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<br />Four Seasons Trout Farm <br />March 21.22. 2002 <br /> <br />Agenda Item 11 <br />(Updated March 22, 2002) <br /> <br />Selected Alternative 3 consists of replacing all earth fish rearing units with 5 concrete <br />raceways that can be cleaned. The raceways segments are 8 feet wide and 60 feet long, with a <br />total length of 300 feet. The raceways are constructed of 8-inch thick walls and floors of steel <br />reinforced concrete. The raceways are in series, but can be isolated from each other and <br />independently supplied with water. The raceway surfaces are smooth concrete that is easy to <br />clean and which provides poor habitat for the whirling disease alternate host, T. tubifex. Surface <br />drainage is directed away from the raceways. <br /> <br />Source water protection consists of replacement of about 1,000 feet of existing pipe with 8" <br />schedule 40 PVC along with the necessary valves to provide full control. Predator control <br />consists of constructing a 16-foot wide by 8-foot tall steel roofed structure over the new <br />raceways. Wire mesh (2" by 4" openings) will be installed on the sides and ends of the structure <br />to keep birds and other predators out. <br /> <br />The implementation schedule calls for completion of financing arrangements and final <br />engineering design in spring 2002. Construction will start in late spring 2002 and be completed <br />by fall 2002. The FSTF has arranged for construction financing from the local bank, if needed, <br />until the CWCS loan becomes available in summer 2002. <br /> <br />Financial Analvsis <br />The total estimated cost of the project is $ 97,945, and the water is used by a commercial fish <br />hatchery to produce trout that are sold on the open market. HB 91-1270 defines this type of <br />,commercial operation as "Aquaculture" and further states that "... aquaculture shall be <br />considered an agricultural enterprise.." Staff is recommending that CWCB agricultural rates be <br />applied tdloans for rehabilitation of commercial fish hatcheries. Further, because of the great <br />importance of proper management in maintaining the facility free of whirling disease, staff is <br />also recommending that this loan not exceed 10 years in duration. Staff is recommending a 10- <br />year loan at 2.25%, in maximum amount of $85,500 (90% of estimated total project cost, <br />excluding engineering.) Staff is recommending a CWCS grant of up to $1,435 to pay for half <br />the cost of the engineering necessary to complete the feasibility study. <br /> <br />Alternative financing sources: The FSTF actively sought alternative financing and was able <br />to obtain a 6-month renewable loan from the Surface Creek Sank for construction financing, if <br />needed. This loan would have a balloon payment and does not provide a permanent financing <br />solution. <br /> <br />Table 2 is a summary of the financial aspects of the project. A CWCS loan of $85,500 would <br />have an annual payment of $10,607 (including the 10% reserve requirement) at the loan terms <br />of 2.25% for 10 years. <br /> <br />a e man cIa ummary <br />Proiect Cost $97,945 <br />Number of Owners 1 <br />Number of Shares of Stock N/A <br />CWCS Loan Amount $85,500 <br />CWCB Loan Payment (includes 10% reserve) $10,607 <br /> <br />T bl 2 F' . I S <br /> <br />Credit worthiness: Last year the FSTF made the final payment 10 West Star Bank on the <br />mortgage to purchase the hatchery property. The annual payment on that loan was <br />approximately $10,000 and payments were made as agreed. Table 3 shows the Financial <br />Ratios for the FSTF and indicates one ratio each in the strong, average, and weak categories <br />with the project in place. The ratio concerning acre-feet diverted does not apply since the use is <br />non consumptive. <br /> <br />3 <br />