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<br />STATE OF COLORADO
<br />
<br />Colorado Water Conservation Board
<br />Department of Natural Resources
<br />1313 Shennan Street, Room 721
<br />Denver, Colorado 80203
<br />Phone: (303) 866.3441
<br />FAX: (303) 866-4474
<br />
<br />Q
<br />
<br />Memorandum
<br />
<br />Bill Owens
<br />Governor
<br />
<br />TO:
<br />
<br />Colorado Water Conservation Board Members
<br />
<br />Greg E. Walcher
<br />Executive Director
<br />Dan McAuliffe
<br />CWCB Director
<br />(Acting)
<br />
<br />FROM: Tim Feehan, P.E., Project Manager
<br />Mike Serlet, P.E., Chief, Water Supply Planning and Finance Section
<br />
<br />DATE: July 13, 2001
<br />
<br />SUBJECT: Agenda Item No. 9a, July 23-24,2001, Board Meeting
<br />W atel" Supply, Planning and FinanGe- Changes to Existing Loans
<br />Consolidated Mutual Water Company
<br />Fortune Reservoir Construction Project
<br />
<br />INTRODUCTION
<br />
<br />The Consolidated Mutual Water Company of Lakewood, Colorado, is requesting an
<br />increase of $4,333,000 to the Company's 2000 authorization of $16,300,000 for the Fortune
<br />Reservoir Project. The requested loan increase is due to cost overruns incurred during
<br />construction and additional work that has been incorporated into the overall project.
<br />
<br />BACKGROUND
<br />
<br />At the January 1999 board meeting, the Colorado Water Conservation Board approved a
<br />loan to the Consolidated Mutual Water Company in the amount of $10,000,000, from the
<br />Construction Loan Fund. The loan was subsequently authorized by the legislature in SB 99c173.
<br />The loan amount was for the construction of a new 9,000 acre-feet earth embankment reservoir,
<br />with a 5,000-foot crest length and a dam height of 105 feet. The terms of the loan were not to
<br />exceed 50% of the total estimated project cost of $20,000,000, at an interest rate of 4.75% for 10-
<br />years.
<br />
<br />At the January 2000 board meeting, the Colorado Water Conservation Board approved an
<br />increase of $6,300,000 to Consolidated Mutual Water Company's 1999 authorization of
<br />$10,000,000, resulting in a total authorization of $16,300,000 from the Construction Loan Fund.
<br />The $6,300,000 loan increase was derived by increasing the maximum total project loan cost share
<br />from 50% to 75%, using a revised estimated total project cost of$21,747,852, as summarized in the
<br />completed feasibility report prepared by BBC Research and Consulting of Denver, Colorado. The
<br />lending rate for the $6,300,000 is at 5.00% for 10-years. The overall rate ofretum on the total loan
<br />amount of$16,300,000 is 4.85% for 10-years.
<br />
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