C150308 approval ltr

• Contract/PO #: C150308
• Contractor Name: Parkville Water District
• Contract Type: Loan
• County: Lake
• Loan Projects - Doc Type: Approval Letter

STATE OF COLORADO
Colorado Water Conservation Board
Department of Natural Resources
1313 Sherman Street, Room 721
Denver, Colorado 80203
Phone: [phone]
Fax:[phone]
www.cwcb.state.co.us
TO: Colorado Water Conservation Board Members
FROM: Kirk Russell, PE Yy''
Tirn Feehan, PE, Chief
Finance Section
DATE: May 1 l, 2010 (UPDATED MAY 19, 2010)
SUBJECT: Agenda Item 14c May 18-19, 2010 Board Meeting
Finance Section — New Project Loans
Parkville Water District — Canterbury Tunnel Repair
Introduction
Bill Ritter, Jr.
Governor
Mike King
DNR Executive Director
Jennifer L. Gimbel
CWCB Director
The Parkville Water District (District) is applying for a loan for the Canterbury Tunnel Repair
Project (Project). The Project includes the construction of a vertical bore, installation of a well
pump station and 1.5 miles of 12 inch pipeline. The total design and construction cost estimate for
the Project is $2,520,000. The Project will allow the District to access water from the Canterbury
Tunnel which provided a high quality and reliable water supply until the late 1990's. The loan
request is for approximately 70% of the total Project cost. The District has received a$500,000
grant from the Colorado Department of Local Affairs (DOLA) and a$200,000 grant from the
California Gulch/LTpper Arkansas River Superfund Program. See attached Project Data Sheet for a
location map and Project summary.
Staff Recommendation (Board approval on May 18, 2010 with added Contract Condition)
Staff recommends the Board approve a loan not to exceed $1,838,200 ($1,820,000 for project costs
and $18,200 for the 1% Loan Service Fee) to the Parkville Water District for the Canterbury Tunnel
Repair Project from the CWCB Construction Fund. The loan terms shall be the Low-Income
Municipal interest rate of 4.0% per annum for 30 years. Security for the loan shall be in compliance
with CWCB Financial Policy #5.
Contract Condition — District shall receive approval by the Division of Water Resources of a
Substitute Water Supply Plan for the proposed well prior to disbursements of loan funds.
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