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Big Elk Meadows Association Agenda Item 29a <br /> March 22-23, 2017 Board Meeting (Updated March 23, 2017) <br /> Page 3 of 5 <br /> Phase 4 - Sunset Lake Dam: Final design is pending and construction is tentatively planned to <br /> commence Fall 2017. <br /> Funding Update <br /> The Association and FEMA originally had individual Project Worksheets covering all five dams. These <br /> were later consolidated into one overall Project Worksheet. In the consolidation, the obligated funds <br /> were decreased leaving no funds for Sunset Lake and partial funding for Mirror Lake. With the <br /> de-obligation of Meadow Lake, the total FEMA obligated funds are $1,842,715. A successful appeal of <br /> Meadow Lake could increase that to $2,494,712. The Association has received approximately $600,000 <br /> in FEMA grant funds to date. <br /> The Association has also received approval of a $1,585,000 grant through HUD's CDBG-DR grant <br /> program. Funds will be used to help offset Meadow Lake and Willow Lake project costs as wet[ as fund <br /> take restoration efforts that are focused on shoreline and take bottom improvements, and other <br /> improvements related to take and fish health. Those restoration efforts wit[ only be funded through the <br /> CDBG-DR grant and will not need CWCB loan funds to cover any costs. <br /> In 2014, the Association and BEWA each collected a special assessment of $5,000 per user (166 Lots and <br /> 160 water users). This was to be paid through a 3-year plan and of the $1,630,000 to be raised, only <br /> $19,000 (-11%) remains uncollected. <br /> A summary of dam reconstruction costs and funding sources is shown in Table 1. <br /> TABLE 1: PROJECTED DAM RECONSTRUCTION FINAL FUNDING SUMMARY <br /> Name Project Cost CWCB Loan* FEMA Grant CDBG-DR Association <br /> Grant Cash <br /> Mirror Lake $913,960 $685,470 $228,490 <br /> (Actual Cost) (75%) (25% match) <br /> Rainbow Lake $792,993 - $594,745 - $198,248 <br /> (Actual Cost) (75%) (25% match) <br /> Meadow Lake $1,200,000 $500,000 $600,000 $100,000 <br /> (Engineer's Est.) <br /> Willow Lake $955,500 - $562,500 $393,000 - <br /> (Bid+Contingency) (69%) <br /> Sunset Lake $300,000 - - $300,000 <br /> (Engineer's Est.) <br /> TOTALS $4,162,453 $500,000 $1,842,715 $993,000 $826,738 <br /> *Represents the expected final debt after reimbursements have been made. <br /> Financial Analysis <br /> Table 2 provides a summary of the Project's financial aspects. The original contract allowed for the <br /> first three years of the loan to be assessed a 0% interest rate. In recognition of the extended time it <br /> has taken for the entire project to be completed, and the delays in receiving obligated FEMA funds, the <br /> period of 0% interest will be extended by three years for a total of six years. The remaining term of the <br /> loan wiR remain at 2.75% with the principal amortized over 30 years. <br /> To date $995,618.72 of CWCB Loan Funds have been disbursed for Mirror and Rainbow Lake <br /> construction. After aR reimbursements are completed the Association expects the final loan balance to <br /> be approximately $500,000. A successful Meadow Lake appeal could reduce the final loan amount to <br /> zero. Increased construction costs of Meadow, Willow, or Sunset could increase the final loan balance. <br />