CT2017-3641 Approval Letter

• Contract/PO #: CT2017-3641
• Contractor Name: North Poudre Irrigation Company
• Contract Type: Loan
• Loan Projects - Doc Type: Approval Letter

North Poudre Irrigation Company Agenda Item 28a
March 22-23, 2017 Board Meeting(Updated March 23, 2017)
Page 4 of 6
placement of a mud mat, installation of 130 lineal feet of concrete-encased steel pipe,
construction of a new outlet structure, and installation of a cutoff trench and sand collar, all at
an increased cost of approximately $80,000. A camera inspection of the outlet conduit revealed
no structural deficiencies in the conduit downstream of the repair area and there have been no
operational issues with outlet structure; thus, the CIPP alternative was selected.
TABLE 2: ESTIMATED PROJECT COSTS
Task Cost
Design $89,110
Construction $356,400
Contingency (10%) $49,490
Total $495,000
Permitting: The Company has full access to the project area under existing easements. No
permits or additional easements are required to complete the project.
Schedule: A final design will be developed, followed by a standard bid process. Construction is planned
for fall of 2017, with completion targeted prior to the spring 2018 irrigation season.
Financial Analysis
Table 3 provides a summary of the Project's financial aspects. The term of the loan will be 30 years with
a blended interest rate of 2.50%, reflecting the Company's share ownership distributed amongst 26%
agriculture, 73% municipal middle income, and 1% commercial interests.
TABLE 3: FINANCIAL SUMMARY
Total Project Cost $ 495,000
CWCB Loan Amount (100%) $ 495,000
CWCB Loan Amount (Including 1% Service Fee) $ 499,950
CWCB Annual Loan Payment $ 23,886
CWCB Annual Loan Obligation (including reserve requirement) $ 26,275
Annual Loan Obligation per share (10,000 Shares) $ 2.63
Current Assessment per share $ 210
Future Assessment per share $ 210
Project cost per acre-foot deliveries (600 acre-feet) $ 833
Project cost per AF recovered (264 AF) $ 1,894