To: Members of Town Council
From: Mark Marlowe, P.E., Director of Castle Rock Water
Title
Resolution Expressing the Intent of the Town to be Reimbursed for Certain Capital Expenditures Relating to Stormwater Improvements of the Town
Body
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Executive Summary
This memo has been prepared to request Council approval of a resolution expressing the intent of the Town to be reimbursed for certain capital expenditures relating to stormwater improvements of the Town (See Attachment A). As part of the approved 2020 budget and financial plan, the Stormwater Enterprise incorporated a $10 Million dollar debt financing to provide near term cash flow funding for completion of key legacy stormwater projects in the capital implementation plan (CIP). A request for proposal (RFP) has been issued to banks for a $10 Million dollar 2019 bank loan financing. Proposals were due back November 1, 2019 and staff will bring a recommendation for a Loan Agreement Ordinance with the recommended bank to Council on December 3, 2019 (1st reading) and December 17, 2019 (2nd reading and emergency adoption). This reimbursement resolution will allow expenditures between now and the closing date for the Loan Agreement to accrue to the loan as long as those expenditures occur within sixty days prior to the closing.
History of Past Town Council, Boards and Commissions or Other Discussions
On August 28, 2019, the Annual Rates and Fees Study was presented to the Water Commission. It included a discussion of the stormwater loan and reimbursement resolution. Commission recommended Council approval.
On September 3, 2019, the draft Budget and Rates and Fees Study were presented to Council. Both of these included discussion of the proposed loan and reimbursement resolution. Both the draft Budget and Rates and Fees Study were approved on the first reading.
On September 17, 2019, the draft Budget and Rates and Fees Study were presented to Council. Both of these included discussion of the proposed loan and reimbursement resolution. Both the draft Budget and Rates and Fees Study were approved on the second reading. Castle Rock Water staff presented this resolution expressing the intent of the Town to be reimbursed for certain capital expenditures relating to stormwater improvements of the Town to the Castle Rock Water Commission (CRWC) on October 23, 2019. Commission voted unanimously to recommend Council approval of the resolution.
Discussion
A memo summarizing the legacy stormwater projects included for potential debt financing and the criticality of those projects is included in Attachment B. The Stormwater Enterprise estimates that it could spend up to $900,000 between November 6 and December 31, 2019. These expenditures could be reimbursed from the debt proceeds assuming that Council approves this resolution. The overall schedule for the Loan Agreement Ordinance is provided as Attachment C. Concurrently with this resolution and work on the Loan Agreement Ordinance, Castle Rock Water is confirming its Stormwater Enterprise status with an Ordinance Establishing a Stormwater Enterprise of the Town of Castle Rock, Colorado, see Attachment D.
Budget Impact
The reimbursement resolution and bank loan are both consistent with the approved 2020 budget. There are no impacts to the 2019 budget.
Staff Recommendation
Staff and CRWC recommend approval of the Resolution expressing the intent of the Town to be reimbursed for certain capital expenditures relating to stormwater improvements of the Town.
Proposed Motion
“I move to approve the resolution as introduced by title”.
Attachments
Attachment A: Reimbursement Resolution
Attachment B: Critical Stormwater Prospects Memo
Attachment C: Loan Agreement Ordinance Schedule
Attachment D: Stormwater Enterprise Ordinance