C150365 Increase Approval Letter

• Contract/PO #: CT2015-006
• Contract/PO #: C150365
• Contractor Name: Santa Maria Reservoir Company
• Contract Type: Loan
• Loan Projects - Doc Type: Approval Letter

Santa Maria Reservoir Company Consent Agenda Item 4b
January 26-27,2015 Board Meeting(Updated January 28,2015)
Page 3 of 4
TABLE 2: PROJECT FUNDING SUMMARY
WSRA Grant (No change to grant amounts from original approval)
Rio Grande River Basin $51,000
Statewide $962,750
TOTAL $1,013,750
CWCB Construction Fund Loan $3,641,250
Borrower Contribution $985,000
Total Project Cost $5,640,000
The CWCB will continue to disburse funds at a rate of 75% loan to 25%grant of each invoice amount for
Project related expenses, up to the approved grant limit. Once all grant funds are spent, the CWCB will
disburse loan funds at 100%of each invoice until all loan funds are drawn. The remainder of the
Project costs will be paid by the Company.
Financial Analysis
TABLE 3: LOAN FINANCIAL SUMMARY
Original Approval Current Request
Total Project Cost $4,055,000 $5,640,000
Borrower Contribution $0 $985,000
WSRA Grant (Approved in September 2013) (No change) $1,013,750 $1,013,750
CWCB Loan Amount $3,041,250 $3,641,250
CWCB Loan Amount (including 1%Service Fee) $3,071,633 $3,677,663
CWCB Annual Loan Payment $132,480 $158,617
CWCB Annual Loan Obligation (including reserve account) $145,728 $174,478
Number of Shareholders 250 250
Number of Shares 5,400 5,400
Current Annual Assessment (per Share) $40 $70
Annual Cost per share for loan repayment $27 $32
Total Cost of Project per AF of Storage Recovered (12,000 AF) $338 $470
Creditworthiness:
The Company has an existing $1,405,163 CWCB loan that was approved in 2012 (contract number
C150350)with annual payments of$60,604 for the Conveyance System Project. The loan terms are 30
years at the agricultural interest rate of 1.75%. The Conveyance Systems Project construction was
completed in the fall of 2014 and substantial completion is anticipated in 2015. Additionally, the
Company paid off a $454,000 CWCB loan in 2003. The loan terms were 20 years at 5% per annum. The
Company deferred a payment in 1994 but ultimately paid off the loan early, making it a 13-year term.