CT2015-017 Increase Approval Letter

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DNR COLORADO 1313 Sherman Street John Hickenlooper, Governor 1 Denver, CO 80203 CO Colorado Water Mike King, DNR Executive Director Conservation Board P (303)866-3441 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 ‘4.6� DATE: January 25-26, 2016 Board Meeting (Updated January 27, 2016) CONSENT AGENDA ITEM: 3a. Change to Existing Loans Bergen Ditch and Reservoir Company - Bergen Reservoir No. 2 Rehabilitation Guidance At the May 2005 Board Meeting, the Board authorized staff to present as Consent Agenda items increases to existing loans that are less than 20% of the original loan request. This request is for an increase of approximately 4% of the original loan amount. Introduction The Bergen Ditch and Reservoir Company (Company) received approval of a $2,020,000 CWCB loan (contract number CT2015-017, C150344), at the November 2012 Board Meeting to finance the Bergen Reservoir No. 2 Rehabilitation (Project). The purpose of the Project is to prevent a State Engineer's Office Dam Safety Branch (SEO) storage restriction order, and ensure the safe operation of the reservoir, by making needed repairs to the dam and outlet works. Construction began in July 2015 and major construction activities have been completed, with only site cleanup and seeding activities remaining. Final Project costs exceeded the original loan application estimate by approximately 4%. The Company is requesting a loan increase to cover the final Project cost. See attached Project Data Sheet for a location map and Project summary. Staff Recommendation (Board approved Staff Recommendation on January 26, 2016) Staff recommends the Board approve a loan increase of $91,102 ($90,200 for Project costs and $902 for the 1% Loan Service Fee), for a total loan not to exceed $2,111,102 ($2,090,200 for Project costs and $20,902 for the 1% Loan Service Fee) to the Bergen Ditch and Reservoir Company for engineering and construction costs related to the Bergen Reservoir No. 2 Rehabilitation Project, from the Construction Fund. The loan terms shall remain 30 years at a blended interest rate of 3.15% per annum. Security for the loan shall be in compliance with CWCB Financial Policy#5. ,Vit. c 6Cb. Interstate Compact Compliance • Watershed Protection • Flood Planning a Mitigation • Stream &Lake Protection 77'0'' Water Project Loans a Grants •Water Modeling • Conservation a Drought Planning •Water Supply Planning 4./876