CT2015-024 Increase Approval Letter

• Contract/PO #: CT2015-024
• Contract/PO #: C150368
• Contractor Name: North Poudre Irrigation Company
• Contract Type: Loan
• Water District: 3
• County: Larimer
• Loan Projects - Doc Type: Approval Letter

DNR COLORADO 1313 Sherman Street John Hickenlooper, Governor
Denver, CO 80203
CO Colorado Water Mike King, DNR Executive Director
Conservation Board P [phone]
Department of Natural Resources 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
DATE: September 15-17, 2015 Board Meeting (Updated September 18, 2015)
AGENDA ITEM: 24b - Change to Existing Loans
North Poudre Irrigation Company - Emergency Fossil Creek Reservoir Inlet
Diversion Structure Repair
Introduction
The North Poudre Irrigation Company (Company) received approval of a $481,770 CWCB loan
(CT2015-024, C150368) to finance the Emergency Fossil Creek Reservoir Inlet Diversion Structure Repair
Project (Project) at the October 2013 Special Board Meeting. The purpose of the Project is to allow the
continued use of Fossil Creek Reservoir by repairing the Fossil Creek Reservoir inlet diversion structure,
which was damaged during the unprecedented flood of September 2013 in the tributaries to the South
Platte River. The loan was to fund 100%of the Project's October 2013 estimated cost of $477,000. This
estimate was based on a damage assessment made immediately after the flood; before survey data, a
geotechnical evaluation, drawings, and specifications could be prepared. As a result of final design,
and bids received in August 2015, the Company is requesting a loan increase of $394,910 to fully cover
the new Project Cost, estimated to be $868,000. See attached Project Data Sheet for a location map
and Project summary.
Staff Recommendation (Board approved Staff Recommendation on September 17, 2015)
Staff recommends the Board approve a loan increase of $394,910 ($391,000 for Project cost and $3,910
for the 1% Loan Service Fee), for a total loan not to exceed $876,680 ($868,000 for Project cost and
$8,680 for the 1% Loan Service Fee) to the North Poudre Irrigation Company for 100%of Project costs
related to the Emergency Fossil Creek Reservoir Diversion Structure Repair Project from the Severance
Tax Perpetual Base Fund, up to the approved loan amount. The loan terms shall be modified to 5 years
of no interest followed by 27-years at a blended interest rate of 2.35% per annum. Security for the loan
shall be in compliance with CWCB Financial Policy#5.
Additionally staff recommends modifying the following existing contract condition:
"Any future grant funds obtained for the purpose of this Project shall be submitted to CWCB to be
applied to the balance of the loan within thirty(30)calendar days after receipt of said funds."
to read:
"Except for FEMA grant funds, any future grant funds obtained for the purpose of this Project shall be
submitted to CWCB to be applied to the balance of the loan within thirty(30) calendar days after receipt
of said funds. Non-rescinded FEMA grant funds shall be applied to the balance of the loan within thirty
(30) calendar days after FEMA Project Closeout, as long as the borrower deposits received FEMA grant
funds in a secured account prior to Project Closeout. FEMA grant funds shall only be used for the
repayment of rescinded grant funds, or to pay down the loan principal."
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