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Boulder council adopts $2.161 million water revenue bonds, approves contractor payments for Phase 1
Summary
The City of Boulder approved a $2,161,000 water system revenue bond through the DNRC loan program and authorized contractor payments that cover Phase 1 well work and startup costs, citing the funds will pay for two new wells and associated infrastructure.
The City of Boulder on June 16 adopted a resolution to issue $2,161,000 in water system revenue bonds to finance Phase 1 of the municipal water project. Bond counsel Nathan Bilyeu told the council the borrowing consists of a $1,621,000 subordinate taxable Series 2025A bond and a $540,000 Series 2025B bond under the DNRC Drinking Water State Revolving Loan Program.
Bilyeu said the loan package includes a loan‑forgiveness portion and a financed balance, "It will be 0% on the loan forgiveness portion and 2% on the remaining balance," he said. City Engineer Elly Schmeltzer said the proceeds will fund phase 1 work, "two new wells as well as all the infrastructure required to operate the wells." The council adopted Resolution 2025‑04 by voice vote (motion by Drew Dawson, seconded by Mike Taylor; recorded as carrying with four aye votes).
Council also approved two contractor payments tied to the Phase 1 work. The council authorized Pay Application #4 (retainage) to O'Keefe in the amount of $6,067.50, described by Schmeltzer as the 5% retainage for Well 4 drilling; and Pay Application #1 to Karnath Contracting for $59,345.55 to cover start‑up costs for Schedule A infrastructure. Both payments passed by motion with four aye votes.
The financing decision and contractor payments follow staff and counsel review of the loan documents. City Administrator Brian Bullock said staff and bond counsel had gone over the resolution in detail prior to the meeting; Bilyeu summarized the state's required terms for the loan. The council did not request further substantive changes to the bond terms at the meeting.
Next steps: with resolution adoption, the city will move forward with closing under the DNRC program and proceed with Phase 1 construction payments and retainage releases as the work continues.
