HomeMy WebLinkAbout09biv CB13 COUNCIL COMMUNICATION
TO: Mayor and Council
FROM: Pieter Van Ry, Sarah Stone
DEPARTMENT: Utilities
DATE: March 17, 2025
SUBJECT:
CB 13 - Amendment to Englewood 2024 Colorado Water
Resources and Power Development Authority Water Loan –
Authorized Officers
DESCRIPTION:
State Revolving Fund (SRF) water loan agreement amendment with the Colorado Water
Resources and Power Development Authority (CWRPDA) to update the Authorized Officers.
RECOMMENDATION:
Utilities staff is seeking City Council approval of an amendment to the SRF Leveraged Loan
agreement with CWRPDA. This amendment updates the project description and revises the
Authorized Officers listed in the agreement.
The Water and Sewer Board recommended that Council approve the SRF loan amendment with
CWRPDA during its February 11, 2025, meeting.
PREVIOUS COUNCIL ACTION:
April 22, 2024 – City Council approved Drinking Water Revolving Fund Loan
Agreements with CWRPDA to fund the Lead Reduction Program by emergency
Ordinance.
April 15, 2024 – City Council approved Drinking Water Revolving Fund Loan
Agreements with CWRPDA to fund the Lead Reduction Program by first reading.
March 25, 2024 – Utilities staff discussed the approval process for the Loan Agreements
with Council at Study Session.
SUMMARY:
The Bipartisan Infrastructure Law (BIL), previously referred to as the Infrastructure Investment
and Jobs Act, was signed into law on November 15, 2021. The BIL will invest more than $50
billion over the next five (5) years in U.S. Environmental Protection Agency (EPA) water
infrastructure programs, including the SRF loan programs. In Colorado, the BIL funding is
issued through the Drinking Water Revolving Fund (DWRF) in three (3) categories: 1) DWRF
BIL General Supplemental Funding, 2) DWRF BIL Emerging Contaminants Funding, and 3)
DWRF BIL Lead Service Line Funding.
On May 23, 2024, Englewood Utilities closed on two (2) loans:
DWRF BIL Lead Service Line Direct Loan: $17,551,020 (including $10,000,000 in
principal forgiveness).
Leveraged SRF Loan: $23,000,080.
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These loans were intended to fully fund the Lead Reduction Program, originally estimated at
$40 million. However, refinements to the lead service line inventory now indicate a total program
cost closer to $30 million, leaving approximately $10 million in available funds from the
leveraged SRF loan. To redirect these funds to other distribution system priorities, an
amendment to the loan agreement is required.
ANALYSIS:
Utilities recommends approval of a first amendment to the Drinking Water SRF leveraged loan
agreement with CWRPDA to update the project description and revises the Authorized Officers
listed in the agreement. In March 2023, Utilities staff identified distribution system needs that
could be funded through the leveraged SRF loan, including:
Installation of insertion valves at key locations to improve system control and mitigate
risks during water main break emergencies.
Water line replacements along S Clarkson Ave and Union Ave.
A potential new project to directly connect the Allen Water Treatment Plant to Zone 2 of
the distribution system.
To ensure these projects are eligible for SRF funding, the project description in the loan
agreement must be updated. The proposed amended project description is:
"The project consists of identifying and replacing lead service lines (LSLs), including both public
and private portions, in accordance with Bipartisan Infrastructure Law requirements.
Additionally, the City will repair and/or replace pipelines, install or replace valves, and construct
water main replacements."
Along with this amendment, Utilities staff also requests to update the Authorized Officers listed
in the loan agreement. The original agreement named two individuals from Public Works;
however, Utilities staff recommends replacing them with:
Pieter Van Ry, Director of Utilities and South Platte Renew
Sarah Stone, Deputy Director – Business Solutions and Engineering
These changes will ensure alignment with project and SRF loan oversight.
COUNCIL ACTION REQUESTED:
Motion to approve, by Ordinance, a State Revolving Fund water loan agreement amendment
with the Colorado Water Resources and Power Development Authority to update the Authorized
Officers.
FINANCIAL IMPLICATIONS:
The SRF Water Fund loan will fund the Lead Reduction Program and additional improvements
to the water distribution system for the next three (3) years in the amount of $40,000,000. This
amendment does not change the financial implications of the loan agreement.
CONNECTION TO STRATEGIC PLAN:
Infrastructure:
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Establish a long-term Capital Improvement Program
Establish a 20-year plan for financing
ATTACHMENTS:
CB#13 - First Amendment to Englewood 2024 CWRPDA Water Loan – authorized officers
Contract Approval Summary (CAS)
Amendment to CWRPDA Leveraged SRF Loan
Leveraged SRF Loan
PowerPoint Presentation
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ORDINANCE NO. ____ COUNCIL BILL NO. 14
SERIES OF 2025 INTRODUCED BY COUNCIL
MEMBER WRIGHT
AN ORDINANCE AMENDING ORDINANCE NO. 11, SERIES 2024, TO
UPDATE DESIGNATED REPRESENTATIVES AUTHORIZED TO
COORDINATE WITH THE COLORADO WATER RESOURCES AND
POWER DEVELOPMENT AUTHORITY REGARDING FINANCIAL
ASSISTANCE MATTERS
WHEREAS, on April 22, 2024, the City Council of the City of Englewood adopted
Ordinance No. 11, Series of 2024, authorizing the City to, among other things, enter into a loan
agreement with the Colorado Water Resources and Power Development Authority
(CWRPDA) under the federal Safe Water Drinking Act to finance capital improvements under
the City’s One Water Modernization Program – Water Utility System Project; and
WHEREAS, Ordinance No. 11, Series of 2024 designated Tim Hoos — Deputy
Director — Engineering and Asset Management; Brittany Payton, Business Support Specialist;
Kevin Engels, Director of Finance; and Christine Hart, Accounting Supervisor as Authorized
Officers to represent the City regarding taking action on the loan agreement such as executing
loan documents and pay requests for the water projects for construction grants and loans; and
WHEREAS, the Utilities Department seeks to update the designated Authorized
Officers by removing Tim Hoos and Brittany Payton as Authorized Officers and designating
Pieter Van Ry, Director of the Utilities Department, and Sarah Stone, Deputy Director, as the
new Authorized Officers to act on behalf of the City on all financial matters associated with
the loan agreement administered by the Colorado Water Resources and Power Development
Authority; and
WHEREAS, the updated designation of Authorized Officers ensures the efficient
administration of financial assistance agreements, aligns with departmental leadership roles
overseeing the agreement, and promotes continuity in the City’s water infrastructure
financing efforts.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF ENGLEWOOD, COLORADO, AS FOLLOWS:
Section 1. Ordinance No. 11, Series of 2024, is hereby amended to reflect the following
changes:
• Tim Hoos — Deputy Director — Engineering and Asset Management and Brittany
Payton — Business Support Specialist, are removed as Authorized Officers.
• Pieter Van Ry, Director of the Utilities Department, and Sarah Stone, Deputy
Director, are hereby designated as Authorized Officers to sign deliverable documents
on behalf of the City on all financial matters associated with grants and loans
administered by the Colorado Water Resources and Power Development Authority.
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• Kevin Engels, Director of Finance and Christine Hart, Accounting Supervisor shall
remain as designated Authorized Officers.
Section 2. General Provisions Applicable to this Ordinance. The following
general provisions and findings are applicable to the interpretation and application of this
Ordinance:
A. Severability. If any clause, sentence, paragraph, or part of this Ordinance or the
application thereof to any person or circumstances shall for any reason be adjudged by a court
of competent jurisdiction invalid, such judgment shall not affect, impair or invalidate the
remainder of this Ordinance or its application to other persons or circumstances.
B. Inconsistent Ordinances. All other Ordinances or portions thereof inconsistent or
conflicting with this Ordinance or any portion hereof are hereby repealed to the extent of such
inconsistency or conflict.
C. Effect of repeal or modification. The repeal or modification of any provision of the
Code of the City of Englewood by this Ordinance shall not release, extinguish, alter, modify,
or change in whole or in part any penalty, forfeiture, or liability, either civil or criminal, which
shall have been incurred under such provision, and each provision shall be treated and held as
still remaining in force for the purposes of sustaining any and all proper actions, suits,
proceedings, and prosecutions for the enforcement of the penalty, forfeiture, or liability, as
well as for the purpose of sustaining any judgment, decree, or order which can or may be
rendered, entered, or made in such actions, suits, proceedings, or prosecutions.
D. Safety Clauses. The City Council hereby finds, determines, and declares that this
Ordinance is promulgated under the general police power of the City of Englewood, that it is
promulgated for the health, safety, and welfare of the public, and that this Ordinance is
necessary for the preservation of health and safety and for the protection of public convenience
and welfare. The City Council further determines that the Ordinance bears a rational relation
to the proper legislative object sought to be obtained. This Safety Clause is not intended to
affect a Citizen right to challenge this Ordinance through referendum pursuant to City of
Englewood Charter 47.
E. Publication. Publication of this Ordinance may be in the City’s official newspaper, the
City’s official website, or both. Publication shall be effective upon the first publication by
either authorized method.
F. Actions Authorized to Effectuate this Ordinance. The Mayor is hereby authorized and
directed to execute all documents necessary to effectuate the approval authorized by this
Ordinance, and the City Clerk is hereby authorized and directed to attest to such execution by
the Mayor where necessary. In the absence of the Mayor, the Mayor Pro Tem is hereby
authorized to execute the above-referenced documents. The execution of any documents by
said officials shall be conclusive evidence of the approval by the City of such documents in
accordance with the terms thereof and this Ordinance. City staff is further authorized to take
additional actions as may be necessary to implement the provisions of this Ordinance, and has
authority to correct formatting and/or typographical errors discovered during codification.
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G. Enforcement. To the extent this ordinance establishes a required or prohibited action
punishable by law, unless otherwise specifically provided in Englewood Municipal Code or
applicable law, violations shall be subject to the General Penalty provisions contained within
EMC § 1-4-1.
Introduced and passed on first reading on the 18th day of February, 2025; and on second
reading, in identical form to the first reading, on the __ day of ____, 2025.
Othoniel Sierra, Mayor
ATTEST:
_________________________________
Stephanie Carlile, City Clerk
I, Stephanie Carlile, City Clerk of the City of Englewood, Colorado, hereby certify that the
above and foregoing is a true copy of an Ordinance, introduced and passed in identical form
on first and second reading on the dates indicated above; and published two days after each
passage on the City’s official website for at least thirty (30) days thereafter. The Ordinance
shall become effective thirty (30) days after first publication on the City’s official website.
Stephanie Carlile
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Contract Number
City Contact Information:
Staff Contact Person Phone
Title Email
Summary of Terms:
Original Contract Amount Start Date 5/23/2024
Amendment Amount End Date
Amended Contract Amount Total Term in Years
Vendor Contact Information:
Name Contact
Address Phone
Email
City State Zip Code
Contract Type:
Please select from the drop down list
Descripiton of Contract Work/Services
Colorado Water Resources and Power Development
Authority
Amendment to Loan
The SRF Water Fund loan will fund the Lead Reduction Program and additional improvements to the water distribution system for the
next three (3) years in the amount of $40,000,000. This amendment does not change the financial implications of the loan agreement.
First Amendment to the Leveraged SRF Loan
$ 23,000,080
$ -
$ 23,000,080
303.349.3766Sarah Stone
SStone@englewoodco.govUtilities Deputy Director – Business
Solutions and Engineering
City of Englewood, Colorado
CONTRACT APPROVAL SUMMARY
The Bipartisan Infrastructure Law (BIL), previously referred to as the Infrastructure Investment and Jobs Act, was signed into law on November 15, 2021.
The BIL will invest more than $50 billion over the next five (5) years in U.S. Environmental Protection Agency (EPA) water infrastructure programs,
including the State Revolving Fund (SRF) loan programs. In Colorado, the BIL funding is issued through the Drinking Water Revolving Fund (DWRF) in three
(3) categories: 1) DWRF BIL General Supplemental Funding, 2) DWRF BIL Emerging Contaminants Funding, and 3) DWRF BIL Lead Service Line Funding.
On May 23, 2024, Englewood Utilities closed on two (2) loans:
• DWRF BIL Lead Service Line Direct Loan: $17,551,020 (including $10,000,000 in principal forgiveness).
• Leveraged SRF Loan: $23,000,080.
These loans were intended to fully fund the Lead Reduction Program, originally estimated at $40 million. However, refinements to the lead service line
inventory now indicate a total program cost closer to $30 million, leaving approximately $10 million in available funds from the leveraged SRF loan. To
redirect these funds to other distribution system priorities, an amendment to the loan agreement is required.
Renewal options available no change
Payment terms
(please describe terms or
attached schedule if based
on deliverables)
Page 235 of 2454
City of Englewood, Colorado
CONTRACT APPROVAL SUMMARY
Procurement Justification of Contract Work/Services
Budget Authorization of Contract Work/Services
Source of Funds:
Revenue CAPITAL ONLY Item A B C D 1=A-B-C-D
Capital Tyler New World Budgeted?Spent To Encumbrance Contract Budget
Operating Year Project # / Task #Fund Division Account Line Item Description YES / NO Budget Date (Outstanding PO)Amount Remaining
C -$ -$ -$ -$ -$
O -$ -$ -$ -$ -$
Total Current Year -$ -$ -$ -$ -$
C -$ -$ -$ -$ -$
O -$ -$ -$ -$ -$
Total - Year Two -$ -$ -$ -$ -$
GRAND TOTAL -$ -$ -$ -$ -$
Process for Choosing Contractor:
Attachment (For Capital Items Only / Expense Line Item Detail is Located in OpenGov):
All Other Attachments:
PLEASE NOTE:
City Council Approval Required for the following:
- Budgeted Contracts or Agreements greater than $250,000
- Non-Budgeted Contracts or Agreements greater than $125,000
General Ledger Account
String
n/aSolicitation Name and Number:
NOTES/COMMENTS (if needed): This amendment does not change the financial implications of the loan agreement.
Utilities staff is seeking Water and Sewer Board recommendation for City Council to approve an amendment to the Drinking Water State Revolving Fund
(SRF) loan agreement with the Colorado Water Resources and Power Development Authority (CWRPDA). This amendment updates the project description
and revises the Authorized Officers listed in the agreement.
The SRF Water Fund loan will fund the Lead Reduction Program and additional improvements to the water distribution system for the next three (3) years
in the amount of $40,000,000. This amendment does not change the financial implications of the loan agreement.
Solicitation Evaluation Summary/Bid Tabulation Attached
Prior Month-End Project Status and Fund Balance Report
Evaluation Summary/Bid Tabulation AttachedEvaluation Summary/Bid Tabulation AttachedEvaluation Summary/Bid Tabulation AttachedContract
Copy of Original Contract if this is an Amendment
Copies of Related Contracts/Conveyances/Documents
Addendum(s)
Exhibit(s)
Certificate of Insurance
Page 236 of 2454
This FIRST AMENDMENT TO LOAN AGREEMENT ("Amendment”) is made
and entered into as of this ______ day of ________________2025, by and between the
Colorado Water Resources and Power Development Authority (the “Authority”) and CITY
OF ENGLEWOOD, COLORADO, ACTING BY AND THROUGH ITS WATER
UTILITY ENTERPRISE (the “Governmental Agency”);
WITNESSETH THAT:
WHEREAS, pursuant to the federal Safe Drinking Water Act of 1996 and Section
37-95-107.8, the Authority administers the Drinking Water Revolving Fund and provides
financial assistance to governmental agencies in financing the costs of certain water projects;
and
WHEREAS, the Governmental Agency and the Authority entered into a Loan
Agreement dated as of May 1, 2024 (the "Drinking Water (“DW”) State Revolving Fund
(“SRF”) Revenue Bonds 2024 Series B Leveraged Loan Agreement") for a loan through the
Drinking Water Revolving Fund to finance a portion of the cost of a water project of the
Governmental Agency (the "DW SRF Revenue Bonds 2024 Series B Leveraged Loan"); and
WHEREAS, the Governmental Agency has requested that the Project Description of the
Project to be financed under the 2024 Leveraged Loan Agreement be amended to expand the
proposed project; and
WHEREAS, the Project as expanded is authorized by the Project Eligibility List for
the Drinking Water Revolving Fund that has been approved by the Colorado Legislature;
NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the Authority and the Governmental Agency
hereby agree as follows:
1. Amendment of Project Description. The Project Description set forth in Exhibit A (1)
of the 2024 Leveraged Loan Agreement is amended to read as follows:
"The project consists of identifying and replacing lead service lines (LSL), to include
both the public and private portions of the identified lead service lines, in accordance
with the Bipartisan Infrastructure Law requirements. Additionally, the City will repair
and/or replace pipeline, install or replace valves, and construct water main
replacement."
2. No Other Amendment. Except as hereby amended, the DW SRF Revenue Bonds
2024 Series B Leveraged Loan Agreement remains in full force and effect.
A-1
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IN WITNESS WHEREOF, the Authority and the Governmental Agency have caused this
Amendment to Leveraged Loan Agreement to be executed, sealed and delivered, as of the date set
forth above.
(SEAL) COLORADO WATER RESOURCES
AND POWER DEVELOPMENT
AUTHORITY
ATTEST:
By:
Assistant Secretary Executive Director
(SEAL)
CITY OF ENGLEWOOD, COLORADO,
ACTING BY AND THROUGH ITS
WATER UTILITY ENTERPRISE
ATTEST:
By:
City Clerk Mayor
A-2
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its discretion, deem necessary to enforce the obligations of the Governmental Agency to the
Authority pursuant to Section 3.03, Section 3.06 and Section 5.04 hereof.
SECTION 5.08 Default by the Authority. In the event of any default by the
Authority under any duty, covenant, agreement or obligation of this Loan Agreement, the
Governmental Agency's remedy for such default shall be limited to injunction, special action,
action for specific performance or any other available equitable remedy designed to enforce the
perfonnance or observance of any duty, covenant, obiigation or agreement of the Authority
hereunder as may be necessary or appropriate. The Authority shall on demand pay to the
Governmental Agency the reasonable fees and expenses of attorneys and other reasonable
expenses in the enforcement of such performance or observation.
ARTICLE VI.
MISCELLANEOUS
SECTION 6.01 Notices. Any notice, demand, or request required or authorized
by this Agreement to be given to another notice recipient listed below, or in Exhibit B in the case
of the Governmental Agency (including overnight delivery service) to each of the notice recipients
and addresses below or in Exhibit B for the receiving notice recipient. Any such notice, demand,
or request shall be deemed to be given (i) when sent by email transmission, or (ii) when actually
received if delivered by courier or personal delivery (including overnight delivery service). Each
addressee listed below ad the Governmental Agency shall have the right, upon IO days' prior
written notice to the other notice recipient, to change its list of notice recipients and addresses
listed below or in Exhibit A in the case of the Governmental Agency. The notice recipients below
and the Governmental Agency may mutually agree in writing at any time to deliver notices,
demands or requests through alternate or additional methods, such as electronic:
(a)Authority:
(b)Trustee:
(c)Loan Servicer:
139095716.3
Colorado Water Resources and
Power Development Authority
1580 Logan Street, Suite 820
Denver, Colorado 80203
Attention: Executive Director
Email Address: krnclaughlin@cwrpda.com
U.S. Bank Tmst Company, National Association
Denver Tower
950 17th Street
Denver, Colorado 80202
Attention: Corporate Trust Services
Email Address: jennifer.petruno@usbank.com
U.S. Bank Trust Company, National Association.
Denver Tower
950 17th Street
24
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DESCRIPTION OF THE LOAN
1.
EXHIBIT B
2.
Address of Governmental Agency:
City of Englewood, Colorado, Acting By and Through Its Water Utility
Enterprise
1000 Englewood Parkway
Englewood, CO 80110
Attention: Sarah Stone
Ernai l Address: Sstone@englewoodco.gov
Cost of Project: Approximately $40,000,000
3.Principal Amount of Loan Commitment: $22,448,980
4.Loan Term: The date commencing on the Loan Closing and ending on the final
Loan Repayment date set forth in Exhibit C.
5.Description of the Project: See Exhibit A, 1.
6.Authorized Officer(s):
Tim Hoos -Deputy Director -Engineering and Asset Management
Brittany Payton -Business Support Specialist
Kevin Engels -Director of Finance
Christine Hart -Accounting Supervisor
7.Project Completion Date: May 2027
B-1
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SRF Water Loan Agreement
Amendment
Presented By
Utilities Deputy Director –Business Solutions and Engineering, Sarah Stone
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Background
•Bipartisan Infrastructure Law (BIL)
•Signed November 15, 2021
•Invests more than $50 billion over the next 5
years in USEPA water infrastructure programs
•Drinking Water Revolving Fund (DWRF)
•Colorado Water Resources and Power
Development Authority (CWRPDA)
•Englewood’s DWRF Loans
•BIL Direct Loan -$17.55 million
•BIL Principal Forgiveness -$10 million
•Leveraged Loan -$23.0 million
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Proposed Loan Amendment
•Update Project Description
•Insertion valves at key locations
•Water line replacement
•S Clarkson St.
•Union Ave.
•Connect Allen WTP to Zone 2 of
distribution system
•Add Authorized Officers
•Pieter Van Ry, Director of Utilities and
South Platte Renew
•Sarah Stone, Deputy Director –
Business Solutions and Engineering
•Water and Sewer Board recommended City Council
approval during its February 11, 2025, meeting.Pa
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Questions?
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Thank you
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