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Ridgway approves $650,000 loan and issues notice of award for ductile iron pipe replacement
Summary
The town agreed to a $650,000 loan from the Colorado Water Resources and Power Development Authority at 3.25% to help finance a ductile iron pipe replacement project and issued a contingent Notice of Award to Ridgway Valley Enterprises, Inc., with a not-to-exceed contract amount of $950,000 pending loan and grant finalization.
Ridgway’s Town Council approved an emergency ordinance authorizing a $650,000 loan from the Colorado Water Resources and Power Development Authority to help finance the ductile iron pipe replacement project and issued a contingent Notice of Award to the low bidder.
Manager Preston Neill told the council the loan would carry a 3.25% interest rate and mature in 21 years, with repayment to be made from water enterprise revenues. Council approved Emergency Ordinance No. 02-2024 to enter the loan agreement and authorize a bond to document the loan (motion by Councilor Lakin; second by Councilor Kroger).
Staff reported that three bids were received for the ductile iron pipe replacement and the low bid was submitted by Ridgway Valley Enterprises, Inc. for $869,425. The Town’s budget included a $600,000 grant from the Colorado Department of Local Affairs and a planned $650,000 loan; staff recommended upsizing pipes, valves and fittings and setting the Notice of Award with a not-to-exceed amount of $950,000. Council issued the Notice of Award contingent on finalizing the loan agreement with the Colorado Water Resources and Power Development Authority and contracting the DOLA grant (motion by Councilmember Scovill; second by Mayor Pro Tem Meyer).
Council and staff stated construction would begin in spring 2025 if awarded and the loan and grant contingencies are satisfied. No vote tallies were provided in the transcript beyond the record that motions carried unanimously on roll call votes.
The actions move a water system capital replacement project into the procurement and contracting stage while aligning financing through a state loan and an anticipated state grant.
