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<br />~, ~ <br />~ ~ <br /> <br />. <br /> <br />. <br /> <br />required work that increases the total estimated cost of the project and therefore justifies , <br />Left Hand's loan increase request. It will not be necessary therefore to go to the . <br />Legislature to authorize expenditures of additional funds for this project. <br /> <br />The total amount requested from the CWCB would be $560,000 or up to 75% of <br />the actual project costs, whichever is less, Left Hand would pay for the remaining <br />$187,000 of costs with cash which has been accumulating from the increased assessments <br />collected for this project since 1995, The project feasibility study has been revised and <br />approved by staff showing that assessments should be $9.31 per share per year to cover <br />nonnal operating expenses and loan obligations, At the 1997 annual stockholders <br />meeting the share assessments were set at $10.00 per share, therefore, no increase in <br />assessments is anticipated due to this increased loan request. . <br /> <br />Contract loan provisions for the increased costs would be at the established <br />interest rates of 4% for agricultural loans and 5% for municipal loans, The same blended <br />interest rate of 4.375% for 30 years would be used for the revised loan:, The value of the <br />vi project collateral, the Left Hand Valley Dam and Reservoir, is adequate to cover the <br />R, '7 additional project cost and will therefore remain the same, <br /> <br />aC;j.4,~ ,,fl. 7 Representatives from both Left Hand and Rocky Mountain Consultants, Inc., the <br />X ~ P t7 ~. project design consultant, will be available at the Board Meeting to answer questions and / 0 <br />r~ I provide additional project design and construction details. -;1c. ja/ld "i!jk./,,,eIC1..,,,,,-{). <br /> <br />~~ k //(Je-u.. -1.,"/,) <br />PlI,... <br />~,jt <br />---- <br /> <br />STAFF RECOMMENDATIONS <br /> <br />Staff recommends that: <br /> <br />The Board approve a loan increase to the Left Hand Ditch Company's original <br />1995 loan in the amount of$190,000 for a total loan amount of$560,000 under <br />the following conditions: <br /> <br />L Tenns of the additional loan amount would be at the original blended <br />1995 agricultural and municipal interest rates, or 4.375% for 30 years. <br /> <br />2. The loan increase shall be contingent upon all standard contracting <br />provisions of the CWCB, <br />