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<br />~ <br /> <br />, <br /> <br />e <br /> <br />e <br /> <br />e <br /> <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 additional work due to <br />changes instituted by a regulatory agency not programmed in the original project cost estimate, has <br />required work that increases the total estimated cost of the project and therefore justifies the City of <br />Idaho Spring's requested $210,000 increased loan request. <br /> <br />FINANCIAL/COLLATERAL <br /> <br />The new loan amount for the City ofIdaho Springs will be $1,165,000, at a blended interest <br />rate in accordance with the 2001 interest rate schedule and the interest rate established with the <br />original project authorization. The cash flow analysis provided, based on the City's new annual <br />payment, indicates adequate funds in each year of the 30 year CWCB loan repayment. <br /> <br />The City ofIdaho Springs has a separate "Water Activity Enterprise", that receives revenues <br />from its water customers. The CWCB will take collateral interest in this stream of revenue, and will <br />have parity with all existing debts of the enterprise. Additionally, the CWCB will hold as security a <br />certificate of deposit in the amount of one annual payment. <br /> <br />CONCLUSION: <br /> <br />Based on our review of the original feasibility cost projections, the City's supporting <br />documentation of additional costs incurred to-date, inspection of the site, and overall fmancial <br />strength ofthe City, staff fmds the project continues to be economically, financially, and technically <br />sound. <br /> <br />STAFF RECOMMENDATIONS: <br /> <br />Staff recommends that the Board approve an increase of $210,000 to the City of Idaho <br />Springs 1997 Construction Fund authorization for the Idaho Springs Reservoir Rehabilitation <br />Project. The total Construction Fund loan for this project would amount to $1,165,000, not to <br />exceed 75% of the total project costs. Terms of the amended loan would be at a blended interest <br />rate in accordance with the 2001 interest rates and the interest rates at the time of the original project <br />authorization. Collateral for the loan will be the City of Idaho Springs pledge of revenues from its <br />"Water Activity Enterprise", and a certificate of deposit in the amount of one annual payment. <br /> <br />Staff further recommends that the following conditions be met prior to entering into a <br />contract for the additional loan increment of funding: <br /> <br />1. That the City of Idaho Spring's City Council adopt a resolution or resolutions approving <br />the loan, and pledge of revenues from the City "Water Activity Enterprise". <br />2. That the City of Idaho Springs provide CWCB with a certificate of deposit in the <br />amount of one annual payment. <br />3. Any collateral pledged for the loan shall be free of all liens and encumbrances. <br />4. The CWCB Construction Fund loan collateral shall have parity status with any existing <br />City debt. <br />5. The loan increase shall be contingent upon all standard contracting provisions of the <br />Colorado Water Conservation Board. <br />