BOARD02587

• Board Meeting Date: 11/16/2004
• Description: CF Section - New Loans - Beaver Reservoir Company - Beaver Reservoir Liner Protection and Valve Replacement Project
• Board Meetings - Doc Type: Memo

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Beaver Creek Reservoir Company

Agenda Item 14a

November 9 2004
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solution was cost efficient and would allows the work to be performed when the reservoir is empty
and completed before the winter weather hampers construction, allowing the reservoir to operate,
uninterrupted, in its intended manner of storing water for release during the irrigation season.

Total Project cost estimate is:

1.
2.

Planning/Permitting/Engineeri ng
Construction

$29,800
113,000
$142,800

TOTAL

The engineering design and construction-related services are provided by Golder Associates, Inc. of
Lakewood, Colorado. Construction is expected to begin in the Fall 2005.

Financial Analvsis

Table 1 shows a summary of the financial aspects of the Project for the current loan request. A
CWCS Loan of $128,500 would have an annual debt service obligation of $6,750 ($6,140 for annual
loan payment and $610 for the 10% reserve funding) for the loan terms of 2.5% for 30-years. The
total debt service obligation represents a cost of $4.17 per acre-foot for the Reservoir storage.

Table 1. Financial Summary of Project

Current Loan
Request
Total Proiect Cost $142,800
CWCS Loan 190% of Total Proiect Cost) $128,500
CWCS Annual Loan Payment $6,140
CWCS Loan ObliQation iincludinQ 10% debt reserve fundinQ) $6,750
Annual Assessment for Project Only (based on 1600 shares) $4.22/share
Annual Project Cost per acre-foot adjudicated (based on 1620AF) $4.17/ac-ft

Prior CWCS Loan History:
. November 1992 CWCS loan contract for $42,000 for feasibility study (0% for 30 years)
. October 1995 CWCS loan contract for $373,000 at 3% for 40 years ($343,000 project and
$30,000 existing FmHA loan)
. May 2000 CWCS loan contract amendment consolidating both loans totaling $415,000 (2,733%
for 40 years)
. November 2004 current balance on this loan is $370,573. This includes the latest loan payment
of $17,187 on October 27' 2004.

Combining the current loan request with the previous CWCS loan provides a total loan of $543,500
and an annual loan obligation (including 10% debt reserve funding) of $25,655. This equates to an
annual debt service cost of $15.84/acre-foot for this reservoir.

Creditworthiness: The Company is current will all payments to CWCS for the current loan, The
Company has no other debt. Repayment of the two loans will be accomplished by increasing share
assessments as necessary.