CT2015-003 Increase Approval Letter

• Contract/PO #: CT2015-003
• Contract/PO #: C150378
• Contractor Name: North Poudre Irrigation Company
• Contract Type: Loan
• Loan Projects - Doc Type: Approval Letter

0 N R 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: January 25-26, 2016 Board Meeting (Updated January 27, 2016)
AGENDA ITEM: 19a. Change to Existing Loans
North Poudre Irrigation Company - Reservoir No. 4 Rehabilitation
Introduction
The North Poudre Irrigation Company (Company) received approval of a $1,636,200 CWCB loan
(contract number CT2015-003, C150378) to finance the Reservoir No. 4 Rehabilitation (Project) at the
November 2013 Board Meeting. The purpose of the Project is to remove the State Engineer's Office
Dam Safety Branch's (SEO) storage restriction on the reservoir and allow storage of its full decree. This
will be accomplished by rehabilitating the reservoir's aging outlet works, constructing a larger spillway,
and mitigating dam seepage issues. Project costs have increased by approximately 38% of the feasibility
cost estimate as a result of design changes and bids received in September 2015. The Company is
requesting a loan increase to cover 90% of the current Project costs. 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 $627,210 ($621,000 for Project cost and $6,210
for the 1% Loan Service Fee), for a total loan not to exceed $2,263,410 ($2,241,000 for Project cost and
$22,410 for the 1% Loan Service Fee) to the North Poudre Irrigation Company for Project costs related
to the Reservoir No. 4 Rehabilitation Project, from the Construction Fund. The loan terms shall remain
30 years at a blended interest rate of 2.35% per annum. Security for the loan shall be in compliance
with CWCB Financial Policy #5.
Interstate Compact Compliance •Watershed Protection • Flood Planning a Mitigation • Stream a Lake Protection '90
Water Project Loans a Grants •Water Modeling • Conservation a Drought Planning •Water Supply Planning
*1876.!`'