BOARD00048

• Board Meeting Date: 5/11/1998
• Description: CF Section - Changes in Existing Projects - Beaver Reservoir Dam Rehabilitation
• Board Meetings - Doc Type: Memo

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Colorado Water Conservation Board
Department of Natural Resources
721 Centennial Building
1313 Sherman Street
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]

STATE OF COLORI\DO

8

March 5,1998

Roy Romer
Covernor

).lmes S. Lochhead
Executive Director. DNR

D.lries C. Lile. P.E.
Director. ewcs

Mr, Neil Thompson, President
Beaver Reservoir Company
1404 4100 Road
Paonia, Colorado 81428

Re: Loan Contracts #C153705 and #C153631

Dear Mr, Thompson:

This letter is to inform you and the Beaver Reservoir Company (BRC) of the Board's
decision regarding your recent request for a financial adjustment of the Beaver Reservoir Dam
Rehabilitation project loan Contract #CI53705, The purpose of this letter is also to explain the
resolution of the various payback options contained in the project's feasibility study Contract
#C I 53631 dated November 2, 1992.

The BRC's request to roll the project Interest During Construction (IDC) into the loan
principal and amortize it over the loan's 40-year life was not approved, The Board however did
approve the staff recommendation to defer the IDC payment of $12,023,63 until November 1,
1998, at which time the first annual loan payment is also due, This deferral is contingent upon
the BRC, and their member companies, raising their 1998 assessments to a level sufficient to
cover operations and maintenance, reserve accounts, and debt service based on 1998 cost
estimates, As you are aware the feasibility study estimated these assessments based on 1995
costs (see Tables 3-6), Please furnish us with a list of dates of board meetings when assessments
will be considered.

The Feasibility Study loan for the Beaver Reservoir Rehabilitation project, states that the
BRC will pay $42,000 to the State if the BRC obtains a loan from the CWCB for construction of
the project Since the BRC did obtain a loan for the project, and the project is complete, the
CWCB will amend the original project loan contract #C153705 from a total of $373,000 @ 3%
for 40 years, to a total of $415,000, This amount will include the feasibility study of $42,000 @
0% for 30 years, This amendment will result in your annual payments going from $16,136,87 to
$17,536,87, Ms, Jan Illian of the CWCB staff will contact you in the near future to coordinate
the amendment details. The amendment will in no way effect the IDC repayment schedule
established by the Board as outlined in the preceding paragraph,