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. , e e STATE OF COLORADO 721 Stale Cenlenmal BUIlding 1313 Sherman Slreel Denver. ColoradO 80203 PhOne 13031 866.344 1 FAX (303) 86&-4474 MEMORANDUM . COLORADO WATER CONSERVATION BOARD Department of Natural Resources (UPDATED 11/12/93) Roy Romer Governor TO: Members, CWCB Daries C, Lole, P,E Director. eWeB FROM: John Van Sciver DATE: October 27, 1993 SUBJECT: Agenda Item 9a, November 9-10, 1993, Board Meeting-- Military Park Reservoir Co., Conversion of Emergency Loan to a Construction Fund Loan. BACKGROUND During the 1992 inspection, it was discovered that the outlet pipe for the Military Park Dam had several holes in it, adjacent to the gate valve. While temporary repairs were being made it was also discovered that the rest of the corrugated metal outlet pipe was in very poor condition. The company decided to replace the entire pipe in 1993, and employed Mr. Ed Currier, P.E. to develop plans that were later approved by the State Engineer. An Emergency Loan in amount of $30,000 (30 years, 4.5%) was approved by the CWCB Board on July 22, 1993. Attempts to bid the project in August 1993 were unsuccessful, with only one bid received a.t $45,000. This occurred because most contractors had already lined up work for the remainder of the short construction season. The company then decided to re-bid the job in the spring of 1994, and complete the project in the summer/fall of 1994. DISCUSSION This loan can be handled as a routine Construction Fund loan, since funds will not be required until summer of 1994. Since interest rates have fallen slightly since the Emergency Loan was approved, a standard loan rate of 4% (instead of 4.5%) will be recommended. The company believes it can successfully bid the job at $30,000 (which is the Engineer's estimate) by bidding the job in early spring when contractors are looking for work.