BOARD02439

• Board Meeting Date: 5/11/1998
• Description: CF Section - Changes in Existing Loans - Hawkeye Lateral Ditch Company - Hawkeye Lateral Ditch Rehabilitation
• Board Meetings - Doc Type: Memo

DISCUSSION

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An adjustment in final quantities relative to the bid quantities is typical in every
project bid on a unit cost basis. This approximate 2% adjustment in final quantities is
well within the generally accepted limits on projects of this size.

The NRCS Salinity Control Program is financing approximately 70% of the
project; however, it has not been determined if their project contract can cover any of the
increased project costs. The cost increase request is well within the 75% limitations of
the CWCB loan contract.

This project adjustment is not a change in the design plan however it does require
a "Change Order" to the original construction contract. Section 1. (2) of SB 97-008
allows that loans made by the Colorado Water Conservation Board may be increased or
decreased as may be justified by "reason of changes in the plans for a project due to
changes in material quantities beyond contract limits". Final construction of this project
requires work that increases the total cost of the project due to increased material
quantities and therefore justifies the HLDC's loan increase request.

All loan contract provisions would remain the same, including collateral, the 75%
total project cost limitation, the project schedule, and original terms of the loan. The
value of the existing collateral (a CD in the amount of one annual payment) will be _.'
increased sufficiently to cover the additional loan amount. .

STAFF RECOMMENDATION

Staff recommends that:

1. The Board approve a loan increase to the Hawkeye Lateral Ditch
Company's original 1997 loan, with no change in the project scope, in
the amount $11,112.75 for a total loan amount of$154,112.75.
2. The loan increase shaH be contingent upon all standard-contracting
provisions of the CWCB.

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