PROJ01764

• Contract/PO #: FS0039X
• Contractor Name: Goodhue Ditch and Reservoir Company
• Contract Type: Miscellaneous
• Water District: 0
• Loan Projects - Doc Type: Approval Letter

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Agenda Item 29n
November 4, 1994
Page two

STAFF RECOMMENDATION (as mailed to Board members)

1. That a construction fund 10an.in an amount of $19,000 be approved for the G~odhue
Ditch and Reservoir Company, for the replacement of the Marshall Flume, and

2. That the financing terms shall be 5.5% annual percentage rate, for a duration of 30
years, and

3. That loan approval shall be contingent upon the Company providing an engineering
cost estimate, and plans and specifications upon which the estimate is based, and

4. That loan approval shall be contingent upon staff evaluation of the Company's
financial condition and ability to pay, and upon all standard contracting provisions of the
CWCB.

ACTION TAKEN BY THE CWCB NOVEMBER 4. 1994:

The CWCB approved the staff recommendation, with the exception of the interest rate on
the loan. The Board decided to establish an interest rate based on the weighted average
of agricultural and municipal water delivered by the ditch. The following calculation was
performed by staff on 11/9/94:

Municipal Shares
Louisville (MHI $43,379)
Lafayette (MHI $34,182)
Superior Metro

900.957 Sh
1003.19 Sh
15 Sh

Total Municipal Shares
Total Agricultural. Shares
Total ditch shares

1919.147
2458.453
4377.6

The Municipal shares will carry an interest rate of 5.5% because the MHI (Median
Household Income) exceeds 110% of the State MHI of $30,140. The Agricultural shares
will carry an interest rate of 4.0%

The weighted average rate is 4.7% as follows:

(1919.147/4377.6) (5.5%) + (2458.453/4377.6) (4.0%) = 4.7%

Attachments
C:\wp51ljohn\29n.nov