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<br />DISCUSSION
<br />
<br />The Company has completed the design and constmction of the three facilities identified on the
<br />previous page. The final cost to complete the work was $1,782,720, which is $116,020 greater then the
<br />original cost estimate for an overall increase of 6.9%. The cost overmns associated with the project are
<br />summarized as follows:
<br />
<br />Big Windsor Inlet:
<br />
<br />. Increased slab thickness due to swelling soils.
<br />. Additional slab underdrain due to fractured rock subgrade.
<br />. Raise constmction access road.
<br />. Additional dewatering.
<br />
<br />$8,070.00
<br />$6,958.27
<br />$1,685.00
<br />$38,000.00
<br />
<br />Lake Lee Dam:
<br />
<br />. Rock Sub grade and
<br />. Additional demolition (secondary foundation layer)
<br />
<br />$72,000.00
<br />
<br />Total Cost Overrun:
<br />
<br />$126,713.27
<br />
<br />The total cost to complete the work without the overmns identified above was $1,656,007. The
<br />$126,713 in additional project costs to complete the job, as described above, resulted in a final
<br />constmction cost of $1,782,720.
<br />
<br />The Company is requesting an increase of $105,492 ($104,448 for project costs and $1,044 for a 1%
<br />origination fee), to its existing loan amount of $1,515,000. The total amended loan amount for the
<br />Company would therefore be $1,620,492 ($1,604,448 for project costs and $16,044 for a 1% origination
<br />fee), at its present interest rate of 2.5 % for 30-years. The new annual payment will be $85,166, which
<br />includes the 10% reserve requirement. The Company's current loan of $1,515,000 has an annual payment
<br />of $79,621, including the 10% reserve requirement.
<br />
<br />The Company's financial ratios will remain in the strong category for operating and operating cost per acre-
<br />foot, average category for debt services, and in the weak category for cash reserves.
<br />
<br />As security for the loan, the Company will continue to pledge assessment revenues backed by an
<br />assessment covenant and the proj ect itself, to include the Lake Lee Dam, the Big Windsor check and inlet
<br />stmcture, and the Finley check stmcture.
<br />
<br />STAFF RECOMMENDATIONS:
<br />
<br />Staff recommends that the Board approve a loan increase of $105,492 ($104,448 for project costs and
<br />$1,044 for the 1% loan origination fee in accordance with CWCB Financial Policy No. 16) to the Larimer
<br />and Weld Irrigation Company, from the Severance Tax Tmst Fund Perpetual Base Account. The total
<br />amended loan amount for the Company would be $1,620,492 ($1,604,448 for project costs and $16,044 for
<br />
<br />3
<br />Flood Protection. Water Project Planning and Financing. Stream and Lake Protection
<br />Water Supply Protection. Conseryation Planning
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