C150332 Approval Letter 3/23/12 - Laserfiche WebLink

Home Browse Search

Terrace Irrigation Company Agenda Item 16a March 9, 2012 (Updated March 23, 2012) Page 4 of 6 The Company has applied for a Section 404 general permit from the Corps of Engineers and is awaiting a response. It is anticipated that the permit will be granted and no additional permits will be required. Engineering design efforts for the spillway replacement were funded under Phase I of the ISF Project. The funding for this Project will be dedicated to construction related expenses for the demolition and replacement of the spillway. Table 1 provides a summary of estimated costs to complete the spillway replacement Project. TABLE 1: TOTAL PROTECT COST SUMMARY Task Cost Engineering (Construction Management) $350,000 Construction $3,750,000 Contingency $400,000 Total $4,500,000 Financial Analysis The Company qualifies for an interest rate of 1.75% based on the agricultural base rate of 2.75 %, for a 30 -year term, with a 1% restricted reservoir rate reduction in accordance with CWCB Financial Policy #7. In addition, the Company has requested $3,500,000 in grant funding between the WSRA and NRD accounts. Table 2 provides a financial summary of the loan request. TABLE 2: PROJECT FINANCIAL SUMMARY Total Project Cost $4,500,000 WSRA Rio Grande Basin $75,000 WSRA Statewide $1,425,000 Natural Resources Damages Settlement $2,000,000 CWCB Loan Amount (construction of Spillway Replacement Project ) $1,000,000 Existing Debt Balance $1,724,721 Consolidated CWCB Loan Amount (existing plus new ) $2,724,721 Consolidated CWCB Loan Amount with 1% service fee $2,751,968 Consolidated CWCB Annual Loan Payment $118,692 Consolidated CWCB Loan Obligation (including 10% debt reserve funding) $130,561 Current Annual Payment for Existing CWCB Loans $134,198 Number of Shareholders 24 Number of Shares 831.875 Current Assessment (per share $230 Future Assessment (per share $230 Cost of Project per AF $293 The sequencing of CWCB fund disbursement will be as follows: NRD funds shall be fully disbursed prior to disbursement of any loan or WSRA grant funds, or as otherwise required by the NRD policies; subsequent disbursements will then be issued at a prorated ratio for loan and WSRA grant funding, up to the approved limits.