The City Council authorized an application for the issuance of Department of Natural Resources and Conservation (DNRC) bonds for the Zone 3 Chapple Reservoir Expansion project (W.O. 08-25).  The bonds will fund the construction of an additional storage reservoir to meet current storage deficits and support ongoing growth in the area. The new reservoir will serve Zone 3 West and will be located west of Rimpoint and north of Rimrock.

This resolution authorizes the issuance and fixes the terms and conditions of the bond. 

After the council approves the resolution, the bond closing will take place.  

Department of Natural Resources and Conservation, through its State Revolving Fund Program, offers low interest loans that fund water and wastewater projects with no closing costs.  The project loan is $6,100,000 at 3% for 20 years.  

Staff recommends that the City Council approve the attached resolution setting the form and terms for the DNRC bond.