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Oligarchy Irrigation Company Agenda Item 11a <br /> July 15-16,2015 Board Meeting(Updated July 17, 2015) <br /> Page 4 of 5 <br /> within the dam embankment. A sand filter will be constructed to allow a path for water to drain from <br /> the dam embankment, which will be reconstructed with a 3:1 (horizontal to vertical) upstream slope <br /> and match existing downstream slope. This alternative solves both the SEO concerns with the outlet <br /> works, by having a gate in a structure upstream of the dam, and allows inspection of the outlet works <br /> pipe without draining the whole reservoir. It also provides new pipe to replace the 70+ year old outlet <br /> pipe of unknown condition. Costs for this alternative are shown in the following table. <br /> TABLE 2: ESTIMATED PROJECT COST <br /> Task Cost <br /> Design Engineering $105,000 <br /> Construction Engineering $75,000 <br /> Construction $522,000 <br /> Permitting $15,000 <br /> Subtotal $717,000 <br /> Contingency @ 20% $143,000 <br /> Total $860,000 <br /> Schedule: The design engineer is expected to complete plans, technical specifications and a design <br /> report for review by the SEO by spring of 2015. Construction will begin after the irrigation season in fall <br /> 2015 with completion targeted before the start of the 2016 irrigation season. <br /> Financial Analysis <br /> The Company shares are held by 25.4%agricultural use owners and 74.6% middle income municipal use <br /> owners. Blending this mix of users under the current interest rates, the Company qualifies for a 2.40% <br /> interest rate for a 30-year term. <br /> TABLE 3: FINANCIAL SUMMARY <br /> Total Project Cost $ 860,000 <br /> Borrower Match $ 86,000 <br /> CWCB Loan $ 774,000 <br /> CWCB Loan (Including 1% Service Fee) $ 781,740 <br /> CWCB Annual Loan Payment $ 36,853.48 <br /> CWCB Annual Loan Obligation (incl. 10%debt reserve funding) $ 40,539 <br /> Current Annual Assessment per Share $ 200 <br /> Annual Loan Obligation per share ( 300 Shares) $ 139 <br /> Cost of Project per AF of stored water (1,737 AF) $ 495 <br /> Creditworthiness: <br /> The Company's maintenance costs are paid by the Union Reservoir Company and by the City of <br /> Longmont, and did not start shareholder assessments until 2010 to build up reserves for future <br /> maintenance projects. The Company's current assessments of $200 per share are expected to be <br /> increased by $75 per share to cover the debt service for the Project loan, and debt service for the prior <br /> emergency loan. <br />