CT2015-042 Increase Approval Letter

• Contract/PO #: CT2015-042
• Contractor Name: Lake Canal Reservoir Company
• Contract Type: Loan
• County: Larimer
• Loan Projects - Doc Type: Approval Letter

DNR COLORADO 1313 Sherman Street John Hickenlooper, Governor
1j 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 )46- _
DATE: November 18-19, 2015 Board Meeting (Updated November 20, 2015)
AGENDA ITEM: 8a - Change to Existing Loans
Lake Canal Reservoir Company - North Gray Reservoir Rehabilitation
Introduction
The Lake Canal Reservoir Company (Company) received approval of an $116,625 CWCB loan
(CT2015-042) at the September 2011 Board Meeting to finance the North Gray Reservoir Rehabilitation
(Project). The purpose of the Project is to remove the storage restriction imposed by the State
Engineer's Office Dam Safety Branch by replacing the existing spillway. As a result of final design and
further investigation, the scope of the Project increased to include modifications to North Gray
Reservoir's outlet and the interconnect structure between North and South Gray Reservoirs. Bids were
received in September 2015 and the Company is requesting a loan increase for approximately 60% of
the updated Project Cost, estimated to be $334,750. See attached Project Data Sheet for a location
map and Project summary.
Staff Recommendation (Board approved Staff Recommendation on November 18, 2015)
Staff recommends the Board approve a loan increase of $87,673 ($86,805 for Project cost and $868 for
the 1% Loan Service Fee), for a total loan not to exceed $204,298 ($202,275 for Project cost and $2,023
for the 1% Loan Service Fee) to the Lake Canal Reservoir Company for Project costs related to the
North Gray Reservoir Rehabilitation Project, from the Construction Fund. The loan terms shall remain
30 years at a blended restricted reservoir interest rate of 2.10% per annum. Security for the loan shall
be in compliance with CWCB Financial Policy#5.
Interstate Compact Compliance•Watershed Protection • Flood Planning 8 Mitigation • Stream a Lake Protection 7;e/ 0'
Water Project Loans a*Grants •Water Modeling• Conservation 8 Drought Planning •Water Supply Planning
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