23a

• Board Meeting Date: 9/17/2008
• Description: CF Section - New Project Loans - Ogilvy Augmentation Company - Well Augmentation Project
• Board Meetings - Doc Type: Memo

Ogilvy Augmentation Company Agenda Item 23a
September 9, 2008
Page 5 of 7
reservoir will add flexibility to the augmenta tion plan by allowing the Augmentation Company to
make controlled augmentation releases from lined storage during times when the accretions from
recharge are inadequate. The lined storage reserv oir will also enable the Augmentation Company to
capture any excess recharge accretion s that accrue to the river.
Selected Alternative: The Augmentation Company has chosen Alternative 3 which includes the
purchase of the required water ri ghts, the construction of the recharge reser voir, installation of
measurement structures and flow me ters, and the construction of the st orage reservoir. The cost of
this alternative is estim ated at approximately $1,112,000.
Work included in Alternative 2 is as follows:
1. Preliminary Engineering ($27,000)
2. Water Rights Purchase - 6.0 shares of GIC and associated fees ($388,000)
2. Purchase, install, and monitor meas uring control structures on the wells
operated by the Augmentation Company ($81,000)
3. Construct recharge f acility for augmentation water delivery ($80,000)
4. Construct a 50 acre-ft lined storage re servoir to store augmentation water for
winter release ($536,000)
The Augmentation Company intends to purchase th e water rights upon approval of the CWCB loan
and construct the recharge facility in the fa ll/winter of 2008. It will f ile for its permanent
augmentation plan in early 2009. Once that plan is approved, construction will begin on the storage
reservoir.
Financial Analysis
Table 2 shows a summary of the financial aspects of the loan request. The Augmentation Company
is made up of agricultural members; therefore, a 2.5% per annum interest rate was used for a 30
year term.
Table 3
Financial Summary
PROJECT/LOAN
Total Project Cost $1,112,000
CWCB Loan (90% of the Project cost) $1,000,800
CWCB Loan (Including 1% Service Fee) $1,010,808
Estimated CWCB Annual Loan Payment $48,300
Estimated CWCB Loan Obligation (inc luding 33% debt reserve funding) $64,400
s
t
Annual Cost Per Well for Project (1 three years) $3,788
Annual Cost of Loan per AF (based on 60 AF) $805
GIC Annual Assessment ($250/share) $1,500
GIC Annual assessment per OAC Well $88