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<br />;: <br /> <br />Agenda Item 20c <br />January l7, 1995 <br />Page 2 <br /> <br />In 1987, Greenhorne & O'Mara of Denver submitted a feasibility study to the City and to the <br />CWCB for rehabilitation and expansion of the reservoir. The City decided not to pursue <br />funding for the project at that time. <br /> <br />DISCUSSION <br /> <br />An application for a Construction Fund loan was received from the City on December 22, <br />1994. The City has retained Greenhorne & O'Mara to update the 1987 feasibility study to <br />determine the actual capacity of the existing reservoir and to determine the storage capacity <br />which could be gained by raising the spillway crest to two alternative elevations with <br />accompanying increases in dam heights. The spillway will be sized to accommodate one-half <br />of the Probable Maximum Flood. Greenhorne & O'Mara has prepared a preliminiiry cost <br />estimate of $800,098 for the project to include feasibility, engineering, legal, and <br />administrative costs as well as construction. (Please see attached letter from Greenhome & <br />0' Maril.) <br /> <br />The staff has yet to evaluate the City's financial capability with regard to the proposed project <br />but the City has recently entered into an agreement with the Cripple Creek and Victor Gold <br />Mining Company to supply the company with water. It is anticipated that the additional <br />revenues from the sale of water to the mining company will enhance the financial feasibility <br />of the project. <br /> <br />The City has indicated that it is willing to pledge physical assets or revenues as collateral for <br />the loan. <br /> <br />STAFF RECOMMENDATION <br /> <br />The proposed project affords the City the opportunity to rehabilitate it's raw water reservoir in <br />conformance with the Rules for Dam Safety and to recover or possibly expand reservoir <br />capacity. The median household income for Victor is approximately $17,200 indicating that <br />the City is eligible for the Low Income lending rate which was recommended at 4.0 percent at <br />the November 1994 Board meeting. <br /> <br />The staff recommends that: <br /> <br />1. A Construction Fund loan in the amount of $600,000, not to exceed 75 <br />percent of actual project costs, be approved for the City of Victor to <br />rehabilitate and improve Victor #2 Reservoir. <br /> <br />2. The financing terms shall be 4.0 percent annual interest on the unpaid <br />balance for 30 years. <br />