BOARD00171 ‎(2)‎

• Board Meeting Date: 5/23/2007
• Description: CF Section - Revisions to Existing Project Loans - Bijou Irrigation District - Empire Reservoir Rehabilitation
• Board Meetings - Doc Type: Memo

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The lake has a surface area of 2,842 acres. The District has a right to store 37,709 AF, but the
maximum storage is 36,142 AF at gage height (OH) 30,0. The reservoir was restricted (since
March 1985) to GH 29.0 by the State Engineer's Office (SEO), due to safety concerns resulting
from the absence of a spillway. This one foot reduction in gauge height resulted in a storage loss
of 2,682 AF. Additionally, the SEO was concerned about the stability of the embankments
during flood stage.

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This project provided for a spillway and other improvements as required by the SEO, to allow
the District to store at the normal highwater line of GH 30.0. The project consisted of the
construction of a new unregulated 40 foot wide spillway and outfall channel with a crest
elevation at GH 30.0, and toe drains.

Tetra Tech RMC, Inc. of Longmont completed the feasibility study in accordance with the
CWCB guidelines in June of 2005. The following is a summary of the construction costs
presented within the original feasibility study:

Estimated Actual
Item Cost Cost
1. Construction $629,808 $667,032
2. Engineering $110,000 $113,000
3. Legal $0 $16.393
Total: $739,808 $796,425

The contract to complete the work was awarded to NorthRidge Construction, Longmont, Colorado
in September 2006 for $665,682. Additionally, legal fees for the review of the construction .
documents and loan contract were not part of the original cost estimate. The District is requesting
loan funds to cover 90% of the total cost or $716,783. Based on their original authorization of
$666,000 for construction, a loan increase of $50,783 is required to cover the cost ofthe project.

DISCUSSION
Based on actual construction costs to complete the project and legal fees, not accounted for in the
original estimate, the overall cost of the project has increased by 7.6%, resulting in a loan increase
of 50,783. The CWCB staff has reviewed the construction bids, engineering and legal billings
received by the District, has inspected the project" and finds the overall construction cost of the
project to be reasonable and consistent with similar reservoir rehabilitation projects.

The amended loan amount for the District will be $723,950 ($716,783 for project costs and $7,168
for the 1 % Loan Service Fee), at the present interest rate of 2.50 % for 30-years. The new annual
payment will be $38,047, which includes the 10% reserve requirement. The Company's current
approved loan of $672,660 has an annual paymen~ of $35,350, which includes the 10% reserve
requirement.

Table 1 illustrates the combined Financial Ratios for the Bijou Irrigation District and indicates an
ability to repay the $723,950 CWCB loan.

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