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Boone Excavating's bid proposal, dated August 3, 2000, to construct the items identified above was $276,870.00. The cost of the Obermeyer pneumatic gates delivered to the site was .... $109,557, for a total project cost of386,427.00. Given the relatively minor difference in cost from the engineer's estimate to the bid proposal (5%), the Contractor was given a notice to proceed by the Ditch Company. It was the intent of the Ditch Company to cover the 5% project cost overrun internally, without requesting additional funds from the Colorado Water Conservation Board. DISCUSSION During the course of construction it became evident, due to actual site conditions encountered, that a number of design changes needed to be implemented to ensure the overall integrity of the structure would remain during future flood events. Additionally, a few required construction items were not included in the original engineer's estimate. These various items included additional river grading to establish an efficient flow path around the new diversion structure, rip rap placement along the south overbank to minimize erosion, repair of the existing radial gates, and an electrical service to the new gate control house. The total cost of the additional construction items as described above was $46,845, making the final total cost of the project $433,272. Paragraph (2) of Section I of HB 00-1419 allows that loans made by the Colorado Water Conservation Board may be increased or decreased as may be justified by "reasons of ordinary fluctuations in constmction costs as indicated by the engineering cost indices applicable to the types of constmction required for each project or as may be justified by reason of changes in the plans for . a project due to differing or unforeseen site conditions, errors, or omissions in the plans and specifications, changes instituted by regulatory agencies, or changes in material quantities beyond contract limits ". Unforeseen site conditions and design modifications of the project has required work that increases the total estimated cost of the project and therefore justifies the Jackson Lake and Reservoir Company's increased loan request. The additional amount requested by the Jackson Lake and Reservoir Company from the Colorado Water Conservation Board would be $53,100 for a new total loan amount of $389,700 or up to 90% of the actual project costs, whichever is less. The Jackson Lake and Reservoir Company would pay the remaining $43,572 of cost with cash which has been accumulating from the increased assessments collected for this project since 1999. The project feasibility study has been revised and approved by staff showing the annual assessments should be $14.40 per share to cover the normal operating expenses and loan obligations. The Contract loan provisions for the increased costs would be at the established rate of 4.0% for agricultural loans for 30-years. The certificate of deposit account established by the borrower will be amended to cover the adjusted one annual loan payment. The property held as collateral is adequate to cover the additional project cost and therefore will remain the same. A representative from the Jackson Lake and Reservoir Company will be available at the Board Meeting to answer questions and provide additional project design and construction details. .