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( "l The cost estimate prepared in the feasibility study has been significantly revised based on changed field conditions, revised project requirements by the State Engineer's Office, and difficulties in obtaining project easements. These constraints are documented in the attached January 12, 1999 transmittal from Woods Lake. e Based on the new site information and design requirements, subsequent design changes, and increased material costs, the revised project cost estimate follows: Estimated Construction Cost Design Engineering/Surveying Contingency Original $194,000 $ 36,000 $ 20.000 Revised $455,000 $ 55,000 $ 40.000 Total Estimated Project Costs $250,000 $550,000 Woods Lake has requested an increase to their loan in the arnount of $270,000 for a total loan arnount of $458,000, or 83% of the total project cost. DISCUSSION This project required a re-design from the original feasibility proposal due to .- unforeseen requirements associated with the State Engineer's Office, changed field ., conditions at the site, and failure to negotiate right-of-way with an adjacent property owner. The revised design has solved the associated construction problems, however resulted in an increased project cost. Paragraph (2), Section 1 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 ordinary fluctuations in construction costs as indicated by engineering cost indices applicable to the types of construction required for each project or as may be justified by reasons of changes in the plans for a project due to differing or unforeseen site conditions, ....., changes instituted by regulatory agencies or changes in material quantities". The unforeseen changes identified and the State Engineer's requirements have required work that increases the total estimated cost of the project and therefore justifies Woods Lake's loan increase request. It will not be necessary therefore to go to the Legislature to authorize expenditures of additional funds for this project. The total arnount requested from the CWCB would be $458,000 or up to 83% of the actual project costs, whichever is less. Woods Lake would pay for the remaining $92,000 of costs with cash that has been accumulating from the increased assessments collected for this project since 1996 and a short-term bridge loan from a local bank. The project feasibility study has been revised and approved by staff showing that year 2000 .- assessments should be $27.50 per share per year (up from the original study showing ., $13.75/share) to cover normal operating expenses and loan obligations. At the January