C150316 feas study

• Contract/PO #: C150316
• Contractor Name: Trinchera Irrigation Company
• Contract Type: Loan
• Water District: 35
• County: Costilla
• Loan Projects - Doc Type: Feasibility Study

• The TIC explored the option of obtaining funding for the repairs from a private source.
This option did not work out.
The TIC has worked with Ty Ryland, with The Blanca Ranch Holdings, LLC
(landowner) and Merritt Gardner with Gardner Excavating, Inc. to complete the most cost
effeetive workable plan for the project. This plaa allows for a slight change in the
location of the pipeline reducing the linear footage of the pipe and elimina.ting the need
far same of the custom and standard bends called for in the original plans. These
changes reduce the cost of the project by $114,000.00 for a total cost of $254,500.00. A
copy of the proposed changes can be found in Appendix C.
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Implementation Schedule � �y
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The TIC is planning on completing this project in March 2011. Gardner Excavating, Inc. �;��,� ��� �
sta.tes that the project will be completed in approximately three weeks. It is critical to ,� u� �� �
complete the project in the spring of 2011 to ensure the ability to deliver the available �
water to shareholders during the 2011 irrigation season.
Institutional Considerations
Entities that were, are, or may be, involved in the design, construction, and financing of
the project include:
• • The Trinchera Irr�gation Company: financing and project management
• Gardner Excavating, Inc.: general contractor
• Colorado Water Conservation Boazd: financing
• NRCS: Engineering and design
• Blanca Ranch Holdings, LLC
Financial Analysis
The Trinchera Irrigation Company is applying for a loan from the CWCB in the amount
of $229,050.00 to accommodate 90% of the estimated $254,500.00 cost of the project.
The TIC will cover any additional cost of the project through a previous sale of company
stock and future assessments.
The Trinchera Irrigation company is requestiag a 30-yeaz loan from the CWCB. The
current ownership of The TIC is 100% agricultural resulting in a lending rate of 2.75%.
At this rate the annual payrnents are projected to be $11,311.50 according to the Water
Project Loan Program Calculator. To fund the emergency reserve account $1,131.15
would be added to a savings account each year for the first 10 yeazs. The total annual cost
for the first 10 years would be $12,442.65. This payment would increase the assessment
per outstatiding share by $1.00.
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