Utility Committee Agenda and Packet 2021 05 11

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LLC* Ity0.f Louisville COLORADO • SINCE 1878 Memorandum To: Utility Committee CC: Heather Balser, City Manager From: Kurt Kowar, P.E., Director of Public Works and Utilities Cory Peterson, Deputy Director of Utilities Date: 5/6/2021 Re: Windy Gap Firming Project Public Works & Utilities Staff is recommending the City respond to Northern Water that Louisville will participate in the Group Financing at the 20-year term without a cash down payment for the Windy Gap Firming Project by June 1. This recommendation is consistent with the discussions at the previous Utility Committee, Finance Committee and City Council meetings on the WGFP financing. The following is an update regarding the Windy Gap Firming Project (WGFP). Timeline • October 20, 2020: City Council approved Resolution No. 83 authorizing the execution of the WGFP Allotment Contract. • January 2021: US District Court upholds the Record of Decision and rules in favor of the WGFP. • February 2021: Petitioners file an appeal on the last day of eligibility. • March 2021: US District Court orders mediation. • April 21, 2021: A settlement is reached, allowing for construction to proceed. • May 4, 2021: Northern issues Notice to Participants on Financing (requesting 1 month response) o June Provide commitment to Northern for Group Financing o June/July: Finalize remaining minor permits Secure Group Financing/Bonds o August: Notice to Proceed (NTP) for Construction Contractor 0 2024/2025: End of Construction Budget Bond interest rates have held relatively constant since the analysis presented in October 2020 and future projections indicate a slight increase for the remainder of 2021 reaching a possible 2.5% at the end of the year. The following table highlights the rates from 2020 and those anticipated for the second quarter of 2021. IA i