CT2015-012 Loan Increase

• Contract/PO #: CT2015-012
• Contract/PO #: C150342
• Contractor Name: Sanchez Ditch and Reservoir Company
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

� - COLORADO
• Colorada Water
i Conservation Board
Departrnent of Nawral Resources
1313 Sherman Street
Denver, CO 84203
P (303) 866•3441
F (303) 866•4A7A
TO: Colorado Water Conservation 8oard Members
FROM: Anna Mauss, P.E., Project Manager ��
Kirk Russetl, P.E., Finance Section Chief �
Jahn Hickenlooper, Govemor
Robert Randall, DNR Executive Director
Lauren Ris, CWCB Acting Director
DA7E: May 17-18, 2017 Board Meeting (Updated May 19, 2017)
CONSENT AGENDA: Sa. Change to Existing Loans
Sanchez Ditch and Reservoir Company - Sanchez Reservoir Outlet Rehabilitation
Project
Guidance
At the May 2Q05 Board Meeting, the Board authorized staff to present as Consent Agenda items
increases to existing loans thak are less than 20% of the original toan request. This request is for an
increase of approximatety 10� of the original loan amount.
Introduction
The Sanchez Ditch and Reservoir Company {Company} received approval of a 51,117,600 toan,
Contract No. CT2di 5•012 (C150342), and a$914,440 WSRF grant for the Sanchez Reservoir
Outlet Rehabilitation Project (Project) at the September 2012 Board meeting. The purpose of
the Project was to make safety and operational impravements to the outlet works at Sanchez
Reservoi� (Reservoir) and to address seepage concerns raised by the Dam Safety Branch of the
Office of the State Engineer (SEO). The total Project cos[ was originalty estimated to be
$2,032,000. ln Juty of 2014, the Company requested a$250,000 loan increase 6ecause bids
came in significantly higher than the original cost estimate. The outlet tunnel work is
complete; however, the seepaqe monitoring efforts are still in progress and a larger task than
originally anticipated. The Company estimates it needs an additional $i 20,000 ta �ornplete the
monitoring. Therefore, the Company is requesting a second loan increase of 5121,2�0
(including the loan service fee) to cover increased Project costs. See attached Pro}ect Data
Sheet for a location rnap and a Project summary.
5taff Recommendation (Board approved Staff Recommendation on May 17, 2017}
Staff recommends the Board approve a loan increase not to exceed $12i,200 {$120,OQ0 for Project
costs and $1,200 for the 19� service fee) to the Sanchez Ditch and Reservoir Company for costs related
to the Sanchez Reservoir Outlet Rehabilitation Project, from the Construction Fund. The total loan
amount wilt become $1,502,476 (51,487,600 for Project costs and 514,876 for the 1% service fee). The
laan terms shalt remain 40 years at an adjusted agriculturat interest rate of 2.0% per annum with
interest onty payments the fi�st five years and the remaining balance paid over 35 years. Security for
the loan shall remain in compliance with the CWCB Financiaf Policy #5 (Collateral).
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