Laserfiche WebLink
<br />. <br />, <br />. <br />I <br />. <br /> <br />more extensive than originally thought. The old foundation structure was so massive that .... <br />it became cost prohibitive to remove it. Since the new structure's foundation design .. <br />required sheet pile support and protection, it was necessary to relocate the new structure <br />20 feet downstream of its original design location. The relocation of the structure <br />resulted in additional engineering re-design costs, additional time-delay costs to the <br />contractor, increased construction material quantities (concrete, rock rip-rap, and sheet <br />piling), and additional construction inspection costs. <br /> <br />The project has been completed and the total project costs have been established <br />at $599,759.16. Buffalo Mutual has requested an increase to their loan in the amount of <br />$71,000 for a total loan amount of $449,750, or 75% of the total project cost. <br /> <br />DISCUSSION <br /> <br />This project development is considered a change in field conditions and requires a <br />change in the design plans and a "Change Order" to the original construction contract. <br />The amount of the change is not an estimate but has rather been established by actual <br />costs. The extra costs have been for design, construction, and construction engineering. <br /> <br />Paragraph (2) of Section 1 of SB 97-008 allows that loans made by the Colorado <br />Water Conservation Board may be increased or decreased as may be justified by "reasons <br />of changes in the plans for a project if those changes are required by final engineering e <br />drawings and specifications". Final engineering of this project has required work that <br />increases the total cost of the project and therefore justifies Buffalo Mutual's loan <br />increase request. It will not be necessary therefore to go to the Legislature to authorize <br />expenditures of additional funds for this project. <br /> <br />The total amount requested from the CWCB would be $449,750 or up to 75% of <br />the actual project costs, whichever is less. Buffalo Mutual would pay for the remaining <br />costs with cash from the increased assessments collected for this project. The project <br />feasibility study has been revised and approved by staff showing that assessments should <br />be $16.14 per share per year to cover normal operating expenses and loan obligations. <br />The current 1999 share assessments are set at $16.50 per share, therefore, no increase in <br />assessments is anticipated due to this increased loan request. <br /> <br />Contract loan provisions for the increased costs would be at the established <br />interest rate of 3.75% for 30 years. The project collateral, a pledge of revenues from <br />Buffalo Mutual's assessments and a certificate of deposit in the amount of one armual <br />loan payment (to be increased accordingly), is adequate to cover the additional cost and <br />will therefore remain the same. <br /> <br />Representatives from Buffalo Mutual will be available at the Board Meeting to <br />answer questions and provide additional project details. tit <br />