25d

• Board Meeting Date: 11/19/2008
• Description: CF Section - Changes to Existing Loans - Silt Water Conservancy Dist. - Rehabilitation of System Infrastructure
• Board Meetings - Doc Type: Memo

The main cost overruns associated with the project w ere the re place ment of the Grass Valle y Siphon
and the projected future cost for the seepage control project at Harvey Gap Reservoir. The siphon
replacement increased the project cost by approximately $ 775,000, including design and
construction contingencies. Removin g the cost for future motor and pump replacement at the
the overall project cost by $387,910, while adjusting the future
seepage control project at Harvey Gap Reservoir increased the overall project cost by approximately
$15 0,000. Therefore, given the cost adjustment described above, and the increased cost for
engineering, inspection, and construction contingencies, the overall project has increased by
approximately $540,000, for a total adjusted system project cost of $1,67 0,000.

The District is requestin g an increase of $485,103 to its cu rre nt loan authorization of $1,029,897 to
cover 90% of the total cost . The new total amended loan amount for the District w ould be
$ 1,515 ,000 at its original interest rate of 2.5% for 3 0 years. The new annual payment will be
$ 79,621 , which includes the 10% reserve requirement. The District current loan of $ 1,029,897
has an annual pay ment of $ 54,127 .

Financial Analysis

A summary of the fi nancial aspects of the project are presented below in Table 2.

Table 2 . Financial Summary
Total Project Cost $ 1,670,000
CWCB Loan Amount (90% of Project Cost and 1% Service Fee ) $ 1,515 ,000
CWCB Loan Payment (Including 10% Reserve) $ 79,621
Number of Landowner Accounts 3 5 5
Annual Assessment pe r Account $150
Project Water Available 10,355 AF
Current Project Water Assessment per AF $ 9.00
Future Project Water Assessment per AF $ 11.00
Annual Cost of Loan per acre - foot Project Water 10,355AF $7.69

Creditworthiness :

The District has a 1963 repayment contract with the US Bureau of Reclamation with an annual
payment of $19,200, and an outs tanding loan balance of $249,600 . The District also has two
existing CWCB loans. The first was approved in January 2000, for improvements to its
diversion on the Colorado River, with an annual payment of $5,725 and an ou tstanding loan
balance of $83,570.95 . The second CWCB loan for $486,000 was approved in March of 2003
for power upgrades to its pumping plant. The District , however, has requested that this loan be
de - authorized at the CWCB November 2008 Board Meeting. Payments on all the District s
loans have been made as agreed and the loans are current.

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