C150008 Contract - Laserfiche WebLink

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. . . ~ ,1..0 . . The estimated final cost is $219,925 higher than the engineer's estimate of $1 ,389,000 . A cost adjustment of this magnitude (about 16 percent) is somewhat more than might be expected for this type of project but is not excessive given the original construction, the site conditions and the availability of materials. The LCWUA is requesting an additional $200,000 on the existing $1,250,000 Construction Fund loan to assist in paying for the additional costs. This would result in an an;1ended loan amount of $1,450,000, which is about 90 percent ofth;: estimated final project cost. Section 1. (2) ofSB 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. " The recommended lending rate would be 3.75 percent for 30 years as approved by the Board in January of this year for the existing loan. Security for the loan will continue to consist of Carl Smith Reservoir and associated water rights as well as a pledge of revenues. Financial Analvsis In addition to an increase in the amount ofthe Construction Fund loan for the project, the LCWUA is intending to borrow $155,000 from a commercial bank for the settlement of lawsuits resulting from the failure of the dam. A revised financial analysis was prepared by Smith Geotechnical to reflect the financial impact of both the additional costs of construction as well as the $155,000 loan. That analysis indicates that the assessment for stored water will have to be increased from the current level of $15 per share to about $27 per share in 2000 and then to about $22 per share for several years thereafter. Recommendation , Staff recommends that the Board approve an increase of $200,000 in the Construction Fund loan to the Leroux Creek Water Users Association for the Carl Smith Dam rehabilitation project for a total amended loan amount of$I,450,000 at 3.75 percent for 30 years. Staff further recommends that the increase in the loan amount be contingent upon the adoption of a resolution by the shareholders of the Association approving the amended loan and increasing the per share assessment to a level adequate to pay all anticipated operation and maintenance expenses, debt.service on all loans and any required payments to reserve funds. Cc: Tom Alvey, LCWUA Duane Smith, Smith Geotech. Steve Cann, AGO Linda Bassi, AGO 3 oo\~ '1,,0 1;;' \,,>'0 ~ \. r ~\) f\vfJ ~\.,0 ~11 /j . ~ ~ \~ ~ ~lJ..'J.