CT2015-1597 Increase Approval Letter

• Contract/PO #: CT2015-1597
• Contractor Name: Oligarchy Irrigation Company
• Contract Type: Loan
• Loan Projects - Doc Type: Approval Letter

Oligarchy Irrigation Company Consent Agenda Item 5a
May 18-19 Board Meeting(Updated May 20, 2016)
Page 3 of 4
TABLE 2: UPDATED COST ESTIMATE
Task Original Estimate Updated Cost
$106,700
Design Engineering $105,000 (final cost)
Permitting $15,000 $14,600
(final cost)
Construction Engineering $75,000 $75,000
(budgeted)
Construction $522,000 $682,300
(bid amount)
Subtotal $717,000 $878,600
$143,000 $113,600
Contingency (15%of construction
(20%of subtotal) eng. and construction)
TOTAL $860,000 $992,200
Schedule: Final design is completed and has been accepted by the SEO for construction. Construction is
scheduled to begin summer 2016 and be completed by fall 2016.
Financial Analysis
Table 3 provides a summary of the Project's financial aspects. The Company's blended interest rate of
2.40% for a 30-year term (Ownership: 25% Agricultural, 75% Mid Municipal) will remain as per the terms
of the original contract. In response to the financial needs of this Project and the Company's
emergency flood project in 2013, share assessments were doubled from $105/share to $210/share. The
Company successfully collected the higher share assessments in 2014 and 2015.
TABLE 3: FINANCIAL SUMMARY
Original Approval Current Request
Total Project Cost $860,000 $992,200
Borrower Match (10% of total Project costs) $86,000 $99,200
CWCB Loan Amount $774,000 $893,000
CWCB Loan Amount (Including 1% Service Fee) $781,740 $901,930
CWCB Annual Loan Payment $36,853 $42,520
CWCB Loan Obligation (1st Ten Years) _ $40,539 $46,772
Number of Shares _ 300 300
Annual Loan Obligation Per Share $135 $156
Current Assessment per Share _ $210 $210
Future Assessment per Share _ $218 $240
Cost of Project per AF of stored water (1,737 AF) $495 $571
Creditworthiness: The Company has $488,942 in existing debt made up of a CWCB emergency loan
used to finance the repair of damage to its headgate structure sustained in the September 2013 flood.
That project was successfully completed and only required $1,073,069 of the approved $1,262,500.
Additionally the Company has already paid down that principal by $584,127 using FEMA reimbursements
they received for the emergency project. The emergency loan is in good standing and its first annual
payment is due on December 1, 2017