C150296 Approval letter

• Contract/PO #: CT2015-058
• Contract/PO #: C150296
• Contractor Name: Gypsum, Town of
• Contract Type: Loan
• Water District: 0
• County: Eagle
• Loan Projects - Doc Type: Approval Letter

STATE OF COLORADO
Colorado Water Conservation Board
Department of Natural Resources
1313 Shennan Street, Room 721
Denver, Colorado 80203
Phone: [phone]
Fax:[phone]
www.cwcb. state.co.us
TO: Colorado Water Conservation Board Members
Z
FROM: Kirk Russell, PE ~' ,yy~
Mike Serlet, PE, Chief / l~~j
Water Supply Planning & Finance Section
DATE: May 12, 2009 (UPDATED May 22, 2009)
Bill Ritter, Jr.
Govemor
Harris D. Sherman
DNR Executive Director
Jennifer L. Gimbel
CWCB Director
Dan McAuliffe
CWCB Depury Director
SUBJECT: Agenda Item 17a, May 19-20, 2009 Board Meeting
Water Supply Planning and Finance Section - New Project Loans
Town of Gypsum - LEDE Ditch & Reservoir Upgrade Project
Introduction
The Town of Gypsum (Town), acting by and through its water activity enterprise, is applying for a
$2,663,1001oan for the LEDE Ditch & Reservoir Upgrade Project (Project). The cost estimate is
$3,162,000, which includes design and construction costs. The infrastructure improvements which
include ditch piping and reconstruction of the Reservoir's outlet works are necessary to comply with
state dam safety regulations and to return the LEDE Reservoir (Reservoir) to its full capacity. The
loan request is for approximately 85% 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 $2,689,731 ($2,663,100 for project costs
and $26,631 for the 1% Loan Service Fee) to the Town of Gypsum, acting by and through its Water
Enterprise, for the LEDE Ditch & Reservoir Upgrade Project from the Construction Fund. The loan
terms shall be a High Income Municipal interest rate of 4.5% per annum for 30 years. In the event the
Town prefers a shorter term loan (20 or 10 years), staff shall review the request and make
recommendation to the Director. The Board authorizes the Director to approve the new terms and
report the loan revisions to the Board in the Director's Report at the next Board meeting.
Security for the loan shall be in compliance with CWCB Financial Policy #5.
Loan approval will be conditioned upon CWCB receiving parity with all current debt that is secured
by the Town's water activity enterprise revenues.
Water Supply Protection • Watershed Protection & Flood !~litigation • Stream & Lake Protection • Water Supply Planning & Finance
Water Conservation & Drought Planning • Intrastate Water Management & Development