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Oligarchy Irrigation Company <br />October 18, 2013 (Updated October 21, 2013) <br />Page 4 of 5 <br />Agenda Item 8d <br />The Company is currently in the permitting process with the U.S. Army Corps of Engineers and <br />will begin to obtain a Boulder County grading permit if required. The estimated engineering and <br />construction cost of this Alternative is $1,250,000 and is further broken down as follows: <br />TABLE 3: PROJECT COST SUMMARY <br />Task <br />Cost <br />Design and Construction Engineering, <br />Geotechnical, Surveying and Testing <br />$130,000 <br />Permitting <br />$32,000 <br />Construction <br />$800,000 <br />Subtotal <br />$960,000 <br />Contingency (30 %) <br />$288,000 <br />Total <br />$1,250,000 <br />Collaboration: The borrower is encouraged to consider rebuilding a river diversion that enhances <br />the nonconsumptive uses of water within the river corridor. Examples include improved fish <br />passage and improved rafting/boating navigation. If needed, loan funds may be used for the <br />construction of a temporary diversion until such time that a multi - beneficial structure can be <br />designed and constructed. <br />Schedule: Construction of the Project is expected to commence December 2013 with Project <br />completion to occur by May 2014. <br />Financial Analysis <br />Table 4 provides a summary of the Project's financial aspects. The first three years of the loan will <br />be assessed a zero % interest rate. The remaining term of the loan will be assessed a blended <br />interest rate of 2.50% with the principal amortized over 27 -years (Ownership: 26% Agriculture, <br />72% Mid Municipal, 2% High Municipal). Staff is recommending an exemption to Financial Policy <br />#11 to allow for 100% funding of eligible Project costs. <br />TABLE 4: FINANCIAL SUMMARY <br />Total Project Cost <br />$1,250,000 <br />CWCB Loan Amount (100% of total Project cost) <br />$1,250,000 <br />CWCB Loan Amount (Including 1% Service Fee) <br />$1,262,500 <br />CWCB Annual Loan Payment <br />$64,863 <br />CWCB Loan Obligation Includin 10% Reserve) <br />$71,350 <br />Number of Shares <br />300 <br />Annual Cost Per Share for Loan <br />$238 <br />Current Assessment per Share <br />$100 <br />Future Assessment per Share <br />$290 <br />Creditworthiness: The Company has no existing debt. <br />