Laserfiche WebLink
<br />Lorna Dolch and Lateral Company <br />September 11.12. 2002 <br /> <br />Agenda Item 12e <br /> <br />The LDLC operating policy is to maintain a cash reserve of about $3000. While this places the ratio <br />of Cash Reserves to Current Expense in the weak category. it is fair1y typical practice for ditch <br />companies not to carry large cash reserves from year to year. <br /> <br />As security for the loan the LWIC will pledge assessment revenues backed by an assessment rate <br />covenant and the project itself. This security is in compliance with cwes Loan Policy #5 <br />(Collateral). <br /> <br />Recommendation <br /> <br />Staff recommends a cwes Smarr Project Loan, not to exceed $250,235, to the Lorna Ditch and <br />Lateral Company from the Construction Fund for rehabilitation of the Lama Ditch and Lateral. The <br />recommended term of the loan is 30 years and the recommended lending rate is 2.75%. Security for <br />the loan will be a pledge of assessment revenues backed by assessment covenant and the project <br />itself. <br /> <br />Staff further recommends that final approval of the loan be conditioned upon all other standard <br />contracting provisions of the CWCS. <br /> <br />cc: Terry Retherford, President. Lama Ditch and Lateral Company <br />Jack Williams, Secretary-Treasurer, Lama Ditch and Lateral Company <br />Linda Bassi. AGO <br /> <br />Attachment <br /> <br />Action Taken bv the CWCS on September 12. 2002 <br /> <br />The ewcs approved the Staff Recommendation with the following condition: <br /> <br />In addition to the 30-year loan rate of 2.75%. and in accordance with CWCS POlicy #7. the <br />Lorna Ditch and Lateral Company shall be given the option of obtaining a 20-year interest <br />rate of 2.50% (a reduction of 1/4 of one percent). or a 10-year interest rate of 2.25% (a <br />reduction of Y2 of one percent). <br /> <br />Page 5 of 6 <br />