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Inverness Water and Sanitation District Agenda Item 30b <br /> May 9,2014(Updated May 23,2014) <br /> Page 6 of 7 <br /> TABLE 3: LOAN CONTRACTING SUMMARY <br /> Earliest Time of CWCB Loan <br /> Contract Contract Performance Project Cost* Contract Amount Project Activity <br /> Date (w/o service fee) <br /> 1 7/1/2014 2 Years $ 2,030,000 $ 1,827,000 ECCV Pipeline Purchase <br /> 2 1/1/2015 4 Years $ 1,300,000 $ 1,170,000 Phase 1 Infrastructure <br /> 3 1/1/2015 8 Years $ 1,570,000 $ 1,413,000 Phase 2 Infrastructure <br /> 4 7/1/2014 8 Years $ 500,000 $ 450,000 DIA Connection <br /> Totals $ 5,400,000 $ 4,860,000 <br /> *Project Cost is defined as the District's participation cost in the overall WISE Project. <br /> Contracting: In anticipation of a multi-year and multi-phased project, CWCB will enter into multiple <br /> contracts, for increments of the approved loan limit. This will put the District into repayment on <br /> completed portions of the Project and allow CWCB to best utilize its loan funds. CWCB will enter into <br /> contracts for project activities no sooner than the dates shown in the above table. Given the potentially <br /> long Time of Performance of each contract, interest during construction will be required to be paid <br /> annually unless otherwise approved by CWCB. <br /> Loan Feasibility Study <br /> Black& Veatch prepared a Loan Feasibility on behalf of the WISE Authority dated October 23, 2013 <br /> and titled"Water Infrastructure and Supply Efficiency Project Loan Feasibility Study". This study was <br /> prepared in accordance with CWCB guidelines and includes an alternatives analysis, conceptual design <br /> descriptions, exhibits, cost estimates, and financial statements audited by Simmons and Wheeler, PC. <br /> Additional clarification and information was provided by Eric Hecox and Rick Marsicek, P.E. of South <br /> Metro Water Supply Authority(SMWSA). <br /> Financial Analysis <br /> The District qualifies for a high-income municipal interest rate of 2.75% for a 20-year term(reduced <br /> from a 3.00%rate per CWCB Loan Policy#7). The District will use cash reserves to fund its required <br /> match. Table 4 shows a summary of the financial aspects of the Project. <br /> TABLE 4: PROJECT FINANCIAL SUMMARY <br /> Total Project Cost $ 5,400,000 <br /> Borrower Match $ 540,000 <br /> CWCB Loan $ 4,860,000 <br /> CWCB Loan(Including 1% Service Fee) $ 4,908,600 <br /> CWCB Annual Loan Payment $ 322,356 <br /> CWCB Annual Loan Obligation(including 10%debt reserve funding) $ 354,592 <br /> Monthly Cost of Loan per SFE(2400 SFEs) $ 6.89 <br /> Cost per Acre-Foot of Subscnbed Deliveries(500 AF) $ 10,800 <br /> Creditworthiness: Per the District's 2012 financial statements,the District has $21,315,000 in <br /> outstanding debt. CWCB will disburse loan funds at a rate of up to 90% of Project Cost, up to the <br /> approved loan contract limit. The District's debt per assessed value is less than 10%. <br />