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<br />lema DitCh and Lateral Company <br />September 11.12,2002 <br /> <br />Agenda ltem 12e <br /> <br />The selected alternative consists of the final phase of construction to install an 80 psi pressurized <br />pipeline per NRCS planning and design. The resulting systems will complete the upgrade of the <br />citch and lateral that has been in progress over the past two years. Having the system completed <br />will allow more efficient delivery of irrigation water to the shareholders as well as eliminate the open <br />ditch with its requisite problems, including leakage. seepage and flooding, as well as provide <br />needed salinity control, improved water quality and water conservation. Provision for future <br />installation of meters was also a consideration in selecting this alternative. <br /> <br />Total Project cost is estimated to be: <br /> <br />1. <br />2. <br /> <br />NRCS Planning and Design <br />Construction <br /> <br />TOTAL <br /> <br />$ 25.000 <br />253.041 <br />$ 278.041 <br /> <br />The implementation schedule calls for construction to begin in Fall 2002, when financing <br />arrangements are finalized, and when water is turned off in the ditch. NRCS planning and design <br />is completed. The project construction would be completed by the end of the year. <br /> <br />Financial Analvsis <br /> <br />The total estimated cost of the project is $278,041. LDLC water is used exclusively for agricultural <br />purposes and staff is recommending a loan in the maximum amount of $250,235 during <br />construction (approximately 90% of estimated total cost), reducing to $178,000 once the project is <br />complete. The recommended loan terms are 30 years at an interest rate of 2.75%. <br /> <br />Funding sources for the project are shown in Table 1: <br /> <br /> Table 1: Proiect Fundina Sources <br /> Construction Phase <br /> Fundinn Source I Grant I Loan <br />NRCS PJanninn and Desinn 525.000 <br />ewcs Loan $250.235 <br />Lama Ditch and Lateral Comnanv 52.806 <br />Total (5278.041\ I 527.806 I $250,235 <br /> Permanent Financina Phase <br />NRCS Planning and Design I $25.000 I <br />NRCS Construction Cost share I 575.041. <br />CWCS Loan I I 5178.000 <br />Total 15278.041) I $100.041 I $178.000 <br /> <br />When construction is complete. the Company will receive 575,041 in NRCS cost sharing. These <br />fundS will be usee to pay construction costs, and to reCuce the CWCS loan to S 178,000. <br /> <br />Alternative financing sources: The Company actively sought alternative financing with the NRCS. <br />NRCS has provided a grant for 525,000 for planning and design. and 575.041 for construction cost <br />share, <br /> <br />Page 3 of 6 <br />