C150149 approval letter - Laserfiche WebLink

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The main cost overruns associated with the project were the replacement of the Grass Valley 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. Removing the cost for future motor and pump replacement at 'the District's pump house decreased 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 $150,000. 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 $1,670,000. T'he District is requesting an increase of $485,103 to its current loan authorization of $1,029,897 to cover 90% of the total cost. The new total amended loan amount for the District would be $1,515,000 at its original interest rate of 2.5% for 30 years. The new annual payment will be $79,621, which includes the 10% reserve requirement. The District's current loan of $1,029,897 has an annual payment of $54,127. Financial Analysis A summary of the financial aspects of the project are presented below in Table 2. Table 2. Financial Summa Total Pro'ect Cost $1,670,000 CWCB Loan Amount (90% of Pro'ect Cost and 1% Service Fee) $1,515,000 CWCB Loan Payment (Includin 10% Reserve) $79,621 Number of Landowner Accounts 355 Annual Assessment er Account $150 Pro'ect Water Available 10,355 AF Current Pro'ect Water Assessment er AF $9.00 Future Pro'ect Water Assessment er 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 outstanding 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 outstanding 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.