C150365 Increase Approval Letter

• Contract/PO #: CT2015-006
• Contract/PO #: C150365
• Contractor Name: Santa Maria Reservoir Company
• Contract Type: Loan
• Loan Projects - Doc Type: Approval Letter

o N a COLORADO 1313 Sherman Street John Hickenlooper,Governor
40, 403 Denver,CO 80203
C t} Colorado Water Mike King,DNR Executive Director
Conservation Board P(303)866-3441
t wc.1rrr <s to,)Ai °,wV,,.+4 v F(303)866-4474 James Eklund,CWCB Director
TO: Colorado Water Conservation Board Members
FROM: Anna Mauss, P.E., Project Manager t't ' "
Kirk Russell, P.E., Finance Section Chief
DATE: January 26-27, 2015 Board Meeting (Updated January 28, 2015)
CONSENT AGENDA: 4b - Change to Existing Loans
Santa Maria Reservoir Company - Continental Dam Spillway Restoration Project
Introduction
At the September 2013 Board Meeting, the Santa Maria Reservoir Company (Company) received
approval for a $3,071,663 CWCB loan (C150365 / CT 2015-006) and $1,013,750 WSRA grant to finance
the Continental Dam Spillway Restoration Project (Project). The purpose of the Project was to address
seepage and repair the spillway of the Continental Reservoir in order to lift a State Engineers Office
(SEO)imposed dam safety storage restriction. The Project was bid in March of 2014 and construction
began in May. While bids came in higher than the original engineer's estimate, the Company proceeded
with the first of two anticipated construction seasons. The Company worked with the contractor and
engineer to gather more data on the reservoir seepage area. All parties agreed upon a modified
approach to complete the Project. As a result of these discussions and the updated cost estimates, the
Company is requesting a loan increase of$600,000. The Company is not requesting a grant increase.
See attached Project Data Sheet for a location map and a Project summary.
Staff Recommendation (Board Approved Staff Recommendation on January 27, 2015)
Staff recommends the Board approve a loan increase not to exceed $606,000 ($600,000 for Project
costs and $6,000 for the 1%service fee) for a total loan not to exceed $3,677,663 ($3,641,250 for
Project costs and $36,413 for the 1%service fee) to the Santa Maria Reservoir Company for engineering
and construction cost related to the Continental Dam Spillway Restoration Project from the
Construction Fund. The loan terms shall remain 30 years at the agricultural interest rate of 1.75% per
annum. Security for the loan shall be in compliance with CWCB Financial Policy#5.
/15C-4CCD
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