C150009 Feasibility Study

• Contract/PO #: C150009
• Contractor Name: Boulder & Left Hand Irrigation Company, The
• Contract Type: Loan
• Water District: 5
• County: Boulder
• Bill Number: SPL
• Loan Projects - Doc Type: Feasibility Study

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Boulder and Left Hand irrigation c.
November 22-23,1999.

Agenda Item 11 d.
(Updated Nov, 26, 1999)

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Table 1. Financial Summary

Project Cost , , $140,500
loan Amount (71 % of Project Cost) $100,000
CWCB loan Payment, including 10% loan Reserve , $7916
Number of Shareholders 50
Number of Shares ,of Stock , 136
Current Assessment per Share $160
Future Assessment per Share $178
Annual Project Cost per acre-foot $3,06
(Average annual diversions: 2,584 acre-feet)

Table 2. Financial Ratios

Financial Ratio Without the project With the project
Operating Ratio (revenue/expense) 89% ' (weak) 100% (average)
Debit Service Coverage Ratio No debt (strong) 110% (average)
(revenues-expenses)/debt service
Cash Reserves to Current Expense 77% (average) 16% (weak)
Annual Cost per Acre-Foot $6,31 (strong) $9,37 (stronq)

Recommendation
Staff recommends the Board find that delay in the rehabilitation of the outlet structure and spillway
on the Twin lakes Reservoir would cause undue hardship for the water users, qualifying the
Boulder and left Hand Irrigation Company for a loan from the Small Project loan Account.

Staff recommends that the existing ($50,000) Small Project loan to the Boulder and left Hand
Irrigation Company be revised to a loan not to exceed $100,000 forup to 75% of the costs to
construct a new outlet and spillway structure on Twin lakes Reservoir. The recommended
term of the loan is 20 years and the lending rate would be that rate approved by the CWCB for
Agricultural borrowers in 2000, Security for the loan will be assessment revenues backed by
assessment covenant, and facilities and/or other real property of value equal to the loan
amount. Staff further recommends that final approval of the loan be conditioned upon
acceptance of the project and the associated financial obligations by a vote of the shareholders
of the Boulder and left Hand Irrigation Company,

Action taken bv the CWCB Nov. 22. 1999
The,CWCB approved the Staff Recommendation, (Note: There is some confusion conceming
the current share assessment of the Boulder and Left Hand Irrigation Company, Regardless of
the statements in this memo, this loan must conform to all standard contracting provisions of
the CWCB, and share assessments must be set at a sufficient level to repay the loan, and to
fund the loan reserve and normal operation and maintenance expenses.)

cc: Henry Laber, President Boulder and Left Hand Irrigation Co,
Mike Ballantine, P,E.
Linda Bassi, AGO

Attachment

C:IWP51 IProj-NewlBoulderLeftHand1199memo and L:lboardmem\nov991 11 d-Nov99

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