CT2015-024 Increase Approval Letter

• Contract/PO #: CT2015-024
• Contract/PO #: C150368
• Contractor Name: North Poudre Irrigation Company
• Contract Type: Loan
• Water District: 3
• County: Larimer
• Loan Projects - Doc Type: Approval Letter

North Poudre Irrigation Company Agenda Item 24b
September 15-17,2015 Board Meeting(Updated September 18, 2015)
Page 3 of 4
on August 4, 2015. The Company analyzed the bids and selected the low-bidder of Naranjo Civil
Constructors.
Additionally, to keep the inlet ditch operational during the 2014 and 2015 irrigation seasons, the
Company replaced two ten-foot radial gates which were not included in the original CWCB loan
request. The updated Project costs are shown in Table 2.
TABLE 2: PROJECT COST SUMMARY
Task Cost
Design to Date
(Engineering, Geotechnical, Surveying, $103,000
Gate Fabrication)
Administration to Date $58,000
(FEMA Compliance)
Construction to Date
(Structure Stabilization, Radial Gate $39,000
Installation, FEMA Administration)
Remaining Construction $553,000
(Contractor's Bid)
Construction Engineering, Survey, $25,000
Inspection, Administration
Contingency (-15% Remaining Cost) $90,000
Total $868,000
FEMA: The FEMA Project Worksheet was completed on December 19, 2013. This worksheet estimated
project costs at $659,897 and provided for a 75% reimbursement as all damages were related to the
diversion dam and headgate structure. The Company has worked with FEMA to extend the construction
window and will be filing the required paperwork with FEMA to reflect any increase in costs that can be
covered by the grant.
Schedule: Construction is expected to be complete before the 2016 irrigation season.
Financial Analysis
Table 3 provides a summary of the Project's financial aspects. The original contract allowed for the
first three years of the loan to be assessed a 0% interest rate. In recognition of the extended time it
has taken for the Project site to be suitable for construction, the period of 0% interest will be extended
by two years for a total of five years. The remaining term of the loan will be assessed a blended
interest rate that will remain at 2.35%with the principal amortized over 27 years (Ownership: 37%
Agriculture, 1% Low Municipal, 57%Mid Municipal, 4% High Municipal, <1% Commercial). Staff is
recommending an exemption to Financial Policy#11 to allow for 100% funding of eligible Project costs.
TABLE 3: FINANCIAL SUMMARY
Total Project Cost $868,000
CWCB Loan Amount (100% of total Project cost) $868,000
CWCB Loan Amount (Including 1% Service Fee) $876,680
CWCB Annual Loan Payment $44,220
CWCB Loan Obligation (Including 10% Reserve) $48,642
Number of Shares 10,000
Annual Cost Per Share for Loan $4.86/share
Current Assessment per Share $120/share
Future Assessment per Share $133/share