Hondius Water Users Project Committee – 11/19/15 Meeting Minutes
Present: Jim Redman, Tony Burroughs, Don Piepgras, Bill Rawsky, Beth Coulson
Town Meeting Update
Committee members met with representatives of the Town of Estes Park earlier this month. Meeting was to discuss the Town’s recommendation that the project have a storage tank (as presented in the October 2nd public meeting), in an effort to determine if the estimated project cost can be reduced. The Town representatives indicated that the Town would be willing to share in some of the costs as they would propose a location for the tank that would benefit more than just those benefited from the Hondius water replacement project. Unfortunately, the representative from the Town who could discuss the Town’s proposed allocation of the costs of the tank between the Town and the Hondius water replacement project was not present.
Our original estimated cost for a pump only system increased from 2.7 million to 3.1 million largely due to the Town’s assessed need for more pump capacity and an additional line if the tank were not included in the system design. The recommended tank and pump system was originally estimated to cost 3.3 million (as presented in the October public meeting) prior to any cost allocation participation by the Town. As a result, the costs of these alternatives are quite similar now, and with participation by the Town in the costs of the tank option, this may actually be the least costly of the alternatives now. Also with the tank system, there would likely be no need for a generator.
The Town’s proposed location (although no procedures had been taken as yet by the Town to determine the method of obtaining approval for the location) for the tank would be above Noble to the Northeast just over the top of the rise above (at approximately 8,800 elevation). It was discussed that the tank would probably be ultimately barely visible. The Town indicated that this location for the tank would also provide fire-fighting ability for properties along Elm and to the East of the area currently served by the Hondius system, as well as properties around the Elkhorn Lodge area on the other side of Estes.
USDA Funding Option
An alternative source of financing the project was presented to Jim by the Larimer County representative, and he also indicated that a representative of the Town and he had recently met with a representative of the USDA regarding the potential for them to fund this project. This has a little bit higher interest rate (3.25% for the fourth quarter 2015) but a longer payback period of up to 40 years. Another advantage is the labor costs could be less as the USDA does not require labor wages to be paid in accordance with Davis Bacon requirements. Attempts are being made by the County representative to set up an additional meeting with the USDA.
Engineering Costs Discussion
Additional detailed engineering work is required as the project advances. The ability to pay for such costs by raising more funds from the Homeowners is undesirable. Jim discussed the process for such funding with the County representative, who described that he foresaw the process playing out in a manner that the estimated project cost from the preliminary engineering work would be used for our purposes of meeting with the County Commissioners and forming the LID. Once the LID is formed, it should be relatively easy for us to obtain financing for the more detailed engineering work and the costs of such work should be able to be paid with the proceeds from the loan to finance the project.
Response Letters from Non-Hondius Water Users Update
Jim reported that the County sent approximately 60 letters of introduction to the project to the non-Hondius High Drive homeowners (there were unfortunately a few duplicates for owners that are currently Hondius users so approximately 52 of the letters were to Non-Hondius users). For the approximately 15 responses received so far, about 50 % were interested and 50% were not interested. This information was followed by a discussion of what the LID make-up would be. Jim has previously spoken with County representatives on this subject but did not get a clear answer. He will follow up with the applicable contact at the County to try to get a final clarification.
Next Steps
We do not know if the Town is actively pursuing the property for the tank. After the Town meeting Jim sent an email and asked that a follow up meeting be held to further discuss the allocation of costs for the tank option between the Town and the Hondius project. Future steps include additional public meetings, including with with the County Commissioners. If things continue favorably, formation of the LID would be pursued and this would have to be put on a November ballot.
Although a busy holiday season is approaching, Jim’s availability will decrease after the new year. Rather than adjourning until after Christmas it was decided to meet again next month.
Closing.
Next Meeting: Tuesday, December 15th, 6:00 PM MST