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.
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