CT2015-1597 Increase Approval Letter

• Contract/PO #: CT2015-1597
• Contractor Name: Oligarchy Irrigation Company
• Contract Type: Loan
• Loan Projects - Doc Type: Approval Letter

DNR COLORADO 1313 Sherman Street John Hickenlooper, Governor
Denver, CO 80203
CO Colorado Water Robert Randall, Interim DNR
Conservation Board P [phone] Executive Director
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 cfr
DATE: May 18-19, 2016 Board Meeting (Updated May 20, 2016)
CONSENT AGENDA ITEM: 5a- Change to Existing Loans
Oligarchy Irrigation Company - Dam Outlet Works 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 15% of the original loan amount.
Introduction
The Oligarchy Irrigation Company (Company) received approval of a $781,740 CWCB loan (CT2016-1597)
at the July 2015 Board Meeting to finance the Dam Outlet Works Rehabilitation (Project). The purpose
of the Project is to meet the State Engineer's Office Dam Safety Branch (SEO) requirements by
constructing a new outlet works gate vault, outlet works piping, intake structure, and discharge
structure. The total Project cost was originally estimated at $860,000. After completing final design
and receiving contractor bids, the revised Project cost is estimated at $992,200. The Company is
requesting a loan increase to cover approximately 90% of the revised Project costs. See attached
Project Data Sheet for a location map and Project summary.
Staff Recommendation (Board approved Staff Recommendation on May 18, 2016)
Staff recommends the Board approve a loan increase of $120,190 ($119,000 for Project costs and
$1,190 for the 1% Loan Service Fee), for a total loan not to exceed $901,930 ($893,000 for Project cost
and $8,930 for the 1% Loan Service Fee) to the Oligarchy Irrigation Company for engineering and
construction costs related to the Dam Outlet Works Rehabilitation Project, from the Construction Fund.
The loan terms shall remain 30 years at a blended interest rate of 2.40% per annum. Security for the
loan shall be in compliance with CWCB Financial Policy#5.
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