C150295 Approval letter

• Contract/PO #: CT2015-038
• Contract/PO #: C150295
• Contractor Name: Dillon, Town of
• Contract Type: Loan
• Water District: 0
• County: Summit
• Loan Projects - Doc Type: Approval Letter

STATE OF COLORADO
Colorado Water Conservation Board
Department of Natural Resources
1313 Sherman Street, Room 72l
Denver, Colorado 80203
Phone: [phone]
Fax:[phone]
www. c wc b. s ta te. c o. u s
Bill Ritter, Jr.
Governor
TO: Colorado Water Conservation Board Members
Harris D. Sherman
FROM: Kirk Russell, PE ~ ~7' DNR Executive Director
Mike Serlet, PE, Chief ~.~~ Jennifer L. Gimbel
CWCB Director
Water Supply Planning & Finance Section
Dan McAuliffe
CWCB Deputy Director
DATE: May 12, 2009 (UPDATED May 22, 2009)
SUBJECT: Agenda Item 17b, May 19-20, 2009 Board Meeting
Water Supply Planning and Finance Section - New Project Loans
Town of Dillon - Old Dillon Reservoir Enlargement Project
Introduction
The Town of Dillon (Town), acting by and through its water activity enterprise, is applying for a
$1,SOO,OOO loan for the Town's cost share of the Old Dillon Reservoir Enlargement Project
(Project). The total cost estimate for the enlargement is $6,315,000, which will be shared between
the Town of Dillon, Summit County and the Town of Silverthorne. The enlargement will provide
additional storage capacity and a back-up water supply to meet existing and future domestic water
supply needs. The loan request is for approximately 90% of the Town's project costs estimated at
$1,667,000. See attached Project Data Sheet.
Staff Recommendation (Board Approved with the added contract condition on May 19, 2009)
Staff recommends the Board approve a loan not to exceed $1,515,000 ($1,500,000 for project costs
and $15,000 for the 1% Loan Service Fee) to the Town of Dillon, acting by and through its water
activity enterprise, for the Old Dillon Reservoir Enlargement Project from the Construction Fund.
The loan terms shall be an interest rate of 4.0% per annum for 30 years. Security for the loan shall
be in compliance with Financial Policy #5.
Loan approval shall be conditioned upon CWCB receiving parity with all current debt that is
secured by the Town's water activity enterprise revenues.
Added Contract Condition -"Project participants must create a governing body such as an
Authority to manage the fanding contracts for the Reservoir's construction prior to the Town
of Dillon receiving CWCB loan disbursements"
Water Supply Protection • Watershed Protection & Flood Mitigation • Stream & Lake Protection • Water Supply Planning & Finance
Water Conservation & Drought Planning • lntrastate Water Management & Development