CT2016-2515 Approval Letter

• Contract/PO #: CT2016-2515
• Contractor Name: Lookout Mountain Water District
• Contract Type: Loan
• Loan Projects - Doc Type: Approval Letter

DNR 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 '7,--
DATE: November 18-19, 2015 Board Meeting (Updated November 20, 2015)
AGENDA ITEM: 7a. Water Project Loans
Lookout Mountain Water District - Upper Beaver Brook Dam Spillway
Introduction
The Lookout Mountain Water District (District) is applying for a loan for the construction of the Upper
Beaver Brook Dam Spillway (Project). The purpose of the Project is to increase storage by 134 acre-feet
by improving the existing rock-cut spillway with a new labyrinth weir spillway. These improvements will
allow the District to continue to provide for a reliable supply of drinking water to current tap holders,
with increased reliability for future demand and during times of drought. Total Project cost is
estimated at $3,410,000. The District is requesting a loan from CWCB for approximately 90% of the
estimated Project Cost. Supplemental project funding includes a DOLA grant of $125,000 for project
engineering costs. See attached Project Data Sheet for a location map and Project summary.
Staff Recommendation (Board approved Staff Recommendation on November 18, 2015)
Staff recommends the Board approve a loan not to exceed $3,099,690 ($3,069,000 for Project costs and
$30,690 for the 1% Loan Service Fee) to the Lookout Mountain Water District, acting by and through its
water activity enterprise, for the Upper Beaver Brook Dam Spillway project from the Construction
Fund. The loan terms shall be 30 years at the high-income municipal rate of 3.25% per annum.
Security for the loan shall be in compliance with CWCB Financial Policy#5.
Staff additionally recommends the following loan approval condition prior to executing a contract:
The Dam Safety Branch of the State Engineers Office shall provide confirmation that deficiencies
identified during the 2014 inspection of the Lower Beaver Brook Dam and spillway have been addressed
before CWCB enters into a loan contract for the Upper Beaver Brook Dam Spillway Project.
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Interstate Compact Compliance • Watershed Protection • Flood Planning a Mitigation • Stream a Lake Protection
Water Project Loans a Grants •Water Modeling • Conservation a Drought Planning •Water Supply Planning
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