C150087 Contract - Laserfiche WebLink

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a project due to d�erzng or unforeseen site conditions, errors, or omissions in the plans and ti specifications, changes instituted by regulafory agencies, or changes in material quantities beyond • contract limits ". Unforeseen site conditions, design modifications, and additional work not programmed in the original cost estimate of the project, has required work that increases the total estimated cost of the project and therefore justifies Cedar Mesa Ditch and Reservoir Company's requested $50,000 increased loan request. FINANCIAL/COLLATERAL The amended loan amount for the Cedaz Mesa Ditch and Reservoir Company will be $150,000, at an interest rate of 2.75 % for 30-years. Their new annual payment will be $7,407.66. The Companys current loan of $100,000 has an annual payment of $4,938.44. The Company's current annual assessment of $25 per shaze will need to be increased to $40 per shaze to cover the increased debt. As security for the loan the Cedaz Mesa Ditch and Reservoir Company will pledge revenues backed by assessment covenant and the project itself. The Cedaz Mesa Ditch and Reservoir Company owns Cedaz Mesa Reservoir. The reservoir lies on Forest Service property with use granted under the 1891 Department of Interior Act. This security is in compliance with Colorado Water Conservation Board Policy No.S (Collateral). CONCLUSION: Based on our review of the original feasibility cost projections, the supporting � documentation pmvided by the Cedaz Mesa Ditch and Reservoir Company of addirional cost occurred to-date, inspection of the site, and overall financial strength o£ the Company, staff finds the requested loan increase of $50,000 to be economically, financially, and technically sound. STAFF RECOMI��NDATIONS: Staff recommends that the Boazd approve an increase of $50,000 from the Construction Fund for the Cedar Mesa Reservoir Project for the Cedar Mesa Ditch and Reservoir Company. The additional $50,000 increment of funding would be for 30-yeazs at a lending rate of 2.75%: The total funding levei for this project would amount to $150,000, or 76% of the total project costs. As coilaterai ior ihe ioan, the �edaz ivlesa Ditcn and Reservoir �ompany piedges assessmeni revenues backed by an assessment covenant and the project itself. Staff fufther recommends that the following conditions be met prior to entering into a contract for the additional loan increment of funding: 1. That the Cedaz Mesa Ditch and Reservoir Company increase their annual assessments from $25 per shaze to $40 per share starting in 2003. 2. Any collateral pledged for the loan shall be free of all liens and encumbrances. The CWCB Construction Fund loan shall have parity status with any existing debt or . the Company with respect to a pledge of revenues. 4. The loan increase shall be wntingent upon all standazd contracting provisions of the Colorado Water Conservation Boazd.