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more extensive than originally thought. The old foundation structure was so massive that <br /> it became cost prohibitive to remove it. Since the new structure's foundation design • <br /> required sheet pile support and protection, it was necessary to relocate the new structure <br /> 20 feet downstream of its original design location. The relocation of the structure <br /> resulted in additional engineering re-design costs, additional time-delay costs to the <br /> contractor, increased construction material quantities (concrete, rock rip-rap, and sheet <br /> piling), and additional construction inspection costs. <br /> The project has been completed and the total project costs have been established <br /> at $599,759.16. Buffalo Mutual has requested an increase to their loan in the amount of <br /> $71,000 for a total loan amount of$449,750, or 75%of the total project cost. - <br /> DISCUSSION <br /> This project development is considered a change in field conditions and requires a <br /> change in the design plans and a "Change Order" to the original construction contract. <br /> The amount of the change is not an estimate but has rather been established by actual <br /> costs. The extra costs have been for design, construction, and construction engineering. <br /> Paragraph (2) of Section 1 of SB 97-008 allows that loans made by the Colorado <br /> Water Conservation Board may be increased or decreased as may be justified by"reasons <br /> of changes in the plans for a project if those changes are required by final engineering <br /> • <br /> drawings and specifications". Final engineering of this project has required work that <br /> increases the total cost of the project and therefore justifies Buffalo Mutual's loan <br /> increase request. It will not be necessary therefore to go to the Legislature to authorize <br /> expenditures of additional funds for this project. <br /> The total amount requested from the CWCB would be $449,750 or up to 75% of <br /> the actual project costs, whichever is less. Buffalo Mutual would pay for the remaining <br /> costs with cash from the increased assessments collected for this project. The project <br /> feasibility study has been revised and approved by staff showing that assessments should <br /> be $16.14 per share per year to cover normal operating expenses and loan obligations. <br /> The current 1999 share assessments are set at $16.50 per share, therefore, no increase in <br /> assessments is anticipated due to this increased loan request. <br /> Contract loan provisions for the increased costs would be at the established <br /> interest rate of 3.75% for 30 years. The project collateral, a pledge of revenues from <br /> Buffalo Mutual's assessments and,a certificate of deposit in the amount of one annual <br /> loan payment (to be increased accordingly), is adequate to cover the additional cost and <br /> will therefore remain the same. <br /> Representatives from Buffalo Mutual will be available at the Board Meeting to <br /> answer questions and provide additional project details. <br /> II/ <br />