HomeMy WebLinkAbout08 PRESENTATION Spruce Knob and Carriage Hills Water System Improvements & Loan Agreement 2025-02-251
Carriage Hills and Spruce Knob
SRF Loan Agreement
Town Board Meeting
February 25, 2025
Agenda
▪Project Overview
▪Reason for the Project
▪SRF and BIL Program
▪Funding and Financial Strategy
▪Schedule
1
2
ATTACHMENT 8
2/19/2025
2
Project Overview
Carriage Hills –Phase 1
80 service connections
Interconnections and pressure breaks
5,900 LF of 8” ductile iron pipe
20 fire hydrants
Asphalt and unpaved road repair
Spruce Knob
12 service connections into the homes
1,310 LF of 12” ductile iron pipe
3 new fire hydrants
Unpaved road repair
The Spruce Knob portion becomes part of a larger
Mall Road Waterline Looping Project
(Base Bid & Additive Alternates)
(Joel Estes Drive)
Reason for the Project
Reduce O&M by replacing old pipes
Bring systems to current standards
Improve water quality and pressure
Improve fire protection
Interconnections for system improvements
Reduce water service interruptions and water
loss
Spruce Knob offers opportunity to access other
funding sources
3
4
2/19/2025
3
SRF and BIL Program Overview
SRF = State Revolving Fund
BIL = Bipartisan Infrastructure Law
Offers loans with very low interest rates
Funds are capitalized by federal and state
contributions.
$1 Federal SRF $0.20 State
Leverage funds to increase available
capital for loans by issuing municipal
bonds
Funds are invested in investment grade
securities that are pledged to bondholders
as additional collateral
Source: CDPHE
Water Quality Control Division of the
Colorado Department of Public
Health and Environment
Department of Local AffairsColorado Water Resources and
Power Development Authority
Source: CDPHE Website
5
6
2/19/2025
4
Source: CDPHE Website
Source: CDPHE Website
7
8
2/19/2025
5
Source: CDPHE Website
Source: CDPHE Website
9
10
2/19/2025
6
Funding and Financial Strategy
▪Project Costs ($8.3M)
▪Funding
$3.5MDrinking Water Revolving Fund Base and BIL Loan
$1.5MBIL Principal Forgiveness (up-front)
$1.0M2024 EIAF (DOLA) Grant
$6.0MSubtotal Provided Funding
$2.3MWater Fund
$8.3MProject Total
$3.5MRequested Loan (BIL and SRF)
20SRF Loan Duration, years
3.25%Interest Rate
$239,263Debt Service, annual
Our Loan
We are obligated to:
Get State approval of bid package prior to
advertisement
Start construction within 12 months of loan closing
Provide annual audit proving we meet loan covenants
Conduct single audit
Meet other bond obligations.
$5,494,410 dated June 12, 2008, issued by CWRPDA
$658,000 dated July 15, 2020, issued by USDA-RD for
Park Entrance Estates
$4,493,000 dated October 11, 2022, issued to CoBank
for Prospect Mountain
11
12
2/19/2025
7
Proposed Schedule
Project Element
February/March 2025CDPHE Approval then Advertise for Bids
February/March 2025Finding of No Significant Impact
March/April 2025Loan Closing
April/May 2025Award Construction Contract
May/June 2025Start Construction
August/September 2025Complete Spruce Knob Portion
November 2026Complete Construction
Questions
and
Discussion?
13
14