CT2017-917 Approval Letter

• Contract/PO #: CT2017-917
• Contractor Name: Lamar, City of
• Contract Type: Grant/Loan Combo
• Loan Projects - Doc Type: Approval Letter

A D N R COLORADO 1313 Sherman Street John Hickenlooper, Governor
Denver, CO 80203
CO ' Colorado Water Mike King, DNR Executive Director
Conservation Board P [phone]
Department of Natural Resources F(303)866-4474 James Eklund, CWCB Director
TO: Colorado Water Conservation Board Members
FROM: Derek Johnson, P.E., Project Manager
Kirk Russell, P.E., Finance Section Chief It&Z.-
DATE: September 15-17, 2015 Board Meeting (Updated September 18, 2015)
AGENDA ITEM: 23b. CWCB Loan and WSRA Grant
City of Lamar- Repurposing of Wells 12 and 13
Introduction
The City of Lamar (City), acting by and through its water activity enterprise, is applying for a loan to
finance the Repurposing of Wells 12 and 13 Project (Project). The purpose of the Project is to convert
two existing potable water wells for non-potable municipal irrigation use and construct a pipeline
connection to the City's existing non-potable municipal irrigation infrastructure. The total Project cost
is estimated to be $400,000.
In June of 2015, the City was recommended by the Arkansas Basin Roundtable for a $136,625 Statewide
Grant and a $25,000 Basin Grant from the Water Supply Reserve Account (WSRA). The City is requesting
a loan from the CWCB to cover 25% of Project Costs, with remaining costs to be covered by WSRA
funds, City funds, and in-kind labor and equipment. See attached Project Data Sheet for a location
map and a Project summary.
Staff Recommendation for WSRA Grant(Board approved Staff Recommendation on September 17,
2015)
Staff recommends approval of up to $136,625 from the Statewide Account and $25,000 from the
Arkansas Basin Account to the City of Lamar, acting by and through its water activity enterprise, to
fund the Repurposing of Wells 12 and 13 Project.
Staff Recommendation for CWCB Loan (Board approved Staff Recommendation on September 17,
2015)
Staff recommends the Board approve a loan not to exceed $101,000 ($100,000 for project costs and
$1,000 for the 1% Loan Service Fee) to the City of Lamar, acting by and through its water activity
enterprise, for the Repurposing of Wells 12 and 13 project from the Severance Tax Perpetual Base
Fund. Loan terms shall be 10 years at the reduced low-income municipal rate of 1.95% per annum.
Security for the loan shall be in compliance with CWCB Financial Policy#5.
e of Coto\
Interstate Compact Compliance •Watershed Protection • Flood Planning a Mitigation • Stream a Lake Protection N ��
Water Project Loans a Grants •Water Modeling • Conservation Et Drought Planning •Water Supply Planning I �* *
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