Idaho Springs Water Enterprise) to make long term
improvements to the City's raw water intake structure, and to rehabilitate the City's
Chicago Creek Dam, and

4. That the financing terms for the Emergency Loan shall be at an annual
percentage rate equal to the "Standard Income" rate for a municipality, for a loan
of ten years or less in duration (as set by the CWCB November 6, 1995), for a
duration of 2 years, and

5. That the financing terms for the Construction Fund Authorization shall be at an
annual percentage rate equal to the "Standard Income" rate for a municipality (as
set by the CWCB November 6, 1995), (or a duration of 30 years, and

6. That loan approval shall be contingent upon completion of the feasibility study,
and upon all standard contracting provisions of the CWCB, as determined by the
CWCB Executive Director, and

7. That security for the loan shall be a collateral interest in the stream of income
derived by the City's water enterprise, from the sale of water.