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

Lake Canal Reservoir Company Agenda Item 8a
November 18-19, 2015 Board Meeting (Updated November 20, 2015)
Page 3 of 4
TABLE 2: PROJECT COST SUMMARY
Task Original Cost' Updated Cost
Engineering $27,000 $73,375
Construction I $84,300 $236,375
Contingency $17,000 $25,000
Total $128,300 $334,750
'Original Cost based on 2011 construction costs and did not include
outlet and interconnect scope.
Schedule: Construction began in November 2015 on the abandonment of the outlet and spillway.
Timely removal of the outlet and spillway is important because of the coordination with the
Stormwater Authority on this task. Construction on the new spillway and interconnect structure will
commence after the design has received final SEO approval, anticipated for November 2015. Total
construction is expected to last two months.
Financial Analysis
Table 3 provides a summary of the Project's financial aspects. The Company's blended interest rate of
2.10% for a 30-year term (Ownership: 86%Agricultural, 8% Mid Municipal, 6% Commercial) will remain
as per the terms of the original contract. The original approval included an interest rate reduction from
3.10% to 2.10% in accordance with the CWCB Financial Policy#7 (Lending Rate Determination) that
was in place at that time for restricted reservoirs.
TABLE 3: FINANCIAL SUMMARY
Original Approval Current Request
Total Project Cost $128,300 $334,750
Borrowers Contribution $12,830 $49,175
Stormwater Authority's Contribution N/A $83,300
CWCB Loan Amount $115,470 $202,275
CWCB Loan Amount (Including 1% Service Fee) $116,625 $204,298
CWCB Annual Loan Payment $5,280 $9,248
CWCB Loan Obligation (Including 10% Reserve) $5,808 $10,173
Number of Shares 160 160
Annual Loan Obligation Per Share $36/share $64/share
Current Assessment per Share $350/share $350/share
Future Assessment per Share $386/share $350/share
Project Cost per AF to Restore 75 AF $1,711/AF $4,463/AF
Creditworthiness: The Company has $318,088 in existing long-term debt made up of one CWCB loan
for the South Gray Reservoir Rehabilitation Et Gray No. 3 Breach Project. That project was substantially
completed in 2012 and the loan is in good standing. In October 2015, the Company paid off CWCB Loan
C153300 three years early. C153300 was a 40-year loan for the Gray Lake Reservoir Ditch Rehabilitation
Project and was obtained in 1978.
TABLE 4: EXISTING DEBT
Lender Original Current Annual Maturity Collateral
Balance Balance Payment Date
CWCB (C150299) $347,615 $318,088 $20,488 2042 Assessment Revenues