15a

• Board Meeting Date: 7/11/2007
• Description: CF Section- New Project Loans - Henrylyn Irrigation District - Horse Creek Reservoir and Prospect Reservoir Rehabilitation
• Board Meetings - Doc Type: Memo

Henrylyn Irrigation District
July 11-12, 2007

Agenda Item 15a

1. Repair outlet conduit by lining the existing steel pipe.
2. Patch & repair the inlet and outlet structures.
3, Install approximately 1800 lineal feet of toe drains for seepage control.
4. Install a Parshall flume in the outlet canal below the dam.
5. Re-grade and road base the dam crest.

Total Project Estimate:
1. Construction
2. Contingency (20%)
3, Engineering/Surveying (20%)
TOTAL

$1,558,000
312,000
312,000
$2,182,000

Prospect Reservoir

Construction:
1. Repair outlet conduit by lining the existing concrete pipe.
2. Patch & repair the inlet and outlet structures.
3, Re-grade and road base the dam crest.

Total Project Cost Estimate:
1. Construction
2, Contingency (25%)
3. Engineering/Surveying (25%)
TOTAL

$ 147,000
37,000
37,000
$221,000

Schedule - If the loan is approved by the CWCS, design for Prospect Dam would start in August
2007, with submittal to the State Engineer's Office (SED) in October 2007. Construction would start
in March 2008 and be completed by May 2008. Design for Horse Creek Dam would start in July
2008, with submittal to the SEO in December 2008. Construction would start in September 2008
and be completed by March 2009.

Financial Analvsis

The total estimated cost of the project is $2,403,000. HID qualifies for the agricultural interest rate,
and staff is recommending a maximum loan amount of $2,162,700 (90% of the estimated project
cost) for 30 years at an interest rate of 2.25%. HID will pay the 10% local share ($240,300) of the
project cost from existing reserves.

Table 1 is a summary of the financial aspects of the project. A CWCS Loan of $2,162,700 would
have an annual payment of $99,915 (not including the standard 10% reserve requirement) at the
loan terms of 2,25% for 30 years, HID will establish and maintain a loan reserve fund of $99,915
for the loan from their existing reserves. The CWCS loan would be repaid from increases in the
assessment levy, as necessary, from $18.00 per acre to a minimum of $21.00 per acre. The
annual loan cost to HID for the project will be $7.21 per acre-foot based on the annual delivery of
13,850 acre-feet from the two reservoirs,

Project Cost $2,403,000
Number of Irrigators (HID) 350
Number of Acres Assessed (HID) 32,745
CWCS Loan Amount $2,162,700
CWCS Loan Payment (does not include a 10% reserve) $99,915

Table 1. Financial Summary

Page 4 of 6