SUBJECT:
Title
A Resolution of the Town Council of the Town of Erie Authorizing the Town to Opt into and Execute Additional CWCB Loan under the Windy Gap Firming Project Allotment Contract
Body
DEPARTMENT: Utilities Department
Department
PRESENTER(S): Todd Fessenden, Utilities Director
First Name Last Name, Title
FISCAL SUMMARY:
Cost as Recommended: $4,377,131
Balance Available: Applied to Existing CWCB Loan for Project
Budget Line Item Number: 500-75-110-603500-100005
New Appropriation Required: No
POLICY ISSUES:
It is the policy of the Town to ensure adequate water supplies to meet current needs and future growth. The Windy Gap Firming Project ensures availability of the Town's 2,000 shares of fully re-usable Windy Gap water by means of a large storage reservoir near Carter Lake (aka Windy Gap Firming Project).
STAFF RECOMMENDATION:
Recommendation
Approve the resolution opting into adding additional C&E funding to the existing CWCB loan.
End
SUMMARY AND BACKGROUND OF SUBJECT MATTER:
The requested funds are due to cost overruns on the Windy Gap Firming/Chimney Hollow Reservoir Project (WGFP). They are Erie's share of a $65 million loan increase to the Windy Gap Firming Project Water Activity Enterprise account for various increased costs described in the attached request from Northern Colorado Water Conservancy District's (NCWCD) Municipal Subdistrict to Colorado Water Conservation Board (CWCB). The interest rate on the CWCB loan is 2.08%.
From NCWCB Report:
Initial financing included a modest contingency fund of approximately 10% of Chimney Hollow Reservoir's 2019 construction cost estimate ($485 million). This contingency amount equated to approximately 8.5% of the entire WGFP's 2019 forward looking program cost estimate of $561 million. This included engineering, construction management, environmental & mitigation, and owner's cost associated with, and required for Chimney Hollow Reservoir construction. The contingency fund...
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