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Table 1
<br /> Construction Items Nov. 2008 Est. Current Est.
<br /> 1. Engineering Design/Surveying $95,000 $188,106
<br /> 2. Construction Engineering $78,000 $84,500
<br /> 3. Construction $1,925,000 $2,189,530
<br /> 4. Pumps(Purchase only) $0 $174,550
<br /> 5. Power Supply $0 $128,811
<br /> 6. Easements $0 $13,250
<br /> 7. Construction Administration (Permits, $0 $128,595
<br /> Contracts,Fees,Project Management)
<br /> Sub-total: $2,098,000 $2,907,342
<br /> 8. Contingency $575,000(27%) $244,553 (8.5%)
<br /> Totals: $2,673,000 $3,151,895
<br /> The overall project is approximately$479,000 over budget. The cost overruns can be attributed
<br /> to higher than anticipated engineering and construction costs, unexpected pump costs, providing
<br /> the necessary power supply to the site, and construction administration fees. The original pump
<br /> station for the project was designed by Natural Resource Conservation Service (NRCS). URS's
<br /> design engineering services consisted of peer review of NRCS's design and suggested design
<br /> changes. Based on URS's review, it was determined that the pump size and configuration were
<br /> not adequate for the Company's needs. This resulted in a full redesign of the project. In
<br /> addition,providing 3-phase power to the site and legal fees for easement and contract
<br /> negotiations were not specifically accounted for in the original estimate.
<br /> The Company is requesting an increase of$434,100 to its current loan authorization of$2,430,060
<br /> to cover 90% of the total cost. The new total amended loan amount for the Company would be
<br /> $2,864,160 at its original interest rate of 3.45% for 30 years. The new annual payment will be
<br /> $170,229,which includes the 10%reserve requirement. The Company's current loan of$2,430,060
<br /> has an annual payment of$144,430.
<br /> Financial Analysis
<br /> A summary of the financial aspects of the project are presented below in Table 2.
<br /> Table 2. Financial Summary
<br /> Total Project Cost $3,151,895
<br /> CWCB Loan Amount (90%of Project Cost and 1% Service Fee) $2,864,160
<br /> CWCB Loan Payment $154,750
<br /> CWCB Loan Payment (Including 10% Reserve) $170,229
<br /> Number of Shares 5,500
<br /> Current Assessment per Share $19
<br /> New Assessment per Share $76
<br /> Special Assessment (10%Match Requirements) $23
<br /> Cost per AF (2,600 AF) to Access Dead Pool $1,212
<br /> 3
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