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STATE OF COLORADO <br />Colorado Water Conservation Board <br />Department of Natural Resources <br />1313 Sherman Street, Room 721 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3441 <br />FAX: (303) 866-4474 <br />(Revised) <br />TO: Colorado Water Conservation Board ' ers <br />FROM: Tim Feehan, P.E., Project ager <br />Mike Serlet, P.E., Chief <br />Water Supply Planning Finance Section <br />DATE: May 6, 2008 <br />SUBJECT: Consent Agenda Item 2a, May 20-21, 2008 Board Meeting <br />Water Supply Planning and Finance - Changes to Existing Loans <br />Orchard Mesa Irrig. District - Stokes Gulch Siphon Replacement <br />Bill Ritter Jr. <br />Govemor <br />Harris D. Sherman <br />DNR Executive <br />~~ror <br />Jennifer L. Gimbel <br />CWCB Director <br />Dan McAuliffe <br />CWCB Deputy <br />Director <br />Introduction <br />At the May 2005 Board Meeting, the Board authorized staffto present revisions to existing <br />loans, totaling less then 20% of the original loan, as Consent Agenda Items. The Orchard Mesa <br />Irrigation District (District) loan increase presented below represents an approximate 11 % <br />increase to their original loan authorization <br />At the March 2006 board meeting, the Colorado Water Conservation Board (CWCB) approved a <br />loan to the District in the amount of $540,000 from the Severance Tax Trust Fund Perpetual Base <br />Account. The $540,000 loan was for the construction of 300 foot long, cast-in-place, 12 foot by 12 <br />foot concrete box culvert, at a total estimated cost of $600,000. <br />The Company is requesting an increase of $60,000 to the District's 2006 authorizarion of $540,000, <br />to complete the replacement of the siphon. The requested loan increase is due to higher then <br />anticipated bid results, canal rehabilitation, and additional concrete and embankment material. The <br />final cost to complete the project will be approximately $745,000, The District has elected to only <br />pursue an additional $60,000 from CWCB with the remaining construction costs being covered <br />directly by the District. <br />Staff Recommendation <br />Staffrecommends a loan increase not to exceed $60,000($59,400 for project costs and $600 for the <br />1% Loan Service Fee) to the District for engineering and construction costs associated with the <br />Stokes Gulch Siphon Replacement Project, from the Severance Tax Trust Fund Perpetual Base <br />Account. The Disfict's amended total loan amount will be $600,000($594,060far the total project <br />costs and $5,940 for the 1% loan origination fee). The terms shall be based on their previous <br />interest rate of 2.5% per annum for 30-years. Final approval of the loan shall be conditioned upon <br />all standard contracting provisions of the CWCB Loan Program. Security for the loan shall be <br />collateral in compliance with CWCB Loan Policy #5. <br />