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Corporation will remain as proposed in the 2008 loan request and will be the Brand family (40%), the Company (40%), and the Little Thompson Water District (20%). Over the course of the next five years, the Little Thompson Water District will pay off its 20% share of the project costs, therefore reducing the Company's long term debt obligation. Based on these new parameters, the CWCB approved a loan to the Company in the amount of $904,960 or 90% of the construction cost. The ls` payment received in 2010 from Little Thompson Water District will be used by the Company to cover its required 10% project match. The remaining four annual payments from the District to the Company will be sent to CWCB as a principal reduction payment to its loan. Upon receipt of the final payment, CWCB will amend and re-amortizes the Company's loan based on the final adjusted principal balance at that time. Discussion As a condition of the 2008 CWCB loan approval, the Company received SEO approved plans and specifications in September 2009. Bids for the project were received in October 2009. The low bid, from the four bids received, was from DeFalco Construction, Longmont, Colorado in the amount of $1,199,400. The engineer's estimate was $1,473,000 and the bids ranged from $1,199,400 to $1,758,000. A comparison of the total cost of the project with that originally estimated is summarized below in Table 1. Table 1. Project Cost Comparison The overall project is approximately $672,000 over budget. One of the main contributing factors to the cost overrun was the change in the foundation design for the reservoir. The original foundation design involved a large keyway excavation to be backfilled with engineered material and tied into with a clay liner along the dam face. Given the amount of groundwater to control during excavation, and the problems associated with a large open cut, the design was changed to a slurry wall along the toe. This resulted in an increase in engineering and construction costs. In addition, the overall engineering scope of services was expanded to meet the needs of the project. Therefore, the overall project has increased by approximately $672,000, for a total adjusted rounded final project cost of approximately $1,670,000. The Company is requesting an increase of $610,040 to its current loan authorization of $904,960 to cover 90% of the total cost. The new total amended loan amount for the Company will be $1,515,000 at its original interest rate of 2.6% for 30 years. The new annual payment will be $80,687, which includes the 10% reserve requirement. The Company's current loan of $904,960 has an annual payment of $48,200.