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Farmers Pawnee Canal Company Agenda Item 34a May 9,2014(Updated May 23,2014) Page 3 of 4 Selected Alternative No. 3—Reconstruction of the diversion dam with a bladder gate and concrete weir: This alternative was similar to alternative no. 2 but included replacing a section of the weir with a bladder gate. The estimated cost of this alternative was $2,947,000. This alternative was selected because it was considered to be the most reliable and safest way to divert water and provides a means to flush accumulated sediment. The selected alternative consists of the construction of a 118-foot section of concrete weir and a 100-foot section of a 7-foot high pneumatically actuated bladder gate. This combination weir structure will be installed on a new concrete slab in the riverbed. The canal headgate will be replaced with a new concrete structure and 30-foot section of a 5-foot high bladder gate. Schedule: Final design is scheduled for completion by the end of July 2014. Construction will follow during the fall of 2014 through the winter of 2014/15. TABLE 1: PROJECT COST Construction $ 1,706,000 Planning, Design, and Legal $85,250 Project Management and Administration $85,250 Contingency $ 170,500 TOTAL $ 2,047,000 Financial Analysis The Company shares are held by a mix of 98% agricultural and 2% low-income municipal owners. Blending these under the current interest rates, the Company qualifies for a 1.75% loan for a 30- year term. Staff is recommending an exemption to Financial Policy#11 to allow for 100%funding of eligible Project costs because the Company is an existing borrower and its structure was affected by the September 2013 flood. TABLE 2: FINANCIAL SUMMARY Total Project Cost $2,047,000 CWCB Loan Amount(Including 1% Service Fee) $2,067,470 Annual CWCB Loan Payment $89,169 Annual CWCB Loan Obligation(Including 10%Reserve) $98,086 Current Assessment per share $275 Cost of Loan (with Reserve Account) per share (500 Shares) $196 Creditworthiness: The Company's share assessment history is: $225/share in 2011, $235/share in 2012, and $275/share in 2013. The Company will have to increase assessments in order to cover this Project debt service. The Company has a credit history with the CWCB, always making its payments on time. It had a loan to repair the diversion structure and headgate after flood damage in 1997. The loan was paid in full in October 2008. It currently has another loan with the CWCB for control structures along its ditch.