C150294 Approval Letter

• Contract/PO #: C150294
• Contractor Name: Snowmass Water & Sanitation District
• Contract Type: Loan
• Water District: 0
• County: Pitkin
• Loan Projects - Doc Type: Approval Letter

STATE OF COLORADO
Colorado Water Conservation Board
Department of Natural Resources
1313 Sherman Street, Room 721
Denver, Cqlorado 80203
Phone: [phone]
Fax:[phone]
www.cwcb.state.co.us
TO: Colorado Water Conservation Board Members
FROM: Kirk Russell, PE ~~
Mike Serlet, PE, Chief ~~
Water Supply Planning & Fir~ance Section
DATE: May 12, 2009 (UPDATED May 22, 2009)
B~II Ritter, Jr.
Govemor
Harris D. Shem~an
DNR Executive Director
Jennifer L. Gimbel
CWCB Director
Dan McAuliffe
CWCB Deputy Director
SUBJECT: Agenda Item 17f, May 19-20, 2009 Board Meeting
Water Supply Planning and Finance Section - New Project Loans
Snowmass Water & Sanitation District - Ziegler Reservoir Water Management
System
Introduction
The Snowmass Water & Sanitation District (District), acting by and through its water activity
enterprise, is applying for a$1,933,4701oan for the Ziegler Reservoir Water Management System
(Project). The Project includes a new pnmp house, 16 inch bidirectional pipeline, and a flow control
building. The total cost estimate for the Project is $2,149,000. The Project is necessary in order to
utilize the recently purchased Ziegler Reservoir (Reservoir) and provide much needed storage for
drought and natural disaster protection. The loan request is for approximately 90% of the Project
costs. See attached Project Data Sheet.
Staff Recommendation (Board approved Staff Recommendation on May 19, 2009)
Staff recommends the Board approve a loan not to exceed $1,952,805 ($1,933,470 for project costs
and $19,335 for the 1% Loan Service Fee) to the Snowmass Water & Sanitation District, acting by
and through its water activity enterprise, for the Ziegler Reservoir Water Management System from
the Construction Fund Account. The loan terms shall be an interest rate of 4.25% per annum for 20
years. Security for the loan shall be in compliance with CWCB Financial Policy #5.
Background
In 2008 the District purchased Ziegler Reservoir to improve the water system reliability by enabling
the District to respond to a catastrophic event that would render its direct flow sources untreatable
or unavailable. The Reservoir will assist the District in accomplishing its Stream Flow Stewardship
Goal of 7 cfs bypassing the District's Snowmass Creek Pump Station diversion. The District
Water Supply Protection • Watershed Protection & Flood Mitigation • Stream & Lake Protection • Water Supply Planning & Finance
Water Conservation & Drought Planning • Intrastate Water Management & Development