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Public Notice Public Notice Mt. Crested Butte Water & Sanitation District Regular Board Meeting Agenda Tuesday, March 10, 2020 5:00 p.m. 100 Gothic Road, Mt. Crested Butte CO 81225 1. Call to Order 2. Citizens Comment Period • Citizens may make comments on items NOT scheduled on the agenda. Per Colorado Open Meetings Law, no Board discussion or action will take place until a later date, if necessary. You must sign in before speaking. Comments are limited to three minutes. 3. Cancel Election and Declare Candidates Elected. Resolution 2020-2 4. Election Updates 5. Water Treatment Plant Expansion Project Update 6. Wastewater Enterprise. Resolution 2020-3 7. WTP Expansion Project 90% Design Review 8. Water Committee Update 9. District Manager Report 10. February 2020 Financial Report 11. Approve Meeting Minutes • February 11, 2020 12. Legals 13. New/Old Business Before the Board 14. Executive Session pursuant to C.R.S. § 24-6-402(4)(b), which allows conferences with the District’s attorney for the purposes of receiving legal advice on specific legal questions. The purpose of the executive session will be to discuss with the District’s attorney the process for considering the Hunter Ridge Petition for Inclusion. 15. Adjourn The Board may address individual agenda items at their discretion as necessary to accommodate the needs of the Board and audience. Return to Agenda Resolution No. 2020-2 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE MT. CRESTED BUTTE WATER AND SANITATION DISTRICT CANCELING ELECTION and DECLARING CANDIDATES ELECTED WHEREAS: A. The Board of Directors of the District is authorized to cancel the election by resolution and declare candidates elected at the close of business on the sixty-third day before the election to be conducted on May 5th, 2020; and B. The Board of Directors has duly certified that there were not more candidates for director than offices to be filled, including candidates filing affidavits of intent to be write-in candidates, NOW, THEREFORE, pursuant to 1-13.5-513 & 1-11-103(3), C.R.S., the Board HEREBY cancels the regular election to be conducted on the 5th day of May 2020 by formal resolution and THE BOARD DECLARES THE FOLLOWING CANDIDATES ELECTED BY ACCLAMATION FOR THE FOLLOWING TERMS OF OFFICE: Carlos Velado 2 Year Term until May 2022 Nicholas Kempin 3 Year Term until May 2023 Nancy Woolf 3 Year Term until May 2023 APPROVED AND ADOPTED by the Board of Directors of the District on this 10th day of March 2020. MT. CRESTED BUTTE WATER AND SANITATION DISTRICT, A Colorado Special District BY: Chairperson: Brian Brown ATTEST: Board Secretary: Perry W. Solheim 1 of 36 Return to Agenda 2 of 36 Return to Agenda 3 of 36 Return to Agenda NOTICE OF CANCELLATION AND CERTIFIED STATEMENT OF RESULTS NOTICE IS HEREBY GIVEN by the Mt. Crested Butte Water and Sanitation District, Gunnison County, Colorado, that at the close of business on the sixty-third day before the election, there were not more candidates for director than offices to be filled, including candidates filing affidavits of intent to be write-in candidates; therefore, the election to be held on May 5th, 2020 is hereby canceled pursuant to section 1-13.5-513(6) C.R.S. The following candidates are hereby declared elected: Carlos Velado 2 Year Term until May 2022 Nicholas Kempin 3 Year Term until May 2023 Nancy Woolf 3 Year Term until May 2023 ATTEST: Designated Election Official: Perry W. Solheim [email protected] 970-349-7575 100 Gothic Road Mt. Crested Butte, CO 81230 5 of 36 Return to Agenda COLORADO WATER RESOURCES & POWER DEVELOPMENT AUTHORITY Logan Tower Bldg - Suite 620, 1580 Logan Street, Denver, Colorado 80203-1942 303/830-1550 · Fax 303/832-8205 · [email protected] M E M O R A N D U M March 2, 2020 TO: Project Finance Committee and Karl Ohlsen FROM: Jim Griffiths, Finance Director Beth Williams, Financial Analyst Austin Reichel, Financial Analyst RE: Review of the Mt. Crested Butte Water and Sanitation District and the Parkville Water District Drinking Water Revolving Fund (“DWRF”) The Division of Local Government has forwarded to the DWRF Committee its analyses of the above listed projects. The DWRF Committee, composed of representatives from the Division of Local Government, the Water Quality Control Division, and the Authority, has reviewed the technical and financial aspects of the proposed projects and agreed to forward the requests to the Authority’s Project Finance Committee with the following recommendations: Mt. Crested Butte Water and Sanitation District Mt. Crested Butte Water and Sanitation District (the “District”), located in Gunnison County, is seeking a leveraged loan through the DWRF loan program in the amount of $23,175,000 plus cost of issuance. The project consists of constructing a new water treatment plant with a capacity of 1.5 MGD, a new pump station facility at the existing East River location, a new raw water pipeline connecting the two facilities, and associated appurtenances. The District’s project was authorized by HJR 17-1003. Recommendation Based on the attached credit report, staff recommends that the Project Finance Committee forward to the Board a recommendation authorizing staff to begin negotiating a DWRF leveraged loan with the District in the amount of $23,175,000 plus cost of issuance. The loan will be for a term of 20 years plus construction, at an interest rate of 70% of the market rate on the Authority’s 2020 Series A State Revolving Fund Revenue Bonds, subject to the District increasing user rates, if necessary, sufficiently to meet the Authority’s rate covenant prior to loan execution. The Board will consider this request on March 6, 2020. Parkville Water District The Parkville Water District (the “District”), located in Lake County, is seeking a Disadvantaged Communities direct loan through the DWRF loan program in the amount of $2,000,000. The project consists of numerous improvements throughout the District’s existing water treatment facility, including: installation of new filter underdrains; replacement of current adsorption clarifiers and filter media; rehabilitation of modular tanks; and replacement or upgrades to existing controls, valves, piping, meters, and other associated appurtenances. The project will also install a new emergency power generator. The District’s project will be authorized by SJR 20-003. Recommendation Based on the attached credit report, staff recommends that the Project Finance Committee forward to the Board a recommendation authorizing staff to begin negotiating a DWRF Disadvantaged Communities direct loan with the District in the amount of $2,000,000. The loan will be for a term of 20 years, at an interest rate of 1.5%, subject to inclusion of the Project on the Drinking Water Revolving Fund Project Eligibility List, and adoption of such list, by a Joint Resolution of both houses of the General Assembly presented to the Governor, prior to loan execution. The Board will consider this request on March 6, 2020. 6 of 36 Return to Agenda Note: A telephone conference call has been scheduled for 9:00 a.m. Monday, March 2, 2020. The call-in number is: 1-866-550-4230. You will be prompted to enter conference code: 108787# followed by the PIN: 976#. Please say your name, followed by # and you will be connected to the conference call. Attachments: Mt. Crested Butte Water and Sanitation District 2020 DWRF Credit Report Parkville Water District 2020 DWRF Credit Report 7 of 36 Return to Agenda DWRF LEVERAGED LOAN CREDIT REPORT Mt. Crested Butte Water & Sanitation District (“The District”), Gunnison County Recommendation: CONDITIONAL APPROVAL Project Budget Loan Request: $23,175,000 DWRF Loan: $23,175,000 Est. Interest Rate & Term: 2.0%, 20 years Total: $23,175,000 Est. Annual Debt Service: $1,411,617 Pledge: Water & Sewer Revenue Current Rate: $58.49 (W), $47.07 (S) Estimated Rate Increase: $26.57 PROJECT DESCRIPTION: This project consists of constructing a new water treatment plant with a capacity of 1.5 MGD, a new pump station facility at the existing East River location, a new raw water pipeline connecting the two facilities and associated appurtenances. COMMUNITY PROFILE: Mt. Crested Butte W&S Avg. Annual District 2015 2016 2017 2018 2019 2020 Change District Population 2,301 2,313 2,323 2,346 2,346 2,380 0.57% Gunnison County Population 16,131 16,448 16,884 17,173 1.58% Gunnison County Jobs 11,104 11,368 11,940 12,149 2.27% Number of Water Taps 924 929 933 942 942 956 0.57% Number of Sewer Taps 775 782 790 800 800 812 0.78% Assessed Value ($000) 85,930 107,317 100,264 102,102 102,357 125,402 6.50% Actual Value ($000) 970,887 960,358 1,059,977 1,076,838 1,317,877 6.30% BORROWER BRIEF: The District is located in Gunnison County, about 31 miles north of the City of Gunnison and just north of the Town of Crested Butte. Mt. Crested Butte (Town) MHI $56,293 2014‐2018 ACS 120 68,811 100 Households 80 State MHI 60 40 20 0 Income in thousands RECOMMENDATION: The District serves a mountain community in Gunnison County. This proposed loan is necessary to build a new water treatment plant, pump, and main. The loan amount is large on a per tap basis, however, the high assessed value, commitment to increased user fees, and past success in the SRF program make the District a strong potential borrower. We therefore recommend the DWRF Committee approve a $23,175,000 leveraged loan to the Mount Crested Butte Water & Sanitation District on the condition that user fees are increased sufficiently to meet coverage ratio requirements.
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