PROJC02219

• Contract/PO #: C150199
• Contractor Name: Bijou Irrigation District
• Contract Type: Loan
• Water District: 1
• County: Morgan
• County: Weld
• Loan Projects - Doc Type: Approval Letter

height resulted in a storage loss of 2,682 acre feet. Additionally, the SEO was concerned about
the stability of the embankments during flood stage.
This project provided for a spillway and other improvements as required by the SEO, to allow
the District to store at the normal high waterline of GH 30.0. The project consisted of the
construction of a new unregulated 40' 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 CWCB
guidelines in June of 2005. The following is a summary of the construction costs presented
within the original feasibility study:
Estimated Actual
Item
1. Construction
2. Engineering
3. Legal
Cost Cost
$629,808 $667,032
$110,000 $113,000
$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 estimated. 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 of the 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. Staff has reviewed the bids received, engineering and legal billings, and has inspected
the project by the District 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 payment 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.
2