C150288 Updated Approval Letter

• Contract/PO #: C150288
• Contractor Name: Deuel and Snyder Improvement Company
• Contract Type: Loan
• Water District: 1
• County: Morgan
• Loan Projects - Doc Type: Approval Letter

STATE OF COLORADO
Colorado Water Conservation Board
Department of Natural Resources
1313 Sherman Street, Room 721
Denver, Colorado 80203
Phone: [phone]
Fax: [phone]
www. cwcb. state. co.us
John W. Hickenlooper
Governor
TO: Colorado Water Conservation Board Members
Mike King
DNR Executive Director
FROM: Anna Mauss, P.E., Project Manager
Kirk Russell P.E. Chief Jennifer L. Gimbel
> > f •/ �� CWCB Director
Finance Section Y�
DATE: January 13, 2012 (Updated February 3, 2012)
SUBJECT: Consent Agenda Item 3a, January 23 -24, 2012 Board Meeting
Finance Section - Severance Tax Trust Fund Perpetual Base Account -
Change to Existing Loan
Deuel and Snyder Improvement Company — River Sand Gate Structure Project
Introduction
The Deuel and Snyder Improvement Company (Company) received approval of a loan for its River
Sand Gate Structure Project (Project) in March of 2009. The Project involved rebuilding an existing
board gate with a new radial gate. The Company is requesting a loan increase due to a modification
to the design. The new total cost of construction is estimated to be $119,970, an increase of
approximately 20% from the original project cost. See attached Project Data Sheet for a location
map and a project summary.
At the May 2005 Board Meeting, the Board authorized staff to recommend increases to existing
loans up to 20% of the original loan as Consent Agenda Items.
Staff Recommendation (Board approved staff recommendation January 23, 2012)
Staff recommends that the Board approve an increase of $18,153 ($17,973 for project costs and
$180 for the 1% Loan Service Fee) to the Deuel and Snyder Improvement Company from the
Severance Tax Trust Fund Perpetual Base Account. The Company's amended total loan amount
will be $109,053 ($107,973 for project costs and $1,080 for the 1% Loan Service Fee) for
engineering and construction costs related to the River Sand Gate Structure Project. The loan terms
shall remain 30 years at an agricultural rate of 2.5% per annum. Security for the loan shall be in
compliance with CWCB Financial Policy #5.
Background and Current Project Status
The Company provides irrigation water to a 1,650 acre service area located in Morgan County. The
area extends from about one mile north to about six miles northeast of Fort Morgan along the north
side of the South Platte River.
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