CT2015-039 Approval Letter

• Contractor Name: Big Elk Meadows Association
• Contract Type: Loan
• Loan Projects - Doc Type: Approval Letter

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COLORADO 1m]Sherman Street John *ickenlooper, Governor
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Colorado Water Robert Randall, DNR Executive Director
Conservation Board p [phone]
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TO: Colorado Water Conservation Board Members
FROM: Jonathan Hernandez, P.E., Projectkxana
Kirk Russell, P.E.' Finance Section Chief
DATE: March 22'33, 2017 Board Meeting (Updated March 23, 2017)
AGENDA }TEhA: 29a. Change to Existing Loans
Big Elk Meadows Association Emergency Raw Water Storage Reconstruction
Introduction
The Big Elk Meadows Association (Association) received approval ofn $1,515'O0O[YV[Bloan, Contract
number CT2015'039 ([15D301)' to finance the Emergency Raw Water Storage Reconstruction (Project)
at the January 2014 Board Meeting. The purpose nfthe Project isto restore the water supply tothe Big
Elk Meadows community by rebuilding its five raw water storage dams which were destroyed in the
September 2013 flood event within the tributaries tnthe South Platte River. The original Project cost
estimate was $1'900,000. Due LV an increase in construction cost' and a delay in receiving FEMA grant
funds' the Association is requesting a loan increase of $500,000 to help with its cash flow during
construction and through the FEMA grant reimbursement period. Sec the attached Project Data Sheet
fora location map and a Project summary, and the original loan request Board Memo.
Staff Recommendation (Board approved Staff Recommendation on March 23, 2017)
Staff recommends the Board approve a loan increase of $505,000 ($500,000 for Project costs and
$5`OOOfor the 1% service fee), fora total loan not toexceed $2,020,000 ($2,000,000 for Project costs
and $20,000 for the 1% Loan Service Fee) to the Big Elk Meadows Association for costs related to the
Emergency Raw Water Storage Reconstruction Project' from the Severance Tax Perpetual Bose Fund.
The loan terms shalt be modified toGyears ofno interest' followed by 30-years at the interest rate of
2.75% per annum. Security for the loan shall be in compliance with [YYCB Financial Policy #5.
Additionally staff recommends modifying the following existing contract condition:
"Any future_grant funds obtained for the purpose of this Project shall be submitted to CWCB to be
applied to the balance of the loan within thirty(30)calendar days after receipt of said funds.
to read:
.Except . any future grant funds obtained for the purpose ofthis Project shall bp
submitted to[WC8 tobeapplied to the balance nfthe /cmn within thirty(30) co/endordmysoƒterrece/pt
ofsaid funds. Non-rescinded FEMA grant fu
Q0) calendar days af received FEMA__qiLant
reDavment of rescinded grant funds, Project
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