C150380 Increase Approval Letter

• Contract/PO #: CT2015-020
• Contract/PO #: C150380
• Contractor Name: Consolidated Home Supply Ditch and Reservoir Company
• Contract Type: Loan
• Loan Projects - Doc Type: Approval Letter

O w R COLORADO 1313 Sherman Street John Hickenlooper,Governor
alli Denver, CO 80203
CO ;;,I r Colorado Water Mike King, DNR Executive Director
Conservation Board P(303)866-3441
F(303)866-4474 James Eklund, CWCB Director
TO: Colorado Water Conservation Board Members
FROM: Jonathan Hernandez, P.E., Project Manager
Kirk Russell, P.E., Finance Section Chief V"
DATE: July 16-17, 2014 Board Meeting (Updated July 18, 2014)
AGENDA ITEM: Consent Agenda Item 2a - Change to Existing Loan
Consolidated Home Supply Ditch and Reservoir Company - Emergency George
Rist Ditch Repair Project
Guidance
At the May 2005 Board Meeting, the Board authorized staff to present increases to existing loans less
than 20% of the original loan as Consent Agenda items. This request for increase is approximately 15%
of the original loan amount.
Introduction
The Consolidated Home Supply Ditch and Reservoir Company (Company) received approval of a
$440,000 CWCB loan (Contract C150380) to finance the Emergency George Rist Ditch Repair Project
(Project) in November 2013. The purpose of the Project was to repair the diversion structure and ditch
in response to the September 2013 Flood event in the South Platte River Basin. During construction,
and subsequent ditch operation, additional repairs were identified. The Company is requesting a loan
increase of$70,000. This is approximately 15% of the original loan request. See attached Project Data
Sheet for a location map and Project summary.
Staff Recommendation (Board approved staff recommendation on July 17, 2014)
Staff recommends the Board approve a loan increase of $70,700 ($70,000 for project costs and $700 for
the 1% Loan Service Fee) for a total loan not to exceed $519,140 ($514,000 for project cost and $5,140
for the 1% Loan Service Fee) to the Consolidated Home Supply Ditch and Reservoir Company for
engineering and construction costs related to the Emergency George Rist Ditch Repair Project from the
Severance Tax Perpetual Base Fund. The loan terms shall remain 3 years of no interest followed by 27
years at a blended interest rate of 1.95% per annum. Security for the loan shall be in compliance with
CWCB Financial Policy#5.
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Interstate Compact Compliance •Watershed Protection • Flood Planning 8 Mitigation • Stream &Lake Protection '-_
Water Project Loans 8 Grants •Water Modeling • Conservation ft Drought Planning •Water Supply Planning *
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