On Tuesday night, May 30, at 7 PM at Silt Town Hall, the Silt Board of Trustees will hear from its Staff and consultants that they recommend that the Board approve a loan application process to perform a significant renovation project on the Silt Water Plant.  The recommended loan amount will be $28 M, with up to an expected $7.75 M in principal forgiveness and grants available to the Town.  Town Staff is also busy assessing other grants and loans to reduce the cost of the project to Town ratepayers.

Trustee’s discussion on the resolution granting staff authority to apply for the loan will follow a presentation by staff and consultants focusing on:

• The rationale for the project
• Alternatives that were considered
• Selected alternative
• Discussion of reduced project scope
• Projected average/median monthly rates; progress of rates/costs
• Recommended rate structure
• 20-year plan, as required by SRF
• Cost reduction efforts/results by Dewberry and Garney
• Funding summary
• Schedule

Over the last year, Dewberry engineers conducted a technical study of the Silt W/WW plants and produced master plans to be used specifically to develop short and long-term plans and costs for implementing improvements.  This work was critical in order to complete the “Project Needs Assessment” (PNA) for the State of Colorado by their June 30, 2022 deadline.  The PNA is required in order to be eligible for low interest loans and grants offered by the Federal government through the State.  The current loan deadline for the Drinking Water Revolving Fund is June 15, 2023.  The next opportunity to apply for the loan will be in January 2024. 

Town Staff have been working with consultants and State of Colorado staff to document the need for the project, how to accomplish it and how to pay for it.  Personnel have spent the entire time evaluating and re-evaluating strategies, costs, funding sources, rate structures, etc. in order to prepare a loan application package this year. 

Our contract with Garney, our construction manager at risk (CMAR), requires them to give us a value for the work based on a 60% design completion of construction documents on June 9.  That document turnover has now been completed and they are busy evaluating costs.  Staff will make a progress report to the Board at its June 12 meeting. 

Once approved by the State, the loan amount can be reduced, but not increased.  Because of this, the Town has been advised by the State that it is better to apply for more than needed initially.  There is no obligation to accept the loan by passing this resolution.  The Town can change its direction anytime prior to the issuance of bonds for the project in the fall of 2023. 

More information:  Silt Water Plant Planning Documents