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RESOLUTION Approving LOAN AGREEMENT AMONG THE CITY OF COMMERCE CITY AND THE COMMERCE CITY E-470 Commercial Area GENERAL IMPROVEMENT DISTRICT REGARDING MUTUALLY BENEFICIAL INFRASTRUCTURE IMPROVEMENTS
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Summary and Background Information:
• Denver Water is willing to convert a temporary water connection between Denver Water's system and the South Adams County Water and Sanitation District (SACWSD) water system at Tower Road to be a permanent connection.
• This connection has a fee associated with it similar to a tap fee, which pays for the transmission conduits, pumping and treated water storage facilities.
• SACWSD is willing to purchase 1.7 million gallons per day (MGD) of connection capacity to loop their water distribution system, since that is the amount needed to "armor" the existing customers.
• SACWSD does not purchase capacity for anticipated development but instead requires developers to bring their own water and purchase needed capacity.
• Since there are few customers in the ECAGID area, the ECAGID proposes to purchase the remaining 1 MGD of capacity at a cost of $1,238,663.
• The ECAGID does not have adequate fund balance or revenue to make this purchase therefore a loan in the amount of $1,240,000 from the City to the ECAGID is proposed.
• The source of the City's loan will be the fund balance in Capital Expenditures Fund.
• This resolution approves the Loan Agreement between the City and the ECAGID.
Staff Responsible (Department Head): Roger Tinklenberg
Staff Member Presenting: Roger Tinklenberg
Financial Impact: Loan from City to ECAGID of $1.24 million at 4% interest.
Funding Source: City Capital Expenditures Fund
Recommended Council Action: I move to approve Resolution 2014-89