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<br />Total cost overruns to-date by Consolidated Mutual Water Company, and for projected
<br />future improvements not included in the original project scope is $2,800,000.
<br />
<br />
<br />The following is a sununary of all additional cost incurred by Consolidated Mutual Water
<br />Company and their Contractor:
<br />
<br />Original Cost Actual Cost
<br /> Estimate Incurred
<br />Consolidated Mutual
<br />* Land and Reservoir Site $3,285,000 $3,285,000
<br />* Water Rights Decree $10,000 $10,000
<br />* Project Management $100,000 $100,000
<br />* Engineering $300,000 $370,000
<br />* Inspect., Surveying, Testing $1,369,350 $1,299,350
<br />* Pipeline $3,000,000 $4,500,000
<br />* Roadway Work $0 $597,000
<br />* Construction Water $0 $150,000
<br />* Materials Supplied $0 $186,000
<br />* Gas Main Relocation $0 $367.000
<br />Totals $8;064.350 $10,864.350
<br />Contractor (RE. Monk)
<br />* Reservoir and Spillway $13,693,502 $16,670,810
<br />Totals: $21,757,852 $27,535,160
<br />
<br />Variance
<br />
<br />$0
<br />$0
<br />$0
<br />$70,000
<br />($70,000)
<br />$1,500,000
<br />$597,000
<br />$150,000
<br />$186,000
<br />$367.000
<br />$2.800.000
<br />
<br />$2,977,308
<br />
<br />$5,777,308
<br />
<br />Based on the additional costs as illustrated above, the Consolidated Mutual Water Company
<br />is requesting 75% of the total additional project cost incurred to-date and those projected to occur in
<br />the near future, for a increased loan amount of $4,333,000.
<br />
<br />Paragraph (2) of Section 1 of HB 00-1419 allows that loans made by the Colorado Water
<br />Conservation Board may be increased or decreased as may be justified by "reasons of ordinary
<br />fluctuations in construction costs as indicated by the engineering cost indices applicable to the types
<br />of construction required for each project or as may be justified by reason of changes in the plans for
<br />a project due to differing or unforeseen site conditions, errors, or omissions in the plans and
<br />specifications, changes instituted by regulatory agencies, or changes in material quantities beyond
<br />contract limits". Unforeseen site conditions, design modifications, and changes instituted by
<br />regulatory agencies not programmed in the original cost estimate of the project, has required work
<br />that increases the total estimated cost of the project and therefore justifies Consolidated Mutual
<br />Water Company's requested $4,333,000 increased loan request.
<br />
<br />FINANCIAL SUMMARY
<br />
<br />The Company's financial condition appears strong at the present time. The Table below
<br />summarizes key financial indicators based on their updated cash flow analysis for historical period
<br />1998 to 2000 and for projected cash flows for the years 2001 through 2016. The cash flow analysis
<br />provided indicates adequate funds in each year of the 10 year CWCB loan repayment period. All
<br />the indicators in the Table below are strong per the Board's adopted creditworthiness policy, with
<br />the exception of the Cash Reserve to Current Expenses, which is in the average or acceptable
<br />category.
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